How does RockyMountain make money

gt80rider
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7407
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Boulder, CO, USA
1/8/2019 9:24am
kb228 wrote:
I think its safe to say they offer the best prices out of any retailer. Their prices are better than dealership employee discounts. Im curious as...
I think its safe to say they offer the best prices out of any retailer. Their prices are better than dealership employee discounts. Im curious as to how they make money off of what they sell?

Obviously theyre doing great as a company. So if they make money selling things for crazy low prices, why cant local dealerships match it? Is it because RM has extremely low profit margins but extremely high volume of sales? Whereas a dealership has low volume of sales and has to compensate with higher profit margins?
Doing great? I have zero idea, but based on the status of our industry, I would have to say there is no way. Also, those great prices that you are seeing are on mostly older, left-over stock that they simply can't move. If everything was at full retail, then maybe they are doing "great", but with so many discounts, they are just trying to get rid of stuff that nobody seems to want anymore...

Sad, but I think the overall health of our industry has been mostly exaggerated to the positive side of things. The AX series died, the tv deals keep getting worse, and judging by the pricing of left over bikes at my local shops, it seems they can't even give away certain models.
2
DTR830
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Mountain Top, PA, USA
1/8/2019 9:54am
I can discount RM website pricing.
1
Tracktor
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The RTF/Amboy, WA, USA
1/8/2019 10:06am
Well considering a local pro friend of mine waited two weeks for a KTM foot peg spring from a local shop I can see why Rocky Mountain thrives. Another shop took three tries to get a base gasket right for another friend. Same shop (big dealership) had no idea what a holeshot device was. Then when showed what it was said three weeks to get? I only buy what I can grab off shelf locally anymore. Mostly oil & grips. Wasn't always that way, though.............
5
1/8/2019 10:46am
I was in a shop a few years ago and watched a kid try on about 6 pairs of boots,different brands and sizes.The shop salesman spent...
I was in a shop a few years ago and watched a kid try on about 6 pairs of boots,different brands and sizes.The shop salesman spent about a half hour with this kid helping him find the perfect boot.The salesman stepped away to answer a question at the counter.I then hear the kid tell his mom"Now I know what to order."Kid and his mom just walked out without buying anything,or even saying "thanks".
The local shop just lost money so the online shop could make a sale.Not knocking RM at all ,when someone else is paying your salesman, you can lower your price a little.
The little shit did get a polite ass chewin.
woodsryder wrote:
Yep, happens all of the time. As someone who works in a dealership and on commission, nothing makes my boil blood more than outfitting a customer...
Yep, happens all of the time. As someone who works in a dealership and on commission, nothing makes my boil blood more than outfitting a customer with a helmet, jacket or boots and then have them say "well I can get it cheaper online".
mxdude105 wrote:
Are shops able to price-match the online suppliers, or at least come close? If I can come into the shop and try something out and it's...
Are shops able to price-match the online suppliers, or at least come close? If I can come into the shop and try something out and it's within a few bucks of online or, ideally, cheaper, that's the way to go. Eliminates the hassle of shipping something back, extra turnaround time, etc.

I think the problem is when you go to a dealer and they don't have things in stock and are just ordering from a catalog themselves. Why not cut out the middleman if it saves money?

I think in order to stay relevant the dealer needs to have a decent inventory and be very close on price to the online retailers. Maybe this isn't possible?
Yes, we have the authority to price match all online retailers. Shops are able to sell product for whatever they want, they just can't advertise items at a specific amount because most items are now MAP protected for a specific amount of time.

The Shop

Killer Customz
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384
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Location
Sterling Heights, MI, USA
1/8/2019 11:06am
I have been in this industry for a long time and have seen a lot of place come and go. It's a bit of a shame because chances are, your local shop is the one supporting your local events. As far as Rock Mountain goes, they have an advantage in a few areas. Tusk, Primary Drive and a few others are their own brand, therefor having it made overseas and only selling direct allows them to sell cheap with good margins. They also buy very large quantities of or make deals with manufacturers on closeout items. They will offer buying everything left for a larger discount. This allows them to win huge on some things and throw some others in the garbage. When you compare apples to apples I'd strongly suggest supporting local. Most companies have a MAP POLICY and discounts can only be so much or you risk being cut off by the supplier. If you are looking for Exhaust, The current year gear or new release products, I'd guarantee that your local shop is cheaper in store or will at least match the online price....Sorry I cant help you on the 2015 Bell Moto 9 in purple that Motosport has in stock only in a size small. That's where they win. I just ask that you remember what shops are at your local events, their banners hanging, employees that you ride with, gave donations to you banquets or giveaways at races. It's awesome being at work or lazy at home and getting some stuff to your door, but who is going to help you on race day when you need a spark plug or some tearoffs?
4
2stroked
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Location
Ontario, CA, USA
1/8/2019 11:10am
I was in a shop a few years ago and watched a kid try on about 6 pairs of boots,different brands and sizes.The shop salesman spent...
I was in a shop a few years ago and watched a kid try on about 6 pairs of boots,different brands and sizes.The shop salesman spent about a half hour with this kid helping him find the perfect boot.The salesman stepped away to answer a question at the counter.I then hear the kid tell his mom"Now I know what to order."Kid and his mom just walked out without buying anything,or even saying "thanks".
The local shop just lost money so the online shop could make a sale.Not knocking RM at all ,when someone else is paying your salesman, you can lower your price a little.
The little shit did get a polite ass chewin.
DPR250R wrote:
It’s called “Show Rooming” and it happens in any brick and mortar store that sells items easily available online. Sears, Bed Bath and Beyond... etc... etc...
It’s called “Show Rooming” and it happens in any brick and mortar store that sells items easily available online. Sears, Bed Bath and Beyond... etc... etc... have all fallen vitctom to this consumer behaviour hence the retail store struggles.

Just like four strokes... we can only point the finger at ourselves... and maybe at Amazon.
Just read the news that Sears is closing up shop for good. A prime example of a company and business model that failed to adapt and provide the customers with what they want. Fast, competitive priced, AVAILABLE goods.

I see so many dirt bike shops that have little to no inventory of common OEM items (levers, seals, gaskets, top end kits, etc) and its always "Dont have it in stock, can order it and have it here next week." Then the price is 25% higher than any online store.

You'd have to be a damn fool to pay more money, to wait longer for parts you can have in a day or so buying online. Now there's a couple shops that have big advertisements stating they'll price match online stores. Ok Im all for that. They also 'get it' and keep the common items stocked in large quantities. So guess what? I'll go patronize them even though it might cost me a couple extra bucks because I can get it right now, as opposed to waiting 2-3 days for it to show in the mail.

Evolve, or die.
3
hogkiller
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Location
champion, AB, CA
1/8/2019 11:38am
I have been in this industry for a long time and have seen a lot of place come and go. It's a bit of a shame...
I have been in this industry for a long time and have seen a lot of place come and go. It's a bit of a shame because chances are, your local shop is the one supporting your local events. As far as Rock Mountain goes, they have an advantage in a few areas. Tusk, Primary Drive and a few others are their own brand, therefor having it made overseas and only selling direct allows them to sell cheap with good margins. They also buy very large quantities of or make deals with manufacturers on closeout items. They will offer buying everything left for a larger discount. This allows them to win huge on some things and throw some others in the garbage. When you compare apples to apples I'd strongly suggest supporting local. Most companies have a MAP POLICY and discounts can only be so much or you risk being cut off by the supplier. If you are looking for Exhaust, The current year gear or new release products, I'd guarantee that your local shop is cheaper in store or will at least match the online price....Sorry I cant help you on the 2015 Bell Moto 9 in purple that Motosport has in stock only in a size small. That's where they win. I just ask that you remember what shops are at your local events, their banners hanging, employees that you ride with, gave donations to you banquets or giveaways at races. It's awesome being at work or lazy at home and getting some stuff to your door, but who is going to help you on race day when you need a spark plug or some tearoffs?
{your local shop is the one supporting your local events ,but who is going to help you on race day when you need a spark plug or some tearoffs }

well there are banners from local shops at my events ,but they do not support any of my racing.. i still have to pay entry to get in, pay to camp, pay to practice, pay to race, the only time i have gotten parts at the races it was from a racer sometimes for free .. its not from some local shop who only help the riders they know . back in the 80s and 90s it was like you say if i needed something my dealer had it in his box van he came to all the races and i could pay him the next week .not now

who supports my racing me and only me, so i dont feel bad or lose any sleep if i get my parts online the. last time i went to the yamaha dealer yes we can have that part for you in 3 weeks you pay up front if we order the wrong part well you will just have to wait for it while we reorder
3
1
Killer Customz
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Sterling Heights, MI, USA
1/8/2019 11:49am Edited Date/Time 1/8/2019 11:53am
hogkiller wrote:
{your local shop is the one supporting your local events ,but who is going to help you on race day when you need a spark plug...
{your local shop is the one supporting your local events ,but who is going to help you on race day when you need a spark plug or some tearoffs }

well there are banners from local shops at my events ,but they do not support any of my racing.. i still have to pay entry to get in, pay to camp, pay to practice, pay to race, the only time i have gotten parts at the races it was from a racer sometimes for free .. its not from some local shop who only help the riders they know . back in the 80s and 90s it was like you say if i needed something my dealer had it in his box van he came to all the races and i could pay him the next week .not now

who supports my racing me and only me, so i dont feel bad or lose any sleep if i get my parts online the. last time i went to the yamaha dealer yes we can have that part for you in 3 weeks you pay up front if we order the wrong part well you will just have to wait for it while we reorder
You realize that your local track is a business right? Moto is the cheapest motor sport there is! How many guys are at your local track on a good day? A couple hundred? 200 riders at $30 each is $6000. Liability insurance, flaggers, medics, trophies, payouts, diesel fuel for dozer, people working signup. How much money do you think your track is making? I know there are many big tracks around us that always come looking for donations and sponsorship money to make their events possible. Hope you like trail riding bud, because with your attitude, your local tracks may be closed soon!
5
crockett
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CA
1/8/2019 12:06pm
Don’t a lot of shops order from RM themselves?
1
kb228
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Mansfield, OH, USA
1/8/2019 12:09pm
I have been in this industry for a long time and have seen a lot of place come and go. It's a bit of a shame...
I have been in this industry for a long time and have seen a lot of place come and go. It's a bit of a shame because chances are, your local shop is the one supporting your local events. As far as Rock Mountain goes, they have an advantage in a few areas. Tusk, Primary Drive and a few others are their own brand, therefor having it made overseas and only selling direct allows them to sell cheap with good margins. They also buy very large quantities of or make deals with manufacturers on closeout items. They will offer buying everything left for a larger discount. This allows them to win huge on some things and throw some others in the garbage. When you compare apples to apples I'd strongly suggest supporting local. Most companies have a MAP POLICY and discounts can only be so much or you risk being cut off by the supplier. If you are looking for Exhaust, The current year gear or new release products, I'd guarantee that your local shop is cheaper in store or will at least match the online price....Sorry I cant help you on the 2015 Bell Moto 9 in purple that Motosport has in stock only in a size small. That's where they win. I just ask that you remember what shops are at your local events, their banners hanging, employees that you ride with, gave donations to you banquets or giveaways at races. It's awesome being at work or lazy at home and getting some stuff to your door, but who is going to help you on race day when you need a spark plug or some tearoffs?
hogkiller wrote:
{your local shop is the one supporting your local events ,but who is going to help you on race day when you need a spark plug...
{your local shop is the one supporting your local events ,but who is going to help you on race day when you need a spark plug or some tearoffs }

well there are banners from local shops at my events ,but they do not support any of my racing.. i still have to pay entry to get in, pay to camp, pay to practice, pay to race, the only time i have gotten parts at the races it was from a racer sometimes for free .. its not from some local shop who only help the riders they know . back in the 80s and 90s it was like you say if i needed something my dealer had it in his box van he came to all the races and i could pay him the next week .not now

who supports my racing me and only me, so i dont feel bad or lose any sleep if i get my parts online the. last time i went to the yamaha dealer yes we can have that part for you in 3 weeks you pay up front if we order the wrong part well you will just have to wait for it while we reorder
Local businesses pay to put up banners. That money goes to trophies, track crew, etc. in a way its funding your racing. Maybe not directly, but it is.
2
Titan1
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Lehi, UT, USA
1/8/2019 12:47pm
Rocky Mountain makes money because local shops are worthless for anything besides buying a brand new bike (and even then you have to take it apart and basically reassemble it to make sure its put together right).

If local dealers don't change they will die...Consumers no longer HAVE to wait a week for a dealership to get parts in (like we did before the internet)...so I have no idea why dealers still think this is a viable option knowing we can order it online and have it delivered to our door in 2 days for free.

They need to adapt or go out of business.

I know, I know...local shops are the "little guys"...they can't afford a warehouse of inventory...we should feel sorry for them...you should pay more because they are "local" and feel good about that...because if you don't they'll go out of business and we will have to start ordering our tear-offs and grips online, and driving a hour to buy our next bike.

Maintaining an ancient business model, and expecting that tugging at the heart strings of customers is a good way to keep customers isn't going to work.
13
2
RichieW13
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Thousand Oaks, CA, USA
1/8/2019 1:05pm
mxdude105 wrote:
Are shops able to price-match the online suppliers, or at least come close? If I can come into the shop and try something out and it's...
Are shops able to price-match the online suppliers, or at least come close? If I can come into the shop and try something out and it's within a few bucks of online or, ideally, cheaper, that's the way to go. Eliminates the hassle of shipping something back, extra turnaround time, etc.

I think the problem is when you go to a dealer and they don't have things in stock and are just ordering from a catalog themselves. Why not cut out the middleman if it saves money?

I think in order to stay relevant the dealer needs to have a decent inventory and be very close on price to the online retailers. Maybe this isn't possible?
Yeah, if the local retailer has to pay their supplier for the merchandise before they sell it, it can be very difficult to fund a lot of inventory.
fourfourone
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86oh, CT, USA
1/8/2019 1:09pm
The few Yamaha dealers near me suck when it comes to parts. Great when it comes to buying a new bike but other then that they are useless. I only have one good dealer near me but they are KTM/Honda. I go there for most my non yz specific stuff.
1
1/8/2019 1:34pm Edited Date/Time 1/8/2019 1:34pm
Can’t help they give me money every time I race.

Can’t help I order at 4pm and it’s on my doorstep the next day.

Can’t help they randomly price mat much their own stuff after they sold it to me and put the difference into my account.

Cant help it they give me quick cash to come back.


They suck. Suck the customers right outta the dealerships. Capitalism woohoo!
2
b8res
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Lodi, CA, USA
1/8/2019 1:59pm
RMATVMC has it going on... the $10.00 RMATVMC gas cards are handed out like candy through participating event, District 36, OTHG and other sanctioned bodies are on all the program, sign up race, and $10.00 gas cards mailed to your door step and now emailed to your RMATVMC account! Spend like cash on their website....

I do support my local shops in my area, but it's hard to justify when their prices are so crazy high. About the only purchases I make in a shop now is for tire tubes, brake fluid and premix, everything else is online at the retailers who sponsor and support the events that I chose to participate in.
3
1/8/2019 2:08pm
b8res wrote:
RMATVMC has it going on... the $10.00 RMATVMC gas cards are handed out like candy through participating event, District 36, OTHG and other sanctioned bodies are...
RMATVMC has it going on... the $10.00 RMATVMC gas cards are handed out like candy through participating event, District 36, OTHG and other sanctioned bodies are on all the program, sign up race, and $10.00 gas cards mailed to your door step and now emailed to your RMATVMC account! Spend like cash on their website....

I do support my local shops in my area, but it's hard to justify when their prices are so crazy high. About the only purchases I make in a shop now is for tire tubes, brake fluid and premix, everything else is online at the retailers who sponsor and support the events that I chose to participate in.
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went home and ordered them from RM and save $10 per tube.
2
crf250pilot
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Manning, OR, USA
1/8/2019 2:16pm
My shop couldn't compete in aftermarket parts and we had to become a service shop to stay in business. These giant online retailers will sometimes sell stuff at a reduced cost just to get kickbacks from the manufacturers for volume purchases.
uk125250
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Gnome, AQ
1/8/2019 2:16pm
woodsryder wrote:
Yep, happens all of the time. As someone who works in a dealership and on commission, nothing makes my boil blood more than outfitting a customer...
Yep, happens all of the time. As someone who works in a dealership and on commission, nothing makes my boil blood more than outfitting a customer with a helmet, jacket or boots and then have them say "well I can get it cheaper online".
That’s disrespectful.
3
ACBraap
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Seattlish, WA, USA
Fantasy
1/8/2019 2:59pm
endurox wrote:
I have a small shop. When people bring in their own tires to mount, I charge them more and tell them if there is an issue...
I have a small shop. When people bring in their own tires to mount, I charge them more and tell them if there is an issue with their tire, they pay to have the tire removed. Rocky sells tires at about 8$ over best dealer pricing from Part Unlimited for a Dunlop mx tire for example. So someday when your local dealer is no longer their or has been bought out by a big place selling rv's, quads and boats, you will know why.
kb228 wrote:
My local dealership refuses to even mount tires if you didnt buy from them. The next closest dealer charges $40 a tire if you dont buy...
My local dealership refuses to even mount tires if you didnt buy from them. The next closest dealer charges $40 a tire if you dont buy from them but they charge $30 if you do buy from them.
That'll teach those potential customers to think about stopping in.
1
KDXGarage
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USA
1/8/2019 3:08pm
endurox wrote:
I have a small shop. When people bring in their own tires to mount, I charge them more and tell them if there is an issue...
I have a small shop. When people bring in their own tires to mount, I charge them more and tell them if there is an issue with their tire, they pay to have the tire removed. Rocky sells tires at about 8$ over best dealer pricing from Part Unlimited for a Dunlop mx tire for example. So someday when your local dealer is no longer their or has been bought out by a big place selling rv's, quads and boats, you will know why.
I hope that your business does well.

You spoke of tires. My local dealership has tires for $110 after tax. RMATVMC is $72.88 for my preferred rear tire. $37.12 cheaper. No need to say it out loud, but think of what you charge someone to change out a tire if they bring in the wheel.

How much did I just save? Again, no need to say it out loud.

I do my own tires.
1
KDXGarage
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1/8/2019 3:09pm
DTR830 wrote:
I can discount RM website pricing.
WE GET IT!!

WE GET IT!!

WE KNOW!!

THANKS FOR JUMPING ON YET ANOTHER Rocky Mountain THREAD TO SELF PROMOTE!!

AGAIN, WE #&^%ING GET IT!!
Hcallz5
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USA
1/8/2019 3:12pm
Because that Tusk shit your order for $24.99 they get from China for $0.24
2
1
1/8/2019 3:26pm
Hcallz5 wrote:
Because that Tusk shit your order for $24.99 they get from China for $0.24
That's fine. My $550 wheel set has made it through one bike and is now on the second. Lasted 3 times as long as my stock stock Excel's and still going.
1
DTR830
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Mountain Top, PA, USA
1/8/2019 3:58pm
DTR830 wrote:
I can discount RM website pricing.
KDXGarage wrote:
WE GET IT!!

WE GET IT!!

WE KNOW!!

THANKS FOR JUMPING ON YET ANOTHER Rocky Mountain THREAD TO SELF PROMOTE!!

AGAIN, WE #&^%ING GET IT!!
What are you butt hurt about? Do you think there is any profit involved by discounting for everyone ? No, I keep sales activity so it stays open. If it’s open I save on parts myself.
5
Killer Customz
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Sterling Heights, MI, USA
1/8/2019 4:08pm
mattyhamz2 wrote:
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went...
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went home and ordered them from RM and save $10 per tube.
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries a certain product for certain reasons. There are definitely $6 dollar tubes out there, but if we have experiences with those tubes ripping valve stems, pinching easy or poor customer service through the manufacture, I’m not going to carry them. But now I’m the crappy shop because the tube I carry is $10? Yet, they are a better quality, better company, easier to install, nicer packaging, less quality issues. I’d rather have something a little nicer, than send you home with a tube that might not get you through the weekend.
1/8/2019 4:20pm
mattyhamz2 wrote:
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went...
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went home and ordered them from RM and save $10 per tube.
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries...
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries a certain product for certain reasons. There are definitely $6 dollar tubes out there, but if we have experiences with those tubes ripping valve stems, pinching easy or poor customer service through the manufacture, I’m not going to carry them. But now I’m the crappy shop because the tube I carry is $10? Yet, they are a better quality, better company, easier to install, nicer packaging, less quality issues. I’d rather have something a little nicer, than send you home with a tube that might not get you through the weekend.
Kenda Tuff tubes through RM are $17.80 for an 80/100-21 and both local shops were almost $10 more. STI Heavy Duty tubes are $8.97 on RM and local shops were $18.99
kb228
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Mansfield, OH, USA
1/8/2019 4:24pm
mattyhamz2 wrote:
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went...
I tried buying standard tubes from 3 different local shops and all of them were double what RM was. Wasn't in a hurry so I went home and ordered them from RM and save $10 per tube.
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries...
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries a certain product for certain reasons. There are definitely $6 dollar tubes out there, but if we have experiences with those tubes ripping valve stems, pinching easy or poor customer service through the manufacture, I’m not going to carry them. But now I’m the crappy shop because the tube I carry is $10? Yet, they are a better quality, better company, easier to install, nicer packaging, less quality issues. I’d rather have something a little nicer, than send you home with a tube that might not get you through the weekend.
mattyhamz2 wrote:
Kenda Tuff tubes through RM are $17.80 for an 80/100-21 and both local shops were almost $10 more. STI Heavy Duty tubes are $8.97 on RM...
Kenda Tuff tubes through RM are $17.80 for an 80/100-21 and both local shops were almost $10 more. STI Heavy Duty tubes are $8.97 on RM and local shops were $18.99
Its this way at mine too. Only way i buy one is if im in a pinch and need it asap.
1
1/8/2019 4:26pm
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries...
My guess here is that you were not comparing apples to apples. You have to value at some point that maybe the local dealer maybe carries a certain product for certain reasons. There are definitely $6 dollar tubes out there, but if we have experiences with those tubes ripping valve stems, pinching easy or poor customer service through the manufacture, I’m not going to carry them. But now I’m the crappy shop because the tube I carry is $10? Yet, they are a better quality, better company, easier to install, nicer packaging, less quality issues. I’d rather have something a little nicer, than send you home with a tube that might not get you through the weekend.
mattyhamz2 wrote:
Kenda Tuff tubes through RM are $17.80 for an 80/100-21 and both local shops were almost $10 more. STI Heavy Duty tubes are $8.97 on RM...
Kenda Tuff tubes through RM are $17.80 for an 80/100-21 and both local shops were almost $10 more. STI Heavy Duty tubes are $8.97 on RM and local shops were $18.99
kb228 wrote:
Its this way at mine too. Only way i buy one is if im in a pinch and need it asap.
Exactly!
pCp 252
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1/8/2019 4:31pm
A dealer that’s been silently mentioned in this thread already that does a good job at selling parts is Manchester Honda KTM Husqvarna. Tires are priced within $10 of the online places. Levers, oil filters, and other commonly needed parts are stocked at retail prices. Plus, if you buy a bike from them they do a “dealer contingency” where you earn $50-25 for podium finishes, good towards anything in the shop. The place caters to the MX crowd, there are few ATV’s or side by sides on the showroom. My point is, they do it right and should be applauded for it. More importantly, other shops emulate them or stop expecting parts sales as a good chunk of business for them.
1
1/8/2019 4:46pm Edited Date/Time 1/8/2019 4:46pm
My local shop here in temecula is great with a large inventory of stuff and price is very competive. Why I shop rm. Is the amount of time and hassle to drive across town. 30 minutes easy one way. I do try and buy when I am in the area.

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