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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.
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.
The Shop
DeCal Works Huge Plastic Inventory of UFO and Polisport kits.
Luxon 4-Post Bar Mounts
$189.95 - $239.95
"how does 4K cash sound"?
"deal"
*loads bike into back of truck*
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.
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.
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,
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!
Pit Row
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.
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?
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
Also,welcome to the board.
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.
Said he bought his bike at there in 2008 and it was a horrible experience then as well.
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.......
Post a reply to: I think Chad is onto something here....