Stealerships

Wes

Wes

Well-Known Member
Joined
Oct 14, 2007
Location
Ridgeway, SC
So a good friend of mine traded his jku in for a shiny new truck at one of the local dealerships. I've been tossing around the idea of getting a jeep so I called the dealership in reference to my buddy's jeep. He already told me what they gave him for trade. Excluding taxes and whatever dealer fees they decide to throw in they had it marked up over $5000 from what they gave him an hour prior. I already knew all the mods done to the jeep and what accessories it should come with. The salesperson try's to tell me all sorts of bs about the jeep to try and justify the cost. It just blew me away at the markup. That's the first time I actually knew both sides of the sale. Kind of pisses me off, and makes me want to only deal with private sellers. I get it, it's a business but damn. If they're making that kind of profit on each sale we're all in the wrong line of work.

Rant complete.
 
He was asking 5k more...he'd have taken 1k more if you had cash guaranteed
 
Another plus of private sellers is no doc fee and they might actually know the history of the vehicle, instead of some BS 100 point inspection sales tactic that tells nothing useful about the vehicle.
 
We have a house in Morehead City, in a marina. Two of our neighbors down there are CEOs of local chain dealerships. They both have (or at one time had) 60 - 75 foot boats they've kept in front of their houses in the marina and at the same time boats TOO BIG to get into the marina so they've had to keep them in Beaufort.

Yea, we're in the wrong line of business.
 
How much was it being offered for? Did they give him less than it was worth?

Think about it like this. Say you find some sought after 1978 Ford HP60 front axles for $200 each. Are you going to list them for $300 each and feel good about it or are you going to list for current market value, $1200 each?
It's always easier to come down to meet an offer as opposed to countering with a higher one.
 
Jody Treadway said:
How much was it being offered for? Did they give him less than it was worth?

Think about it like this. Say you find some sought after 1978 Ford HP60 front axles for $200 each. Are you going to list them for $300 each and feel good about it or are you going to list for current market value, $1200 each?
It's always easier to come down to meet an offer as opposed to countering with a higher one.
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I see your point and I understand the business side. I just felt like bitching about it.
I believe he got about $2500 less than kbb retail and they marked it up another $3000 over retail. I must really suck at selling stuff because I've never made that much profit on anything.
 
I am always gonna be up the upper end of the market regardless of what I gave for it.I'm a greedy capitalist bastard,everybodie's gotta pay up :usa: . @Wes I'm not bashing you at all but if you've never worked for yourself you need to at some and this kinda thing will make more sense.
 
1-tonmudder said:
I am always gonna be up the upper end of the market regardless of what I gave for it.I'm a greedy capitalist bastard,everybodie's gotta pay up :usa: . @Wes I'm not bashing you at all but if you've never worked for yourself you need to at some and this kinda thing will make more sense.
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I'd probably be a bad salesman or business owner. I couldn't sleep if I felt like I burned or overcharged someone. I get it. There's always someone willing to pay what the seller is asking. It's business and as an owner you're never gonna turn down more money if someone will pay it. Like I said above. I just felt like ranting about it at that moment.
 
Wes said:
I'd probably be a bad salesman or business owner. I couldn't sleep if I felt like I burned or overcharged someone. I get it.
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Having a high price that the customer agrees to up front is not burning people.Making up stuff to charge for and lieing is.My FIL has been a contracter about all his life and has a sayin that Ive always went by "Im not gonna be tired and broke both,if Im working Im gonna be paid for it".With that said you can be too high and price yourself out of business too.
 
1-tonmudder said:
Having a high price that the customer agrees to up front is not burning people.Making up stuff to charge for and lieing is.My FIL has been a contracter about all his life and has a sayin that Ive always went by "Im not gonna be tired and broke both,if Im working Im gonna be paid for it".With that said you can be too high and price yourself out of business too.
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Amen.
An old friend said to me, 'If I am going broke - I won't be tired when I get there.'
 
Jody Treadway said:
How much was it being offered for? Did they give him less than it was worth?

Think about it like this. Say you find some sought after 1978 Ford HP60 front axles for $200 each. Are you going to list them for $300 each and feel good about it or are you going to list for current market value, $1200 each?
It's always easier to come down to meet an offer as opposed to countering with a higher one.
Click to expand...

Jody gets it. The price paid is irrelevant and should have zero bearing on what the sales price is.
 
so they were only over retail by 3000? they would have come down no problem. i dont see what the problem is. i bought a truck drove it for over a year and sold it for 1500 more than i payed for it. why i priced it high expecting to be talked down and someone wanted it bad enough to not talk me down. JK's are popular right now and they know someone is willing to pay a premium for it. if you wanted it should have got some cash and bought it from your buddy before he traded it, now you gotta pay the middle man.
 
Loganwayne said:
so they were only over retail by 3000? they would have come down no problem. i dont see what the problem is. i bought a truck drove it for over a year and sold it for 1500 more than i payed for it. why i priced it high expecting to be talked down and someone wanted it bad enough to not talk me down. JK's are popular right now and they know someone is willing to pay a premium for it. if you wanted it should have got some cash and bought it from your buddy before he traded it, now you gotta pay the middle man.
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He traded it on a whim. Didn't have a chance.
 
Just another counter point.
The guy who sells you the car has to make a commission. Its the only way he gets paid.
$500-$1,000 on top of the cost.
The dealership has to do the legwork of titling it to them and then you. Cost (I dont know NC) $200?
Have to pay someone to do that paperwork. $100
Now the company has to cover their overhead associated with paying those employees. $300.
They probably paid someone to wash and detail the car already $250
Now they have to have some negotiating down room for when you start haggling $2500
Oh yeah we dont have PROFIT yet. $1,000
We havent paid for the power or phone bill.
We havent covered the inane repair that some buyers will demand they make 3 weeks after the sell.
etc
etc
etc
 
The whole "overcharge" thing bugs the fuck out of me. As a former sales person (not in the car business), a good or service is worth what someone is willing to pay for it. If they want to pay what you are asking then that is on them 100%. If someone wants to buy a $40000 used diesel Laramie/King Ranch/Denali with 150k on it, theyre enitled to it. I'm entitled to think that person is a fucking dumbass. At the end of the day, is this product worth it to the person buying it, if so I just did my job to sell it to them. Some other yayhoo can think I'm a dick for charging that much, ok cool. That good/service was not worth it to THEM. You have options, exercise them.

Go look at the trade show industry where I work now. The show management companies (Freeman, GES, Shepard, Brede etc) all make car dealerships look like absolute saints. They are the only option once you step foot into that convention center. You have to be at that show, so you have to pay every dollar they eek out of your company. Anyone that has ever exhibited at a major show knows that you bring the KY and smile since that is all you can do. "Material Handling" is the best example. It is basically a churched up way to say some bottom feeder drives a forklift and moves your shit for $115 per 100lbs. From truck to booth, booth to storage, storage to booth, booth to truck. 4 trips across a hall and you'll be spending $5-10k easily if not more. And most of the time they bash the feet off of crates or latches come back bent. Sorry, no compensation "it could have happened before it got here". Electrical, give me a break. Union regs in some places state you can't hang a tv or plug in lights so some journeyman electrician gets paid $35/hr union rate to plug things in. Then there is still the management company markup on that. Mindless yet still a butt raping, gotta play the game or just hope you don't get caught by the foreman and backcharged for work YOU did.
 
Keep an eye on it. The last couple I traded in sat a while on the dealer's lot and over time their inflated listing price wound up a lot closer to what they gave me in trade.
 
StretchASU said:
a good or service is worth what someone is willing to pay for it.
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This. Doesn't matter what you think it's worth or what KBB says. Also, I've never had someone come and say "man, you priced that too low, I want to pay you more for it", but 90% of the people want to haggle you down significantly. I usually start stuff high and wait, unless I have some compelling need to sell quickly (which is a great way to lose money). If I'm selling, I'm looking for the guy who wants a very specific thing and is willing to pay good money for it. If I'm buying, I'm looking for the guy who just posted a great deal, or has had it a long time and is ready to get rid of it.
 
As of late the worse folks ive dealt with,besides the jeep people,is the sellers of used enclosed trailers.Does nobody check the prices of new before they price their stuff or buy used? $2k for a 10yo 6X12 with no title when a new one is $2400,its a no brainer for me.
 
1-tonmudder said:
As of late the worse folks ive dealt with,besides the jeep people,is the sellers of used enclosed trailers.Does nobody check the prices of new before they price their stuff or buy used? $2k for a 10yo 6X12 with no title when a new one is $2400,its a no brainer for me.
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Those people are the best. And usually the floor is soft, the wiring is hacked and the wheel bearings are shot. But hey its still the same size as a new one so you're getting a deal. :shaking:
 
StretchASU said:
Those people are the best. And usually the floor is soft, the wiring is hacked and the wheel bearings are shot. But hey its still the same size as a new one so you're getting a deal. :shaking:
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and the axle has lost its camber
 
What they're asking and what they'll take are two different numbers. On the other hand what they allowed him on trade and what he "thinks" they allowed him are two different numbers as well. At the end of the day it's worth what someone will pay for it, they can negotiate lower but they can't go up, so starting high is dealership sales 101.
Personally I try and throw out my best price and don't really move unless it sits around awhile.It's hard to get initial interest if your stuff is priced too high out of the gate.
 
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Yep. By definition, the "value" of something is whatever people are wiling to pay.
 
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