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Typically a product costs 1/2 of msrp to manufacture. The mfg will give 15-20% or sometimes more to a distributor if theyre good and move more product. so say whatever company gives 15% to a distributor, theres still 50% left that goes into cogs and then 35% of that total pie goes to other expenses like payroll, r&d, advertising, and profit.
The only benefit of cutting the middle man in moto is the oem has a larger margin to use towards those expense related items. Maybe give some guys a raise, support more privateers, and put more money into making better bikes. All of which would be awesome. Maybe that would lead to more people riding and increasing bike sales volume and maybe lower bike costs? Idk. KTM would probably just buy beta lol.
Obviously these numbers vary from every company. Walmarts margin and blockbusters margin is very different.
what i don't like and won't do is the $995 freight and prep, plus, plus, plus... that's where the dealer gets a bad name and bad reputation.
there's nothing worse than buyer's remorse after getting your new bike. get a decent deal and forget about it... just take it out and enjoy it, don't let a few dollars ruin it for you.. it's not that big of a deal.
I paid cad7600 +tax for a 2011 yz250 in 2011..
Not the best data but it is data.
Paid 10,500 cad for a 2020 fc350 this year .. that’s basically
8200 usd .. same price you paid for a yz250? Yikes.
Also what’s with the sour grapes in here because he’s asking about margins?
It’s a worthwhile question.
Do Mercedes dealers make more margins than Honda dealers?
If so why?
I would think the yz250 margins should be as bare bones as any bike out there
Pit Row
Every month every dealer has a flooring inspector come in and keep track every unit on flooring in the dealership.
Walk into your dealer and look at how many units they have in stock on the sales floor and look at how many crates of new units they have in stock in the back. Now think about every units bank flooring internist has to be paid every month.
Every OEM manufacturer demands minimum units of every model a dealer must buy from them every year. Dealers get 3 months free flooring then ever month they must pay the bank the interest on every unit there over the 3 months. New year 2021 units start rolling in in the fall of 2020 and sit there burning through the 3 month flooring months before customers come in to buy one.
Every dealer must make some profit $ to pay every employees paycheck, pay employee taxes, pay utilities, pay for the building, pay flooring and the list goes on and on.
Years ago in the 80’s I watched a dealer in MD that was caught not paying off after units were sold. All flooring was canceled. Units went back to OEM manufacturers. Doors closed boom gone.
You out of a pinch In a hurry in other places if you got a great relationship With them.
EDIT: Yamaha Motor USA probably doesn't even have fat margins on the YZ250, either, because guess what? THEY bought it from Yamaha Motor Japan, who is probably the only entity really making decent profit off your motorcycle.
Kinda sad just how tough it is to make a go of it.
I see the new sales model as being direct to consumer from the builder.
Post a reply to: Real cost of a new YZ 250 for a dealership