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Posts: 11
Registered: ‎05-14-2010

Re: compact tractor markup

I think you should try for about 80% of list.  I like the "Build Your Own" part of the Deere sales website.  It allows you to spec the tractor and find the exact list price as spec'd, then it's off to the haggling.  I think I've once gotten into the mid 70's% range and I think I've been as high as 86%.  A well-equipped tractor will have more room for discount than a plain jane one.

 

Back in the old days when buying a vehicle we used to  take the base price and discount that 20% and then add up the options and discount that 50% and the total of those two numbers would be very close to the dollars the dealer had in the car and would give you a starting point.  With all the programs, rebates, dealer consolidations, gov't bailouts etc we have now, who really knows what anything is worth.  Anyway, that's about autos, not tractors.

 

One thing I'm quite sure of is we are in a slow but steady state of deflation for a very long term (like a decade).  It may not feel like it right now in ag with upward spiraling commodity prices and input costs, but for the real of the world, it is.  While farm machinery is quite high, and dealers have their way right now, sometime down the road ag will be pulled into the self-feeding downward spiral of deflation that is just starting.  When that happens, machinery prices will begin to drop just like home prices.

 

Whoa!  How did I get on that tangent.    

 

 

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This is a topic with new unread messages 0 ‎03-21-2011 04:27 PM
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