Wonky New Bike Pricing - What's your take?

dowhatscaresyou wrote:

HondaSM wrote:

I'm not going to say what dealership I work at cause I don't want this to seem like a selling post. But, I work at one...

I'm not going to say what dealership I work at cause I don't want this to seem like a selling post. But, I work at one of the largest dealerships in the country. And we got to be the size that we are because we don't do any dealer fees. MSRP or less plus tax and that's it. Other dealerships around the country, especially within the same brand, absolutely hate us because they can't keep up. It baffles me that more dealerships aren't willing to follow the same proven model.

dowhatscaresyou wrote:

Curious what ya'll think about dealers advertising a price, then adding an "Added Markup" to that price... I'm negotiating with some dealers on a couple 2024...

Curious what ya'll think about dealers advertising a price, then adding an "Added Markup" to that price... I'm negotiating with some dealers on a couple 2024 250's and curious what works best for you guys. Getting multiple dealers to give me their best OTD price with each expense broken out is all I've got at the moment.

ben5020 wrote:

Lie to them, tell them you can get them for x amount out the door and see if they have any interest in matching said number 

Falcon wrote:

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what...

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what you pay for these things.") Here are some takeaways:

1) You don't know what the dealer pays for these things. Even most salespeople don't know. There are layers to the pricing.
2) That said, there's a lot less profit in MX bikes than you may think.
3) Dealers like Langston Motorsports, who are really awesome people, have to play the game too. Otherwise, they'll get swallowed up by bigger stores that started the game of advertising a BS price and then adding BS fees to come back to the real price. Note that in the example above, the price is really only $399 cheaper than retail, even though it looks like $2,200 off. But if the Langstons advertised $399 off, the other stores would attract all the buyers with less-than-scrupulous advertising tactics that promise something better. LMS is forced to do it, too. 

Your best bet as a buyer is go with the store that treats you the best and use MSRP as a guide. If a dealer is charging well over MSRP for the bike, that's not a fair price. MSRP + a couple of bucks for setup (within a few hundred maximum, that is,) is a fair price. Anything less is a good price. Significantly less is a great price. Just don't expect them to take $2,200 off, because there isn't that much margin in the pricing. (Make sure they are giving you credit for any and all factory to dealer incentives, however - this is the variable that may make all the difference. I don't know if Suzuki is offering anything to the dealers right now.)  

 

hubbardmx50 wrote:

I never go up there anymore so I could be wrong but, think B&B cycles was the only remaining dealership in the high desert and they...

I never go up there anymore so I could be wrong but, think B&B cycles was the only remaining dealership in the high desert and they shut down awhile ago. 

scott_nz wrote:

why don't USA retailers just put the price you pay on shit?  

Soul Indigo wrote:

Because the entire monetary system is designed to pull the wool over your eyes. 

Trickle down economics. 

dowhatscaresyou wrote:

Curious what ya'll think about dealers advertising a price, then adding an "Added Markup" to that price... I'm negotiating with some dealers on a couple 2024...

Curious what ya'll think about dealers advertising a price, then adding an "Added Markup" to that price... I'm negotiating with some dealers on a couple 2024 250's and curious what works best for you guys. Getting multiple dealers to give me their best OTD price with each expense broken out is all I've got at the moment.

ben5020 wrote:

Lie to them, tell them you can get them for x amount out the door and see if they have any interest in matching said number 

Falcon wrote:

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what...

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what you pay for these things.") Here are some takeaways:

1) You don't know what the dealer pays for these things. Even most salespeople don't know. There are layers to the pricing.
2) That said, there's a lot less profit in MX bikes than you may think.
3) Dealers like Langston Motorsports, who are really awesome people, have to play the game too. Otherwise, they'll get swallowed up by bigger stores that started the game of advertising a BS price and then adding BS fees to come back to the real price. Note that in the example above, the price is really only $399 cheaper than retail, even though it looks like $2,200 off. But if the Langstons advertised $399 off, the other stores would attract all the buyers with less-than-scrupulous advertising tactics that promise something better. LMS is forced to do it, too. 

Your best bet as a buyer is go with the store that treats you the best and use MSRP as a guide. If a dealer is charging well over MSRP for the bike, that's not a fair price. MSRP + a couple of bucks for setup (within a few hundred maximum, that is,) is a fair price. Anything less is a good price. Significantly less is a great price. Just don't expect them to take $2,200 off, because there isn't that much margin in the pricing. (Make sure they are giving you credit for any and all factory to dealer incentives, however - this is the variable that may make all the difference. I don't know if Suzuki is offering anything to the dealers right now.)  

 

scott_nz wrote:

why don't USA retailers just put the price you pay on shit?  

ben5020 wrote:

Lie to them, tell them you can get them for x amount out the door and see if they have any interest in matching said number 

Falcon wrote:

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what...

Dealers can usually tell if you're full of crap, because many consumers say their best price is $2000 or something. (Or they say "I know what you pay for these things.") Here are some takeaways:

1) You don't know what the dealer pays for these things. Even most salespeople don't know. There are layers to the pricing.
2) That said, there's a lot less profit in MX bikes than you may think.
3) Dealers like Langston Motorsports, who are really awesome people, have to play the game too. Otherwise, they'll get swallowed up by bigger stores that started the game of advertising a BS price and then adding BS fees to come back to the real price. Note that in the example above, the price is really only $399 cheaper than retail, even though it looks like $2,200 off. But if the Langstons advertised $399 off, the other stores would attract all the buyers with less-than-scrupulous advertising tactics that promise something better. LMS is forced to do it, too. 

Your best bet as a buyer is go with the store that treats you the best and use MSRP as a guide. If a dealer is charging well over MSRP for the bike, that's not a fair price. MSRP + a couple of bucks for setup (within a few hundred maximum, that is,) is a fair price. Anything less is a good price. Significantly less is a great price. Just don't expect them to take $2,200 off, because there isn't that much margin in the pricing. (Make sure they are giving you credit for any and all factory to dealer incentives, however - this is the variable that may make all the difference. I don't know if Suzuki is offering anything to the dealers right now.)  

 

8tensolutions wrote:

100% right.  There is very little markup in new bikes and not where the majority of the profit comes from at a dealer.  The advertising is...

100% right.  There is very little markup in new bikes and not where the majority of the profit comes from at a dealer.  The advertising is designed to get people to the dealership, and then the salesperson (if good) can explain the prices listed and compare to competitors. 

Think of it like Verizon vs AT&T for your cell phone.  They advertise all kinds of pricing and it's only to be competitive, they are both basically the same once you receive the actual bill. 

The best thing you can do is have a relationship with a dealer and buy things from them, including oil, parts etc.  If you have never been there and call them wanting them to break even or make $50 on a 10K item, why would they want to take the time?  

scott_nz wrote:

why don't USA retailers just put the price you pay on shit?  

Mr. Afterbar wrote:

Because corporations are greedy and manipulating. They’ll do anything to trick you. 

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

yak651 wrote:

Not an esquire but was told if you purchase in person you have to pay sales tax. If you have it shipped they don’t “have” to...

Not an esquire but was told if you purchase in person you have to pay sales tax. If you have it shipped they don’t “have” to charge you sales tax and then it’s on you to report it at tax time and pay the tax

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

8tensolutions wrote:

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call...

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call multiple dealers and get the absolute OTD price and go from there.

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

MxAddic wrote:

Nice! Eight Hundo for install front wheel and bars. Six Fiddy for nonexistent reg/title. 

8tensolutions wrote:

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call...

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call multiple dealers and get the absolute OTD price and go from there.

Sandusky26 wrote:

It's almost impossible to get a price over the phone around my house. The dealers want to play games.

8tensolutions wrote:

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call...

Unfortunately, consumers will look for the "cheapest price" and this way they can advertise the bike for $5875 to get the customer in the door.  Call multiple dealers and get the absolute OTD price and go from there.

Sandusky26 wrote:

It's almost impossible to get a price over the phone around my house. The dealers want to play games.

8tensolutions wrote:

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my...

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my information and he emailed me a buyers order with the absolute total and no games.  There are no games unless you allow it.

The first two were willing to give OTD pricing, but more than 2K higher than the third.  

Sandusky26 wrote:

It's almost impossible to get a price over the phone around my house. The dealers want to play games.

8tensolutions wrote:

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my...

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my information and he emailed me a buyers order with the absolute total and no games.  There are no games unless you allow it.

The first two were willing to give OTD pricing, but more than 2K higher than the third.  

Sandusky26 wrote:

I agree. I think my next bike will be purchased out of state and shipped to me.

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

yak651 wrote:

Not an esquire but was told if you purchase in person you have to pay sales tax. If you have it shipped they don’t “have” to...

Not an esquire but was told if you purchase in person you have to pay sales tax. If you have it shipped they don’t “have” to charge you sales tax and then it’s on you to report it at tax time and pay the tax

Sandusky26 wrote:

It's almost impossible to get a price over the phone around my house. The dealers want to play games.

8tensolutions wrote:

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my...

Then don't do business with them.  I recently bought a Husky (first Austrian bike) and the third dealer I called was legit.  I gave him my information and he emailed me a buyers order with the absolute total and no games.  There are no games unless you allow it.

The first two were willing to give OTD pricing, but more than 2K higher than the third.  

Sandusky26 wrote:

I agree. I think my next bike will be purchased out of state and shipped to me.

TheGetFresh wrote:

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop...

Here’s another for this thread. The added fees are nearly 40% of listed price. 2024 KTM350. I was out of state and they refused to drop the sales tax. 

MxAddic wrote:

Bait and switch…

Bait and switch…

number six wrote:

Often consumers are their own worst enemies borne of a desire to 'win' when making a purchase, dealers respond with a shell game so they can...

Often consumers are their own worst enemies borne of a desire to 'win' when making a purchase, dealers respond with a shell game so they can feel like they have, or just loose interest in paying attention.  

When I render a quote for a project & it's for one of these 'gonna dominate' ; 40 something self-important business heroes, I run the numbers & add 15% to the desired gross margin, then he does his thing & ne-go-ti-ates a 10% discount.  That 5% windfall funds Carribean vacations in the winter. 

& there's this ;