Lakeside53
Stihl Wrenching
Hmmmmmm, doin' a little figurin'.
The local Stihl dealer, sells the MS 660 w/ 36" B+C for $1095, so a 22% profit would be $900 dealer cost.
I can buy a 395XP w/ 36" Husky B+C for $930.45 to my doorstep. Assuming ground shipping eats up $30, a 22% profit would be $740 dealer cost. Well, the factory can't be making them for that, so the profit markup must be lower, (kind of a given with online sales) maybe $800~825. (9~12.5%)
So, this only leaves a few possible conclusions:
1. The dealer markup of 22-24% is not true, and must be more. (but I doubt this, and I believe Andy and Tom, though I have a gut feeling the 880 might be a bit more than that)
2. The factory is making a much larger profit, with the claim it's to support it's dealer network, despite the higher costs actually benefiting dealers in any way, or . . . .
3. There are other kickbacks or incentives for dealers.
4. Labor is siginifcantly less in Sweden.
Just thinking out loud. Doesn't really mean much, since I don't think there's an argument the Husky's can be bought for less.
(I'd like to compare the Jonsered 2095 and Dolmar PS-9010 too, but finding prices doesn't come easy)
The MS880 is exactly the same margin.
There are no other kickbacks or incentives.
I'm sure Stihl is at least as efficient in manufacturing as Husky, so maybe they (the parent) is making a healthy profit... Way to go...:rockn:
MAYBE, JUST MAYBE.... Husky HAS to price low to keep a toe-hold in the market? I said this before.. the WORST thing that could ever happen to Husky and Dolmar would be for Stihl to reduce their prices...opcorn:
And.... are you comparing MSRP to MSRP in your example...? your Husky dealer could be selling it at $50 over his cost for all I know.
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