HOW TO NEGOTIATE FOR NEW EQUIPMENT
Most people who buy new Laundromat equipment are in an unequal position with their distributors because they do not know how much profit the distributor will make on a sales agreement. In order to negotiate the best price, it is important to have an idea of how much negotiating you can do with your distributor. Where the distributo has put up his own money to build a Laundromat and he is selling you a "turn-key" business there is little room to negotiate on the sales price, but when you are buying equipment for a Laundromat you already own, a little knowledge may save you a lot of money.
The discounts received for the washers and dryers sold by distributors are at the following levels. Dryer discounts are around 40% to 45% from the Manufacturer's List Price. Washer discounts are usually 43% to 50% from the Manufacturer's List Price. Auxiliary items, such as tables, benches, bill changers, heaters, laundry carts and so forth, have lower discounts ranging from 30% to 35%. You can request the Manufacturer's List Price from either the manufacturer or the distributor.
The fair market purchase price for a particular brand can be estimated by placing telephone calls to a few companies selling the brand outside your state or territory. Get a few price quotes for the equipment you want and compare it to what your local distributor is charging you. Distributors have specified territories in which they can sell, so do not lie, but you may not want to share you are comparison shopping. When finished, you will have a comparison point for your own purchase.
Another area providing distributors with potential profit is the practice of charging for freight when the distributor receives free freight from the manufacturer. When freight is listed on your sales contract, you probably believe you are only repaying the distributor for his freight costs. This is not always the case. Dexter, Speed Queen, Ipso, Huebsch, and sometimes Conti G can receive free freight on full truckload orders. When placing a large washer and dryer order ask to see the actual freight bill of the trucking company.