Local purchase of Powermatic 3520B

[John Van Domelen]

Ok - Amazon has this one for 2799 - no shipping, no tax. I called another suggested company listed on this forum - got a great quote that included free business shipping and a reasonable add on fee for lift gate and residential drop off.

To try and be fair - I called a local shop close to me to give them a chance to beat the price. I gave him the price to beat, understanding they coundn't do anything about the tax. The owner, while not really rude, was hostile and beligerent - said he was going to report the other company (with the lower quote) for 'not towing the line' - his words.

I really was trying to work with this guy - his firm price was 2799 plus the 214 tax. So I attempted to nogotiate them coming out and putting it together for me - setting it up in my shop - would have been worth it to me to pay his asking price for the extra customer service. No go - the guy just lectured me about supporting local businesses, blah , blah - which I was trying to do!!! But!!! - this is a business decision on my part. He wasn't willing to play nice, so guess I'll be getting it delivered from the 'other company' or Amazon...

Thanxs for letting me vent...

 

[windsors]

Local Purchase of PM

Try Tool Nut I just got mine from there they were great to deal with and gave me the best price and free delivery. It will be less than Amazon And I had it in a week.

 

[n7bsn]

He sounds like a post child for the rotten local business man and you did the right thing. It's one thing to be unable/unwilling to match a good price, it's quite another to be rude about it.

 

[jcooper]

what did he mean by "Towing the line"? And what was he going to report the company for?

 

[John Van Domelen]

Tow the line

He mentioned reporting the company to Jet (WMH) for selling below the recommended reseller price.

Apparently there is some unwritten rule about how low you can sell these for. My understanding how that kinda thing works - is your advertised price (e.g. - printed or stated on your web site) has to follow these rules - but if you make a cheaper quote to an individual - that was ok.

Some online shops do something similar by not showing you the price on a heavily discounted item until you log in and sign into the shopping cart. I don't think (from my limited understanding) that the other company did anything wrong - it was a quote directly to me via email - not something plastered on their web site.

I think Mr. Sour Grapes local Guy was just blowing smoke.

 

[Larry Marley]

for what is is worth...
A Texas tax assessor told me that if you buy from out of state and don't pay the selling party sales tax, you are required to pay the state of Texas the tax at the local rate.

Several states have the same view...
Just a thought

 

[John Nicholas]

Local Purchase

I did the same thing. Got some quotes 9 months ago. Went to the local distributor 2 miles away. He met the price and delivered. I'm happy, he is happy and now he comes to my place to do business also.

I'm glad that all local dealers are not hard to deal with.

John

 

[hcbph]

Jovan

Had a similar experience the other year when I bought my Jet . Priced it on the web, and did a lot of looking and came up with the best deal. Went to see a local dristributor and talked to him about his price. He wouldn't even get close and got beligerent with me about buying off the net. I told him, match the price and you have a deal, me didn't even get close so I bought through Southern Tool.

I think mine was about $300 difference, that's enough $$ to justify buying via the net

Paul

 

[john lucas]

When I worked in the photo business we saw this all the time. It was very frustrating for us. The New York houses could sell a camera for less than our cost. I suspect that may be happening to your dealer. It's not his fault and it's very aggravating for them.
What I found out was they actually did sell the cameras to the new york houses for the same cost as us. However when you buy 25 or more you get free lenses and other things that company sells which affectively lowers thier cost.
It has to be much worse now because of the computer. People were leary of buying from the new york houses because they were unfamiliar with them. As you have seen here it's very easy to check with other turners and get responses on who is relieable and who isn't. This leads to many purchases online and hurts the local business.
I hate that for them but I'm just like everyone else. Money is hard to come by for me so each purchase has to be considered carefully. I bought my lathe from Toolnut.com I do try to purchase items from my local dealer whenever possible.

 

[4mikee]

Sales Tax

Generally speaking Larry is right. In Alabama and many other states you are required to report untaxed purchases via internet or otherwise on your state tax returns at which time you are assessed the tax. Who does that? I don't think very many. In fact some states have reciprocal agreements concerning this issue and will collect taxes for other states and remit them (usually industrial customers). I understand the guys frustration but we all have to look out for ourselves. I've purchased four lathes over the last 3 years and I did exactly what you did. I paid slightly more for mine in Franklin, Tennesse at a Woodcraft but it was only because I like the service. They were happy to work with me knowing how the cards were stacked. Good luck.

 

[Hstudio]

Yeah, I know getting the best deal is really important these days. But , Remember that the local dealer has to make a living also. I'd rather spend the few extra $$$$ with him than have a problem later and really need his help. The local dealer isn't going to go out of his way to do much more than necessary to take care of any warranty issues, knowing that you bought your lathe over the 'net and not from him. I recently bought a large metal lathe for my business. Long story short.....It needed some warranty work that would have amounted to several thousand dollars. The local guy bird-dogged the entire process with the factory to get me back up and running.

Also.....The local guy is a Jet and Powermatic dealer. He tells me that he has AAW members come in all the time and demand a discount! (his words, not mine)

Bottom line is....I would rather know the guy with whom I'm dealing. You'd be surprised how important the first- name-basis business relationship is.

 

[John Van Domelen]

New info

Ok guys - I just got off the phone with the WMH tools customer service rep. Got some interesting info from them.

Their book list price on this lathe is 3209 (odd number).

They have no 'fixed price' that resellers have to 'Tow the line on.' - distributors have a different set of rules - didn't ask what they where - apparently - they do have rules.

As far as taxes go - their is no State income tax in Texas - I would not even begin to know how to file this sales tax issue with the state. I buy stuff online all the time - I figure its the resellers job to collect a tax if its due (the rule being if they have a physical presence in the state they have to collect sales tax). The tax really is a side issue though - this thread is/was more about making a sound business decision and the poor customer relationship from this reseller.

So basically - I was willing to forgo that significant difference if the guys from his shop just came out and put it together for me. Sounds fair to me.

I do buy local unless the difference is significant - in this case the other bid was a little over 2500 - with that difference and the taxes - is a saving of roughly 500 bucks - not chump change - at least not to me anyway.

As far as repair and warranty work - I am of the good fortune to live in a large metroplex with a large local turning club that will know who does quality repairs on lathes. Of which, for my area - there is several pages of listed close to me on the WMH web site (eg. - this guy isn't the only game in town).

Not only has he lost the sale on this lathe (due more to his pissy attitude than anything else) - I doubt I will partonize his business for other sundries. We have all the other major hardware, wood specialty type stores in the Houston area I can shop with.

 

[Brian Myers]

I come (atleast did until last year) from a different industry (bicycles) that has to deal with mail order on a constant basis. Customers can be down right hostile about you matching mail order pricing, but if the retailer really wants to make the sale he can not start off as the one being hostile. He should have started by telling you what he can offer as a local dealer that mail order can`t (service ,general help, future purchase discounts with the lathe). Also higher cost items have a smaller margin but generate a larger dollar amount compared to a normal day to day sale item, so there usually ( I did say usually, not always) more room to move on price. This also gives him 3520b in the local area that he could use as a referance for possible future sales, a smarter move than alienating a customer with his attitude. That said I would never go to him with any problems or questions if you buy elsewhere, he is the type that will stick it to you every chance he gets. He seems the type that would say that a simple warranty issue won`t be taken care by the company unless he comes out to do the work, while charging you a healthy fee. I know this game too well as the shop I worked at did this from time to time. Go elsewhere , he doesn`t deserve your money if you have to put with this kind of attitude. Running a small bussiness is tough, but todays owner/managers need to realize that a smile generates more money then a bad attitude toward customers that buy through mail order/internet.

 

[CPeter]

I bought my 3520B locally for a price that I will not reveal other than to say it was a LOT lower than Amazon's and I got mine in 12 days from the time I ordered it. Yes, it was discounted and yes the store made less (or lost a little), but I will be back and more than make up for the discounted difference in other purchases. over the years I have spent many thounsands of dollars in this store and will continue to do so. It was a price match thing and he verified my quoted price and met it. Now, I will work for him, not against him as you are with your local grouch.

CPeter

 

[Bill Boehme]

for what is is worth...
A Texas tax assessor told me that if you buy from out of state and don't pay the selling party sales tax, you are required to pay the state of Texas the tax at the local rate. .....

Unless your county Tax Assessor-Collector was talking about automobiles then he doesn't know what he is talking about. Unfortunately, in Texas, the office of Tax Assessor-Collector is an elected position on a county-wide basis and no prior experience or understanding of tax regulations is required to fill the position.

Unlike most other states, Texas does not have a state income tax and there is no annual filing of tax returns.

Bill

 

[Turned Around]

Hey fellas I’m new to the Forum so let me start by saying hello. Next I completely understand about trying to buy from the local mom and pop shops, I’m all about helping small business and I do as much as I can but when it comes to a big purchase such as a $3000.00 lathe I’m all about helping out the really small guy (me). I did the same as most who have purchased the 3520, I called around to the local shops trying to give them a chance but in the long run I bought mine online from Bibb Tool & Cutters for $2450.00 with no shipping charge. Well that was shipping it to a business with a loading dock or fork lift service, but I’m fortunate enough to live very close to a trucking company who was gracious enough to let me drop ship it to their location and they called me when it arrived I drove down and they threw it in the back of my pick-up with a fork lift. Bottom line is I know small businesses have to make a living but so do I and when it means the difference between me saving $550.00 or them making it well to me it’s a no brainer.