Hey Dealers: Buying in the next 48 hours, give me your quotes..

mb
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Columbia, SC US
9/3/2015 12:00pm
Based on this thread, this is the business model for most dealerships.

1.) Make a laughably small amount of money on large big ticket item in hopes of gaining a loyal customer that will purchase small ticket items in the future.
2.) Don't worry about stocking any small ticket items, the customer will be more than happy to order the item, pay more than online retailers price, wait for the item to arrive at shop, wait for hourly employee to call customer to let them know the part is there, then drive back to the shop to pick up item.
3.) Profit?

Dont get me wrong, I try to shop at the local dealer as much as possible. Hell I even drive past my brand's dealer to go buy parts at the Honda dealer because I like the people there. But with the business model in this thread I wouldn't be surprised to see people ordering bikes straight from the MFR, cutting out dealers in the near future.
Steadman
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9/3/2015 12:06pm
Steadman wrote:
I wish more people could see and understand this way of doing business, especially in smaller communities.
TailSoHard wrote:
My best friend's father did this when they built a house. He's a dump-truck driver/handyman and would work Sundays for people when they needed an extra...
My best friend's father did this when they built a house. He's a dump-truck driver/handyman and would work Sundays for people when they needed an extra hand. A roofing job here, some dry-walling there, and would never ask anyone for a penny for his trouble. For years all he'd tell them was "I don't want your money. I'm happy to help, but keep in mind one day I'm going to ask you for a favor". So, when they day came where he got married, had a kid on the way, and needed to build a house, he called up all those people he had helped over the years and they all got together and built him a house. He had guys jumping at the chance to re-pay him for all the help he'd given them over the years. They ended up in a brand-new three-story, four bedroom, three bathroom, two-stall attached garage home for under $20,000.

It's a shame more people don't see the value in doing things this way...
That's incredible! I like to hear stories like that. A lot of unselfish people still around.

TailSoHard
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9/3/2015 12:17pm
mb wrote:
Based on this thread, this is the business model for most dealerships. 1.) Make a laughably small amount of money on large big ticket item in...
Based on this thread, this is the business model for most dealerships.

1.) Make a laughably small amount of money on large big ticket item in hopes of gaining a loyal customer that will purchase small ticket items in the future.
2.) Don't worry about stocking any small ticket items, the customer will be more than happy to order the item, pay more than online retailers price, wait for the item to arrive at shop, wait for hourly employee to call customer to let them know the part is there, then drive back to the shop to pick up item.
3.) Profit?

Dont get me wrong, I try to shop at the local dealer as much as possible. Hell I even drive past my brand's dealer to go buy parts at the Honda dealer because I like the people there. But with the business model in this thread I wouldn't be surprised to see people ordering bikes straight from the MFR, cutting out dealers in the near future.
Ok so what would you recommend I do differently then?
flarider
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Daytona Beach, FL US
9/3/2015 12:21pm
mb wrote:
Based on this thread, this is the business model for most dealerships. 1.) Make a laughably small amount of money on large big ticket item in...
Based on this thread, this is the business model for most dealerships.

1.) Make a laughably small amount of money on large big ticket item in hopes of gaining a loyal customer that will purchase small ticket items in the future.
2.) Don't worry about stocking any small ticket items, the customer will be more than happy to order the item, pay more than online retailers price, wait for the item to arrive at shop, wait for hourly employee to call customer to let them know the part is there, then drive back to the shop to pick up item.
3.) Profit?

Dont get me wrong, I try to shop at the local dealer as much as possible. Hell I even drive past my brand's dealer to go buy parts at the Honda dealer because I like the people there. But with the business model in this thread I wouldn't be surprised to see people ordering bikes straight from the MFR, cutting out dealers in the near future.
Ever consider it is impossible for the local shop to carry every pant color way of Fox, Thor, Fly, ANSR, MSR and every other brand, and then have it in all the kids sizes as well adult 28/30/32/34/36/38/40/42, +, +, + and then every jersey to match, in kids, S/M/L/XL/XXL and XXXL?
Not to mention every boot, in every color way, from AStars, Thor, Garne, Fly and on and on in 8/8/5/9/9.5/10/10.5/11/11.5/12 on up to size what, 14?

What do you think these stores are, Macy's?

When it comes to parts, yes, they should have basics, but there are some pretty obscure parts and then to expect the local shop to have a flywheel key for your 1977 YZ80D is just silliness

It's unrealistic. You expect shops to carry millions in inventory that they're going to wind up blowing out at below cost, because it's "last year's"

The Shop

flarider
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Daytona Beach, FL US
9/3/2015 12:25pm
flarider wrote:
Ever consider it is impossible for the local shop to carry every pant color way of Fox, Thor, Fly, ANSR, MSR and every other brand, and...
Ever consider it is impossible for the local shop to carry every pant color way of Fox, Thor, Fly, ANSR, MSR and every other brand, and then have it in all the kids sizes as well adult 28/30/32/34/36/38/40/42, +, +, + and then every jersey to match, in kids, S/M/L/XL/XXL and XXXL?
Not to mention every boot, in every color way, from AStars, Thor, Garne, Fly and on and on in 8/8/5/9/9.5/10/10.5/11/11.5/12 on up to size what, 14?

What do you think these stores are, Macy's?

When it comes to parts, yes, they should have basics, but there are some pretty obscure parts and then to expect the local shop to have a flywheel key for your 1977 YZ80D is just silliness

It's unrealistic. You expect shops to carry millions in inventory that they're going to wind up blowing out at below cost, because it's "last year's"
By the way, guess they'll have to carry two of everything listed above because of course they'll sell your size the day before you walk in, or an hour before

So take everything above, and make it all x2
TailSoHard
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Beer City, MI US
9/3/2015 12:29pm
flarider wrote:
Ever consider it is impossible for the local shop to carry every pant color way of Fox, Thor, Fly, ANSR, MSR and every other brand, and...
Ever consider it is impossible for the local shop to carry every pant color way of Fox, Thor, Fly, ANSR, MSR and every other brand, and then have it in all the kids sizes as well adult 28/30/32/34/36/38/40/42, +, +, + and then every jersey to match, in kids, S/M/L/XL/XXL and XXXL?
Not to mention every boot, in every color way, from AStars, Thor, Garne, Fly and on and on in 8/8/5/9/9.5/10/10.5/11/11.5/12 on up to size what, 14?

What do you think these stores are, Macy's?

When it comes to parts, yes, they should have basics, but there are some pretty obscure parts and then to expect the local shop to have a flywheel key for your 1977 YZ80D is just silliness

It's unrealistic. You expect shops to carry millions in inventory that they're going to wind up blowing out at below cost, because it's "last year's"
Exactly. Then consider the fact that Ski-Doo makes right around 200 different sleds for 2016 (yes, two hundred). Polaris makes 100 different SxS's and releases new ones every four months.

But yeah, shame on me for not having all the parts for them in stock at my 5000 sq ft dealership...
hvaughn88
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Conway, AR US
9/3/2015 12:41pm
Speaking of moto companies, anyone catch that ad on DMXS for DUBYA that was done with the movie trailer voice guy? That was hilarious.
jeffro413
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Alta, IA US
9/3/2015 12:43pm
Titan1 wrote:
I still think its ridiculous that the manufacturers can't sell those bikes to dealers cheaper, so dealers can make some money. I just don't understand why...
I still think its ridiculous that the manufacturers can't sell those bikes to dealers cheaper, so dealers can make some money. I just don't understand why the manufacturers would set their dealers up to fail...makes no sense to me.
and that's why you'll see a freight and setup charge at some places. the manufacturers want us to pass on the bill to the buyer to increase the margins. its up to the dealership whether they do that or not.
Motodork
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Carlsbad, CA US
9/3/2015 12:52pm
mtl wrote:
On an out of state deal it is the buyers responsibility to register and pay taxes on the bike, not the dealers to collect it. Situations...

On an out of state deal it is the buyers responsibility to register and pay taxes on the bike, not the dealers to collect it.

Situations like this result in a few hundred dollars of negotiating room that are in favor of the dealer as many of these machines get raced, not ridden on roads/OHV areas and are never registered.

I've been a heavy racer for 11 years now and have never bought a bike in state for these reasons. I have also spent $600 in the past few weeks @ East Bay Motorsports to rebuild the motor on my 2015 250F.

All of the clowns shitting on this request because of dealer loyalty should think before typing.
Love how you have a MIT email address but yet you think that common rules ( never sale a bike in a crate) do not apply to you. Like there is a little loop hole to buy a bike in a crate and from out of state that only applies to you. What a jackhole
Titan1
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9/3/2015 12:54pm
Titan1 wrote:
I still think its ridiculous that the manufacturers can't sell those bikes to dealers cheaper, so dealers can make some money. I just don't understand why...
I still think its ridiculous that the manufacturers can't sell those bikes to dealers cheaper, so dealers can make some money. I just don't understand why the manufacturers would set their dealers up to fail...makes no sense to me.
jeffro413 wrote:
and that's why you'll see a freight and setup charge at some places. the manufacturers want us to pass on the bill to the buyer to...
and that's why you'll see a freight and setup charge at some places. the manufacturers want us to pass on the bill to the buyer to increase the margins. its up to the dealership whether they do that or not.
Honestly, I appreciate this thread...it's helped me understand, at least a little bit, what dealerships are dealing with.

Does anyone have any insight into how much money the manufactures make when they sell a unit to the dealership?

Of course, flarider mentioned that the dealers don't even own the bikes that are in their showroom...so this makes even less sense to me. If the dealer doesn't own them, then why do they have to pay interest on their loan/line of credit to have them in their showroom?

The small profit margins would be understandable if the manufacturers were simply using the dealers floor space to move inventory and it didn't cost the dealership any money to have them there, then $300 is fine with me. But to charge them a ton of money (and interest) on a bike they don't even "own" and then to only make $300 is crazy.
mtl
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9/3/2015 12:56pm
Motodork wrote:
Love how you have a MIT email address but yet you think that common rules ( never sale a bike in a crate) do not apply...
Love how you have a MIT email address but yet you think that common rules ( never sale a bike in a crate) do not apply to you. Like there is a little loop hole to buy a bike in a crate and from out of state that only applies to you. What a jackhole
How do you explain the two I bought in crates earlier this year?

How do you explain my 2008, 2009, 2010 and both 2012's that I got crated.

Put your head further in that sand and pretend no dealer sells bikes crated, Jackhole.
iro
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Howell, NJ US
9/3/2015 1:10pm
TailSoHard wrote:
I'm a dealer and have been lurking here, but I'm not a Honda dealer at this location so that's why I haven't sent him a quote...otherwise...
I'm a dealer and have been lurking here, but I'm not a Honda dealer at this location so that's why I haven't sent him a quote...otherwise I totally would. I can guarantee you he wouldn't like the quote I send him, but I'd send it either way

It's always funny to me to hear how much money consumers think we dealers make on a brand new bike. I had one guy tell me that he knows for a fact we make roughly $2500 on an $8000 bike sale and I had a tough time not laughing in his face. I'm lucky if I make $300 on a motocross bike these days and here's why:

IF someone pays full-retail for a roughly $8000 bike (which never happens...hence the "IF"), we make less than $1000. Now, when that customer calls around to two different dealers (we'll call them A and B ), he can find dealer A is willing to make only $500 on that sale in order to earn his business. So, he calls dealer B and says "dealer A will do it for a $500 profit, can you do better?" To which they say "I guess if that's what it takes, sure, we'll do it for $350 profit..." So then he calls back to dealer A and yells at them for not giving them their "best price" right from the get-go. So they offer to do it for $100 profit but he says "no, I'm gonna go with dealer B cause they treated me right from the beginning". So he goes back to dealer B and says "dealer A will do it for $100 profit". And then they say "ok, well we'll just do it at $0 profit since you're a local guy and we like to take care of our local customers"... And so on. Then after buying his bike, he wants all his parts to match all the online prices, otherwise he might as well just go buy them online. So, that's what he does since the dealer can't match the price of an online retailer that moves 500 helmets per month when the dealer only sells 20. What blows my mind is that after all that, the dude STILL assumes that the dealer is making thousands on that sale...which is insane. A $300 profit on a year-long $8000 investment is not enough to keep food on the table. For all you people who suck at math, that's a 3% profit that took us a year to get. BUT, that profit got cancelled out by the 2014 model I had to sell at a loss because Mr "I'm a sponsored rider, I deserve a deal" wanted it for less than what Yamaha sold it to me for...

So, yeah, we don't make any money selling you guys motocross bikes...

What the dealers have going for them is the experience. The successful dealerships sell things based on emotions. Most people will literally pay more for the same product just because they like the person selling it or the experience they had while buying it (or having a shitty experience at another dealer). Harley Davidson is a great example. Shit bikes, shit clothes, shit prices, shit people, but they sell 1 out of every 3 bikes sold today. It's all based on the feeling you get from having a Harley. It's the branding. It's the emotion behind the name and the experience.

Not everyone is a "price-shopper". There are people willing to pay more for a product if they have a good experience. Ironically, those are also the people that end up getting the best deals from the dealerships. The loyal ones. As Shane mentioned, it's a two-way street guys. Take an interest in shopping at your local dealership, show them that you care, and they'll bend over backwards for you. The online retailers do business by saying "here's what it costs, take it or leave it, it'll be there in four days". Local dealerships do business by saying "Hey, how are you doing today, sir? What would you like me to do for you?"... See the difference? They're selling you the experience. A relationship. Two people doing business together. Not a person buying from a robot.

And then people wonder why dealerships keep closing and jobs keep getting shipped overseas. It's cause consumers are just that: consumers. They consume. They don't give. Just take and take.

I've said it before: learn how to buy before you complain about how people sell.
tprice07 wrote:
I don't believe that, or maybe I CAN'T believe that. Those margins are horrible and who in their right mind would spend $7,000 only to make...
I don't believe that, or maybe I CAN'T believe that.

Those margins are horrible and who in their right mind would spend $7,000 only to make a couple hundred bucks. I make more money flipping dirt bikes, mowers, subwoofers/amps and other stuff.

I work as a representative for a car audio company. My primary goal is to sign dealers, in which I make 10% commission off everything they sell. On the low end items dealer cost is something like $130 and the MAP price is $220, MSRP is $280. On the higher end stuff it's like $950 for dealer, $1330 MAP, $1659 MSRP. Those margins extend out even more when you sell more: $110 and $825.
Titan1 wrote:
I'm a bit skeptical of those margins as well. IF that is what manufacturers are forcing their dealerships to live on, they they are setting their...
I'm a bit skeptical of those margins as well.

IF that is what manufacturers are forcing their dealerships to live on, they they are setting their dealers up to fail. It just doesn't make any sense.

No way in the world I'd spend $7K on something that will sit on my showroom floor for up to a year, and only have the potential to make me $300. No way at all.

I wonder if its anything like the new car business where, their "invoice" price doesn't include any manufacturer kickbacks...so the salesmen can say, "here is our invoice, see? we are only making $300 on this car"...when in reality the dealership is getting a $4K kick back from the manufacturer.

I have no idea...but I just have a hard time believing that if there really is no money in dirt bikes, why dealers even sell them?
Just curious how you are so positive on these $4000 kickbacks on cars.... you obviously have absolutely no clue what you are talking about.

This whole thing needs to be flushed. The amount of wrong info and people thinking they know what the hell they are talking about (but don't have a clue) is just amazing.
TailSoHard
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9/3/2015 1:12pm
Titan1 wrote:
Honestly, I appreciate this thread...it's helped me understand, at least a little bit, what dealerships are dealing with. Does anyone have any insight into how much...
Honestly, I appreciate this thread...it's helped me understand, at least a little bit, what dealerships are dealing with.

Does anyone have any insight into how much money the manufactures make when they sell a unit to the dealership?

Of course, flarider mentioned that the dealers don't even own the bikes that are in their showroom...so this makes even less sense to me. If the dealer doesn't own them, then why do they have to pay interest on their loan/line of credit to have them in their showroom?

The small profit margins would be understandable if the manufacturers were simply using the dealers floor space to move inventory and it didn't cost the dealership any money to have them there, then $300 is fine with me. But to charge them a ton of money (and interest) on a bike they don't even "own" and then to only make $300 is crazy.
I'll see if I can simplify it a little bit. Think of it this way: the dealer buys that bike from the manufacturer, then sells it to you for more than what he paid for it. Common practice, pretty simple. But, when you don't have the money to buy it from the dealer in cash, what do you do? You finance it, right? You get a bank to buy it for you, then you pay back the bank with a set amount of interest. So, if the dealer doesn't have enough money to buy the bike from the manufacturer, they do the same thing you did. They finance it through a bank, not the manufacturer. They're obligated to pay back the bank (a lot of times manufacturers require you to use a company like GE capital), with interest. The dealer can do whatever they'd like with the bike. They can keep it, ride it, sell it, or even bury it underground. All the bank cares about is getting their money back. If behooves the dealer to sell it quickly so that they pay less interest, but they aren't required to sell it by any means. Obviously once you get some money coming in, you can afford to pay off some bikes prior to the sale, or just pay cash for them up front in the first place.

So, it's not the manufacturers making money off the interest, it's the bank
flarider
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9/3/2015 1:16pm
Titan1 wrote:
Honestly, I appreciate this thread...it's helped me understand, at least a little bit, what dealerships are dealing with. Does anyone have any insight into how much...
Honestly, I appreciate this thread...it's helped me understand, at least a little bit, what dealerships are dealing with.

Does anyone have any insight into how much money the manufactures make when they sell a unit to the dealership?

Of course, flarider mentioned that the dealers don't even own the bikes that are in their showroom...so this makes even less sense to me. If the dealer doesn't own them, then why do they have to pay interest on their loan/line of credit to have them in their showroom?

The small profit margins would be understandable if the manufacturers were simply using the dealers floor space to move inventory and it didn't cost the dealership any money to have them there, then $300 is fine with me. But to charge them a ton of money (and interest) on a bike they don't even "own" and then to only make $300 is crazy.
Units are "floor planned," as are car dealerships. The manufacturer doesn't "loan" the bikes to the dealers to sell, they sell them to the dealers, but since the dealer doesn't have hundreds of thousands or millions in liquid assets available to be tied up (like it is in the parts and accessories dept), the dealer turns to a finance company who buys the units from the Mfg and then holds the "note" on the machine until sold, and the dealer pays a small interest fee for that loan.

But go back to what I just said, everything you see in the Parts, Accessories and Service departments, are paid for assets out of that dealer's pocket, so if that clutch cable ordered for the 2013 CRF150 doesn't sell, he's stuck with it...he owns it. That bottle of Maxima? He owns it. All that gear and all that stuff you see other than bikes, they own. Think about the value of inventory of the 20-50 helmets you see on display, which of course it seems everyone wants him to stock in every size imaginable....you can have 10's of thousands of dollars tied up in helmets alone!!
kkawboy14
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9/3/2015 1:22pm Edited Date/Time 9/3/2015 1:22pm
All I can say is the dealers in Texas have never had any part or bolt I needed!
9/3/2015 1:22pm
First, ask your dealer when the best time for him to make you a deal. Like, when he Mass orders a bunch of units. Pay him...
First, ask your dealer when the best time for him to make you a deal. Like, when he Mass orders a bunch of units.

Pay him CASH. Or sign your life away on one of them screwy credit cards. (But expect to pay 3% more because that screwy credit card company is screwing your dealer for the transaction)

Second: Buy all your parts from him, even if that pipe costs you $80 more or you have to god forbid pay 7% sales tax on it.

Third: See two.


After the third bike in a few years, your dealer gets real nice. I have a 20 year relationship with my dealer. He tells me when he's going to order alot of units (because then the manufacturer gives him a further discount) he will pass the discount onto you because he won't have to pay a bank interest for the bike to sit on the floor and collect dust.

Don't just walk into a dealership the first nice week in May and expect to get a damn deal. They don't owe you anything. There are plenty of morons that graduate high school every year that get a nice fresh 8,000 line of credit to use on a bike. And if sells to that moron, he only had to deal with him for a few minutes--as opposed to the A-hole who jacks the dealer around for weeks just to jew him down to almost no profit.

Profit isn't a bad thing.


Example of loyalty:
I blew a countershaft bearing Sunday. I needed the bike turned around and fixed by next Saturday. (case split the whole 9, new left case, mill it down to make room for 144 piston etc...) On Sunday my guy already ordered the parts (he was closed) and Tuesday the parts were in. Listed everything on layaway, had the bike back together on Thursday in time to practice for the weekend.

But I buy all my shit from him. All the time. And always he can come within a few bucks of motosport or rocky mountain.
Premix wrote:
Georgie you ever figure out your miss on the bike?
Was All in the jetting.

athena usa emailed me and gave me a starting point. So I'll keep spending money with them too!

To Tie this back into to the topic: If you can make a social connection with people you're more apt to make a sale. The online bypasses the social aspect. They offer great deals. But once you have a problem its like squeezing blood out of a rock to get it right. (Especially from chap moto in my experience)
dcg141
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9/3/2015 1:27pm
I'm a dealer. The margins on bikes are really slim. The only time I entertain someone like the OP is if I have a really old unit I'm desperate to get rid of. Usually I save great deals for my regular customers. I do have them and that's the customer I want to take advantage of them. I will pretty much guarantee you that whatever he gets quoted the hard balling is only beginning.
kkawboy14
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9/3/2015 1:36pm
dcg141 wrote:
I'm a dealer. The margins on bikes are really slim. The only time I entertain someone like the OP is if I have a really old...
I'm a dealer. The margins on bikes are really slim. The only time I entertain someone like the OP is if I have a really old unit I'm desperate to get rid of. Usually I save great deals for my regular customers. I do have them and that's the customer I want to take advantage of them. I will pretty much guarantee you that whatever he gets quoted the hard balling is only beginning.
The margins are not slim on what you make off of mechanics and repairs.
I see more wasted money at bike dealerships, what's up with the girl over there behind a counter that takes people's money? And the 3 managers behind the curtain like the Wizard of Oz acting like its some sort of car dealership game with 6 sales guys running the deals to them?

I just shake my head every time I go in these places, so much wasted money!
kkawboy14
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9/3/2015 1:50pm
You know this thread is classic of how dumb motorcycle dealers are, how hard is it to throw out a number, who cares what the guy does with it? For sure no one is gonna call if they don't know your in business.

New kxf450 $7900 plus shipping give us a call at Cucumunga, Egypt, thanks for thinking about us call me Haboo if your in!

Motodork
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Carlsbad, CA US
9/3/2015 1:56pm
Motodork wrote:
Love how you have a MIT email address but yet you think that common rules ( never sale a bike in a crate) do not apply...
Love how you have a MIT email address but yet you think that common rules ( never sale a bike in a crate) do not apply to you. Like there is a little loop hole to buy a bike in a crate and from out of state that only applies to you. What a jackhole
mtl wrote:
How do you explain the two I bought in crates earlier this year? How do you explain my 2008, 2009, 2010 and both 2012's that I...
How do you explain the two I bought in crates earlier this year?

How do you explain my 2008, 2009, 2010 and both 2012's that I got crated.

Put your head further in that sand and pretend no dealer sells bikes crated, Jackhole.
So you have bought 5 or six bikes all while asking a dealer to break their dealer agreement with the manufacturer so they have the potential to lose the brand. You are surely the type of customer every dealer wants. Think of it like this, they signed a contract with a major manufacturer and are not honoring that contract, which means he doesn't honor his word or signature. Yep that is the guy I want to do business with. If sticking my head in the sand means I will never have to do business with MIT or Qualcom employees then beach here I come. Isn't MIT were all of the students didn't think the gambling laws applied to them, kinda of like the California DMV laws. Your entitled attitude is horrible.
Motodork
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9/3/2015 1:59pm
kkawboy14 wrote:
You know this thread is classic of how dumb motorcycle dealers are, how hard is it to throw out a number, who cares what the guy...
You know this thread is classic of how dumb motorcycle dealers are, how hard is it to throw out a number, who cares what the guy does with it? For sure no one is gonna call if they don't know your in business.

New kxf450 $7900 plus shipping give us a call at Cucumunga, Egypt, thanks for thinking about us call me Haboo if your in!

He is not just asking for a price, he is asking the dealer to break their dealer agreement with the manufacturer. Would you be ok if I just asked you to do something that will make you no money but put the lively hood of you and your employees in danger? He asked for a lot more than just a price.
philG
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9/3/2015 2:00pm
The money in the car trade isnt in the metal, its in the finance, the car is just an excuse to get you into a finance agreement , which is usually with the OEM's own finance arm.

As for bikes, i have been out of the trade for 10 years or more now, but back when a CBR1000 was £9000 , the dealer in price crated was around £8200, plus delivery, and then build /PDI costs. That left you £500 to deal into a part exchange , of haggle , we used to try and take £300 a bike, which wasnt easy . but you could make £300 on a helmet and slip on can if you tried hard.

A friend of mine runs a multi site multi franchise dealership, selling cars.. lots of them, makes less than 1.5% profit , and he is one of the better ones,

Compared to cars , bikes make nothing.
kkawboy14
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Location
TX US
9/3/2015 2:02pm
Assembly and destination charge: $250

To bolt on a tire and handlebars, add oil and gas, then start

A bike that carries no warranty!

If that is really a contract, it's a scam for the dealer to make money
kkawboy14
Posts
11486
Joined
6/5/2015
Location
TX US
9/3/2015 2:05pm
philG wrote:
The money in the car trade isnt in the metal, its in the finance, the car is just an excuse to get you into a finance...
The money in the car trade isnt in the metal, its in the finance, the car is just an excuse to get you into a finance agreement , which is usually with the OEM's own finance arm.

As for bikes, i have been out of the trade for 10 years or more now, but back when a CBR1000 was £9000 , the dealer in price crated was around £8200, plus delivery, and then build /PDI costs. That left you £500 to deal into a part exchange , of haggle , we used to try and take £300 a bike, which wasnt easy . but you could make £300 on a helmet and slip on can if you tried hard.

A friend of mine runs a multi site multi franchise dealership, selling cars.. lots of them, makes less than 1.5% profit , and he is one of the better ones,

Compared to cars , bikes make nothing.
No the real money in the car business is in selling warranties and quantity sales kick back dollars from the manufacturer. Such a scam the quantity sales. The dealer can honestly say I don't make but a $100 on this new car but if he hits his numbers for the year it's $millions from the manufacturer
kkawboy14
Posts
11486
Joined
6/5/2015
Location
TX US
9/3/2015 2:07pm
kkawboy14 wrote:
You know this thread is classic of how dumb motorcycle dealers are, how hard is it to throw out a number, who cares what the guy...
You know this thread is classic of how dumb motorcycle dealers are, how hard is it to throw out a number, who cares what the guy does with it? For sure no one is gonna call if they don't know your in business.

New kxf450 $7900 plus shipping give us a call at Cucumunga, Egypt, thanks for thinking about us call me Haboo if your in!

Motodork wrote:
He is not just asking for a price, he is asking the dealer to break their dealer agreement with the manufacturer. Would you be ok if...
He is not just asking for a price, he is asking the dealer to break their dealer agreement with the manufacturer. Would you be ok if I just asked you to do something that will make you no money but put the lively hood of you and your employees in danger? He asked for a lot more than just a price.
Then list the price and what you can and can't do, no big deal
Motodork
Posts
545
Joined
8/16/2006
Location
Carlsbad, CA US
9/3/2015 2:10pm
kkawboy14 wrote:
Assembly and destination charge: $250 To bolt on a tire and handlebars, add oil and gas, then start A bike that carries no warranty! If that...
Assembly and destination charge: $250

To bolt on a tire and handlebars, add oil and gas, then start

A bike that carries no warranty!

If that is really a contract, it's a scam for the dealer to make money
Have you ever read a manufacturer PDI check of sheet? The tech is required to check the tightness of every spoke, lube the filter, adjust the clutch, and about 35 other things that he has to check off that he did. If your dealership doesn't do that and there is a failure that causes an injury or death they would be liable. There is far more to getting a bike ready then bolting on a front wheel.
Motodork
Posts
545
Joined
8/16/2006
Location
Carlsbad, CA US
9/3/2015 2:14pm
kkawboy14 wrote:
Then list the price and what you can and can't do, no big deal
Why engage with someone that is asking from the start to do something they know is against the rules. How about in a proud and honorable society we call out the scum bag that starts with asking for something that is not allowed, just like I would call someone out in public for doing something that is not socially acceptable.
Titan1
Posts
9406
Joined
2/3/2010
Location
Lehi, UT US
9/3/2015 2:21pm
TailSoHard wrote:
I'll see if I can simplify it a little bit. Think of it this way: the dealer buys that bike from the manufacturer, then sells it...
I'll see if I can simplify it a little bit. Think of it this way: the dealer buys that bike from the manufacturer, then sells it to you for more than what he paid for it. Common practice, pretty simple. But, when you don't have the money to buy it from the dealer in cash, what do you do? You finance it, right? You get a bank to buy it for you, then you pay back the bank with a set amount of interest. So, if the dealer doesn't have enough money to buy the bike from the manufacturer, they do the same thing you did. They finance it through a bank, not the manufacturer. They're obligated to pay back the bank (a lot of times manufacturers require you to use a company like GE capital), with interest. The dealer can do whatever they'd like with the bike. They can keep it, ride it, sell it, or even bury it underground. All the bank cares about is getting their money back. If behooves the dealer to sell it quickly so that they pay less interest, but they aren't required to sell it by any means. Obviously once you get some money coming in, you can afford to pay off some bikes prior to the sale, or just pay cash for them up front in the first place.

So, it's not the manufacturers making money off the interest, it's the bank
I know how it works...I was just confused when Dave said that the dealership doesn't even own the bikes is all.

And I still don't get how the manufacturers can justify the prices they sell the machines to the deals at??? Why would any manufacturer set up the dealership to fail. (Because I guarantee that the manufacturer is making WAY more than $300/bike). I'm not usually a "spread the wealth around" type of guy, so the answer to my question is that the manufactures do it because dealers keep buying them.
TailSoHard
Posts
1656
Joined
10/18/2014
Location
Beer City, MI US
9/3/2015 2:32pm Edited Date/Time 9/3/2015 2:42pm
kkawboy14 wrote:
Assembly and destination charge: $250 To bolt on a tire and handlebars, add oil and gas, then start A bike that carries no warranty! If that...
Assembly and destination charge: $250

To bolt on a tire and handlebars, add oil and gas, then start

A bike that carries no warranty!

If that is really a contract, it's a scam for the dealer to make money
Motodork wrote:
Have you ever read a manufacturer PDI check of sheet? The tech is required to check the tightness of every spoke, lube the filter, adjust the...
Have you ever read a manufacturer PDI check of sheet? The tech is required to check the tightness of every spoke, lube the filter, adjust the clutch, and about 35 other things that he has to check off that he did. If your dealership doesn't do that and there is a failure that causes an injury or death they would be liable. There is far more to getting a bike ready then bolting on a front wheel.
Not to mention getting the crate off the truck (or out of storage), onto the lift, uncrated, unwrapped, assembled, bolted together, test-ridden (and fixed if there's any issues), cleaned, inspected, adjusted for the rider, delivered, and get the crate thrown away (or re-assembled so the manufacturer can come get it to re-use it). Plus, if there's any issues with it due to mice or age, that all needs to be addressed before delivery.

I have to ask people sometimes: How long would you guess it takes for one person to do all that? If you had to do that day in and day out, 9 hours a day, 6 days a week, how much money would someone have to pay you?

The manufacturer doesn't have the magic moto fairy drop off bikes all clean ready to go with the handlebar gently placed next to the bike with all the tools ready to go. Just to get the bike off the truck and on to the lift takes 15 minutes. Un-bolting the crate takes another 10, unwrapping the plastic takes 5, so already we're at a half hour just to get the bike on the lift and ready to be assembled. Then bolt the wheels on (10 minutes), bolt the handlebar on (5), fill with fluids (10), and air up the tires (5). That's an hour's worth of labor to have a bike that may or may not run yet. So, test ride it (5 minutes), clean it (20 minutes if you do a good job), inspect it (5), adjust the suspension and controls for the rider (15 minutes if they're not picky), and you're at a grand total of 1.75 hours (an hour and 45 minutes) to get this bike ready to go home, not counting clean-up. At our standard rate of $85 dollars an hour (which is the lowest in our area), that's $148. Subtract the mechanic's pay ($35), and our running costs ($52) and I'm left with a whopping $61.

So, you just got an $8000 bike for $7000 and I'm the one scamming people because I made an extra $61? Gimme a break man...
9/3/2015 2:32pm
Shops are either moto friendly or not. Many dealerships in, or near big urban areas don't have much use for an mx racer who wants everything at a huge discount.
Not when Johnny Office Worker comes in and actually needs the expertise and help of the shop in selecting a bike. That's the main asset of a motorcycle salesman IMO- helping less knowledgable customers decide. And Johnny Office Worker will drop a HUGE amount on accessories too, and if you function as their guru they will buy from you again and again.

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