Dealership question

[jhurkot]

Let’s say hypothetically you have 2 identical sleds snowchecked. The price of the sled at the larger high volume dealer is $1000 more than the one at the smaller dealer. So you ask why it’s $1000 more at the larger dealer. They say “it’s because we have more overhead”. Is this acceptable?


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[2kDoo]

Let’s say hypothetically you have 2 identical sleds snowchecked. The price of the sled at the larger high volume dealer is $1000 more than the one at the smaller dealer. So you ask why it’s $1000 more at the larger dealer. They say “it’s because we have more overhead”. Is this acceptable?


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Acceptable....Yes.
Morally correct......No

Tell him straight up you can buy it for XXX from XXX dealer and he will price match if you want.

 

[jhurkot]

I asked him if he had 2 identical spec trucks that were $4k apart on the quote if he would buy the one that was $4k more and he said yes.


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[2kDoo]

I asked him if he had 2 identical spec trucks that were $4k apart on the quote if he would buy the one that was $4k more and he said yes.


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of course he did lol. He prolly also tells you he cheats on his wide. Greasey salesman will always exist

 

[S.W.A.T.]

I asked him if he had 2 identical spec trucks that were $4k apart on the quote if he would buy the one that was $4k more and he said yes.











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Not this guy

 

[jhurkot]

of course he did lol. He prolly also tells you he cheats on his wide. Greasey salesman will always exist

I plan on sending him the link to this thread.


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[snopro]

I asked him if he had 2 identical spec trucks that were $4k apart on the quote if he would buy the one that was $4k more and he said yes.


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Hes an idiot but that’s my personal opinion:

 

[2kDoo]

I plan on sending him the link to this thread.


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Ask him if he touches himself at night.....if that's the reason he is jerking you around

 

[jhurkot]

Hes an idiot but that’s my personal opinion:

How many years did you run Mr R for?


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[Lunch_Box]

More overhead is a poor excuse in my opinion. Sure could be true but they also move more units, parts, sales and such in general compared to the small shop.

And tell the salesman I have a few trucks Id like to sell him.

 

[drew562]

Is he related. Lol sounds like a deal only a family member would give you

 

[gedakbx]

Greedy dealer. Does it start with a C they are always $1000 plus more than anyone else

 

[ABMax24]

Dealers in GP are the same way, won't budge on price even though you can drive to Edmonton to save up to $5k. Their parts departments (especially both Ford dealers) are out of control too.

I guess it would make sense overhead is up if you don't sell the volume to bring it down. Piles of vehicles around town with dealer sticker from other parts of the province, and the FedEx guy stays busy delivery parts from Rockauto.

 

[Teth-Air]

What benefits does the bigger dealership offer over the little dealership? Stocking more parts?, Better Mechanic? Faster turn-around for service? More influence with Polaris for questionable warranty claims? Will they strip parts off a floor model to get you going? Do they give you more discount on parts? etc, etc.

These are the things they should be able to tell you. What does the required "extra overhead" pay for?

Or if that "extra overhead" just pays for a spanky showroom and a high priced sales guy, you need to decide if that is important to you.

 

[snopro]

How many years did you run Mr R for?


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25 yrs and we were never the highest price. People can vote with their wallet. If they choose to pay $1000 more for the same product then all the power to them. It’s my experience that most won’t though.

 

[lilduke]

What benefits does the bigger dealership offer over the little dealership? Stocking more parts?, Better Mechanic? Faster turn-around for service? More influence with Polaris for questionable warranty claims? Will they strip parts off a floor model to get you going? Do they give you more discount on parts? etc, etc.

These are the things they should be able to tell you. What does the required "extra overhead" pay for?

Or if that "extra overhead" just pays for a spanky showroom and a high priced sales guy, you need to decide if that is important to you.

The extra over head pays for the bigger building, more building to heat, higher taxes, higher wages. Ext

Question you need to ask, is if its your problem or not and is there other options..

 

[maxwell]

for a 1000$ spread i believe that is acceptable for sure.

big buildings big bills, while his answer of "more overhead" isn't a great one he wasn't wrong. You could potentially be talking about a 10+million dollar major center property vs a 250k property in a small town. One could argue that they move more volume so that should cover it and they likely get more dealer incentives for moving such volume. While all of that is true, your talking about a large operation vs buying from perhaps the owner himself and maybe his wife working behind the counter. With that big corporation stuff comes a hefty upper management structure, share holders, division managers, Salesmen, mechanics, parts people, Not to mention the amount of cash put up front to fill up that huge space with gear, accessories, and a parts inventory that will actually get you back on the snow in a pinch. A lot of hourly and salary employees that don't bill out on an hourly basis to cover their burden on the company but still get paid when there's no snowmobiles available to sell. I'm not trying to paint a picture of these big box stores not making any money, because they do. But there is a mountain of behind the scene expenses that cut directly into margins. Now your probably thinking well, not my problem how they run their business, thats my 1000$ and im getting the same product. So in the end your left with what is this big store giving me for the extra 1000$? While for some that may be nothing because maybe your big box store just sucks, but For me in my experience its the convenience of having major dealers 5 mins from where i live, with stock on any part that i will ever need, and an assortment of gear that they will most certainly always have in my size, on the shelf ready to go. I've also found that the big dealers give back to the local community and the snowmobile clubs a lot more in forms of cash sponsorships, donations and extra programs etc. That is not always the case but in general that's what i have noticed. And while that might mean nothing to some people its important to others and makes that 1000$ price difference disappear pretty quick. Dont get me wrong, Small and rural dealers have their place and are just as important for some as far as convenience/service quality and relationships are concerned. Just consider that perhaps that big box store isnt taking your 1000$ and putting it directly in their back pocket.

I've attached the 2023 sponsor list for vale mount just as an example. Executive sponsors 5000$+ and premier sponsors 3000$+ in cash or goods. Take a look at the big box stores, cycle works, martins, riversides, banisters, wpms, all account for at least 50k+ in yearly sponsorship to the club. and i know for a fact most are donating above and beyond the 5000 mark. Just food for thought.

 

[Teth-Air]

The extra over head pays for the bigger building, more building to heat, higher taxes, higher wages. Ext

Question you need to ask, is if its your problem or not and is there other options..

I don't buy it. If they are running a business right the bigger building would be becasue they do more business and the amount per sale to maintain the infrastructure should be the same percentage. 10 times the bills, 10 times the sales etc. Only a bad business plan or economic conditions would be blamed for not achieving success. Due to the supply shortage and panic buying these dealers should be doing very well right now.

 

[lilduke]

I don't buy it. If they are running a business right the bigger building would be becasue they do more business and the amount per sale to maintain the infrastructure should be the same percentage. 10 times the bills, 10 times the sales etc. Only a bad business plan or economic conditions would be blamed for not achieving success. Due to the supply shortage and panic buying these dealers should be doing very well right now.

Sounds great in theory, are they really selling 10 times more sleds when.they cant even get any?

Any way you look at it more bills= more money you need to bring in.

1000$ extra may be what they need to do to stay afloat. I dont know.

But if you dont like it, go to the other guy. Pretty simple

 

[Merc63]

Lol sales guys is a F’in idiot.

More overhead haha. Larger businesses do more volume and more profit! That’s why you get larger! Why the F would you increase your business size for more stress, more expense and say to your clients that I’ve had to increase my price due to our inefficiencies as a business, sorry!

LOL. I wouldn’t have much of a company left if I tried this with my clients. It seems ridiculous to me.