Real cost of a new YZ 250 for a dealership

Looby321
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1/29/2021 9:34am
GrapeApe wrote:
I don't get the impression OP is having remorse or trying to justify his purchase, more of a curiosity. I get it.
Ya...I dunno why some are jumping down his throat. Maybe too much coffee this am....or not enough. 🤣
MPJC
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Fantasy
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1/29/2021 9:35am
yz133rider wrote:
Yamaha hasn’t spent a dollar on development on the yzs in 15 years. Their margins should be incredible. If they have slim margins that’s not even...
Yamaha hasn’t spent a dollar on development on the yzs in 15 years. Their margins should be incredible. If they have slim margins that’s not even logical.
I'm sure they're a cash cow for Yamaha but that doesn't mean that they are passing that profit on to the dealers. Dealer margin and manufacturers margin may be very different.
2
MelonFan123
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1/29/2021 10:22pm
Moto520 wrote:
i would rather order my bike online and have it shipped directly to my house in a crate. I know how to set it up and...
i would rather order my bike online and have it shipped directly to my house in a crate. I know how to set it up and all that. I know which bike i'm going to buy and seeing one at the dealer never has an impact on my decision of which bike to buy.

I see the new sales model as being direct to consumer from the builder.
I’m a huge fan of the DTC model and it has upended many industries. To the benefit of us consumers.

But it will not and cannot happen in the powersports industry due to the majority of an OEMs lineup having to be registered and licensed through DMVs. Street bikes, scooters, watercraft are all required to be sold and registered by licensed dealers

The whole model is so fucked for the dealers. The OEMs control everything - the dealer pricing (aka wholesale) and also msrp. So dealers are forced into buying products at shitty margins.
3
berm surfer
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1/30/2021 1:28am
Stevo683 wrote:
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory...
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory up front? Not any that I dealt with because of the dealer trading/transfers we did. Brutal industry. I had a dealership from 2004-2008. Lost everything I had worked for up to that point when the recession hit. Didn't get any kind of bailout like the banks/automakers did. Took me 10years busting my ass to recover financially. Learned a lot of hard lessons. Live and learn! Stay out of debt kids!
LungButter wrote:
I know of 4 personally that operate that way right now. One common theme is they are all single line dealers, I can't imagine there are...
I know of 4 personally that operate that way right now. One common theme is they are all single line dealers, I can't imagine there are too many of the big multi line dealers who are buying inventory from 3-7 brands outright.

Kinda sad just how tough it is to make a go of it.
A bank owns the bikes then the dealer pays a monthly flooring fee. Also to the 250 topic YZ250's are in super high demand, shops don't get many of them and you'd be surprised how fast they sell especially since it's a two-stroke!

The Shop

cloud41
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1/30/2021 4:56am
Stevo683 wrote:
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory...
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory up front? Not any that I dealt with because of the dealer trading/transfers we did. Brutal industry. I had a dealership from 2004-2008. Lost everything I had worked for up to that point when the recession hit. Didn't get any kind of bailout like the banks/automakers did. Took me 10years busting my ass to recover financially. Learned a lot of hard lessons. Live and learn! Stay out of debt kids!
LungButter wrote:
I know of 4 personally that operate that way right now. One common theme is they are all single line dealers, I can't imagine there are...
I know of 4 personally that operate that way right now. One common theme is they are all single line dealers, I can't imagine there are too many of the big multi line dealers who are buying inventory from 3-7 brands outright.

Kinda sad just how tough it is to make a go of it.
A bank owns the bikes then the dealer pays a monthly flooring fee. Also to the 250 topic YZ250's are in super high demand, shops don't...
A bank owns the bikes then the dealer pays a monthly flooring fee. Also to the 250 topic YZ250's are in super high demand, shops don't get many of them and you'd be surprised how fast they sell especially since it's a two-stroke!
It is the best bang for the buck bike on the market with strong resale value.
Tuna
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1/30/2021 6:43am
Stevo683 wrote:
The dealers do not own the inventory. They have a "Floor Plan" typically thru GE Financial. So they pay interest on the bikes and pay them...
The dealers do not own the inventory. They have a "Floor Plan" typically thru GE Financial. So they pay interest on the bikes and pay them off as soon as they are sold. Whatever is left over after the payoff, less-the interest they paid, storage, delivery, set up, insurance, overhead, rent, etc.. Not a good business plan.. why do you think so many dealers went out of business in 2008? People drive 2 hours to save $50 on a TTR50 and wonder why their local dealer is no longer there. Props to the dealers that have a strong service dept. and can survive. Not an easy gig that's for sure!
LungButter wrote:
That’s not necessarily always the case, quite a few dealers buy their inventory up front.
Stevo683 wrote:
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory...
I agree its not always the case, but how many dealers have the couple of million dollars to purchase all of their bikes in their inventory up front? Not any that I dealt with because of the dealer trading/transfers we did. Brutal industry. I had a dealership from 2004-2008. Lost everything I had worked for up to that point when the recession hit. Didn't get any kind of bailout like the banks/automakers did. Took me 10years busting my ass to recover financially. Learned a lot of hard lessons. Live and learn! Stay out of debt kids!
Beta is not on a floor plan, at least in Canada. Dealer buys the bikes. Distributor also buys the bikes from Beta.
dcg141
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1/30/2021 7:07am Edited Date/Time 1/30/2021 7:13am
Just shut the dealers down and go direct to consumer. Cut out the middle man IMO.
Tesla tried that and were shut down in most states by the Motor Vehicle Commission. They regulate motor vehicle sales in every state you can't sell without a MVC license. In nearly every case a mfg must set up dealers to sell anything that has a VIN number. So even if a company wanted to they cannot sell direct to customers. MVC's are not going anywhere and direct sales will never happen on a large scale. Tesla was not even allowed to set up company owned dealerships in most of the states they tried. They sued and lost.
mx617
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Trail CA
1/30/2021 7:22am
Old info from Canada, but I worked at a dealer straight out of uni a decade or so ago.

At that time a yz250 retailed for around $7700 cdn. Invoice cost was $7000 ish. But then you also got a reimbursement from Yamaha which was another $400. So dealer cost was actually $6600. Plus assembly and PDI.

Moto520
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1/30/2021 8:12am
It’s tough for the dealers. But......if there weren’t so many dealers than the ones that made it will do well with volume.
2
ajk423
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1/30/2021 8:18am
Just to add to this, I just paid 7300 OTD for a 2020 yz250f about 4 months ago. No haggling and its none of my business what they pay or charge for. That was their price and I paid it.
2
Donkey Kong
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1/30/2021 10:48am
ZOBITO wrote:
Wonder how shops are supposed to survive with customers like this.
Unsure
Why would a customer pay more than they had to for a product?
Moto520
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1/30/2021 10:52am
ajk423 wrote:
Just to add to this, I just paid 7300 OTD for a 2020 yz250f about 4 months ago. No haggling and its none of my business...
Just to add to this, I just paid 7300 OTD for a 2020 yz250f about 4 months ago. No haggling and its none of my business what they pay or charge for. That was their price and I paid it.
That’s an amazing price
number six
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1/30/2021 11:54am
If a small business like most bike shops aren't operating at a 35-40% gross margin overall - then it's a hobby.
dcg141
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1/30/2021 2:07pm
number six wrote:
If a small business like most bike shops aren't operating at a 35-40% gross margin overall - then it's a hobby.
Exactly...30% gross will keep the lights on. Beyond that is the owners money. 40% in retail is nearly impossible with all the competitive pressure, Bikes as a whole sell between 7-10% margin. I keep a lot of parts and accessories so that helps. The shop is the only place left to make any real money. Need to do good work and charge accordingly. Retail at its core is a real estate business. Your building or buildings is your retirement. Your able to buy real estate and let the business pay for it and when you sell out you cash in. The trick is to keep the doors open and make a living as the years go buy and you eventually own the real estate.
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APLMAN99
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1/30/2021 4:10pm
Just shut the dealers down and go direct to consumer. Cut out the middle man IMO.
dcg141 wrote:
Tesla tried that and were shut down in most states by the Motor Vehicle Commission. They regulate motor vehicle sales in every state you can't sell...
Tesla tried that and were shut down in most states by the Motor Vehicle Commission. They regulate motor vehicle sales in every state you can't sell without a MVC license. In nearly every case a mfg must set up dealers to sell anything that has a VIN number. So even if a company wanted to they cannot sell direct to customers. MVC's are not going anywhere and direct sales will never happen on a large scale. Tesla was not even allowed to set up company owned dealerships in most of the states they tried. They sued and lost.
Tesla isn’t shut down in most states. There are 10 that ban direct sales.

8 more have some restrictions (usually number of outlets).
2
APLMAN99
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1/30/2021 4:11pm
kkawboy14 wrote:
Dealers lie!
Some definitely do, I’m sure. Just like buyers.
1
1
captmoto
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1/31/2021 11:24am
Why would a customer pay more than they had to for a product?
You have a choice. Just don't buy it. The free market dictates price. You have to decide if you want it or not.
sandtrack315
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Philadelphia, PA US
1/31/2021 11:33am
Do y’all actually take your bike to the dealer for service? I wouldn’t trust most dealers to check the valves on my bike. Bad dealers have blown it for the select good ones that do actually have a good service department.

Same goes for parts departments. I was working with a local dealer in PA, but after getting the same discount through Motosport.com, where they will assign someone to work directly with you if you have any questions, and they ship super fast, I haven’t been back to my dealer. Honestly if you try Motorsport.com once you won’t go back. All OEM and aftermarket in one place, great prices, quick shipping.
1
1/31/2021 12:35pm
Just shut the dealers down and go direct to consumer. Cut out the middle man IMO.
What happens when you have a questionable warranty issue?

Dismantle it
Crate it
Ship it$$$

“Sorry Sir, we don’t consider this to be a warranty issue. Now you owe us $1000 for our time plus shipping if you want your bike back.”

No thanks.
1
H4L
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1/31/2021 12:48pm
No way would I pay that much for basically a 2006 yr. model with BNG’s & some minor refinements. I’ve picked up (2) 06’s, 09 & 11 models for a little over $3K with low hrs. & that’s in Nazifornia..
The YZ is a decent bike, but not worth that price IMHO since it really hasn’t had any major upgrades. I can’t believe anybody would pay that much for one.
b_kowalsk
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1/31/2021 1:07pm
H4L wrote:
No way would I pay that much for basically a 2006 yr. model with BNG’s & some minor refinements. I’ve picked up (2) 06’s, 09 &...
No way would I pay that much for basically a 2006 yr. model with BNG’s & some minor refinements. I’ve picked up (2) 06’s, 09 & 11 models for a little over $3K with low hrs. & that’s in Nazifornia..
The YZ is a decent bike, but not worth that price IMHO since it really hasn’t had any major upgrades. I can’t believe anybody would pay that much for one.
I have as well, however the current market you will have a tough time scoring a low hour YZ250 for 3k. It makes sense to purchase new rather than spend current prices on a clapped out rattler.
1/31/2021 1:10pm Edited Date/Time 1/31/2021 1:14pm
H4L wrote:
No way would I pay that much for basically a 2006 yr. model with BNG’s & some minor refinements. I’ve picked up (2) 06’s, 09 &...
No way would I pay that much for basically a 2006 yr. model with BNG’s & some minor refinements. I’ve picked up (2) 06’s, 09 & 11 models for a little over $3K with low hrs. & that’s in Nazifornia..
The YZ is a decent bike, but not worth that price IMHO since it really hasn’t had any major upgrades. I can’t believe anybody would pay that much for one.
Honestly, the manufacturers should be more ashamed that they haven't built anything appreciably more competitive per cc than a 2006 model year with BNGs and some minor refinements. I mean, that's a whole lot more disappointing from a cost for goods standpoint than that the old YZ250 is still around.
H4L
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1/31/2021 1:25pm Edited Date/Time 1/31/2021 1:53pm
b_kowalsk wrote:
I have as well, however the current market you will have a tough time scoring a low hour YZ250 for 3k. It makes sense to purchase...
I have as well, however the current market you will have a tough time scoring a low hour YZ250 for 3k. It makes sense to purchase new rather than spend current prices on a clapped out rattler.
This was over this past summer in 2020 (about 6 months ago) so I would consider it recent. This 06 since new (not rebuilt) maybe had 10-12 total hrs..

H4L
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1/31/2021 1:28pm Edited Date/Time 1/31/2021 1:48pm
Honestly, the manufacturers should be more ashamed that they haven't built anything appreciably more competitive per cc than a 2006 model year with BNGs and some...
Honestly, the manufacturers should be more ashamed that they haven't built anything appreciably more competitive per cc than a 2006 model year with BNGs and some minor refinements. I mean, that's a whole lot more disappointing from a cost for goods standpoint than that the old YZ250 is still around.
Agree, but as a consumer you have so much better options if you're paying $8K + for a dirt bike..

SoCalMX70
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1/31/2021 2:44pm
Yamaha still sells every YZ they make. They're done with it and will keep taking everyone's money (as they should if people keep paying). Outside of maybe another shock, fork, and front brake upgrade, I expect zero changes before it eventually gets discontinued.

The frame is 15 years old, the engine is 22 years old.

It's the same way the 2 stroke Super Jet went.

3
yz133rider
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Avondale, PA US
1/31/2021 2:53pm
SoCalMX70 wrote:
Yamaha still sells every YZ they make. They're done with it and will keep taking everyone's money (as they should if people keep paying). Outside of...
Yamaha still sells every YZ they make. They're done with it and will keep taking everyone's money (as they should if people keep paying). Outside of maybe another shock, fork, and front brake upgrade, I expect zero changes before it eventually gets discontinued.

The frame is 15 years old, the engine is 22 years old.

It's the same way the 2 stroke Super Jet went.

And the banshee, blaster, cr500, kx500.
1

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