Go BottomJ D 790 Pricing Tip
 | Don
Join Date: Posts: 1 
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1999-11-15 10128
I've noticed a number of posts concerning pricing on the 790. Most entries complain about the dlr. quote seeming "high". (I suspect in relation to fulllist price). Maybe I can shed some light here. When JD brought us the 790, (a higher H.P. version of the discontinued 770), the idea was to have a price fighter model with an attractive advertised price,as N.H. and Kubota had already done. The advertised price is actually less thanthe 770 was three years ago. Sounds great, right? Well, kinda.You see, for years and years dealers net cost for compact utility tractors has been M.S.R.P. less 25%,(F.O.B. factory), and still is. Except the 790!It's dealer discount is only 10% off M.S.R.P. Yes, Deere decided the dealerswould have to share part of the price cut. So, if a dealer takes his cost, addsas much as five or six hundred dollars freight, several hours shop time forsetup and inspection, and then tries to hold a 10% margin, for example, his price will actually be higher than M.S.R.P. When he realizes this he may or maynot drop down to full retail. So, don't be suprised if your dealer quotes full retail and wont budge. Also, don't expect lofty trade in figures.But hey, the 790 is still a great value at full list, so go get one!
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| Roger L.
Join Date: Jun 1999 Posts: 0
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1999-11-16 10143
Don, I've always wondered about the MSRP. It seems that I've seen different dealers claiming different MSRPs all at about the same time. And I know that lots of guys on this list are interested in price. Since you seem to know something about pricing, maybe you could take a stab at answering some of my questions. Do different dealers have different MSRPs? How often do it get changed? Does the manufacturer really set the MSRP as a constant value across the country? And lastly.....is there any independent listings of MSRPs?
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| art
Join Date: Posts: 1
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1999-11-16 10144
Don I wish the markup was 25% of msrp as you suggest on all compacts. Giving credit where credit is due deere does only give the 10% discount on the 790 to the best of my knowledge. Other than freight and set-up there are other cost factors to enter in such as does it include free trucking for warrantee work, is the mower removed and the snowblower installed at no cost to the owner the first season. There are many things to consider and many things to look at when purchasing and price is not all there is to buying. ....
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| Don
Join Date: Posts: 1
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1999-11-16 10162
Roger, You have a lot of questions, but all good ones. Different J.D. dealers
may advertise any price they desire, unless Deere notifies them of a "maximum
advertised price" on a certain product, in the event that Deere advertises that
product nationally and wants dealer ads to be consistant with their own.
This does not happen very often though. As far as MSRP being the same for all
dealers, Yes it is, at least in the U.S. But remember, MSRP or "list price"
does not include any additional costs the dealer incurs after invoice, F.O.B.
factory. As for a published MSRP listing, I am not aware of anything other than
the dealer price book, which are again, all the same.
Something I should have mentioned in the original post is the fact that when
comparing different quotes, you may be looking at the same item but they may
not be the same model year. This can affect a price from three to four percent.
Another factor that can cause marked differences in price quotes is freight.
High volume dealers can qualify for free freight while others cannot.
If your favorite dealer does not get any breaks on freight, don't abandon him
but see if he can get a nearby "free freight" dealer to transfer a unit to him. Stick by him, and I'm sure he'll return the favor.
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