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      01-28-2021, 07:59 AM   #49
David70
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Drives: 06 Z4M Coupe - 13 Cadillac ATS
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Location: Cincinnati, OH

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Quote:
Originally Posted by heavyD^2 View Post
No it's not as all new consumer goods come with a calculated MSRP and you added in one industry in real estate that does not and isn't really a comparable. Dealers can sell for more or less than MSRP but everyone that walks into the dealership knows the MSRP and it's a matter of risk tolerance and greed that dealers work with when they choose what price they will let that car go for. I'm not sure what heavy equipment you sell but if you don't have an MSRP (with discount structures for distributors and end users) and are basing your pricing on what the next person will pay I would have to question your business model. If you are selling used equipment then again you are talking apples to oranges.

For the record I don't have any issue with dealers selling at MSRP as that's the recommended price where dealers make fair money. It's more of an American thing to get big discounts on vehicles and as we Canadians don't have the same amount of haggle room. I do however have an issue with ADM as I will never, ever pay it on principal as you are paying more money for absolutely zero value other than filling the pockets of a dealer.
MSRP is just a recommendation from the manufacturer, nothing more. No one says anything when the MSRP is $50k and the dealer decides to sell at $40k. Since above MSRP = greed, anything below MSRP is the opposite of greed? For every product the manufacturer figures out what they think they can sell something for and at what price (supply/demand), they build the product and then if it doesn't sell they have a few options, one is to lower the price. It's an estimate made before the product is produced.

Kroger, tire stores, Lowes, all of them buy from someone and then set their own pricing. Their goal is maximizing profits. Strange that every other store in your view is maximizing profits while only dealers are in it for greed.
Having the manufacturer recommend a price doesn't change the goal or how they go about it. When the car dealer gets a new car with an MSRP he figures out if the MSRP is realistic and goes from there. Forums believe anything below MSRP is just business, anything at MSRP is greed.

We are the manufacturer of the heavy equipment. Management (technically me now as I am not selling direct) tells us what they hope to get for a new product, this is Manufacturers Suggested Retail Price, we then figure out if we are right or wrong. As always the market sets the actual selling price. We don't get to say, "well the MSRP is $X" stop complaining no one will buy it as we set the price".

With the "It's more of an American thing to get big discounts on vehicles and as we Canadians don't have the same amount of haggle room." - Dodge Canada site - https://www.dodge.ca/en Every dodge on the page comes with a discount off MSRP, averaging about $5k per car. Is this put on the car or do you need to know this as part of the negotiation? If on the car seems difficult to constantly change it as the manufacturer continues to change the MSRP.
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2006 Z4M Coupe - Stromung exhaust, ZHP knob, stubby antenna, clutch delay delete

Last edited by David70; 01-28-2021 at 08:06 AM..
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