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Skidsteer Dealer markup?

Discussion in 'Business Fundamentals' started by sle, Mar 10, 2010.

  1. sle

    sle Member
    from midwest
    Messages: 51

    I was just thinking today and had a question for you guys.
    I am in the process of buying a new loader.My ? is, how much does a dealer make off a sale
    of a new loader?(markup)
    Is it as good as in Landscape/snow removal?
    I know that some may chime in and post that its all about service.Which I agree with.
    I don't know, maybe I am to nosy.
    Thanks
     
  2. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i was once told that there is anywhere from 10-20% mark up on stuff like that.
     
  3. sle

    sle Member
    from midwest
    Messages: 51

    Thanks Buckwheat for replying.
    I would of thought it would be closer to 40-50%.
     
  4. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    I can't imagine it's that high on a machine in the tens of thousands of dollars.

    10-20% seems realistic, and reasonable.
     
  5. sle

    sle Member
    from midwest
    Messages: 51

    Yea 2COR517 I guess I am glad I'm in this industry.
    Allot more room for profit.
    Nice dog in your av. I know those dogs are very intelligent.
    I myself have a German Shepard and he is one smart SOB.
    Good luck to all this upcoming season.
     
  6. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    Thanks. That's Myles. Three years old. AKC Rough Collie. Last time we checked 92 pounds :eek:

    I'm sure the equipment market is cut-throat, especially where things have slowed down but they still need to pay interest on the equipment on the lot.
     
  7. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    well there is also a big difference in whether we are talking mark up on the selling price or mark up on the "list" price. Just bought a machine for 75k that "lists" for over 90k. dealer must have thought this would make me feel better or something......
     
  8. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,485

    BMW, did you post pics of the new loader? If not let's see it. You paid $75,000 for it?:eek:
     
  9. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    I will be posting pictures of it the day it comes in. The rep said about a week because the machine is coming from one of their out of state locations and then they have to add a couple things like my radio :) yeah out the door the total was just over 80k but this puppy is loaded to the max. I will be sure to post pictures the day it arrives!
     
  10. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,485

    Can't wait to see it! I'll bet it's cool.

    For OP, There will always be a mark-up on things like this. Some dealers will deal more than others. I think if you're looking brand new, you don't have as much room to deal. I recently ordered a new Bobcat that I'm waiting on as well, they gave me some off the list price and there are some dealer incentives going on now. It's a good time to buy, because demand is down right now. I also saw some real good deals on 1-2 year old machines that look brand new. Good luck!
     
  11. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    it is pretty slick!! it's a 297C. What type of Bobcat do you have on order?
     
  12. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Although there may be 10-20 points on the machine, the dealer will get hidden kickbacks (dealer bonus bucks-normally to the tune of 5%-to put towrards inventory of equipment or parts), and a finders fee for writing the financing end of things. That being said a dealer can easily make 10K on a 40K machine. Plus, they get the warranty work, and parts and service from the client, where markups are bigger. Not too shabby for writing up a deal.