Pricing and raising the price after you pay?????

[sergeantboguhn]

I was just quoted prices for Woods backhoe, subframe and hydraulics with a 60 -90 day window for delivery. But they are saying if the price goes up before it arrives (after I pay for it), I have to pay the updated price??????
Has anyone heard that disclaimer about woods or Kubota? How could they do that after I pay for it. When it is written up, ordered and payed for, that makes it a contract doesn't it?

Confused B7610 owner!

 

[fried1765]

I was just quoted prices for Woods backhoe, subframe and hydraulics with a 60 -90 day window for delivery. But they are saying if the price goes up before it arrives (after I pay for it), I have to pay the updated price??????
Has anyone heard that disclaimer about woods or Kubota? How could they do that after I pay for it. When it is written up, ordered and payed for, that makes it a contract doesn't it?

Confused B7610 owner!

To get more definitive information just call your state consumer affairs office.
I would expect if you have a signed purchase agreement and have paid already, that the price cannot be legally altered.
Unless of course.... the purchase agreement might have a clause allowing price adjustment after payment.
Sounds sorta goofy to me!

 

[My Barn]

I get a price from another dealer? Also contact Woods...Once you pay for a item that sets the price, that's why people up front!

 

[Flintknapper]

I was just quoted prices for Woods backhoe, subframe and hydraulics with a 60 -90 day window for delivery. But they are saying if the price goes up before it arrives (after I pay for it), I have to pay the updated price??????
Has anyone heard that disclaimer about woods or Kubota? How could they do that after I pay for it. When it is written up, ordered and payed for, that makes it a contract doesn't it?

Confused B7610 owner!

It depends on the situation. IF you have paid for the item at an agreed upon price, then the implication is that there is a contractual agreement.

IF your payment was only to 'secure' the purchase of the item then a price increase might be appropriate as technically no 'consideration' for your payment (actually taking possession of the item) has occurred, so the implied contract is open ended.

 

[Bmyers]

Most consumer level purchases which involves a simple bill of sale locks in the price, but as fried stated, check with your local governing body.

For businesses, which that is where it can get tricky, if you are buying it for a farm, then a contract can be issued which includes the ability to adjust price for xx reason (contract dependent).

Our business, we have clauses in the contracts we issue if the material cost is increased by more than 5%, then the additional cost will be passed on to the buyer with no mark up. When you are dealing with millions of dollars in material and the cost increases by 10, 15, 04 we have seen 70% increases, it can quickly eat away your profit margin in your bid, so you have to put protection in your contract to cover such increases in todays market. Use to be we could get a 90 day or even 180 day price guarantee from vendors/suppliers and the ability to lock in the price once the bid was accepted. Now we have some that will only hold the price till midnight and most have gone to a 14-day price guarantee. Makes it difficult bidding work for projects that will start 6 months to a year later and trying to figure out what you should charge for the materials. So, the contract cost amendment is what we have gone to for price increase protection.

 

[Grindstone]

That sounds ridiculous to me! I ordered an implement from my dealer and didn't take delivery of it until after there was an increase in the implements price. Dealer honored the price we agreed upon and that is what I paid a month later when it came in.

Same situation with EA. Ordered an implement from them which I paid for up front. Implement wasn't delivered until almost 4 months after I paid for it. Within that time frame that implement had price increases a handful of times. I was never asked to pay anything extra.

 

[jyoutz]

Most consumer level purchases which involves a simple bill of sale locks in the price, but as fried stated, check with your local governing body.

For businesses, which that is where it can get tricky, if you are buying it for a farm, then a contract can be issued which includes the ability to adjust price for xx reason (contract dependent).

Our business, we have clauses in the contracts we issue if the material cost is increased by more than 5%, then the additional cost will be passed on to the buyer with no mark up. When you are dealing with millions of dollars in material and the cost increases by 10, 15, 04 we have seen 70% increases, it can quickly eat away your profit margin in your bid, so you have to put protection in your contract to cover such increases in todays market. Use to be we could get a 90 day or even 180 day price guarantee from vendors/suppliers and the ability to lock in the price once the bid was accepted. Now we have some that will only hold the price till midnight and most have gone to a 14-day price guarantee. Makes it difficult bidding work for projects that will start 6 months to a year later and trying to figure out what you should charge for the materials. So, the contract cost amendment is what we have gone to for price increase protection.

In the forestry world, we have both escalation and de-escalation clauses in timber sale contracts because of the longer term that timber sales operate under.

 

[GreensvilleJay]

These days you NEED TO READ THE FINE PRINT on your 'bill of sale'. BOTH front and BACK !!!
Maybe BURIED in the back, in microfont, they say something about 'price adjustment' and that by you SIGNING the paperwork AGREE to it.... ????

Just because someone said something verbally does NOT allow them to do it....

 

[SDT]

I was just quoted prices for Woods backhoe, subframe and hydraulics with a 60 -90 day window for delivery. But they are saying if the price goes up before it arrives (after I pay for it), I have to pay the updated price??????
Has anyone heard that disclaimer about woods or Kubota? How could they do that after I pay for it. When it is written up, ordered and payed for, that makes it a contract doesn't it?

Confused B7610 owner!

Such has become common practice recently.

Yes, a valid contract is enforceable but doing so is rarely worth the time and expense and dealers know such.

At least your dealer told you that they will expect you to cover any price increases between order and delivery date. Many dealers do not.

 

[SDT]

These days you NEED TO READ THE FINE PRINT on your 'bill of sale'. BOTH front and BACK !!!
Maybe BURIED in the back, in microfont, they say something about 'price adjustment' and that by you SIGNING the paperwork AGREE to it.... ????

Just because someone said something verbally does NOT allow them to do it....

It might.

Verbal contracts are enforceable but such nearly always become issues of evidence because everone lies.

 

[GreensvilleJay]

yeah 'verbals' are a 'he said-she said' problem or 'I never said THAT !'

 

[fried1765]

yeah 'verbals' are a 'he said-she said' problem or 'I never said THAT !'

Those "verbals" should be done by E-Mail if possible.
An E-Mail copy is positive proof of what was said/agreed to.

 

[Heehaw]

I just went through this with a Kubota tractor. Checked on ordering a MX5400.
Would be paying in full with cash at signing of the sales agreement.
3 dealers said if there is any price increase between ordering and delivery I could be responsible for the difference even though paid for in full.
One dealer stated in an email that the price would be locked in if paid in full.
All 3 of the other dealers said they don’t understand how the one dealer could lock in the price as corporate Kubota is not locking in prices anymore. They said if the dealer would lock in the price the dealer would have to eat any price increase from Kubota.
One of the dealers also said if any other equipment paid for in full when ordered, comes in after a price increase, the increase could be passed on to me. However if the cost of the piece is minimal they would eat the price increase.

 

[fried1765]

I just went through this with a Kubota tractor. Checked on ordering a MX5400.
Would be paying in full with cash at signing of the sales agreement.
3 dealers said if there is any price increase between ordering and delivery I could be responsible for the difference even though paid for in full.
One dealer stated in an email that the price would be locked in if paid in full.
All 3 of the other dealers said they don’t understand how the one dealer could lock in the price as corporate Kubota is not locking in prices anymore. They said if the dealer would lock in the price the dealer would have to eat any price increase from Kubota.
One of the dealers also said if any other equipment paid for in full when ordered, comes in after a price increase, the increase could be passed on to me. However if the cost of the piece is minimal they would eat the price increase.

Obviously: Buy from the dealer who sent the E-Mail guaranteeing the price as being "locked in".
If any issues should ever arise, a small claims court could resolve those issues very cheaply..

 

[Heehaw]

Obviously: Buy from the dealer who sent the E-Mail guaranteeing the price as being "locked in".
If any issues should ever arise, a small claims court could resolve those issues very cheaply..

I ended up buying from a dealer that had one on the lot, but was twice as far away at 75 miles, to avoid the small claims court scenario.
Honestly I think it’s crappy that Kubota (and others) won’t lock in a price when someone pays in full.
My take on it is that the dealers “could” lock you in if they wanted to, but they would potentially risk losing some profit.
In today’s sellers market most are not willing to do that.

 

[DustyRusty]

yeah 'verbals' are a 'he said-she said' problem or 'I never said THAT !'

Sounds like a marriage license. No warning of what you will lose in a divorce.

 

[Motion]

It would seem that once the factory order is placed and accepted, the price shouild be locked in. If a factory accepts orders with no materials in hand to produce the product they have no incenative to hold down material cost, it's like an opened ended check book(reference my wife). Would you give a contractor 100% of the funds, prior to starting a job to perform home repairs?

 

[The Evil Twin]

60-90 days is a long time. Our company only guarantees pricing for 15 days. Now, that is for a quote. Once the proposal is accepted, the price IS locked in.

 

[Outland1776]

Spoke to a Kubota dealer in Colorado and he said that they cannot guarantee pricing nor program any more. About a year or a year and a half out from delivery. I could put a deposit down but the financing program and the price could change by the time the machine would come in.

 

[mikester]

Spoke to a Kubota dealer in Colorado and he said that they cannot guarantee pricing nor program any more. About a year or a year and a half out from delivery. I could put a deposit down but the financing program and the price could change by the time the machine would come in.

We were interested in getting a new car and was told "$1,000 down payment, two year waiting list, and we can't tell you the price of your vehicle or even model year untill we get it".

I said good luck with that. I'm willing to wait two years to see if there is a recession and find which dealer is willing to drop their pants wanting my money.

Vote with your wallet.