Re: Typo WR450F MSRP $6799 x (1-.17) = Dealer Cost $5643 WR450F MSRP $6099 x (1-.17) = Dealer Cost $5062 or is that just a comparison for prcign on 2 wr450f's?
I realize this is a passionate subject (remember the LP-Penske thread?) and everybody has an opinion. But last time I looked, this was a free market economy. Kinowing the dealer's cost is simply a negotiating tool. If EITHER party is not happy with the price the other wants, either party is free to walk away from the deal. If the dealer is offering extras (service, location, etc.) then those are selling points to justify a higher price. If the buyer values those things, they will pay that higher price. Remember, price is set based on the BUYER's definition of value, not the seller's. But if the buyer doesn't want/need/desire those services, the buyer will not willingly pay for them. It's like the "extended warranty" that retailers push so hard. As for the "we gotta eat too" argument: Appearently, someone out there is able to sell the item cheaper and still able to eat, or else they will be out of business. But if they manage to stay in business and make a reasonable profit, you need to look at your business model and determine if it is still viable. There are a lot of similarities between Darwin's theories and economics.
Re: Re: Typo Typo for sure, the second is the 250. The calculation is the MSRP off of Yamaha's web site with the 17% markup that was mentioned in previous posts removed. Sorry for the mistake. Also, what does BSQ stand for???
Re: Re: Re: Typo Bullsh!t Question. But I don't think it was. Knowing the dealer's cost is a strong negotiating tool.
Re: Re: Re: Typo Just as an FYI, you're working from the wrong direction. 17% off retail is not a 17% mark-up. If I buy a widget for $5000, mark it up 17% and sell it ... I sold it for $5850 17% off of $5850 = $4855.50 - Roach
Re: Re: Re: Re: Typo My point was that nobody had answered the actual question. Not the semantics of the mathematics. 17% of poop is poop.
i agree, a good deal is one that both parties feel good about. I do not feel good selling ANYTHING for a marginal profit unless that is in my game plan for that year, month, day. The object is to sell as many as possible for a reasonable profit. The biggest problem is i like to eat steak not happymeals, i also need race tires. Can't do any of the above without making money on bikes. I do have the biggest service and accessory department with more room and products with employees to match than any dealer around here. We offer better and faster (which is so important these days) service which is the main reason we charge that couple of hundred dollars more than some dealers.
The problem is, they often do go out of business, and rarely do they offer the same level of service (support) if they are working on super-low margins. Now - you are 100% correct the market corrects for this. They generally don't last long, and the customers they do get are often not happy if they have a problem. However, there's ALWAYS another one to take the failed one's place. And ... you (as a dealer/shop) still have to listen to "Well I can get it at X place for $20 less" all day long from people who see no value in anything but price (until they have a problem and need support, of course). You will also get calls from people who did buy it somewhere else for $20 less, then call you to try and get help because that other place doesn't answer the phone / email. ::shrug:: it's part of the business, but it never stops being annoying. - Roach
Believe me, I'm with you guys re: how annoying that is. And, as if it's not bad enough that the volume of the mail order houses gets them pricing you cna't touch, you have PU whoring themselves out re: their Dennis Kirk business, in direct competition with the very dealers they sell to. I still don't get how that's not illegal somehow...must be the 'there oughtta be a law' liberal in me
Re: Re: Re: Re: Re: Typo And I wouldn't tell you what my cost is on anything we sell either Last year, a dealer we were buying bikes from told me their invoice for an R6 was $7400. Do I believe them? Eh ... maybe they exagerated a little, who knows? Not my business what they paid, really - only what they're willing to sell to us for. But, that works out to just over 13% markup to the $8399 MSRP on the 2005 R6. Most people I've ever talked to in the industry say the markup is right around there on Japanese sportbikes, so that's pretty close - no more than $100 or so off, probably. - Roach
[Originally posted by TEAMLIKETYSPLIT Just don't throw that phon number or web addy away, you might need it when the transmorgifier quits pumping blinker fluid. And my customers come first when it comes to blinker fluid for sure. QUOTE]Originally posted by TSWebster Please explain this attitude. If dealers make the bulk of their money in parts and service as several in this thread have stated, then why stonewall someone that bought their bike some where else. Hell, you should be saying "buy it some where else, just come here for parts and service." Steve [/QUOTE] I remember when I was a kid that car dealerships had this same attitude. If you didn't buy it from me, good f'in luck getting it serviced. Now, nobody has any loyalty to the auto dealer. Cars are just a commodity & people shop the best price. It looks like bikes are going the same direction. Just look at Southeastern Honda.
I remember when I was a kid that car dealerships had this same attitude. If you didn't buy it from me, good f'in luck getting it serviced. Now, nobody has any loyalty to the auto dealer. Cars are just a commodity & people shop the best price. It looks like bikes are going the same direction. Just look at Southeastern Honda. [/QUOTE] o.k we obviously have some reading comprehension problems here. MY CUSTOMER COMES FIRST is what i was saying in simpler terms. Most dealers will gladly service your stuff no matter where you bought it. Would it be fair to my customer to put joe blow first or give him a better deal when he did not buy from us? BTW our service manager and almost any other gets paid off of the generated income of THAT department, of course he wants to service your stuff, i just make sure that my paying customers come first.
I've tried with my local dealers... really I have... I can usually get it quicker and cheaper, with less hassle, by other means. Truthfully, they aren't really providing me with much that I can't get elsewhere.
i would say your dealership needs to be schooled on the fine art of customer service and customer retention. Sorry your having a hard time, most of us do not suck to terribly bad....i hope
I've lived all over the country, and done business at, or worked for, maybe 50 dealerships in my life, and of those, I'd say 2 or _maybe_ 3 didn't completely suck maximum ass. Sorry, but most of you do suck terribbly bad It's cool that you don't though! Keep up the good work, and spread the gospel!
BTW our service manager and almost any other gets paid off of the generated income of THAT department, of course he wants to service your stuff, i just make sure that my paying customers come first. [/B][/QUOTE] What about your nonpaying customers? Are they before or after the guy who didn't buy his bike from you? Seriously though, I didn't want to upset you. I just see similarities between the motorcycle dealers now & the auto dealers of the past. In 15 years from now do you want to be viewed as a slimmy car salesman is now. I think things are progressing that way. There's been a huge change in dealer attitude relating to new bike sales here in Charlotte since I bought my first new Jap bike about 12 years ago & I think the consumer is responsible for alot of this (always wanting the cheapest price, in general) Enough already, I'm just bitching with no solutions. I guess that's what happens when you get old.
What about your nonpaying customers? Are they before or after the guy who didn't buy his bike from you? Seriously though, I didn't want to upset you. I just see similarities between the motorcycle dealers now & the auto dealers of the past. In 15 years from now do you want to be viewed as a slimmy car salesman is now. I think things are progressing that way. There's been a huge change in dealer attitude relating to new bike sales here in Charlotte since I bought my first new Jap bike about 12 years ago & I think the consumer is responsible for alot of this (always wanting the cheapest price, in general) Enough already, I'm just bitching with no solutions. I guess that's what happens when you get old. [/B][/QUOTE] BELIEVE me! i've done the car thing for a minute and the last thing i want is for any bike salesman to be viewed as "slimmy" or crooked. There is nothing to hide and nowadays with the "rubs" buying bikes, the bikes sell themselves most of the times. Fortunately, (i can't believe i'm saying this) we make the bulk of our money from this customer. Sport bike guys (like myself) and dirtbike guys continue to be harder to sell stuff to these days.
