Why are the bikes priced so high in this economy?

jtomasik
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12895
Joined
8/17/2006
Location
Golden, CO, USA
6/26/2009 9:25am
I must be a real bastard. I shop online. I look for used deals. I look for the best deals.

Someone needs to pass a federal law to regulate loose cannons like me.
pitbike502
Posts
4509
Joined
12/26/2007
Location
Syracuse, NY, USA
6/26/2009 9:28am
ScottP wrote:
All the people that comment on profit margin, and argue that you should go purchase things at your local shop have never worked in a dealer...
All the people that comment on profit margin, and argue that you should go purchase things at your local shop have never worked in a dealer.

One simple answer, if a business is not making money on something they will stop selling or making that product. Simple. Period. Nothing else to it. You are falling for a salesmans line.

Why bother selling bikes if you are not making any money? Why have all that overhead sitting on the showroom floor? Simple, they are making money on bikes.
And forget about buying parts at a dealer especially OEM parts. Dealears get great prices on OEM parts and have a 50-60% markup. Ever wonder why when you go to a dealer and order a piston. They order an OEM one that takes a couple days to it, rather then just order a Pro-X piston through Parts Unlimited and have it there in a day or two. Markup, huge mark ups on OEM parts.

In my opinion if dealers really do not make money on bikes they wouldnt sell them. Why bother having dirt bikes on the showroom floor, I know more about the dirt bike im gonna buy then all the salesman do. I know what bike I want to buy. Dirt bikes don't come with options really, besides some manufacturers offer two colors.


I wish we could go on the manufacturers website, order a bike, pay for shipping, and have it delivered. The techs at dealers do a horiible job on the initial bike prep anyway.

Basically, buy as much as you can online, support online company's that actually put money back into the industry like motosport outlet, yamaha of troy, babbits. Force dealers to drop prices to a reasonable level and make then realize that they need to help support the industry instead of just trying to get fat dump and happy.
pitbike502 wrote:
are you fucking high????? try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is...
are you fucking high?????


try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is looking awfully small for the money you think we are making.

you have no idea how the real world works and i encourage you to keep your opinions to yourself
ScottP wrote:
If you work in a dealership you would know what goes on.
Eatmydirt03
Posts
250
Joined
6/12/2009
Location
Arvada, CO, USA
6/26/2009 11:20am
trick121 wrote:
Motorcycle shops must be doing just fine because I see no bargins or deals. I'm surprised nobody is hurting to sell a dirt bike. I'm thinking...
Motorcycle shops must be doing just fine because I see no bargins or deals.
I'm surprised nobody is hurting to sell a dirt bike. I'm thinking the economy hasn't tanked enough for desperation sells.

Is your local shop giving bikes away yet?



Well they 1st tried to get me to pay 5700 out the door I was laughing my ass off to say the least.
ASH510
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640
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2/11/2009
Location
USA
6/26/2009 11:25am
what shop did you buy from ?
i went to one in grand junction i was going to buy 2 jet skis and a kx 250f would not even talk about a deal so i just left they can keep them.

The Shop

09450f
Posts
2746
Joined
9/24/2008
Location
Temecula, HI, USA
6/26/2009 11:29am
Electro21 wrote:
No bargains here. I went to go buy a rear tire 2 weeks ago, and the cheapest tire they had was $98. I bought one online...
No bargains here. I went to go buy a rear tire 2 weeks ago, and the cheapest tire they had was $98. I bought one online and after shipping to HI it was $70.
who did you buy it from?
Eatmydirt03
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250
Joined
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Location
Arvada, CO, USA
6/26/2009 11:35am
ASH510 wrote:
what shop did you buy from ? i went to one in grand junction i was going to buy 2 jet skis and a kx 250f...
what shop did you buy from ?
i went to one in grand junction i was going to buy 2 jet skis and a kx 250f would not even talk about a deal so i just left they can keep them.
I went to Gforce in lakewood. Vickery is having sales on their's as well.
Hank_Thrill
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4659
Joined
9/22/2008
Location
Arlen, TX, USA
6/26/2009 11:43am
`ol Ger wrote:
Dollar is weak..











g
Bingo!

The Federal Reserve is pumping money into the system like crazy. More money, the less purchasing power a $1.00 bill has.
aggiemoto99
Posts
304
Joined
11/12/2006
Location
San Antonio, TX, USA
6/26/2009 9:53pm
hate to dreg it up...

But the four stroke certainly hasn't helped the costs...

High technology has it's price...and with many more moving parts, and many more moving parts that require a heck of a lot of design time from high dollar per hour engineers...it's no wonder the prices are high.

Sad thing is...we think the prices are high now, just wait to yamaha phases out the two stroke. I heard wind of 11000 msrp for a 450.

Now that's just great. I am looking forward to that day.
shaner708
Posts
631
Joined
5/27/2009
Location
Export, PA, USA
6/26/2009 10:34pm
The markup depends on the size of the dealer. I live in PA and Jeff Cernic pays a hell of alot less for a bike then a smaller more local shops.

The other thing people dont realize is a bike brand is a franchise. Say a dealer sells Yamahas, but they only want to sell quads and street bikes. Yamaha will still make them carry a certain amount of bikes or they cant sell anything at all. Thats why you'll see a jet ski for sale in the mountains 100 miles from anywhere you could use one
FIREfish148
Posts
5485
Joined
1/20/2009
Location
Kirkland, WA, USA
6/27/2009 2:19am
I paid 7,200 (ended up being 8,600) for my 450 when I was 19... still owe 5,200 on itSick Sick God that was stupid.... Still worth it, but stupid.
824
Posts
10
Joined
6/16/2009
Location
USA
6/27/2009 3:21am
ScottP wrote:
All the people that comment on profit margin, and argue that you should go purchase things at your local shop have never worked in a dealer...
All the people that comment on profit margin, and argue that you should go purchase things at your local shop have never worked in a dealer.

One simple answer, if a business is not making money on something they will stop selling or making that product. Simple. Period. Nothing else to it. You are falling for a salesmans line.

Why bother selling bikes if you are not making any money? Why have all that overhead sitting on the showroom floor? Simple, they are making money on bikes.
And forget about buying parts at a dealer especially OEM parts. Dealears get great prices on OEM parts and have a 50-60% markup. Ever wonder why when you go to a dealer and order a piston. They order an OEM one that takes a couple days to it, rather then just order a Pro-X piston through Parts Unlimited and have it there in a day or two. Markup, huge mark ups on OEM parts.

In my opinion if dealers really do not make money on bikes they wouldnt sell them. Why bother having dirt bikes on the showroom floor, I know more about the dirt bike im gonna buy then all the salesman do. I know what bike I want to buy. Dirt bikes don't come with options really, besides some manufacturers offer two colors.


I wish we could go on the manufacturers website, order a bike, pay for shipping, and have it delivered. The techs at dealers do a horiible job on the initial bike prep anyway.

Basically, buy as much as you can online, support online company's that actually put money back into the industry like motosport outlet, yamaha of troy, babbits. Force dealers to drop prices to a reasonable level and make then realize that they need to help support the industry instead of just trying to get fat dump and happy.
pitbike502 wrote:
are you fucking high????? try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is...
are you fucking high?????


try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is looking awfully small for the money you think we are making.

you have no idea how the real world works and i encourage you to keep your opinions to yourself
it is true most local shops suck. but just keeping looking, if possible, and find a good one.

local shops are kind of a rip off sometimes.
6/27/2009 6:30am Edited Date/Time 4/17/2016 12:37am
shaner708 wrote:
The markup depends on the size of the dealer. I live in PA and Jeff Cernic pays a hell of alot less for a bike then...
The markup depends on the size of the dealer. I live in PA and Jeff Cernic pays a hell of alot less for a bike then a smaller more local shops.

The other thing people dont realize is a bike brand is a franchise. Say a dealer sells Yamahas, but they only want to sell quads and street bikes. Yamaha will still make them carry a certain amount of bikes or they cant sell anything at all. Thats why you'll see a jet ski for sale in the mountains 100 miles from anywhere you could use one
you are incorrect, all dealers pay exactly the same for bikes BUT you do get parts cheaper depending on volume. we have 4 stores so we get super pricing from most vendors, Parts Unlimited, Tucker, Fox etc. the only way you get bikes cheaper is auctions or if you buy leftovers in bulk. and some Honda Powerhouse shops get a little better "Incentives" and you don't have to carry Jet Ski's or generators or side by sides. you can order whatever you want. if you don't want dirt bikes you don't have to order them.
pitbike502
Posts
4509
Joined
12/26/2007
Location
Syracuse, NY, USA
6/27/2009 6:49am
shaner708 wrote:
The markup depends on the size of the dealer. I live in PA and Jeff Cernic pays a hell of alot less for a bike then...
The markup depends on the size of the dealer. I live in PA and Jeff Cernic pays a hell of alot less for a bike then a smaller more local shops.

The other thing people dont realize is a bike brand is a franchise. Say a dealer sells Yamahas, but they only want to sell quads and street bikes. Yamaha will still make them carry a certain amount of bikes or they cant sell anything at all. Thats why you'll see a jet ski for sale in the mountains 100 miles from anywhere you could use one
you are incorrect, all dealers pay exactly the same for bikes BUT you do get parts cheaper depending on volume. we have 4 stores so we...
you are incorrect, all dealers pay exactly the same for bikes BUT you do get parts cheaper depending on volume. we have 4 stores so we get super pricing from most vendors, Parts Unlimited, Tucker, Fox etc. the only way you get bikes cheaper is auctions or if you buy leftovers in bulk. and some Honda Powerhouse shops get a little better "Incentives" and you don't have to carry Jet Ski's or generators or side by sides. you can order whatever you want. if you don't want dirt bikes you don't have to order them.
BINGO
6/27/2009 10:23am
pitbike502 wrote:
are you fucking high????? try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is...
are you fucking high?????


try 20-35% mark up chuckie.. if we made 50-60% margins, do you think we would be hurting? my paycheck each week is looking awfully small for the money you think we are making.

you have no idea how the real world works and i encourage you to keep your opinions to yourself
When I worked for a dealer back in the 80s that's what the usual markup was. Some things a little less, some a little more. But on average.. around 30%.

09450f
Posts
2746
Joined
9/24/2008
Location
Temecula, HI, USA
6/27/2009 11:17am
theres alot of bikes on ebay ,brand new,5000 dollars ..thats great for us consumers

some shop was selling 08450 f ktm's for $5000

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