I think Chad is onto something here....

Drtbykr
Posts
2058
Joined
10/29/2006
Location
Fredericton, CA
6/10/2012 7:19am
If you do find a good dealer, throw them your business and give them good word of mouth. My favourite, Toys for Big Boys in Salisbury New Brunswick Canada is 120 miles away, but worth it, they know KTM's!

Honda tried to take away their Honda line by making them build a special Honda building, they said piss off. Honda didn't want their line diluted with Harley's and KTM's. Now Honda is a bit player in their shop, and they sell Harley's (and I can't imagine the money they make off Harley accessories) and lots of orange and orange assesories. Honda in Canada wants superstores, CRF250F's beside the Civics. You can by a nice little Honda snowblower for $3500 there, yikes!

I try to give them as much business and good word of mouth as possible, BUT, I do mail order tires and brake pads from RM. $32 vs 55 for pads, can't do it! I mean, the dollar is almost at par.

Honda is also doing pretty near squat for Canadian MX, Leading Edge Kawasaki and KTM are the big players. It shows on the line at races, 80% of the bikes in the 80's and 90's were Honda's, not now.

Reed should have bought his kid a nice CRV.
ns503
Posts
4653
Joined
4/1/2008
Location
NS Toolies, CA
6/10/2012 7:33am
Drtbykr wrote:
If you do find a good dealer, throw them your business and give them good word of mouth. My favourite, Toys for Big Boys in Salisbury...
If you do find a good dealer, throw them your business and give them good word of mouth. My favourite, Toys for Big Boys in Salisbury New Brunswick Canada is 120 miles away, but worth it, they know KTM's!

Honda tried to take away their Honda line by making them build a special Honda building, they said piss off. Honda didn't want their line diluted with Harley's and KTM's. Now Honda is a bit player in their shop, and they sell Harley's (and I can't imagine the money they make off Harley accessories) and lots of orange and orange assesories. Honda in Canada wants superstores, CRF250F's beside the Civics. You can by a nice little Honda snowblower for $3500 there, yikes!

I try to give them as much business and good word of mouth as possible, BUT, I do mail order tires and brake pads from RM. $32 vs 55 for pads, can't do it! I mean, the dollar is almost at par.

Honda is also doing pretty near squat for Canadian MX, Leading Edge Kawasaki and KTM are the big players. It shows on the line at races, 80% of the bikes in the 80's and 90's were Honda's, not now.

Reed should have bought his kid a nice CRV.
Agreed 100% on TFBB, but they're likely an exception - the owner is an MX'r and all around good guy.

There are other nice shiney places you can walk into that, for some wierd reason, you get the feeling you're under some kind of suspicion the moment you walk thru the door.
yam261
Posts
449
Joined
4/28/2011
Location
CA
6/10/2012 7:38am
pawsan wrote:
you would think with it being chad feckin reed the dealer would be jumping through hoops to sort him out with a good deal.
The salesman probably didn't have a clue who he is. He is more interested in selling cruisers.
Motopayton
Posts
14
Joined
1/28/2012
Location
Goleta, CA, USA
6/10/2012 7:46am
If I were selling a bike to Chad Reed I would of been happy to make a deal with him. Maybe 300 dollars off the bike with a brand new helmet for Tate. I would also of asked if they could leave my stores decals on the bike. I am sure Tate will be riding in the area!

The Shop

three9zero
Posts
1454
Joined
9/26/2010
Location
Kamloops B.C, CA
6/10/2012 7:50am
I wonder if Chad was commenting on bad service, or the fact that they would not give him a deal on the CRF 50. I work in sales in the industry, if you do not charge set up on a kids bike you almost loose money.....Chad is worth like 80 million, I'm thinking he can pay retail on stuff and he'll still make his cell phone bill. Margin on new Jap bikes is like 10%, if you do not charge set up etc you basically have "stored" the bike for honda at your shop, and gave it to the customer.....It blows my mind how people try to "deal" on the cheapest thing you have in the store. We have a sale on pw 50's right now, it's an out the door sale, the price is exactly retail and we are selling them for the retail price OTD, so -5%( our sales tax is 5% which we are paying for the customer then giving it to the federal govt.) plus we are absorbing the cost of build, shipping, and fuel/oil in the bike. We are making ZERO on those fuckers, but.....that customer buys a full set of gear, which has 30 to 50% margin.
RACESTH639
Posts
75
Joined
12/30/2011
Location
Rochester, NH, USA
6/10/2012 7:51am
I understand how all you feel completely... I work for a one of the largest Ford dealers in the Northeast and in the country and we put all are prices right on the window after all discounts and dont charge any other fee's. Just the price thats on the window. I wish local mx shops would do the same b/c everytime I go in to buy a bike they always try to sway to a different brand...(I'm sure its b/c it puts more in there pocket) I wish my old dealer never closed, now buying bikes in nh sucks
Hando
Posts
1571
Joined
11/13/2011
Location
USA
6/10/2012 8:01am
its a sad thing that its easier to buy a used bike than it is a new one...

"how does 4K cash sound"?

"deal"

*loads bike into back of truck*
machine
Posts
6404
Joined
1/5/2011
Location
Collettsville, NC, USA
6/10/2012 8:15am
Slow450 wrote:
Not being a super picky rider, I've found it's usually pretty easy to find deals as long as you do the research and are willing to...
Not being a super picky rider, I've found it's usually pretty easy to find deals as long as you do the research and are willing to drive a bit. I've never gone into the shop with the intention of buying without already knowing what they were asking for a bike and without setting on what I can pay and leave happy. Since I'm not super fast I've never had a problem buying late in the season, around July'ish or later because you can really scoop up some good deals as the new models get ready to arrive.
However, I've only bought 4 bikes from dealerships (and 1 was used) over more than a decade of buying them, so I don't deal with this as much as some.
The last bike I bought (last year, KX450F) I saw an ad for an almost unbelievable price on the internet by a pretty large dealership. I called to confirm that that was the actually price and there wouldn't be another two grand in fees. To make sure, I told him I'd being paying for it today and needed to know exactly how much to bring. So when I arrived the whole thing took all of 15-20 minutes, most of which was spent outside with one of the mechanics going over the bike with me (first FI bike for me) and that was that.
The place was Sport Cycles in Rockingham, NC and I'll be returning to buy my next new bike, probably next summer, from them. I realize that one sale is small potatoes, but customer returning adds up eventually. It also seems really easy to make people happy, just be straight with them, not sneaky. I don't know anyone who appreciates seeing a bike for X price, arriving and finding out "their" price is X+$1500-2000.
I bought the same bike from them. He encouraged me to check around for a better price, well, I did and your right, he was open and honest with me and I bought the bike from him.
LouDog
Posts
709
Joined
11/8/2008
Location
Wildomar, CA, USA
6/10/2012 8:23am
LouDog wrote:
My son Weston had to by a bike yesterday we didnt buy it from a local shop because they wanted to much. Over the phone it...
My son Weston had to by a bike yesterday we didnt buy it from a local shop because they wanted to much. Over the phone it was a great deal then when I went in to do the deal the price went up so we drove 1 hour to get the best deal. It really sucks to get a line of BS from shops trying to justify the extra charges.
MX Culture wrote:
what bike did you son Weston purchase?
what is he going to do with said bike?
He bought a Suzuki 450, he's been wanting to try one for a while. If we can get everything done and set up were going to race Washougal, for sure Lake Elsinore National and the Monster Cup SX.
JG463
Posts
941
Joined
6/21/2011
Location
Stillwater, OK, USA
6/10/2012 8:33am
If this is how it is at all of your local dealers, I apologize. The dealership that I work at and the Sales crew that I manage take alot of pride in not only customer service, but finding the right bike and doing anything we can to make it affordable.

If you guys are looking for any new bike (Honda, Suzuki, Yamaha, Kawasaki) entertain me and shoot me a pm and let's see how my prices compare. Not every dealer out there is trying to get into your pocket, but some are trying to make a fair living.
MX558
Posts
1998
Joined
4/1/2008
Location
USA
6/10/2012 8:42am
I doubt very much it came down to price, probably more to the way they were treated. What's the cost of a crf50 $800.00 big effin deal take a couple of pictures of Chad and hang them in the shop. I run a small construction business it's pretty easy to write off $800 bucks for some good pr. I shop at Port Yamaha in Port Washington, WI. (70 miles from me ) it's a small shop that treats you right and has great deals it sucks I switched to Honda's now. I have a shop about 5 miles away and have bought one bike (of about 20 bikes) from them in 30yrs.
sharkey
Posts
2446
Joined
7/28/2008
Location
Marysville, WA, USA
6/10/2012 9:00am
yeah its funny how it is in some dealers. some really dont care whether you buy a bike or not.alot of places i went to wanted to sell me a bike at full boat price. i ened up going back to the same shop ive been going to for awhile now but a 4hr drive was worth$1500. the place i got my bike from the manager said" i cant charge you a setup fee and feel good about that, you know we put a front wheel and bars on and charge 300 or more". funny thing it was a small shop who sells alot of quads and stuff like that to farmers. i should have drove back to the other places with the new bike in the truck to rub it it but honestly they wouldnt have cared and at that point neither did i
sharkey
Posts
2446
Joined
7/28/2008
Location
Marysville, WA, USA
6/10/2012 9:35am
there are some good dealerships still around. motosport hillsborro must be the most impressive place ive ever been. always have tons of parts and gear . IN STOCK. prices are always great and support tons on mx racers and sell a TON of bikes. i bet that place could outsell every bike dealership in washington.
BobbyM
Posts
21435
Joined
8/15/2006
Location
USA
6/10/2012 9:51am
pawsan wrote:
you would think with it being chad feckin reed the dealer would be jumping through hoops to sort him out with a good deal.
gsxrcr28 wrote:
That's what I was thinking. I was also thinking he should get whatever he wants from Honda for free.
pride maybe? reed has some it appears.
newmann
Posts
24437
Joined
4/1/2008
Location
USA
6/10/2012 9:57am
Does anyone really know exactly what it was that pissed Mr. and Mrs. Reed off in the first place?
Uncleof2
Posts
1276
Joined
5/10/2008
Location
Silverdale, WA, USA
6/10/2012 10:12am
sharkey wrote:
yeah its funny how it is in some dealers. some really dont care whether you buy a bike or not.alot of places i went to wanted...
yeah its funny how it is in some dealers. some really dont care whether you buy a bike or not.alot of places i went to wanted to sell me a bike at full boat price. i ened up going back to the same shop ive been going to for awhile now but a 4hr drive was worth$1500. the place i got my bike from the manager said" i cant charge you a setup fee and feel good about that, you know we put a front wheel and bars on and charge 300 or more". funny thing it was a small shop who sells alot of quads and stuff like that to farmers. i should have drove back to the other places with the new bike in the truck to rub it it but honestly they wouldnt have cared and at that point neither did i
Ok, here goes. The other side of the coin. I am a salesperson at a dealership in Washington who sells quite a few
dirtbikes. I am the race team coordinater for our shop and we give all our guys a discount based on their level of
riding. First of all putting on a front tire and handlebars, really? I would say that one dirtbike involves 2-3 hours of
labor before it is sold. Unload from truck in crate, uncrate(they don't just hang in the air) Assemble, check tire pressures,
fluids, gas, chain tension, tighten nuts and bolts, check air filter, test ride the bike, and etc. before bike goes on floor
and then check everything again before it goes to customer and go over the bike with customer and load it up in his
truck. Joe dirtbike rider comes in and says he can get a new 2013 CRF450R from a Oregon. dealer for $8000 OTD can
we match the deal. Cost of the bike is $7596 retail is 8500 our tax rate is 8.6% you do the math on how this works out for the dealership and the salesman, and I usually spend a good hour with this customer trying to convince them to buy from us. To be honest most of our dirtbikes get sold to the navy guys in our area who don't race or research or are part of the mx
crowd. We do our best to give good deals to our loyal customers through good service, parts discounts, a special events
that they can save money. Ultimately, we have to sell bikes at a profit to stay in business and the guy who doesn't charge
freight and setup is one of those guys that will be out of business unless his dealership is just a hobby and he's rich. In
every bike sale their are usually at least 6 people involved in that sale and none of them are working for free. In a perfect
world we would be able to sell a bike for retail plus tax and license, but for all the mx guys we sell for $300 over cost and
buy their parts & accessories online we have to make it up somewhere because to be honest most of you guys are not
good customers to your local dealer, I said most not ALL.Smile Sad
6/10/2012 10:54am
sharkey wrote:
yeah its funny how it is in some dealers. some really dont care whether you buy a bike or not.alot of places i went to wanted...
yeah its funny how it is in some dealers. some really dont care whether you buy a bike or not.alot of places i went to wanted to sell me a bike at full boat price. i ened up going back to the same shop ive been going to for awhile now but a 4hr drive was worth$1500. the place i got my bike from the manager said" i cant charge you a setup fee and feel good about that, you know we put a front wheel and bars on and charge 300 or more". funny thing it was a small shop who sells alot of quads and stuff like that to farmers. i should have drove back to the other places with the new bike in the truck to rub it it but honestly they wouldnt have cared and at that point neither did i
Uncleof2 wrote:
Ok, here goes. The other side of the coin. I am a salesperson at a dealership in Washington who sells quite a few dirtbikes. I am...
Ok, here goes. The other side of the coin. I am a salesperson at a dealership in Washington who sells quite a few
dirtbikes. I am the race team coordinater for our shop and we give all our guys a discount based on their level of
riding. First of all putting on a front tire and handlebars, really? I would say that one dirtbike involves 2-3 hours of
labor before it is sold. Unload from truck in crate, uncrate(they don't just hang in the air) Assemble, check tire pressures,
fluids, gas, chain tension, tighten nuts and bolts, check air filter, test ride the bike, and etc. before bike goes on floor
and then check everything again before it goes to customer and go over the bike with customer and load it up in his
truck. Joe dirtbike rider comes in and says he can get a new 2013 CRF450R from a Oregon. dealer for $8000 OTD can
we match the deal. Cost of the bike is $7596 retail is 8500 our tax rate is 8.6% you do the math on how this works out for the dealership and the salesman, and I usually spend a good hour with this customer trying to convince them to buy from us. To be honest most of our dirtbikes get sold to the navy guys in our area who don't race or research or are part of the mx
crowd. We do our best to give good deals to our loyal customers through good service, parts discounts, a special events
that they can save money. Ultimately, we have to sell bikes at a profit to stay in business and the guy who doesn't charge
freight and setup is one of those guys that will be out of business unless his dealership is just a hobby and he's rich. In
every bike sale their are usually at least 6 people involved in that sale and none of them are working for free. In a perfect
world we would be able to sell a bike for retail plus tax and license, but for all the mx guys we sell for $300 over cost and
buy their parts & accessories online we have to make it up somewhere because to be honest most of you guys are not
good customers to your local dealer, I said most not ALL.Smile Sad
why dealers dont focus on the " motocross racer market"


sell 10 moto cross bikes at $ 200.00 over cost = $ 2000.00 gross profit

or

sell 1 GSXR 1000 for example and make = $ 2000.00


the racer will whine, complain, want parts at cost and feels entitled and still order his parts online rather than support his local dealer



the GSXR customer, will have bike serviced at dealer, hardly ever complain


This how its been for a long time , you will see less dealers overtime, higher prices on bikes. supply and demand etc,
Drtbykr
Posts
2058
Joined
10/29/2006
Location
Fredericton, CA
6/10/2012 11:32am
True about easier to buy used. I wait for a high end KTM, let some dude bling it up, then pay 70% on a bike that doesn't even have a fully worn out rear tire with 300km's.

I don't know how the 1st owner afford to walk away from that much depreciation, but it is the only way I can buy a high end dirt bike without guilt (wife and kids and all).

Salepeople are kind of dammed if they do, damned if they don't. Some people will say, "I hated it there, salesperson were all over me", or "I hated it there, no one waited on me.

The extra fees are nuts though, just put the darn price on the new ones!

Reed is probably so used to being pampered like a rock star, someone that didn't know him would treat like, OMG, a typical dude!
three9zero
Posts
1454
Joined
9/26/2010
Location
Kamloops B.C, CA
6/10/2012 1:32pm Edited Date/Time 6/10/2012 1:34pm
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit and bench race with any customer as motocross is my passion. When a customer comes in with a price quote or claiming he can get a bike for a certain price I go to my office and run the ###'s, if the unit he wants is a hot seller and I have very few left and his "claimed" price is under what I consider to be a decent margin I'll pass on the deal,,, OR I'll ask "WHAT ELSE ARE YOU BUYING", then work on the deal from there, as" best price is not always the best deal".

When I get a local racer/rich mini dad who thinks he's "KING SHIT OF TURD ISLAND" wanting a "killer deal cause he racers and will buy all his parts from us" I make a deal with him, I'll give you your bike for $ 500 over invoice if you can refer 10 sales to me at retail plus tax, I dont care if its an atv, boat, bike or scooter, 10 sales, friends, family, co-workers what-ever, you scratch my back i'll scratch yours. VET riders alway come though as they are older guys with $$$ who have co-workes who have money. One of my VET racer buddies actually referred 27 sales to me last year. HE will be getting a Kawi rider support deal and will get his bike for 10% under dealer cost, I'll build his bike with him in our shop after hours while we split a 6 pack, I'll buy him a graphics kit and get him some custom ###'s for his bike for his bike too.
newmann
Posts
24437
Joined
4/1/2008
Location
USA
6/10/2012 1:46pm
three9zero wrote:
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit...
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit and bench race with any customer as motocross is my passion. When a customer comes in with a price quote or claiming he can get a bike for a certain price I go to my office and run the ###'s, if the unit he wants is a hot seller and I have very few left and his "claimed" price is under what I consider to be a decent margin I'll pass on the deal,,, OR I'll ask "WHAT ELSE ARE YOU BUYING", then work on the deal from there, as" best price is not always the best deal".

When I get a local racer/rich mini dad who thinks he's "KING SHIT OF TURD ISLAND" wanting a "killer deal cause he racers and will buy all his parts from us" I make a deal with him, I'll give you your bike for $ 500 over invoice if you can refer 10 sales to me at retail plus tax, I dont care if its an atv, boat, bike or scooter, 10 sales, friends, family, co-workers what-ever, you scratch my back i'll scratch yours. VET riders alway come though as they are older guys with $$$ who have co-workes who have money. One of my VET racer buddies actually referred 27 sales to me last year. HE will be getting a Kawi rider support deal and will get his bike for 10% under dealer cost, I'll build his bike with him in our shop after hours while we split a 6 pack, I'll buy him a graphics kit and get him some custom ###'s for his bike for his bike too.
Couple questions for the dealer guys here.

1) Over invoice; I'm guessing there's also some "holdback"? Heard that term on many occasions both in motorcycles as well as autos.

2)Assembly; Does the mfg. in no way whatsoever reimburse the dealer for assembling the motorcycle so that it can be displayed for sale. I've heard it was a trivial amount but SOME dealers are also paying a trivial amount to the guy assembling them.

3) Freight; Does the mfg. in no way shape or form reimburse the dealer for this also? Say for instance in credits elsewhere?
KLM85
Posts
75
Joined
1/24/2012
Location
Gilbert, AZ, USA
6/10/2012 2:06pm
The real questions is why do we even need all the dealers anymore. From a logistics standpoint it is a complete waste. I'd rather have my bike shipped to a warehouse and pick it up in a crate if I had the choice. All of the dealers around me make their money financing overpriced utvs to financially overstretched overweight middle aged men.
6/10/2012 2:23pm
three9zero wrote:
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit...
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit and bench race with any customer as motocross is my passion. When a customer comes in with a price quote or claiming he can get a bike for a certain price I go to my office and run the ###'s, if the unit he wants is a hot seller and I have very few left and his "claimed" price is under what I consider to be a decent margin I'll pass on the deal,,, OR I'll ask "WHAT ELSE ARE YOU BUYING", then work on the deal from there, as" best price is not always the best deal".

When I get a local racer/rich mini dad who thinks he's "KING SHIT OF TURD ISLAND" wanting a "killer deal cause he racers and will buy all his parts from us" I make a deal with him, I'll give you your bike for $ 500 over invoice if you can refer 10 sales to me at retail plus tax, I dont care if its an atv, boat, bike or scooter, 10 sales, friends, family, co-workers what-ever, you scratch my back i'll scratch yours. VET riders alway come though as they are older guys with $$$ who have co-workes who have money. One of my VET racer buddies actually referred 27 sales to me last year. HE will be getting a Kawi rider support deal and will get his bike for 10% under dealer cost, I'll build his bike with him in our shop after hours while we split a 6 pack, I'll buy him a graphics kit and get him some custom ###'s for his bike for his bike too.
newmann wrote:
Couple questions for the dealer guys here. 1) Over invoice; I'm guessing there's also some "holdback"? Heard that term on many occasions both in motorcycles as...
Couple questions for the dealer guys here.

1) Over invoice; I'm guessing there's also some "holdback"? Heard that term on many occasions both in motorcycles as well as autos.

2)Assembly; Does the mfg. in no way whatsoever reimburse the dealer for assembling the motorcycle so that it can be displayed for sale. I've heard it was a trivial amount but SOME dealers are also paying a trivial amount to the guy assembling them.

3) Freight; Does the mfg. in no way shape or form reimburse the dealer for this also? Say for instance in credits elsewhere?
Hey Newman,


everything you wrote is correct, hold back is 3-5% on average and paid every 3 month. freight and assembly is reimbursed to dealer but much less than true cost. dealers have to pay storage on inventory and flooring cost which eat up 'Hold back" real fast.

dealers are not getting rich by no means, I read 60% of dealers will be out of business by 2014 from peak. the remaining dealers will be just fine if they keep expenses down till the japs start to refocus on the american market. expect bike and parts prices to keep going up till volume increases. a smart dealer will focus on used bikes,selling service (labor) and new bikes. competing with internet companies on parts and accessories is a lost cause for the average dealer.

there is a saying in the industry 'how do you make a million dollars selling motorcycles?' you need to start with three million

Times have changed and will keep changing in this tough industry
FastEddy
Posts
14815
Joined
8/3/2008
Location
💀, FL, USA
6/10/2012 2:27pm
Hey Newman, everything you wrote is correct, hold back is 3-5% on average and paid every 3 month. freight and assembly is reimbursed to dealer but...
Hey Newman,


everything you wrote is correct, hold back is 3-5% on average and paid every 3 month. freight and assembly is reimbursed to dealer but much less than true cost. dealers have to pay storage on inventory and flooring cost which eat up 'Hold back" real fast.

dealers are not getting rich by no means, I read 60% of dealers will be out of business by 2014 from peak. the remaining dealers will be just fine if they keep expenses down till the japs start to refocus on the american market. expect bike and parts prices to keep going up till volume increases. a smart dealer will focus on used bikes,selling service (labor) and new bikes. competing with internet companies on parts and accessories is a lost cause for the average dealer.

there is a saying in the industry 'how do you make a million dollars selling motorcycles?' you need to start with three million

Times have changed and will keep changing in this tough industry
Good post & thanks for the info.

Also,welcome to the board.
sam111
Posts
417
Joined
2/1/2009
Location
NZ
6/10/2012 3:23pm
Drtbykr wrote:
If you do find a good dealer, throw them your business and give them good word of mouth. My favourite, Toys for Big Boys in Salisbury...
If you do find a good dealer, throw them your business and give them good word of mouth. My favourite, Toys for Big Boys in Salisbury New Brunswick Canada is 120 miles away, but worth it, they know KTM's!

Honda tried to take away their Honda line by making them build a special Honda building, they said piss off. Honda didn't want their line diluted with Harley's and KTM's. Now Honda is a bit player in their shop, and they sell Harley's (and I can't imagine the money they make off Harley accessories) and lots of orange and orange assesories. Honda in Canada wants superstores, CRF250F's beside the Civics. You can by a nice little Honda snowblower for $3500 there, yikes!

I try to give them as much business and good word of mouth as possible, BUT, I do mail order tires and brake pads from RM. $32 vs 55 for pads, can't do it! I mean, the dollar is almost at par.

Honda is also doing pretty near squat for Canadian MX, Leading Edge Kawasaki and KTM are the big players. It shows on the line at races, 80% of the bikes in the 80's and 90's were Honda's, not now.

Reed should have bought his kid a nice CRV.
In New Zealand, the Honda importers won't allow dealerships to have any additional bike franchises - they have to solely sell Honda's. All of the other brands allow mixed dealerships. I know of one or two that have ditched Honda for this very reason.
sam111
Posts
417
Joined
2/1/2009
Location
NZ
6/10/2012 3:38pm Edited Date/Time 6/10/2012 3:41pm
Uncleof2 wrote:
Ok, here goes. The other side of the coin. I am a salesperson at a dealership in Washington who sells quite a few dirtbikes. I am...
Ok, here goes. The other side of the coin. I am a salesperson at a dealership in Washington who sells quite a few
dirtbikes. I am the race team coordinater for our shop and we give all our guys a discount based on their level of
riding. First of all putting on a front tire and handlebars, really? I would say that one dirtbike involves 2-3 hours of
labor before it is sold. Unload from truck in crate, uncrate(they don't just hang in the air) Assemble, check tire pressures,
fluids, gas, chain tension, tighten nuts and bolts, check air filter, test ride the bike, and etc. before bike goes on floor
and then check everything again before it goes to customer and go over the bike with customer and load it up in his
truck. Joe dirtbike rider comes in and says he can get a new 2013 CRF450R from a Oregon. dealer for $8000 OTD can
we match the deal. Cost of the bike is $7596 retail is 8500 our tax rate is 8.6% you do the math on how this works out for the dealership and the salesman, and I usually spend a good hour with this customer trying to convince them to buy from us. To be honest most of our dirtbikes get sold to the navy guys in our area who don't race or research or are part of the mx
crowd. We do our best to give good deals to our loyal customers through good service, parts discounts, a special events
that they can save money. Ultimately, we have to sell bikes at a profit to stay in business and the guy who doesn't charge
freight and setup is one of those guys that will be out of business unless his dealership is just a hobby and he's rich. In
every bike sale their are usually at least 6 people involved in that sale and none of them are working for free. In a perfect
world we would be able to sell a bike for retail plus tax and license, but for all the mx guys we sell for $300 over cost and
buy their parts & accessories online we have to make it up somewhere because to be honest most of you guys are not
good customers to your local dealer, I said most not ALL.Smile Sad
I don't feel the need to be loyal to my local dealerships because I have been blatantly ripped off by them too many times. I have also seen shops blatantly take advantage of naive customers who are new to motorcycling. The current staff in the local Suzuki shop are pretty good though, so I have been giving them a fair amount of business lately. I have two DR200's and a quad I use for work on my farm in addition to my RMZ.

I live 15 minutes drive outside of town (previous job was an hour), so I buy online for convenience more than anything else. The bike shops will courier stuff to you, but it is good being able to browse and choose exactly what you want, compare different products and have them shipped directly to you from the online stores.

My Dad thinks that retail outlets of all kinds will be replaced by online stores in our lifetime. If they want to stay in business, many need to lift their game.
BD49
Posts
394
Joined
8/16/2006
Location
Canton, GA, USA
6/10/2012 4:24pm
pawsan wrote:
well yeah that had crossed my mind. i wonder what honda will make of all this? one of the best known riders in the world, rides...
well yeah that had crossed my mind.

i wonder what honda will make of all this? one of the best known riders in the world, rides a factory honda, and gets fucked about with a honda dealer. you couldn't make this shit up.
Adam43 wrote:
Might not have been a Honda dealer. Maybe he just went to Joe's Bike Shop for some chain lube.
It was certainly a Honda Dealer. I can't remember the one, but he posted their name on an earlier tweet that he has since deleted.

Said he bought his bike at there in 2008 and it was a horrible experience then as well.
three9zero
Posts
1454
Joined
9/26/2010
Location
Kamloops B.C, CA
6/10/2012 4:39pm
three9zero wrote:
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit...
I'm in the same industry and position as Uncle of 2. I focus on selling European and used bikes at my shop. I'll shoot the shit and bench race with any customer as motocross is my passion. When a customer comes in with a price quote or claiming he can get a bike for a certain price I go to my office and run the ###'s, if the unit he wants is a hot seller and I have very few left and his "claimed" price is under what I consider to be a decent margin I'll pass on the deal,,, OR I'll ask "WHAT ELSE ARE YOU BUYING", then work on the deal from there, as" best price is not always the best deal".

When I get a local racer/rich mini dad who thinks he's "KING SHIT OF TURD ISLAND" wanting a "killer deal cause he racers and will buy all his parts from us" I make a deal with him, I'll give you your bike for $ 500 over invoice if you can refer 10 sales to me at retail plus tax, I dont care if its an atv, boat, bike or scooter, 10 sales, friends, family, co-workers what-ever, you scratch my back i'll scratch yours. VET riders alway come though as they are older guys with $$$ who have co-workes who have money. One of my VET racer buddies actually referred 27 sales to me last year. HE will be getting a Kawi rider support deal and will get his bike for 10% under dealer cost, I'll build his bike with him in our shop after hours while we split a 6 pack, I'll buy him a graphics kit and get him some custom ###'s for his bike for his bike too.
newmann wrote:
Couple questions for the dealer guys here. 1) Over invoice; I'm guessing there's also some "holdback"? Heard that term on many occasions both in motorcycles as...
Couple questions for the dealer guys here.

1) Over invoice; I'm guessing there's also some "holdback"? Heard that term on many occasions both in motorcycles as well as autos.

2)Assembly; Does the mfg. in no way whatsoever reimburse the dealer for assembling the motorcycle so that it can be displayed for sale. I've heard it was a trivial amount but SOME dealers are also paying a trivial amount to the guy assembling them.

3) Freight; Does the mfg. in no way shape or form reimburse the dealer for this also? Say for instance in credits elsewhere?
Hold back or "registration bonus"- yep we get it every couple of months, I'd say it's about $ 400 on a new 450.

Assembly reimbursement-in Canada, no ,the OEM do not reimburse us for that, a techs time in a shop here in "Oilberta" is $ 115hr, so on average to do a good job on a new mx bike by the time the unit is uncrated, assembled, fluids and bolts checked, and fueled(we fill them to the brim) it takes about 2.5hr. + you have to clean up the crate cardboard, pile the scrap metal from the crate, forkiift the crate from the pile o crates and push it into the tech bay,and at last clean/wash the bike as it is coated in shipping oil(cost about $ 50 labour supplies(10l of premium fuel @ $ 1.35 l)

Freight- Here in Canada it's cost averaged so a dealer who runs a shop in Vancouver(all the Jap bikes come from there) pays the same $$$$ as one in Nova Scotia. On a new 250-450 we get charged about or "aboot" $ 300. We are not reimbursed for freight either.

So if we retail a new 450, and it's 8999, and cost is $ 7500, its cost us $ 295 shop time, $ 50 (supplies, wash etc) $ 300 freight. So it cost $ 640 just to get the bike to the shop, pep it and get it ready for you the buyer, plus the shop has to pay comish to sales guy/gal ( usually 20% of the profit) $ 172. So it costs the shop $ 732 out of a posiible $ 1500 just to sell the bike, then in 3 months you'll get your Hold back of $ 400.
So a dealer, if he sells the bike for full retail plus tax here in Canada will make $ 1132 on a new 450, which is 12% margin.

I work for a very successful shop, since the recession we focus on Used and Euro ( BMW,Triumph, KTM, Aprillia, and Moto Guzzi. We also sell Suzuki, Kawi, and Yammi. This year 30% of our business is Used and 50% is Euro,margins on used is 20% and Euro is full pop+++or you cant have one. We make close to $ 4000 on a BMW, plus the bmw customer usually buys $ 3000 worth of P&a, never grinds on price and brings his bike into service 2x3 times a season. On KTM dirt bikes we charge retail+$8 tire tax + gst. With Japanese stuff we "Troll the line" which is sell at retail, order your minimum from the oem, and let the other dummies cut each others throats/cannibalize each others prices to make a possible 10%. Usually the dealers who "give their product away" to out of town guys do not last long. The out of town bargain hunter guy is driving there, getting his bike and driving home, who is going to take a 6 hour round trip to buy gear, oil or parts ? NOt him......

So your best customer is a local guy who you sell to at a fair price(retail + no hidden fees), comes by your shop once a week and get oil, gear ect( he's local,buys his bikes there and because of that he gets 10-20% of of that shit too. That is the customer a store wants. The worst customer is the guy who wants his bike for nothing, comes into your shop and tries on gear then orders it online to save $ 20...He's also the guy who tries to bring his stuff into your shop for warranty even though he did not buy it there, he gives your service department a hard time cause he does not want to pay to get his bike fixed but cant do it himself because he's too stupid to do it himself....This is the guy who finds out that at the end of the day, the best price is not always the best deal.......
6/10/2012 4:44pm Edited Date/Time 6/10/2012 4:45pm
It had to have been Motorsports Honda/Kawi/Suzuki on Nebraska and Fletcher in Tampa. That's the closest dealer to Chad's summer home, unless he just hit some...
It had to have been Motorsports Honda/Kawi/Suzuki on Nebraska and Fletcher in Tampa. That's the closest dealer to Chad's summer home, unless he just hit some random shop on the road one day. They have quite the reputation, and selling Jetskis to Tampa geeks keeps them afloat. (pun intended)
Jakes Dad wrote:
This one is a little closer if you're talking about his place off Old Lakeland Highway.

http://www.performancehonda.net/
He lives off County line North of the "New Tampa" area.
BD49
Posts
394
Joined
8/16/2006
Location
Canton, GA, USA
6/10/2012 5:15pm
I'm almost 100% Performance Honda is the one he named.....
6/10/2012 5:23pm
BD49 wrote:
I'm almost 100% Performance Honda is the one he named.....
that would explain why they had no idea who he was then. that place is po-dunk, just like everything off I-4 between the fairgrounds, all the way to Orlando.

Post a reply to: I think Chad is onto something here....

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