How does RockyMountain make money

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1/8/2019 6:22 AM

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?

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1/8/2019 6:24 AM

Size matters

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vomiting equals disqualification.

1/8/2019 6:24 AM

Because of the size of their orders, they also likely get better pricing from a brand or distributor than a dealership does. They likely operate on a smaller profit margin per item, but there volume is just so much larger that it offsets it.

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1/8/2019 6:26 AM

The proper term is "economy of scale".

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Take it to the limit, one more time!

1/8/2019 6:26 AM

Rmc is awesome...I would say volume is reason why they can still be profitable. I still buy some stuff from my local dealer...I want them to survive...

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1/8/2019 6:29 AM

Also now that RM is having to charge sales tax to TN, my local dealer can get very close on most items.

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Take it to the limit, one more time!

1/8/2019 6:33 AM

mx317 wrote:

Also now that RM is having to charge sales tax to TN, my local dealer can get very close on most items.

That is great if they have what you need, are close , good folks and not the typical dealer line of "we don't have that, but can order it for you, be here in a week or so"...

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vomiting equals disqualification.

1/8/2019 6:34 AM

You answered your own question..

Obviously they get a better deal because they can call up a gear company and order a semi at a time. A dealership will never do that. So yes, more volume = less profit, and you win as customer. AND Less volume = more profit, you spend more as a customer but keep the local business man happy.

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I'm just here to stir sh#t up...

1/8/2019 6:39 AM

I can order from RM by 5pm and have my order the following day by noon. That's dangerous for our family's savings account!

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2018 CRF250R

1/8/2019 6:39 AM

A WD is on the deepest deal there is. Lower than whats typically considered "dealer cost".

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Race Bike: 2018 KTM 350SXF

Other Bikes: 1985 CR80R, 1990 CR250R, 1998 PW80, Specialized Fuse Comp 29.

Sold: 2016 YZ250F, 2012 CRF250R

1/8/2019 6:43 AM

As stated above, volume of sales. Buy enough stuff from them though and you'll find theres quite a few items that they are pretty comparable to price wise on a lot of other dealers. Where they really kill it is on OEM parts. Those prices are great.

However something changed with RM financially recently. They used to offer free two day shipping on qualifying orders. Now its been scaled back to free 3 day shipping on qualifying orders. That was a huge selling point to me. I could order monday morning, come home wednesday afternoon and have wednesday and thursday evening to get my bike ready to race for the weekend.

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1/8/2019 6:57 AM

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.

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1/8/2019 7:07 AM

racin mason wrote:

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.

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".

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1/8/2019 7:14 AM

mx317 wrote:

Also now that RM is having to charge sales tax to TN, my local dealer can get very close on most items.

Charge tax to California as well.. Thanks South Dakota for that angry

Even though it brought prices closer to the dealer and local shops, my work hours don't allow me to get to the local shop or dealer and my weekends are packed so I'm lucky to get 2 minutes to step into a shop. It's super convenient to still order from RM. Get it in 2 days, which is usually the same or quicker than the local guys can get it if it's not in stock. Plus you get the RM Cash. That helps me out a lot!

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2017 RMZ450
2005 YZ250-sold :,(
1998 YZ250
2005 KX250F

80% of the time it works every time
IG @2HRacing
Thanks to : Factory Effex, N2Dirt, Acerbis, DT1, Fasthouse, Matix, FMF, ASV, 100% & Mika Metals

1/8/2019 7:47 AM

I`m curious to know if RM is big enough that they don`t pay for inventory until the item is sold to the consumer. This is how Walmart and somewhat how Amazon operates. Also, negotiated shipping rates turn drastically in favor of the seller when you have the volume these guys are pumping out, not saying they make a profit on shipping but definitely not losing a penny for the 2-3 day stuff.

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War Eagle

1/8/2019 7:49 AM

mx317 wrote:

Also now that RM is having to charge sales tax to TN, my local dealer can get very close on most items.

mattyhamz2 wrote:

Charge tax to California as well.. Thanks South Dakota for that angry

Even though it brought prices closer to the dealer and local shops, my work hours don't allow me to get to the local shop or dealer and my weekends are packed so I'm lucky to get 2 minutes to step into a shop. It's super convenient to still order from RM. Get it in 2 days, which is usually the same or quicker than the local guys can get it if it's not in stock. Plus you get the RM Cash. That helps me out a lot!

Yes, RM is still my go to shop because of the great service.

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Take it to the limit, one more time!

1/8/2019 8:00 AM

they are the amazon of the motoworld…. VOLUME... Also, I just found really good deals on amazon for my bike.. the simple stuff..

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1/8/2019 8:08 AM

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.

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1/8/2019 8:09 AM

They take it out of your pocket.

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1/8/2019 8:15 AM

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 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 worked at a shop and our tires were priced $5-$10 over our cost just so we could move them. This is back in 2008-2012. It was hard to sell tires even at that point. We sold more than the rest of the local shops, but that wasn't saying much.

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2017 RMZ450
2005 YZ250-sold :,(
1998 YZ250
2005 KX250F

80% of the time it works every time
IG @2HRacing
Thanks to : Factory Effex, N2Dirt, Acerbis, DT1, Fasthouse, Matix, FMF, ASV, 100% & Mika Metals

1/8/2019 8:18 AM

I think they likely have a more efficient business all the way around, supply management, distribution and whatnot. Utah, and they're particular town could be real pro business minded with corporate tax issues, plus they likely have a large stream of good talented people as potential employees.

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1/8/2019 8:30 AM

They don't always have the best prices. I usually start by checking RM but then venture over to MotoSport and BTOsports just to compare. Sometimes the other 2 are slightly cheaper.

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1/8/2019 8:30 AM

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 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.

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.

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1/8/2019 8:33 AM

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 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 from them but they charge $30 if you do buy from them.

I'd take that money and buy tire spoons from RM and do them myself. But then again, I do change my tires myself anyways.

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2017 RMZ450
2005 YZ250-sold :,(
1998 YZ250
2005 KX250F

80% of the time it works every time
IG @2HRacing
Thanks to : Factory Effex, N2Dirt, Acerbis, DT1, Fasthouse, Matix, FMF, ASV, 100% & Mika Metals

1/8/2019 8:33 AM

It's simple, economies of scale. Relatively low overhead in Utah and Kentucky + bulk quantities + a lot of variety in products = the ability to charge lower prices than anyone else. It's a fickle bitch because of what it does to local shops, but at the end of the day we all struggle, and a saved dollar here and there adds up.

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1/8/2019 8:40 AM

I buy from RMATV because a) they almost always have what I want in stock; b) pricing is competitive; c) excellent customer service; d) they support the sport (both mx and off road, race gas cards, sponsor teams and events, etc); and e) they work to keep local trails maintained and open.

Not a local shop I can think of that offers all of that. I don't use local shops to try stuff on either, since RMATV will do the exchange for free if it doesn't fit.

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1/8/2019 8:50 AM

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 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 from them but they charge $30 if you do buy from them.

mattyhamz2 wrote:

I'd take that money and buy tire spoons from RM and do them myself. But then again, I do change my tires myself anyways.

Yeah exactly. Im fortunate enough that my dad is a service dept manager at one an hour away. I get free mounting with RMs tire prices.

But in general its sad those dealers have to have those policies or prices to stay ahead. $30/$40 a tire is crazy. I paid $20/tire for mounting and balancing on my truck for comparison.

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1/8/2019 8:54 AM

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 from them but they charge $30 if you do buy from them.

mattyhamz2 wrote:

I'd take that money and buy tire spoons from RM and do them myself. But then again, I do change my tires myself anyways.

kb228 wrote:

Yeah exactly. Im fortunate enough that my dad is a service dept manager at one an hour away. I get free mounting with RMs tire prices.

But in general its sad those dealers have to have those policies or prices to stay ahead. $30/$40 a tire is crazy. I paid $20/tire for mounting and balancing on my truck for comparison.

The shop I worked at was $10 tire mounting and sometimes we ran a free mount with tire purchase special. You brought your own tire, it was $15 to mount it. Anything more than $20 is absolutely crazy.

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2017 RMZ450
2005 YZ250-sold :,(
1998 YZ250
2005 KX250F

80% of the time it works every time
IG @2HRacing
Thanks to : Factory Effex, N2Dirt, Acerbis, DT1, Fasthouse, Matix, FMF, ASV, 100% & Mika Metals

1/8/2019 8:56 AM

Called the local Yamaha dealer to confirm them having a stock YZ clutch lever (newer yz). Not in stock (?!?!) Thats like Home Depot not having a hammer in stock! I asked if they could order one. They said I had to come in and pay, then come back in a week when it's in. Asked if I could pay over phone via credit card, nope. Would think such a part they would want to stock (fits multiple year bikes). Hard to support a shop like that. Having said that, by the time it woulda took just to get in my truck, part was on its way to my house from RM. Got it in two days!

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1/8/2019 8:59 AM

racin mason wrote:

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.

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.

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