So you are taking the first steps to welcome a new tractor into your family but you have taken to the internet to find the right unit at the right price but things are not adding up.
Wouldn’t it be nice to know a price before you walk into a dealership or even pick up the phone? Why can’t you find cut and dry real prices online anywhere? Have you started to wonder about transparency in pricing or wonder if your dealer is giving everyone the same price? You may come to find out it seems like an issue across brands and companies and it can be very frustrating. The truth is the discrepancy is out of most dealers control.
What is MSRP and MAP pricing?
Most companies have a MSRP (manufacturers suggested retail price) often called list price. Some use their MSRP as their MAP (minimum advertised price) and some companies set their MAP as a percentage less than MSRP. These are typically included in dealers contracts and dealers are legally required to limit their prices posted on their websites and media to ones that follow these guidelines. This helps companies stabilize prices and level the playing field among dealers as well as prevent dealers from forcing others to sell at or below cost to be competitive.
So why is my dealers price online different than the one they gave me when I asked or the one on the companies cooperate website?
Some dealers may use MSRP or MAP as the price they will put on your invoice and some may not. Once you are speaking person to person, final pricing is up to your dealer.
How much should you expect your dealer to discount MSRP if at all?
This really depends on the dealer and the manufacturer’s pricing structure. This can very drastically. Even the cost of equipment from dealer to dealer of the same brand can be quite a bit different. Other things to consider; a lot of unseen work goes into getting some equipment ready to sell and some dealers are more competitive than others. It is also good to ask your dealer what the price includes such as delivery, fuel, non standard options or if they are counting in discounts for any sales available or if those need to be added as well.
Unfortunately the best way to get an accurate final price is ask, but most dealers make this very easy. This is as simple as contacting your dealer with a call, text, email, or web form. Make sure to include the model you are interested in or information about your needs and expectations for the equipment you are hoping to buy.