Why does financing matter?

[Jeff Marner]

Sure people may lend you money. But how do you get the distributors in line to give you reasonable pricing? I’m operating under the assumption that machines can be had at $1000/10# but my first round of pricing among 3 distributors sits about 50% higher.

[Jason Dodge]

I go with the distributor that provides the most value. Having competing quotes is the best route and let them know you are getting other quotes. Unfortunately the commercial equipment market is still run like a used car lot from the 1980’s. There needs to be a push for published and standardized Manufacturer Suggested Retail Pricing like every other industry has. New cars have very slim margins but many industries have margins between 50% and 65%. If this is the case with laundry equipment, then a $8,000 washer would have a cost of $4,000. So getting a 25% discount would leave plenty of meat on the bone for the salesperson but when you don’t even know the starting point or the MSRP of the product it can really stack the odds in the distributors favor. This is where I have the problem.

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