Are dealer “freight” fees legit?

LKHill
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853
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9/8/2020
Location
NY US
2/3/2021 1:32pm Edited Date/Time 2/3/2021 1:33pm
Titan1. wrote:
Here is where I’m coming from on this, the ONLY reason I will ever use a dealer is to buy a bike, that’s it, I won’t...
Here is where I’m coming from on this, the ONLY reason I will ever use a dealer is to buy a bike, that’s it, I won’t step foot in a dealer until Im ready to buy another bike (and I honestly look forward to the day I can just buy a bike online directly from the manufacturer and have it delivered to my house) so all other “value” dealers can claim to provide aren’t factors in my decision....so buying a bike is all about price to me....because that is literally all I need the dealer for (selling the bike).

So I’m not going to pay more than I have to, just because dealers have low margins (and they might) and are good guys (and they probably are)...if you all want to pay extra to the dealer for those reasons, go for it...but I shop around, find the dealer willing to sell me a bike for the lowest OTD price and that is where I buy the bike from.
I can see why the dealers don't give you any breaks. Having a good relationship does wonders for your wallet.

My dealer never charges freight, set-up or doc fees and still get me the bike for less than list/gives break on parts. sometimes less than I can buy the stuff online.

YMMV!
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STLSharky
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Edwardsville, IL US
2/3/2021 1:50pm
mattyhamz2 wrote:
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if...
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if you take your time. Then you throw on the bars, front fender and front wheel, check coolant and oil and finish off with checking some nuts and bolts. Two hours max(if the mechanic is slow) and shops charge $400-$1000 for this “prep” for each bike. That’s outrageous. Most shops charge $95 per hour and only pay the mechanic $15-$20 per hour.
three9zero wrote:
A good shop's service department is always booked a week or 2 in advance, so their techs time is worth what ever their door rate is...
A good shop's service department is always booked a week or 2 in advance, so their techs time is worth what ever their door rate is, not what their wage is. Well run dealerships charge their sales departments the same rate as customer door rate.
mattyhamz2 wrote:
A few shops around my area have a specific tech that handles only new bike setups.
yeah the lowest paid
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bh84
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Peterborough , ON CA
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2/3/2021 1:51pm Edited Date/Time 2/3/2021 1:53pm
I sold a brand new 2021 150XC-W today. My total profit was $655, 6.68% That's why dealers don't care about dirtbikes, they barely pay for themselves.

Don't assume a dealer is fucking you with extra fees. We're trying to make enough to keep the lights on. We ARE charged freight, we do have to pay someone to put it together and check it over, we do have to pay the salesmen their commission and we do have massive overhead to deal with

There's a ton of money in powersports, but there's not a lot of money IN powersports
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EngIceDave
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Location
Merritt Island, FL US
2/3/2021 2:11pm
three9zero wrote:
A good shop's service department is always booked a week or 2 in advance, so their techs time is worth what ever their door rate is...
A good shop's service department is always booked a week or 2 in advance, so their techs time is worth what ever their door rate is, not what their wage is. Well run dealerships charge their sales departments the same rate as customer door rate.
mattyhamz2 wrote:
A few shops around my area have a specific tech that handles only new bike setups.
STLSharky wrote:
yeah the lowest paid
Most shops I know put their top guy on bike builds.

Why?

It's cushy work. It pays the same as ass busting.

Let the rookies and others work on the PITA bike-in-a-box and the perpetually broken ATV stuff.
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The Shop

mb60
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GRAPEVINE, TX US
2/3/2021 4:17pm
mb60 wrote:
Freight fees are about 250 normally. Anything over that dealer is making money.
mxnick wrote:
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends...
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends on the size of the bike, but $250 is very, very low.
I work for a freight broker. I wish I could get in with someone that needs shipping help. Lol
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TeamGreen
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Thru-out, CA US
2/3/2021 5:14pm
mb60 wrote:
Freight fees are about 250 normally. Anything over that dealer is making money.
mxnick wrote:
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends...
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends on the size of the bike, but $250 is very, very low.
mb60 wrote:
I work for a freight broker. I wish I could get in with someone that needs shipping help. Lol
Our broker got a bike from Independence MO to Far-Nor-Cal for $350. In the current shipping climate, I was stoked!
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captmoto
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Rancho Cucamonga, CA US
2/3/2021 5:50pm
I think my cars had a freight fee too lately.
And I have seen some youtube vids by former sales people and they all say that price is non-negotiable. On Ford trucks it's $1495.
2/3/2021 5:53pm
I always thought the freight charge was a deal. Japan to wi. All the different people involved, in my bike. The dealership did an amazing job and my bike looks perfect. Might have been a little extra involved in the final steps of shipping your bike, train or truck wreck. Few office people , figuring out the best solution. It comes down to the driver, doing 35 deliveries a day. People have no idea, a lot of details to get everything everywhere. My hazmat ld Ohio to Pa., I can not go threw the tunnels on penn turnpike. My route has many extra roads, 71.271 i80, rt 970, rt322, i99, rt 22, i81, i78. Max down hill speed of 20 and 30mph, pa. Has steep mountains. Load is tail heavy, so your upper body is getting worked, trying to hold a line. On i80 a 379 Pete hauling new cars, flew off the mountain in the snow storm into a deep ravine. His contract hauling new cars is done, probably looking at a few surgeries, if he is alive. Record number of driver getting killed the last 10 yrs.I know a driver that had 38 surgeries from a wreck. I would be great full that any co is willing to haul any bike. They don,t pay nothing. There is only 1 co that specializes in hauling bikes, that tell ya something.
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captmoto
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2/3/2021 5:55pm
skeef wrote:
Working for multiple dealers on the west coast. Yes, we get charged for shipping thus you get charged for shipping. I would say the single OEM...
Working for multiple dealers on the west coast. Yes, we get charged for shipping thus you get charged for shipping. I would say the single OEM specific stores normally can waive these costs because of their size and overhead.

I get you guys want the best deals on your bikes but why we have a thread every other week on "BS dealer fees" is beyond me. Expect to pay a thousand over sticker. Think about where you shop, who you're giving your money too. Is it a dealer that supports your local tracks and race series. This is an ecosystem, without dealers most of these tracks wouldn't have sponsorship money. Trust me they can not surive off tack fees alone... Without dealers you can't buy bikes. The cost of OEM licensing is worth more than the building and it's entire staff.
I've been wondering about these threads too. This isn't a cheap sport. Guys are also wanting discount codes, buddy deals and so on. If that's what it takes to enjoy riding and racing, they aren't really enjoying riding and racing. Maybe it's the northeast guys that are winter shut in's and have time to sit and ponder the mysteries of the sport. As for me, I'm going riding for the second time this week tomorrow.
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Indy mxer
Posts
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Linton, IN US
2/3/2021 6:04pm
Titan1. wrote:
Here is where I’m coming from on this, the ONLY reason I will ever use a dealer is to buy a bike, that’s it, I won’t...
Here is where I’m coming from on this, the ONLY reason I will ever use a dealer is to buy a bike, that’s it, I won’t step foot in a dealer until Im ready to buy another bike (and I honestly look forward to the day I can just buy a bike online directly from the manufacturer and have it delivered to my house) so all other “value” dealers can claim to provide aren’t factors in my decision....so buying a bike is all about price to me....because that is literally all I need the dealer for (selling the bike).

So I’m not going to pay more than I have to, just because dealers have low margins (and they might) and are good guys (and they probably are)...if you all want to pay extra to the dealer for those reasons, go for it...but I shop around, find the dealer willing to sell me a bike for the lowest OTD price and that is where I buy the bike from.
LKHill wrote:
I can see why the dealers don't give you any breaks. Having a good relationship does wonders for your wallet. My dealer never charges freight, set-up...
I can see why the dealers don't give you any breaks. Having a good relationship does wonders for your wallet.

My dealer never charges freight, set-up or doc fees and still get me the bike for less than list/gives break on parts. sometimes less than I can buy the stuff online.

YMMV!
Correct.
My brother is a longtime, multi line dealer. My dad started the business in 1974, and it's still going strong to this day.
He has never tacked on any of those bogus fees, The price they quote you is plus tax out the door. He does charge a $35 doc fee. Which is quite fair for what they have to do.

Shop around and quit being stupid, getting sucked in by all the dishonest dealers advertising low prices online with fucked up hidden fees. Then come here and complain about it.

Reward the good guys! They're out there if you look.

Btw, there's very little profit in dirtbikes. Sad but true.
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lostboy819
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Somewhere, CO US
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2/3/2021 6:09pm
skeef wrote:
Working for multiple dealers on the west coast. Yes, we get charged for shipping thus you get charged for shipping. I would say the single OEM...
Working for multiple dealers on the west coast. Yes, we get charged for shipping thus you get charged for shipping. I would say the single OEM specific stores normally can waive these costs because of their size and overhead.

I get you guys want the best deals on your bikes but why we have a thread every other week on "BS dealer fees" is beyond me. Expect to pay a thousand over sticker. Think about where you shop, who you're giving your money too. Is it a dealer that supports your local tracks and race series. This is an ecosystem, without dealers most of these tracks wouldn't have sponsorship money. Trust me they can not surive off tack fees alone... Without dealers you can't buy bikes. The cost of OEM licensing is worth more than the building and it's entire staff.
captmoto wrote:
I've been wondering about these threads too. This isn't a cheap sport. Guys are also wanting discount codes, buddy deals and so on. If that's what...
I've been wondering about these threads too. This isn't a cheap sport. Guys are also wanting discount codes, buddy deals and so on. If that's what it takes to enjoy riding and racing, they aren't really enjoying riding and racing. Maybe it's the northeast guys that are winter shut in's and have time to sit and ponder the mysteries of the sport. As for me, I'm going riding for the second time this week tomorrow.
I worked for motorcycle dealers for about 25 years and one thing I will tell you is that Motocrosser's are the biggest pain in the ass for the smallest market, they want things free or at a discount. Then they try to rationalize it by saying they advertise for the dealership and the brand. We would just tell them we use a professional marketing agency. Laugh: We made the least off the MXers but they wanted to most in discounts and the worst is the mini dads who think Jr will be the next Jeremy McGrath. Woohoo
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captmoto
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Rancho Cucamonga, CA US
2/3/2021 6:09pm
Titan1. wrote:
And just cut out the middle man, yes. That would be preferred.
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct, you would be paying MSRP and you would be stuck with it. That doesn't make any sense to me. What if there was a recall or warranty issue? Where do you take your bike? How would you get the bike to your front door from Japan or Austria? Delivery would be factored in to MSRP so you are going to pay it whether you like it or don't.
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1
2/3/2021 6:12pm
mxnick wrote:
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends...
All depends on the OEM. I have worked for one, and it was $550 when I left, and I think it went up. It also depends on the size of the bike, but $250 is very, very low.
mb60 wrote:
I work for a freight broker. I wish I could get in with someone that needs shipping help. Lol
TeamGreen wrote:
Our broker got a bike from Independence MO to Far-Nor-Cal for $350. In the current shipping climate, I was stoked!
That,s a great rate, just hope it’s not on the end of a step deck. Haha. Those guys haul gypsy loads. Where you bought your bike is also, home of the largest under ground warehouses in the world. There is a few, I ,ve been in them. There a real trip. I have some friends that are brokers, hustlers always negotiating . If they say 2 words app cash, just pay it, 50 -100 bucks. Because he has a high paying load , he,ll hook ya up with. He still has 200 to 1,850 profit on it. They just dig the feeling of being the man.
Titan1.
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Lehi, UT US
2/3/2021 6:26pm
Titan1. wrote:
And just cut out the middle man, yes. That would be preferred.
captmoto wrote:
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct...
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct, you would be paying MSRP and you would be stuck with it. That doesn't make any sense to me. What if there was a recall or warranty issue? Where do you take your bike? How would you get the bike to your front door from Japan or Austria? Delivery would be factored in to MSRP so you are going to pay it whether you like it or don't.
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure out how to get their recall and warrantee issues corrected.

And yes...we’d be forced to pay the MSRP...which is what we pay now...but we wouldn’t have to drive to the dealer, pay all their other fees on top of it. Cutting out the middle man knocks 10%-20% off the MSRP right there which covers most of the freight charge. So we get the bike delivered to our door, for less money.

And I don’t mind paying freight...as long as it’s a legit cost (my OP was a question as to whether they are legit...and it sounds like it is). But if I have to pay it, I’d rather it be directly to my house than to you the dealership.
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Indy mxer
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Linton, IN US
2/3/2021 6:32pm
Titan1. wrote:
And just cut out the middle man, yes. That would be preferred.
captmoto wrote:
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct...
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct, you would be paying MSRP and you would be stuck with it. That doesn't make any sense to me. What if there was a recall or warranty issue? Where do you take your bike? How would you get the bike to your front door from Japan or Austria? Delivery would be factored in to MSRP so you are going to pay it whether you like it or don't.
Titan1. wrote:
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure...
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure out how to get their recall and warrantee issues corrected.

And yes...we’d be forced to pay the MSRP...which is what we pay now...but we wouldn’t have to drive to the dealer, pay all their other fees on top of it. Cutting out the middle man knocks 10%-20% off the MSRP right there which covers most of the freight charge. So we get the bike delivered to our door, for less money.

And I don’t mind paying freight...as long as it’s a legit cost (my OP was a question as to whether they are legit...and it sounds like it is). But if I have to pay it, I’d rather it be directly to my house than to you the dealership.
You'd love not having any dealers until you need one.
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Titan1.
Posts
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Lehi, UT US
2/3/2021 6:34pm
captmoto wrote:
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct...
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct, you would be paying MSRP and you would be stuck with it. That doesn't make any sense to me. What if there was a recall or warranty issue? Where do you take your bike? How would you get the bike to your front door from Japan or Austria? Delivery would be factored in to MSRP so you are going to pay it whether you like it or don't.
Titan1. wrote:
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure...
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure out how to get their recall and warrantee issues corrected.

And yes...we’d be forced to pay the MSRP...which is what we pay now...but we wouldn’t have to drive to the dealer, pay all their other fees on top of it. Cutting out the middle man knocks 10%-20% off the MSRP right there which covers most of the freight charge. So we get the bike delivered to our door, for less money.

And I don’t mind paying freight...as long as it’s a legit cost (my OP was a question as to whether they are legit...and it sounds like it is). But if I have to pay it, I’d rather it be directly to my house than to you the dealership.
Indy mxer wrote:
You'd love not having any dealers until you need one.
Why would I need one?

All I use them for now is to buy a bike...and if I could do that online, direct from the manufacturer, I wouldn’t even need them for that?
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TeamGreen
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29097
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Location
Thru-out, CA US
2/3/2021 6:38pm
mb60 wrote:
I work for a freight broker. I wish I could get in with someone that needs shipping help. Lol
TeamGreen wrote:
Our broker got a bike from Independence MO to Far-Nor-Cal for $350. In the current shipping climate, I was stoked!
That,s a great rate, just hope it’s not on the end of a step deck. Haha. Those guys haul gypsy loads. Where you bought your bike...
That,s a great rate, just hope it’s not on the end of a step deck. Haha. Those guys haul gypsy loads. Where you bought your bike is also, home of the largest under ground warehouses in the world. There is a few, I ,ve been in them. There a real trip. I have some friends that are brokers, hustlers always negotiating . If they say 2 words app cash, just pay it, 50 -100 bucks. Because he has a high paying load , he,ll hook ya up with. He still has 200 to 1,850 profit on it. They just dig the feeling of being the man.
Delivered
Un-crated
Put together
Already rode wheelies
(The full factory Graphics Kit was “no charge” 🤣)






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2/3/2021 6:40pm
Just call this guy, he will pu your bike in90,s Style. Then drop it off at his house. Where he,ll do Bad boy RJ, billy bob impressions, assembling your bike. With a neighbor girl who hawked a bottle after her shift.


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BobPA
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PA US
2/3/2021 7:03pm
mattyhamz2 wrote:
Our margins on equipment is not much higher than 20%. In my opinion you can't really compare HVAC equipment to bikes anyways based on the fact...
Our margins on equipment is not much higher than 20%. In my opinion you can't really compare HVAC equipment to bikes anyways based on the fact that HVAC is much more of a need than a luxury like bikes. Do I want my dealer to be around and profitable? Absolutely! Do I think it's bullshit and unacceptable that a charges $1000 for putting on a front fender, front wheel and bars? Yup! At $1000 setup fee, they are making an easy $900 on 2 hours max of work from a guy they probably only pay $15 per hour. Most dealers aren't doing anything to help this sport to be more affordable for the average Joe.
If you are being charged $1000 for a setup fee, then you my friend must be an obvious sucker. The salesman must see you coming from miles away.
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2/3/2021 8:01pm
I already put the name of the dealer you should be buying from in here what more do you need people?

But hes right in one aspect about “needing” a dealer, there wasn’t dealers back in the day there were mail order catalogues straight from factory!

There are already companies around me that only sell parts and oils and chemicals not bikes, and there making a shit ton more than anydealer i have ever seen, hell they might be familiar to you guys i think they go by the name Rocky mountain atv mc.

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8tensolutions
Posts
2418
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Location
Salt Lake City, UT US
2/3/2021 8:34pm
mattyhamz2 wrote:
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if...
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if you take your time. Then you throw on the bars, front fender and front wheel, check coolant and oil and finish off with checking some nuts and bolts. Two hours max(if the mechanic is slow) and shops charge $400-$1000 for this “prep” for each bike. That’s outrageous. Most shops charge $95 per hour and only pay the mechanic $15-$20 per hour.
Spooner wrote:
Do you think the crate magically appears in front of the tech? Most shops it would take at minimum 30 minutes to get the crate but...
Do you think the crate magically appears in front of the tech? Most shops it would take at minimum 30 minutes to get the crate but many shops keep them in offsite storage. Then you have to deal with carting it all away. Just an example of how things are more complicated and time consuming then you think.
Yep, and these are the same guys that think a clutch takes 10 min to install and installing tires should be $10.
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8tensolutions
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2418
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Salt Lake City, UT US
2/3/2021 8:48pm
Titan1. wrote:
And just cut out the middle man, yes. That would be preferred.
captmoto wrote:
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct...
So it would be like buying clothes or food. You just go pay the price and be happy that you got the best price? Buying direct, you would be paying MSRP and you would be stuck with it. That doesn't make any sense to me. What if there was a recall or warranty issue? Where do you take your bike? How would you get the bike to your front door from Japan or Austria? Delivery would be factored in to MSRP so you are going to pay it whether you like it or don't.
Titan1. wrote:
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure...
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure out how to get their recall and warrantee issues corrected.

And yes...we’d be forced to pay the MSRP...which is what we pay now...but we wouldn’t have to drive to the dealer, pay all their other fees on top of it. Cutting out the middle man knocks 10%-20% off the MSRP right there which covers most of the freight charge. So we get the bike delivered to our door, for less money.

And I don’t mind paying freight...as long as it’s a legit cost (my OP was a question as to whether they are legit...and it sounds like it is). But if I have to pay it, I’d rather it be directly to my house than to you the dealership.
Pie in the sky. This is never happening. Houses don't have loading docks etc and the shipping cost would be insane direct to consumer. What will happen is they won't have "dealers", but current dealers would be the required shipping point for PDI and shops that are now dealers would become service/parts centers. This will increase margin for manufacturers and shops would be able to focus on service etc and get paid to assemble bikes etc. The difference for you will be MSRP only going forward. Enjoy.
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silver753
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137
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5/18/2010
Location
Brick, NJ US
2/3/2021 8:57pm


Here's an actual invoice for a 2021 50SX. Gross value, shipping and "added value margin" are what we are billed. For a grand total of $4263. The bike at full retail on KTM's website is 4399. After we sell the bike, we get the "added value margin" back as a credit to our parts bill. So technically, we pay 3863 for a bike, and if we sell it at FULL retail, and we only received one, yes ONE of these for the entire 2021 season, and we ordered 4, we make about $500.00 profit before expenses.

And that's if we sell at FULL retail, now we have to pay the tech (maybe an hour to two real time to uncrate, do an accurate PDI-pre delivery inspection, test ride, rejet and tune (yes we jet them), then the sales people do the paperwork and DMV papers, so maybe an hour to two depending on if they are doing financing on the unit also. And before you say "it takes 5 minutes to put the bars and wheel on!", an accurate PDI from a tech that does a good job is a checklist from KTM that is usually about 40 - 70 items you have to check. Torque specs, oil level, air filter, jetting, test ride, spokes, basically put a wrench on every single nut and bolt. And they log in and sign their name and check each box after each item is complete, you can't do one of these in 5 minutes, sorry. So after the "employee" cost gets taken care of, maybe closer to $350.00 profit on a bike we sold at FULL retail.

That's about 8%, give or take. And rent isn't free. Utilities aren't free. Liability insurance isn't free. And a couple of the smaller street bikes, the actual invoice is MORE, yes MORE than full retail on the bike. So if we don't add freight we would lose money by selling at retail. So we are forced to add our "bullshit" fees, because if we just sell at retail, we will lose money. Sounds crazy, but that's the business. I will post the invoice of those smaller street units if I can find one, but yes, on delivery day we pay more than retail on the unit.

Titan1, guys like you are the customers we don't ever want to see in our shop. And like the other guy asked you but you never answered, would like like to pay MSRP plus freight with ZERO chance of negotiation direct through an OEM? Or have a relationship with a dealer who will sell you bikes and parts at a discount, no freight, no set up, and give you some free goggles or a free bike stand, help you fix your bike on a Friday night by taking a part from a bike on the floor, letting you take parts home and pay later, and staying till 9:00 at night to fix your bike, and saying hi to you by first name when you walk in? By the way you talk, most dealers to you are horrible, but with our experience, if you come in acting like an asshole and your a bad person, you get treated that way also. I'm guessing your the type of customer that pissed off every shop you walked into by being unreasonable to work with.

Titan1, your the type of guy who gets his lawn mowed by a 12 year old for $10 then tries to weasel him down to $5.00. And I know, your not gonna change who you are.......
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2/3/2021 9:11pm
@silver753 lets see big bike info, not small bikes lol, lets see a ktm 350

Come on, i bet you wont post that shit up!

350.00 profit on a ktm50sx lmao!!!!!

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2/3/2021 9:17pm
Buddy of mine has been on bikes since 1976. He does the set up on bikes. That starts with taking crates off the trailer with the forklift, putting them on the right place in the warehouse, pulling it down with forklift when it’s time to set up, set up, check everything, run it, write down the info needed to be written down, put it in right place if warehouse, or call the semi retired employee to put the bike in the box ban to run down the street to the dealership, and then put all the crate pieces in the scrap pile. So maybe that YZ125 was a quick set up but took a lot more time than just the bars and front wheel. Never mind the time messing with a big touring bike
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OldnBroken
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Location
Kamloops CA
2/3/2021 9:19pm
mxnick wrote:
Every oem charges freight to the dealer, it’s normally around $600 for a full size bike. Occasionally OEM will give free freight, but it’s not common...
Every oem charges freight to the dealer, it’s normally around $600 for a full size bike. Occasionally OEM will give free freight, but it’s not common. This is a real actual invoiced line item to the dealers. Most dealers will mark it up a little bit, but not much.

Common is also a prep fee, that’s the cost to take bike out of crate, build it and throw away the crate material. Takes an hour to three depending on the bike. But there is a real cost to this, usually just labor and the cost to dispose of the crate.

Doc fees are pure profit to the dealer, but usually the hardest to waive. There is a cost to having the girls in the back office handle that stuff, but again, it’s mostly just hourly wages or salary.
mattyhamz2 wrote:
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if...
I have to laugh at the prep charge to “build” the bike. You uncrate the bike with a drill and that takes 5 minutes maximum if you take your time. Then you throw on the bars, front fender and front wheel, check coolant and oil and finish off with checking some nuts and bolts. Two hours max(if the mechanic is slow) and shops charge $400-$1000 for this “prep” for each bike. That’s outrageous. Most shops charge $95 per hour and only pay the mechanic $15-$20 per hour.
Mattyhamz2 I agree. It looks terrible for dealers to charge 400 to prep the bike. A dirt bike is an hour, max from unpacking to running. I could stomach 2hrs even, but FOUR? No. These fees have gotten way out of hand. And the PDI guy is the lowest paid tech so they are killing it. Fees in general are out of control these days.
2
2/3/2021 9:38pm
OldnBroken wrote:
Mattyhamz2 I agree. It looks terrible for dealers to charge 400 to prep the bike. A dirt bike is an hour, max from unpacking to running...
Mattyhamz2 I agree. It looks terrible for dealers to charge 400 to prep the bike. A dirt bike is an hour, max from unpacking to running. I could stomach 2hrs even, but FOUR? No. These fees have gotten way out of hand. And the PDI guy is the lowest paid tech so they are killing it. Fees in general are out of control these days.
Thank you finally someone that agrees!
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captmoto
Posts
5153
Joined
4/22/2009
Location
Rancho Cucamonga, CA US
2/3/2021 9:49pm
Titan1. wrote:
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure...
If the manufacturers business model puts all their dealers out of business, and they have to recall a product, it’s up to the manufacturer to figure out how to get their recall and warrantee issues corrected.

And yes...we’d be forced to pay the MSRP...which is what we pay now...but we wouldn’t have to drive to the dealer, pay all their other fees on top of it. Cutting out the middle man knocks 10%-20% off the MSRP right there which covers most of the freight charge. So we get the bike delivered to our door, for less money.

And I don’t mind paying freight...as long as it’s a legit cost (my OP was a question as to whether they are legit...and it sounds like it is). But if I have to pay it, I’d rather it be directly to my house than to you the dealership.
What makes you thinks MSRP would be cheaper? With only one place to buy a bike, direct sales, the seller holds all the cards. They can set MSRP at any price they want.
mattyhamz2
Posts
10884
Joined
7/6/2015
Location
So Cal, CA US
Fantasy
846th
2/3/2021 9:51pm
mattyhamz2 wrote:
Our margins on equipment is not much higher than 20%. In my opinion you can't really compare HVAC equipment to bikes anyways based on the fact...
Our margins on equipment is not much higher than 20%. In my opinion you can't really compare HVAC equipment to bikes anyways based on the fact that HVAC is much more of a need than a luxury like bikes. Do I want my dealer to be around and profitable? Absolutely! Do I think it's bullshit and unacceptable that a charges $1000 for putting on a front fender, front wheel and bars? Yup! At $1000 setup fee, they are making an easy $900 on 2 hours max of work from a guy they probably only pay $15 per hour. Most dealers aren't doing anything to help this sport to be more affordable for the average Joe.
BobPA wrote:
If you are being charged $1000 for a setup fee, then you my friend must be an obvious sucker. The salesman must see you coming from...
If you are being charged $1000 for a setup fee, then you my friend must be an obvious sucker. The salesman must see you coming from miles away.
I would never pay that. I know quite a few people that have though.

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