Third discount on new baler

[startinghandle]

Something that caught my attention
On front page of local weekly paper is a third discount on new MF baler
I assume it's last years stock so anyone who paid full wack last year will be thinking... fooking hill
Or doesn't anyone pay full price??

 

[Kevtherev]

It’s called marketing
Lots of deals on grassland equipment in all the farming press.

 

[startinghandle]

It’s called marketing
Lots of deals on grassland equipment in all the farming press.

Is it normal practice to give a third discount off list price

 

[Dave W]

Is it normal practice to give a third discount off list price

It won't have 1/3 discount. It might be dressed up to seem like it has. But with availability of new machines it'll be same price as last year.

 

[vantage]

Something that caught my attention
On front page of local weekly paper is a third discount on new MF baler
I assume it's last years stock so anyone who paid full wack last year will be thinking... fooking hill
Or doesn't anyone pay full price??

Nobody ever pays full whack, list prices are a work of fiction. Manufacturers know to the penny how much a machine costs to develop and build, they then inflate the price , so the dealer can offer various rates of discount, the purchaser then think they’ve got a good deal. Was always so, nothing new.

 

[Pistonbroke]

A.new Holland dealer gave me a price list to get an idea of what different models would cost and said to take 26% off before the real haggling started

 

[Muddyroads]

List prices are a lot to do with finance deals aren’t they? If only 50% of a machine can be financed, an inflated list price means that sometimes closer to 75% of the cost price can be put on tick once it’s been discounted.

 

[Steevo]

List prices are a lot to do with finance deals aren’t they? If only 50% of a machine can be financed, an inflated list price means that sometimes closer to 75% of the cost price can be put on tick once it’s been discounted.

Yes. Still seems mad to me.

Its like buying a house, but knowing that you’ll only ever get a 50% mortgage so the house seller jacks the price up, gives discount and so you end up with a mortgage on 90% of the market value of the house.

Or are we saying the finance guys don’t do figures and haven’t cottoned on yet..!

 

[Pennine Ploughing]

List prices are a lot to do with finance deals aren’t they? If only 50% of a machine can be financed, an inflated list price means that sometimes closer to 75% of the cost price can be put on tick once it’s been discounted.

This above,
Most finance companies will give a maximum of 60% of retail value on a deal.
This means if 33% off, then buyer only needs to find 7% as deposit,
However more deposit it desirable, its a marketing strategy for new gear.
However on a dealer may choose to only give you 75% discount on the new machine, and use the further 14% to give you more for your trade in, to make it look better on paper, as you thinking their giving you more for your pile of shite than others.
When in reality it's not the best way from accounting point of view

 

[Sid]

Priced up a new mower in summer 3 years ago?

Priced same machine in September on out of season deal for following year. Significantly cheaper.

Supply and demand.