Dealer markup % on old equipment??

Anonymous-0 · Sep 24, 2009

Hey folks,
Going to a local dealer to look at 3 balers. Trying to get a general idea of what the markup is for haggling purposes. I'm across the pond but the business practices are pretty much the same. Talking about 30+ year old equipment.

Dave

rustyfarmall · Sep 24, 2009

Kinda like asking how high is up?

Anonymous-0 · Sep 24, 2009

Guess so.. Just thinking maybe there is a rule of thumb....

Dave

TxFarmallFan · Sep 24, 2009

Doubt it, maybe they go buy a book value, or maybe they just stick a price on it and hope some sucker comes along and pays it.

MF#1 · Sep 24, 2009

In "my experience" you about have to double your investment to clear -overhead- and still make money, 50% markup will probably work on most items. High demand items of course bring more. Depending on the dealer and how bad he wants to move something he -may- be willing to negotiate. Let"s say he asks $3000 for a baler he only has $1000 in, CASH will always bring him around. If you offer too low all he can say is "no". I usually ask what"s the bast CASH price and deal from there...unless he feels you are "in heat" for that item, play your cards close.

TGIN · Sep 24, 2009

Dave , I hav nt been getting in on your baler post because you have been getting plenty of help . I would try to find one from a individual , a baler he is selling for $800-$1000 the dealer is selling for $2000 and the dealer will tell you how they will help out if you have problems with it , the only help will be showing you where the parts counter is . I would also try for a 268 NH or newer as they are about the easyest baler to learn on if you have a good parts supply near by . The off season is here and some good deals should be coming up .

Welding man · Sep 24, 2009

One reason dealers have to mark stuff so much is that if you buy it from an individual and its a piece of junk you feel the guy lied to you, but there isn't much you can do about it. If you buy it from a dealer you will expect the dealer to fix it or you will run his business in the ground bad mouthing ,that he won't stand behind what he sells, or at least it's that way around here.

TomH in PA · Sep 24, 2009

Dealers want to sell new equipment. They take the old stuff on trade and put it out on the lot to bring customers in, but they really would prefer to switch you to something new that has a much bigger net profit. So don't be surprised if he doesn't want to move too much on the price.

kyplowboy · Sep 24, 2009

I don't have anything to go by as far as stuff traded in but there are alot of equipment jockies around here that make the auction circuit. They won't touch anything they can't turn for $500. A bush hog a jockey buys at auction for $500 will be in Fastline next month for $1250 and he won't let lose of it for a while for less than $1000, even if he knows you were the guy who bid $450. On bigger stuff they try to mark it up 10 to 20%.

Dave

Anonymous-0 · Sep 24, 2009

Been a retail dealer for 28 years 6 million + anul sales.. When one of our salesmen shows an allowance of say 4500.00 or so for an old tractor
we simply try to get the allowance or the 4500.00
and are lucky most time to get that. Most trades at ourdelership are done in what we call reall money or what we think we can get for the item. Two diffrent worlds in used Jockeys and buying a used peice from a dealer that is trying to sell
a lot of new eqipment. Have to keep that used turning.

Lou from Wi. · Sep 24, 2009

Hey Dave. Since we got the 706 workin and lookin good, we were on the look out for a hay wagon. Needed one for wood,nothing fancy just good running gears.There is a couple dealers close by,so we went to look at their stuff. Found one they were asking for $475.00. Thought it was reasonable until we went in to talk to em. NOW THE PRICE WASN"T $475.00 that was for the running gear only. The deck WAS EXTRA, That wasn"t what the lot tag showed. Tag on the hitch said $475.00. Another one showed up on Ctraigs list for $600.00. Called the guy , told him we didn"t want to drive that distance to find out it has been BENT,WELDED ON,Bad bearings etc. The guy said it was top notch and some one was looking at it. The Hair stood up on the back of my neck and thought to myself, SOMETHINGS WRONG. DIDN"T go to look. Day later the guy called and wanted to know if we were still interested. .Found out the main beam was bent,been welded on ,repainted. Found one for $250.00.went and hauld it home. Trailed just fine . Pays to look around. Your bailer will show up before long. Lots of good advice here.
Warmest reguards,LOU

Farmer Alf · Sep 24, 2009

Don't know how far away your dealer is but I find sometimes it's easier to go to a dealer and look at 3 used balers side by side than it is to drive all over the country and try to arange a good time to drop in on 3 separate farmers who may have the equipment parked in a fence row somewhere. You can normally save some money dealing privately but there are some plusses to dealers as well

Anonymous-0 · Sep 24, 2009

(quoted from post at 21:43:10 09/24/09) Don't know how far away your dealer is but I find sometimes it's easier to go to a dealer and look at 3 used balers side by side than it is to drive all over the country and try to arange a good time to drop in on 3 separate farmers who may have the equipment parked in a fence row somewhere. You can normally save some money dealing privately but there are some plusses to dealers as well

The dealer is 15 miles away. Anything else I've found so far has been at least a hundred but closer to 400. The only NH so far has been a 268 about 400 miles away. Sure I can crack a decent deal if the dealer has something. Plus side of a dealer is a guarantee.

Thanks folks

Dave

Dealer markup % on old equipment??

Anonymous-0

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rustyfarmall

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Anonymous-0

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TxFarmallFan

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MF#1

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TGIN

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Welding man

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TomH in PA

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kyplowboy

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Anonymous-0

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Lou from Wi.

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Farmer Alf

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Anonymous-0

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