i think i've upset my local stihl dealer

[Mick Stockbridge]

I wouldn't dream of buying anything arb wise if it weren't local. Luckily Jonesie is just up the road......

[GardenKit]

Interesting thread.

 

I have a question for everyone. What would you expect to pay for a generator Incl vat that I buy in trade from the manufacturer for £3000.00

 

In 21 years I have never received a penny from a manufacturer for warranty work it just does not happen.

 

Often we have to spend hours finding out what the customer wants then un pack and commission set before we deliver to site.

 

We tend to avoid most enquires now unless they are regular customers.

 

We still get people ring up for advice pick our brains then buy online.

If you are not making at least £600 then you should pack in selling them!

 

But I would prefer about £1200.

[gensetsteve]

I wouldn't be surprised if you're only making £100 on the whole deal. Out of interest does the manufacturer advertise a retail price on the generator?

 

I now buy only from local suppliers if I can for any product/service. Luckily my saw dealer is competitive. Hopefully money spent locally is distributed locally.

 

Spot on the difference between the best manufacturer price and internet price is £100. I sold one recently with a margin of £300 and thought why bother. Your right garden kit not worth the bother.

 

The people that screw you down the hardest would not do the same if the boot was on the other foot.

[White Noise]

My nearest Stihl dealer is the nicest bloke in the world and then turns into a absolute hero / cock when you have the slightest problem with your new purchase . Which is why I do not use my local saw shop anymore . I use the guys advertising on here or Buxtons All of which have been totally / honest and amazing service wise .

[GardenKit]

 

I

 

The 201t (rubbish saw) i bought last January came with all the paperwork attached to the box, turns out the dealer i'm currently using paid £390 ish, plus VAT for it. suffice to say i paid a significant markup on that price, but he matched the price i'd found online so everyone was happy. The dealer had made a good profit, and i'd got the saw at a competitive price.

 

 

In this case I presume the dealer, like myself is not a main dealer, but has bought from one. Hence paperwork on the box.

The £390 ish price was probably £399 and the cheapest internet price is £435 (all plus vat)

So if that dealer matched the internet price he made only £36, which is not a 'good profit' by any stretch of the imagination.

 

From that £36 he has to deduct the PDI time, fuel and oil. Then, as it is profit, he will pay tax on it. Not much left in the pot after that, so if there is any 'after sales' work to be done he will most certainly be in a loss situation.

 

It is for this reason that I will not match internet pricing. It does my business no good at all, we need to be profitable to survive.

 

If it means that we do a few less sales the so be it. But the sales we do make will be profitable, and that is what is important.

[GardenKit]

The other problem with 'internet prices' is that many of them are simply not realistic.

 

I recently had a customer for a mower that retails at £950 but our advertised price is £835.

 

So the customer waves a printed page before me with a price of £675 (inc vat) and asked me to match it. Now that price is simply ridiculous, it is way less than cost, but of course that does not matter to my customer.

 

So I get on google in front of him and check as many prices as possible and find a variance from £795 to £849 (with the exception of the £675) so stick with my fair £835.

 

He still thinks I am ripping him off, so I let him phone the £675 vendor from my shop, and he is told they no longer stock that model but can offer him alternative makes.

 

The £675 price was simply a sprat to catch a mackerel.

 

Yet had I been the sort of guy to match a price I would have been well and truly had.

 

But luckily I am not, I am just an awkward git.

[Steve Bullman]

Thats not a good profit by any stretch of the imagination!

[MattyF]

I see Steve what your saying but when I see my local dealer with flash cars and personal plates on them out side his show room I begin to wonder.. When I can barely pay my own bills that there is money to be made and I really don't feel sorry for them if I save £50 getting it some where else as I know he won't honour any warrantee with out a near out war any way .

[gensetsteve]

I took a call from a well spoken lady on boxing day who lived up North. Her 98 year old aunt had been without power for 4 days inc christmas day. I quoted £3500.00 inc vat for the generator knowing I would visit site at least 3 times. To cut a long story short on the third visit the ladies son decided they were not going to buy a set and if they were they would get it £500 cheaper on line. They have now decided that I should hold a hire set ready for them in case they need it in the future. I never gave them an answer and just got out of there asap. General public

[Steve Bullman]

I see Steve what your saying but when I see my local dealer with flash cars and personal plates on them out side his show room I begin to wonder.. When I can barely pay my own bills that there is money to be made and I really don't feel sorry for them if I save £50 getting it some where else as I know he won't honour any warrantee with out a near out war any way .

 

No ones really suggesting you need to feel sorry for them!!

 

There is more money in retailing anything than there is selling physical labour, and always will be. If they have done well enough to drive flash cars then fair play to them. They are also the ones with sitting on a lot more stock than most tree surgeons ever will.....I for one wouldn't want to have all that money tied up in stock without a healthy profit in return, or else whats the point!