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dealing with equipment dealers

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wjkrostek View Drop Down
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Joined: 18 Dec 2010
Location: Wasilla alaska
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    Posted: 27 Oct 2011 at 11:34am
I need to find another baler and have never dealt with a new anything dealer.  I got a quot on a NH 5060 baler of $24,700 and it seems in line with what you find on the web page for NH.  They have on the build it your self page come up with 23,700.  I can't ship it up here for the 1,000 extra.  But in dealing with dealers I don't know how much you can ask to get it cut.  5% less or what should I ask for with out embarrassing either of us.  Maybe thats what they cost.  I wish there where more farmers around here where I could pick up a used one.  Any ideas on how you all deal with dealers let me know.  He has it on the lot  and I think NH must of shipped it to him at no or low cost.  He will never sell it as our season is over.  To keep his money working he may take less but I can't afford to embarrassing either of us.  The JD baler was about $3000 more and that didn't include shipping.  They don't deal much in Ag and have no parts for ag stuff on hand.  Dose NH still make the lesser models like the 565?  this 5060 is way more than I really need but its the only one here.  Any thing else would need to be shipped at extra cost.  He also said I could run this with a 40hp tractor NH says need at least 65 hp. the biggest tractor I have is a 55 hp.   Will it even work?
 
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JohnCO View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote JohnCO Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 12:48pm
A 55 hp will work but in heavy crop you won't be moving very fast.  The dealer mark up is in the 30% range and if he has to pay interest on it over the winter, he should be happy with a 10% return over cost.  Well, not happy but satisfied.  Hopefully he sells lots of skid steer loaders, etc. to make up for low sales of farm equipment.
How is the straw harvest going?
"If at first you don't succeed, get a bigger hammer"
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wjkrostek View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote wjkrostek Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 1:13pm
I had to give up on the straw for sale and I'm just trying to get it off the field to make the boss happy.  Which I will not be able to do but at least I need to keep trying.  Been lucky so far that the ground is not frozen so if I can get some more off I should be able to disk it before the freeze up which is starting as I write this. another normal year up here no two are the same.  This maybe the longest it's taken to freeze in many years.  No good for my grain and I have been relying on the freeze to save my crop.  I have it in the low 30 with wind going to it but it's still at 23% moisture but cold so it should be fine until it does freeze.  So you think I should ask for 20% off?  Another thing I was going to ask for is the shop manual and parts manual thrown in.
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wjkrostek View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote wjkrostek Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 1:14pm

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Russ SCPA View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Russ SCPA Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 1:42pm
Try for 15% off list, that should be acceptable to both parties.
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Byron WC in SW Wi View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Byron WC in SW Wi Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 2:00pm
I bought a Vermeer baler brand new last Fall for under $15,000.  I did a lot of research and Vermeer and Hesston make the two best dry hay round balers.   Vermeer is heavy built and made by a privately owned company in Iowa with great customer support.  I'm very happy with it.  I couldn't find a dealer near Wasilla on their website.  There is one dealer in Iowa, (not far from me), that is actually a farmer.  If they don't have any dealers up there they may work with you who knows?

BTW - There are a lot of low bale count NH round balers around here.  I've talked to several dealers that sell NH round balers and they don't like them.  
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Dale-OH View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dale-OH Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 2:16pm
As a dealer I do not deal with any company that I have a 30% profit on.  Russ is about right on I usually do a 15% of list plus freight and set up, unless NH has a really big discount or program going right now on balers.
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john(MI) View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote john(MI) Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 2:21pm
Ask for 20%, then when he offers 15% everyone will be happy!
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John (C-IL) View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote John (C-IL) Quote  Post ReplyReply Direct Link To This Post Posted: 27 Oct 2011 at 2:25pm
Here in the midwest the ag machinery business is so hot it is difficult to get much of a discount off of the list price unless it's an orphan that has been on the lot for a while or it is a unit that just doesn't sell in the trade area. Up in AK you are going to have some major freight issues to deal with.
 
At some point you just have to put your horse trader hat on and ask what the dealer can do and negotiate from there. I've only dealt in short line equipment, but a 15% markup was fairly common and seldom more unless there was a promotion or program running.
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