Do dealers honor each other's prices?

[marianb]

I was just thinking:  Suppose you have 2 dealers of the same spas fairly close regionally (let's say 2 hours and let's say Virginia).  If A gives you a lower price than B on the same spa, will the parent company (say Sundance)
encourage B to match the price???

[Cola]

Do both dealers pay the same rent or property tax?
Is one in a small town and other in or near a big city?
In my business experience (not the spa business) the mfg. generally stays out of my way when it comes to setting the price.  If anything, they sat a minimum in many cases.
Steve

[gores95]

I had a similar scenario between Caldera dealers.  Dealer A had a Niagara priced at $9100 all in not including tax and the Dealer B had it at $8589 all in not including tax.  After informing Dealer A of the discrepency in prices, they decided to just come down $300 to get to $8800.  I don't think the parent company would be any help in this scenario.  They cannot force dealer prices, can they?

Dealer A told me things like higher overhead they are paying as they more stores than Dealer B and here in NJ rent is higher than in Dealer B's store which is in PA.

SInce I also do not have to pay tax in the Dealer B scenario (buying outside of NJ) the difference is even greater...$9416 to $8589.  Almost $1000 difference HAS to sway me to Dealer B doesn't it?

I have found wide differences in prices for Sundance and Marquis as well.  You just have to do your homework and hope you have an agressive/hungry dealer!

Marc

[Brewman]

 Dealers are independent businesses.  
So no, a parent company couldn't force a dealer to meet another dealers price.  
Many companies, including Sundance, don't allow dealers to be located too close together.  
Possibly there may be several branches of one dealer in some areas, but they are owned by the same entity.

 

[wmccall]

As  people are implying this is a dynamic situation with lots of factors.  I don't have such a situation near me, but I would probably treat it as I would two different brands.  When dealers see you in their stores multiple times they start to ask questions. (wht models are you considering)

Price might not be the only issue. If a dealer knows you are choosing between A and B, they might have other info to consider such as service territories, trip charges, or some other factor.  I would just be up front and weigh two offers on all factors.

[The_real_Clown_Shoes]

Manufacturers and their representatives can NOT tell the dealers what to set their pricing at.  It's called price-fixing- very illegal.

It's generally a good business practice for two dealers close in proximity to each other to try and price-match when a customer cross-shops, but most will only do so with a written quote.

[Chas]

Manufacturers and their representatives can NOT tell the dealers what to set their pricing at.  It's called price-fixing- very illegal.

This is so true. I have been in many many meetings with Watkins reps - either with a huge roomful of dealers from all over, or with a couple of reps sitting in my showroom - and had them say that they can't do anything to set prices other than offer a suggested price (MSRP) and let it go at that. They WILL NOT get into discussions about prices other than the recommendations. I get the impression they have had a legal expert come to a rep meeting to school them on this important aspect of retail pricing.

[96SC]

I had an experience two dealers that were 50 miles apart.  One dealer (again Caldera) was $1200 cheaper and included some throw-ins that the more expensive dealer was charging for.

The big difference was that the cheaper dealer was a two 'store' operation, was on a high traffic road in a fairly large city (the second store was also in a large city) .  The more expensive dealer was in a much smaller town, delt with fireplaces, pools, pool tables and spas.  So, by doing more sales one store was probably getting a break on cost and paying less per unit for shipping since they came in 12-14 at a time vs. maybe 1-2 at a time.

There was no way the more expensive dealer could match the cheaper dealers price.

Another thing to consider.  If you buy your spa 2 hours 'up the road' do you suppose the local dealer will be eager to come to your place to do warrenty service work?  Or after warrenty service work?  Your local dealer will do work on your spa, but you may be at the bottom of the 'to do' list.