Markup on saws

[livemusic]

Anyone have a clue? Say, a Stihl dealer has a new saw that he normally sells for a nice round number of $1,000 retail. About how much is their cost? I know they gotta make profit, no problem with profit, just curious about chainsaws, especially Stihl, since they're so high, lol! And does Stihl, the company, kind of control what a dealer charges? Can they sell a saw for whatever they wish? Or if you know about other brands, fire away! Will be interesting!

 

[ammoaddict]

I have often wondered about that myself. Stihl does set an MSRP, however dealers can sell below that, but the ones around here won't budge off MSRP. There are probably some dealers on here that know. I hope we find out.

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[Clemsonfor]

I'm thinking the big dealer down in Augusta has sales below MSRP.i also know of a dealer in SC I inquired about purchasing multiple saws at once and they went below MSRP , it was not hundreds off but I was just inquiring about cheaper homeowner saws.

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[mdavlee]

My local dealer does 10% off at least on every saw I’ve bought there.

 

[Nutball]

I've heard the discontinued 2188 cost the dealer around $780, but the new g9000 or whatever its called is like $860. Same saw, different sticker. I supposedly know a guy who would sell them to me for cost, I've just never needed to buy any Jonsered or redmax since meeting him. They retail for around $900 to $1100 I think.

 

[mdavlee]

I've heard the discontinued 2188 cost the dealer around $780, but the new g9000 or whatever its called is like $860. Same saw, different sticker. I supposedly know a guy who would sell them to me for cost, I've just never needed to buy any Jonsered or redmax since meeting him. They retail for around $900 to $1100 I think.

They did go up almost $90 for dealer cost best I remember. There was a shop in Knoxville that closed out husky at $730 for 390xp and $585 for $372xpw a few years back.

 

[GCJenks204]

The mark up is well below what other retail industries are. The only time I sell anything with the mark up of a Stihl saw at retail we’re talking $10s of thousands.

In my world I sell to my friends at a higher mark up than my Stihl dealer sells to me.

I don’t know but suspect there are rebates or another things on the back end or the margins on saws alone would not keep the doors open.

 

[Lightning Performance]

It's like a car or a FWB my man. Money is in the parts and upkeep.

Parts or P***** ..... both are easy to sell and make quite a mark up again and again....

ymmv

Dealers new sale profits would be small.

 

[andyshine77]

I had a dealer cost list from Stihl a few years back, the mark-up or MSRP really isn't all that much over dealer cost. Seems like dealers in more suburban type areas don't budge from MSRP, in more rural areas and I bet areas with logging, dealers seem to come off MSRP a bit. Dealers make most of their income from parts and service.

 

[NCPT]

I had a dealer cost list from Stihl a few years back, the mark-up or MSRP really isn't all that much over dealer cost. Seems like dealers in more suburban type areas don't budge from MSRP, in more rural areas and I bet areas with logging, dealers seem to come off MSRP a bit. Dealers make most of their income from parts and service.

This is it......really depends on where you go. A dealer who sells more can let his product go cheaper.

 

[andyshine77]

This is it......really depends on where you go. A dealer who sells more can let his product go cheaper.

Mostly, although the highest volume dealer in this area is totally set on MSRP and they are always crazy busy. Just depends on the customer knowledge, area and how the owner wants to operate.[emoji111]

 

[sawfun]

I think it's dealer dependent. Generally on a Stihl that sells for $1k at all dealers around here there is a dealer in Washington that wants $200 less. I dunno if its volume discount or what, but it's worth the 1 &1/2 hour drive for me.

 

[Dustin4185]

My local farmers co op is a Stihl and Husky dealer. If I am buying a pro grade saw, they will comes down 10%. The dealer I use in knoxville has a book behind the counter. Depends on who you are as to what price. MSRP for the drop in folks, 10% off regulars, more if you have a commercial account. Like everyone has said, the money is in parts, bars and chains, and oil.

 

[trooney]

I knew a local independent Stihl dealer who said he didnt make squat off of new saws. Like was stated before, you make money off of parts and repairs. He stated by the time he talked to joe blow about the saw, set up the saw, made sure it was right, and told them how to basically start and stop it, it was not worth his time. He finally got sick and tired of Stihl dictating to him about what he needed to carry and stock, he finally gave them the boot.

 

[Duane(Pa)]

They do seem to throw their weight around. They have different levels. My Stihl dealer was able to elevate his status by becoming exclusive. He was being forced to fix stuff from box stores by the other brands, so he was happy to boot them and just carry Stihl. This was before Stihl went to whoring around in ace hardware and JD dealers. I haven’t bought anything for a few years, but last few saws I bought were 15% off MSRP

 

[CR888]

There would probably be more money allocated for marketing in the new price of a Stihl than profit for the dealer. The dealer gets a raw deal IMO, but he does get to sell a product that internationally sells itself, with huge brand recognition & marketing behind it.

 

[jacob j.]

When I worked at a dealership, Stihl was using the "Tier" system to determine how much dealers got new units and parts for. The higher your tier, the less you paid for stuff. We were in a lower tier because we were only moving 150-300 units a year (the shop was located in a small town with a depressed economy). A shop in a large city about 90 minutes from us was in the highest tier, because they were moving 3,000+ units a year (at the time, a 100' roll of chain also counted as a "unit").

You could get free shipping from your distributor if you ordered enough units so we would always wait to place an order until we qualified for free shipping. As Andre said, dealers make their money from parts, service, and peripherals. Service was our big money maker, especially during the spring mower and fall chainsaw/blower seasons.

 

[BK13]

I think it's dealer dependent. Generally on a Stihl that sells for $1k at all dealers around here there is a dealer in Washington that wants $200 less. I dunno if its volume discount or what, but it's worth the 1 &1/2 hour drive for me.

This dealer wouldn't happen to be 1.5 hours North on I 5, would it?

 

[Basher]

The first thing a dealer around here wants to do is sell a new saw as soon as one walks in the door, no matter if you are looking to get a saw repaired, order parts or pick up a chain,sparkplug etc. One would think they made money off sales but its more about how many units they can move.