Posts
325
Joined
7/24/2016
Location
Edgewood, NM
US
Edited Date/Time
1/31/2021 5:50pm
I just bought ( well not picked up but paid for) a new 2021 YZ 250 for 8100 OTD.
Initially when I called the dealership I was told that the best they could do is 8800$ otd due to set up, freight, TTL and cost. I told them to pound sand. They called back 20min later saying the best they could do was 8500$ otd, what was my sticking point? I told them Im at 7900$ otd I want everyone to feel good after this. I figured 400$ over MSRP was decent, due to them getting them at below MSRP. They said they absolutely couldn't do that but would I mind 8K? I said at 8K I would buy it today. I was told he would have to call his boss but we will shoot for 8k today. He calls back and says they cant do 8k but will do 8250. I told them at this time I would call other dealers to see what kind of deals they could offer me ( the narrator preferably Morgan Freeman " they too couldn't offer Brent a deal, 8300 OTD was the best they could do).Well at this time Saturday was over and they were closed till Tuesday.
Tuesday comes around same guys calling me asking if I still was interested. At this time the owner, or upper management guy is on the speaker phone with the kid who has been calling me. They say 8100$ and that is their bottom line because that is selling it to me at cost. I agree due to the scarcity in the market and because anyone local couldn't beat it . Plus they would throw in a free Fox Jersey.
I suppose long story short, is their anyway this is actually cost to them?
I get you gotta pay the guy to assemble the bike(Wheel,bars,etc).
I get you gotta ship it to the shop.
Pay their rent
I get they need to make their money.
However it just got me curious as to what real cost looks like to a dealership?
Sorry for the long write up but I figure this might help someone else who is looking and can see what Step by Step occurred to me. Also I already bought it so Its a done deal .
Initially when I called the dealership I was told that the best they could do is 8800$ otd due to set up, freight, TTL and cost. I told them to pound sand. They called back 20min later saying the best they could do was 8500$ otd, what was my sticking point? I told them Im at 7900$ otd I want everyone to feel good after this. I figured 400$ over MSRP was decent, due to them getting them at below MSRP. They said they absolutely couldn't do that but would I mind 8K? I said at 8K I would buy it today. I was told he would have to call his boss but we will shoot for 8k today. He calls back and says they cant do 8k but will do 8250. I told them at this time I would call other dealers to see what kind of deals they could offer me ( the narrator preferably Morgan Freeman " they too couldn't offer Brent a deal, 8300 OTD was the best they could do).Well at this time Saturday was over and they were closed till Tuesday.
Tuesday comes around same guys calling me asking if I still was interested. At this time the owner, or upper management guy is on the speaker phone with the kid who has been calling me. They say 8100$ and that is their bottom line because that is selling it to me at cost. I agree due to the scarcity in the market and because anyone local couldn't beat it . Plus they would throw in a free Fox Jersey.
I suppose long story short, is their anyway this is actually cost to them?
I get you gotta pay the guy to assemble the bike(Wheel,bars,etc).
I get you gotta ship it to the shop.
Pay their rent
I get they need to make their money.
However it just got me curious as to what real cost looks like to a dealership?
Sorry for the long write up but I figure this might help someone else who is looking and can see what Step by Step occurred to me. Also I already bought it so Its a done deal .
The Shop
It is what it is now. if you are sitting in the garage worrying about what you paid you need to get rid of it.
I don’t generally have a lot of buyer’s remorse with most of my purchases, and I think that the major reason is that I don’t care how much the item cost the dealer or the merchant. All I care about is if the item I am buying is worth it for me to part with that amount of money.
I think most people would be happier trying to justify the value of the items they purchase rather than focusing on how much someone else may be making by running the business that gets it to market for you to buy it. Those people almost always get crushed when they hear of someone else getting it for a better price than they did, and it sours their whole outlook.
In the example from the OP, either the bike had enough value to make it worth parting with $8,200, or it didn’t. No one else was willing to take that offer, and yet the overall tone is of worry that the dealer might have actually made a GROSS profit of a couple of dollars.
Just an observation that life is just too short to worry about things like that. Pay what the item is worth to you, shop around until someone is willing to sell it at what it is worth to you, absolutely.
Worry about the cost for the seller? Waste of good time and energy.
More money to be made in the money, than the metal.
Here in WA trying to get a bike well sought after (21 yz250f), after the sales tax and fees. It was $10.3K lmfao. I knew they werent going to budge on fees because the bike was going to sell. Tbh I could care less what it costs because its what I want. After running the main sorter at my warehouse makes my purchase worth it.
Pit Row
The thing about the trade that pissed me off, is that the guy who was trying to buy a bike, who was a regular working joe, will roll in to your local dealer and pay decent money, some out of towner will try and ring round , and slag you off for not doing ' a deal'..
We had a guy who would go anyhwere to save £25, and we let him. Bike needed warranty work , and we were flat out, offered him a slot a week ahead, he went nuts, and got on to Honda , We said we werent the supplying dealer and werent prepared to offer good will on a bike we never sold.. they agreed. LOL
Anyway , not long after , his neighbour comes in for a bike, and we have a zero miles ex show bike from the importer that owes us £1500 behind cost, my boss sells it for a £500 turn to piss the other guy off. says it was the best £1000 he ever gave away.
The bike trade would be great if it wasnt for the customers.. everyone wants something for nothing. , and after a while it gets old, just pay the price , or go elsewhere.
The best dealers here were doing well to make 3% profit on turnover, and when you have £500k on stock, you have to ask what is the fucking point when the guy who comes to service your parts washer charges more money that you are expected to make on a £7500 bike.
Guys.....we don't let the dealers make enough money to pay for better help. We all know the costs and want everything cheap because we feel like we are motocross insiders and that's just the way it is.
i would personally love to sell dirt bikes for a living but the profit margins are soo low that there just isn't enough scratch to be made. No disrespect to any current motorcycle salesman.....some are great. Good ones are hard to come by and when i find one i'm always ok paying a little more.
i couldn't imagine owning a dealership
I wanna say back then it was $500-700 margin on a bike, this was about 20 years ago.
Bottom line, the actual margin on bikes ain't shit.
Truly, take the cost of that 250SX at $6722. Now add the cost of freight to the dealer. It's as near to $450 as truly matters. PDI is definitely not $400 on a 250SX; more like one half-hour or full hour in the shop at the rate they charge the sales department (yes, the service department charges the sales department.) Let's call it $100 to be very generous. Now we're up to $7,272.
But wait! Even if you sell it at zero dollars profit, the state wants their cut in sales tax. In CA, that would be $599.94 in my county - maybe more in Los Angeles. Oh yeah, it's $52 to register the thing (and you cannot take it home if it doesn't get registered.) Now we're up to $7923.94. This is before the dealer has earned one red cent on the sale.
There are variables in your scenario: the actual cost of freight from Yamaha to the dealer, the difference in cost between a Yamaha and a KTM, the price of service in the shop, and the local taxes, to name a few. It sounds like your dealer made you a great deal at $8100, though. They probably made very little money on that bike.
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