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Stihl prices...

Started by KyMasterLogger, November 24, 2008, 03:42:15 PM

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KyMasterLogger

we have been using 660's for a long time. bought the last one back in Jan for just a shade under $1000, tax and all.  last week we bought a 460 at a cost of $890... :o. the dealer wouldnt negotiate on the price at all. now keep in mind, i've been a faithful customer for YEARS. bought a new zero turn lawn mower (8k), 3 new 660's (3K) and just last week a new 460 ($890)and a pair of chaps ($80).   well today, i found my new dealer.  a new 460 for $775 and a spare 20" stihl bar for $30.  im sure stihl sets the price for the saws, but whats a repeat customer worth these days??? 

Cut4fun

Not much IMHO. Maybe some free chains, oil etc or even some clothing like I got the other day from Husqvarna dealer.
Only thing my good Stihl dealer has ever given away is a raker guide once.

beenthere

Quote from: KyMasterLogger on November 24, 2008, 03:42:15 PM
we have been using 660's for a long time. bought the last one back in Jan for just a shade under $1000, tax and all.  last week we bought a 460 at a cost of $890... :o. the dealer wouldnt negotiate on the price at all. now keep in mind, i've been a faithful customer for YEARS. bought a new zero turn lawn mower (8k), 3 new 660's (3K) and just last week a new 460 ($890)and a pair of chaps ($80).   well today, i found my new dealer.  a new 460 for $775 and a spare 20" stihl bar for $30.  im sure stihl sets the price for the saws, but whats a repeat customer worth these days??? 

If Stihl sets the price, why would it be $890 from one dealer, and $775 from another?
Stihl may recommend a price, but my dealer doesn't follow it (I've checked up on him   :) ).
And last time in for bar oil, I was given a calendar... :o
Sounds like this dealer is more than just chain saws. You appear to be a good customer, and one he'd want to keep holt of.  Do you have any guesses as to why he doesn't want you back?  ::) ::)
south central Wisconsin
It may be that my sole purpose in life is simply to serve as a warning to others

KyMasterLogger

i think some people are controlled by the almighty dollar.. when i found the other dealer selling for 775, i gave him a chance to meet the price. he wouldnt budge, so i went elsewhere. 

he sells a varity of stuff, an outdoor power equipment dealer.

Dave Shepard

Welcome to the Forum, KyMasterLogger! Prices can vary widely. Does Stihl offer discounts to volume buyers?
Wood-Mizer LT40HDD51-WR Wireless, Kubota L48, Honda Rincon 650, TJ208 G-S, and a 60"LogRite!

sawguy21

Welcome aboard KyMasterLogger.
Stihl does not set the selling price but they do control the cost of the product and the margins are not great. Some dealers insist on making enough to keep the doors open, stock on the shelves, and still put food in their bellies. Others discount just to make the sale but they are the ones that are operating on the edge, have difficulty meeting their obligations to suppliers and customers and in the end, fail. If that dealer is foolish enough to give the saw away, so be it.
old age and treachery will always overcome youth and enthusiasm

timberfaller390

I came across stihl's wholsale pricelist some years ago and back then (don't know about now) the prices on that sheet compaired to my dealer were to say the least eye popping. I am a dealer for American saddlery and my cost for various products is roughly half of the retail price. A friend of mine owns a music store and I have seen his catalogs where a $300.00 dollar guitar costs him $75.00. Now not saying everybody marks merchandise up to some un godly high price but there is a pretty good margin there.
L.M. Reese Co. Land Management Contractors
Stihl MS390
John Deere 50G excavator
John Deere 5103
John Deere 440 ICD dozer

joe_indi

10...15.....20..... 25% .

Joe

macpower

18% gross margin less 1% "ad plus", shipping on a 460 about $20, floor plan 1% per month, 15-20 mins. shop time for set up and pre delivery check........... Dealers are getting rich for sure!
Purveyor of Stihl chain saws.
Thomas 6013 Band Mill, Kubota L3400DT, Fransgard V3004, 2 lazy horses and a red heeler

beenthere

macpower
Is that near the same regardless of brand? Or specific to Stihl? Just curious.
south central Wisconsin
It may be that my sole purpose in life is simply to serve as a warning to others

macpower

Pretty much the same. Jonsered puts out a price list that shows about a 20-22% discount, then runs ads with "sale" prices at about 15%, or the "bag and drags", the dealer recovers about $25 on those and eats the rest.
The whole power equipment industry is headed the same way, a 20% margin considered great these days, 10 years ago you wouldn't keep a line that was that short. About a year ago we worked up our numbers to see what our net truely was and the cost ratios on our lines. It was a real wake up. Our across the board cost for selling whole goods was close to 12% of our margin.
Stihl is about the best outfit to deal with, they are upfront about costs, and do seem value their dealers.
Oh, don't forget that it costs 2-3% of the sale to put it on a credit card, "merchant fee" it's called, the dealer pays it.
My rant is over, time to eat turkey!
Purveyor of Stihl chain saws.
Thomas 6013 Band Mill, Kubota L3400DT, Fransgard V3004, 2 lazy horses and a red heeler

Dave Shepard

I try not to use my bank card at local businesses. I feel like I'm robbing them of the 3%.
Wood-Mizer LT40HDD51-WR Wireless, Kubota L48, Honda Rincon 650, TJ208 G-S, and a 60"LogRite!

Al_Smith

It does not make any diff what you are dealing with ,saws ,automobiles ,cutting tools ,constuction  materials .There is always a mark up and usually of a high percentage too .

Remember ,most if not all saws users are on the highest mark up possible unless you are a giant entity such as a few nation wide tree services .I've heard that one company can actually buy saws cheaper than a dealer can which obviously annoys the dealers  to no end .

Now I've heard through folks that live in the Pacific northwest timber country that the dealers are much more competative .In the midwest or eastern seaboard they don't have to be .

timber tramp

Our local dealers here (northwest Oregon) are pretty decent, buying a new saw/bar/chain they'll usually throw in another chain, maybe a file or two, and nearly always a hat or t-shirt.
Cause every good story needs a villan!

MartyParsons

We are a new STIHL dealer. I fight every day on being competive on pricing and still making a living. You, we, I expect to be treated special at any dealer, local establishment etc. The STIHL rep says not to ever charge less than Manufacture list price. If I give you a deal on a new saw and you go to dinner with another friend and he paid list price what does that make the dealer look like? We stock many fast moving parts and try to have what our customers need to repair the units the same day if possible. There are always dealers who will work for nothing. Our business has been building and even when we charge list price. We as STIHL dealer try to offer more than you expect.
  When you go to a box store and purchase, what drives us not to ask for a discount or to ask for a break price on the product. Most of the FF members will never stop at our store. I have never dealt with any other Chain saw manufactures. I can tell you that STIHL has been real good to us as a distrubutor, manufacture. We have toured the manfacture plant at Virginia beach, quite impressive.
If you chose STIHL support your local dealer and get to know them. Please think about all the factors that make a good servicing dealer, beyond price $$ ? IMO
M
"A pessimist sees difficulty in every opportunity; an optimist sees opportunity in every difficulty." -Winston Churchill

sawguy21

old age and treachery will always overcome youth and enthusiasm

Firebass

   Here out west our little saw shops are one of the last few retail shops to survive the box stores wrath.  A dealer might work for nothing on the sale of the saw but most customers come back faithfully for a long term relationship.  Most everyone I know who owns a chainsaw faithfully talks about who they use for a saw shop.   Personally I don't dicker on price because I have a trust that I am not being ripped off.   I enjoy going to go to a small hole in the wall saw shop who isn't stocking huge inventory and/or just selling a occasional saw as a supplementary business under the umbrella of a larger business.   I prefer dealing with the owner of the business.   And you know what?...Guess where all the local professionals go to buy, service and repair they're equipment. 

To me this is Capitalizm at it's best. ;D

Cut4fun

I know for fact you can get parts through Husky dealer for 40% off through friends that work for husky dealer.  Because we were comparing prices I paid retail at my new husky dealer to where he works and what he could have got the parts for.
I also looked at the mark up on the saws and it wasn't as bad as the parts.

sawguy21

When I worked for the dealership I could buy parts at dealer cost for my own use but would have been canned if I abused the privilege buying for my friends. If the dealer makes 25% on a saw, he is having a good day. He really cannot afford less than 20%. 40% markup is common on fast moving parts and is reasonable. It just sounds like  big profit to those who have never tried to run a business.
old age and treachery will always overcome youth and enthusiasm

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