Why do dealers do this?

yak651
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10/1/2015 5:21pm Edited Date/Time 10/5/2015 2:39pm
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds good, so email them to see if there are any other fees. No response...ok give them a call. You still have the YZ250f on your site? Let me check, come back, yes the blue one for $5999. Ok, can you do $6250 out the door (we have 5% tax)? No, bike is $6,899 before tax. What, you just told me it was 5999? Well that doesn't include freight and set up. No thanks...Why not just advertise the real price?

http://www.fuelpowersports.com/default.asp?page=xNewInventoryDetail&id=…
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bigal285
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10/1/2015 5:26pm
Sounds more appealing so then you'll call them. From my experience I wouldn't buy anything from them. I bought a couch (quad) from them an wasn't happy with my experience with them.
yak651
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10/1/2015 5:27pm
bigal285 wrote:
Sounds more appealing so then you'll call them. From my experience I wouldn't buy anything from them. I bought a couch (quad) from them an wasn't...
Sounds more appealing so then you'll call them. From my experience I wouldn't buy anything from them. I bought a couch (quad) from them an wasn't happy with my experience with them.
I guess they did get me to call, but no way I would buy from them
bob567
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10/1/2015 5:31pm
I pray for the day I can order a new bike shipped to my door from Amazon. The internet has kicked the local dealers ass in parts availability, response time, and price for the past 10 years. Been in 1 dealer in the last 10 years and left wanting to kill myself.
cwtoyota
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10/1/2015 5:32pm
Consider there are two dealers who sell the same products: Dealer A and Dealer B.


Now let's say both get their product for $100 and MSRP is $150, but they are required by the manufacturer to unpack and assemble it, and to make money on the product, they both typically charge $50 for that assembly.

Dealer A decides to put an ad in the local paper with a price of $200 with fine print that all local taxes apply.

Dealer B decides to put an ad in the local paper with a price of $150 with fine print that assembly charges and local taxes apply.


Everyone sees a price of $150 and rushes over to Dealer B. They are emotionally invested in the purchase and are doing paperwork by the time they are told about the $50 assembly fee.

Now Dealer A isn't getting any response to their newspaper ad... So they have to lower their advertised price to $150 and update the fine print.

It's the status quo for the dealerships to do it this way. Similar to why all gas stations advertise the price to the 9/10th of a penny and why most retail items are sold with prices like $3.99 instead of $4.00 even.


The Shop

scott_nz
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10/1/2015 5:41pm
better question, why does the US not include sales tax on there prices like the rest of the world does,
racinstation
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10/1/2015 5:47pm
It doesn't work so good for them over the phone, but when you walk in the plan is:

1. Have you fall in love with the bike.
2. Secure financing for you so they know you can pay for it.
3. Get you all amped up and have you sitting down signing papers before you notice that the price is 1K more than you thought.
4. Gamble on you signing on the line, being pissed off and buying it anyway OR leaving. Most people just sign and take the bike in a bad mood.

Big box stores can do this. I always told my customers when they would shop us against another dealer to call and then say they were going to send a wife/father/mother etc in with a cashiers check to pick up the bike so they need to know the exact price. This always ended badly just like your experience. The sad part is that if dealer A advertised $6399 out the door and dealer B advertised $5999*, most people go to dealer B and never contact dealer A. Life in these United States..........
yak651
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10/1/2015 5:48pm
cwtoyota wrote:
Consider there are two dealers who sell the same products: Dealer A and Dealer B. Now let's say both get their product for $100 and MSRP...
Consider there are two dealers who sell the same products: Dealer A and Dealer B.


Now let's say both get their product for $100 and MSRP is $150, but they are required by the manufacturer to unpack and assemble it, and to make money on the product, they both typically charge $50 for that assembly.

Dealer A decides to put an ad in the local paper with a price of $200 with fine print that all local taxes apply.

Dealer B decides to put an ad in the local paper with a price of $150 with fine print that assembly charges and local taxes apply.


Everyone sees a price of $150 and rushes over to Dealer B. They are emotionally invested in the purchase and are doing paperwork by the time they are told about the $50 assembly fee.

Now Dealer A isn't getting any response to their newspaper ad... So they have to lower their advertised price to $150 and update the fine print.

It's the status quo for the dealerships to do it this way. Similar to why all gas stations advertise the price to the 9/10th of a penny and why most retail items are sold with prices like $3.99 instead of $4.00 even.


I could possibly see $50 or $150 but $900??
yak651
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10/1/2015 5:49pm
scott_nz wrote:
better question, why does the US not include sales tax on there prices like the rest of the world does,
I would rather see out the door prices advertised including tax. I guessing because every state has a different tax rate? Sometimes even a different county in the same state will have a different tax rate.
scott_nz
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10/1/2015 5:54pm
scott_nz wrote:
better question, why does the US not include sales tax on there prices like the rest of the world does,
yak651 wrote:
I would rather see out the door prices advertised including tax. I guessing because every state has a different tax rate? Sometimes even a different county...
I would rather see out the door prices advertised including tax. I guessing because every state has a different tax rate? Sometimes even a different county in the same state will have a different tax rate.
ok, are taxes collected on the position of the dealer, or the buyer? i always presumed it was the position of the dealer,
yak651
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10/1/2015 5:56pm
scott_nz wrote:
better question, why does the US not include sales tax on there prices like the rest of the world does,
yak651 wrote:
I would rather see out the door prices advertised including tax. I guessing because every state has a different tax rate? Sometimes even a different county...
I would rather see out the door prices advertised including tax. I guessing because every state has a different tax rate? Sometimes even a different county in the same state will have a different tax rate.
scott_nz wrote:
ok, are taxes collected on the position of the dealer, or the buyer? i always presumed it was the position of the dealer,
Depends...If you live in the state the dealer is located you pay at the dealer. If you live out of state you are supposed to claim in on you state income taxes when you do them for the year.
Charper732
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10/1/2015 5:56pm
It's called negotiations. It's not like its a 2016. You are looking at a bike that dealer is now paying interest on. They need to move that bike. Go in there with you game face on and beat them up on the price. Go straight to the sales manager if you can. They need that bike gone to make way for the '16s that are coming/already have. FYI: setup takes the tech betwen .5-.45 on a dirtbike. Multiply that to their shop labor rate and give that your reasoning for not paying their $400 or whatever they are charging for setup....not to mention majority of setup techs make $10/hr...
mingham97
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10/1/2015 6:59pm
Here is Aus, the advertised price is what it costs to take the bike home. No more to pay. But there's only $200aud profit from new mxers anyway.
stackman17
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10/1/2015 7:09pm
Earlier this year I went to buy a 2015 CRF110 pit bike. MSRP $2,000. I do the paperwork and they tell monthly payments ( I know, why finance small amount? Building my credit back up), I do the math in my head and it doesn't add up. I ask to see itemized bill of sale. Without asking or offering, they added a $750 maintenance plan. I asked if it was required by finance company and they say no. Really? I said nope don't need it. They redo paperwork, come back with $500 plan, nope don't need.....$250 plan. I finally get up to walk out with my son (his pit bike) in tow and they finally say ok on no plan. I had purchased bikes at this shop previous under original owner, no problems. New ownership really left a bad taste in my mouth. I will not be making any further purchases from the shop.
slipdog
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10/1/2015 7:16pm
stackman17 wrote:
Earlier this year I went to buy a 2015 CRF110 pit bike. MSRP $2,000. I do the paperwork and they tell monthly payments ( I know...
Earlier this year I went to buy a 2015 CRF110 pit bike. MSRP $2,000. I do the paperwork and they tell monthly payments ( I know, why finance small amount? Building my credit back up), I do the math in my head and it doesn't add up. I ask to see itemized bill of sale. Without asking or offering, they added a $750 maintenance plan. I asked if it was required by finance company and they say no. Really? I said nope don't need it. They redo paperwork, come back with $500 plan, nope don't need.....$250 plan. I finally get up to walk out with my son (his pit bike) in tow and they finally say ok on no plan. I had purchased bikes at this shop previous under original owner, no problems. New ownership really left a bad taste in my mouth. I will not be making any further purchases from the shop.
Caught a car dealership trying to pull something similar after we negotiated the final price. I just gave them the "you're #1" sign and walked out as the salesman and manager chased me to my car begging to give them another chance.
Roscoe33
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10/1/2015 7:51pm
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change"

This was on the bottom of the 1 st page, why don't people READ.
bsharkey
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10/1/2015 7:58pm Edited Date/Time 10/1/2015 8:02pm
yak651 wrote:
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds...
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds good, so email them to see if there are any other fees. No response...ok give them a call. You still have the YZ250f on your site? Let me check, come back, yes the blue one for $5999. Ok, can you do $6250 out the door (we have 5% tax)? No, bike is $6,899 before tax. What, you just told me it was 5999? Well that doesn't include freight and set up. No thanks...Why not just advertise the real price?

http://www.fuelpowersports.com/default.asp?page=xNewInventoryDetail&id=…
funny washington dealers are pretty pathetic too but lucky for us theres 2 awesome dealerships in Oregon 4 hrs away that are no bs places to buy bikes. they also actually stock parts and gear too. and guess what tons of people come to buy. the place I got my bikes from sold 329 bikes in october. that's just insane.ive never paid setup or freight ever there. with the current exchange rate at 1.34 % right now Canada is a good option again too
mingham97
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10/1/2015 7:59pm
Roscoe33 wrote:
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change" This was on the bottom of the 1 st page, why don't...
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change"

This was on the bottom of the 1 st page, why don't people READ.
How much is this muffin? 50c, not including baking and icing preparation. You provide a price, you provide complete service. Why is there even a fine print. Give the price upfront. How hard is that
Outsider
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10/1/2015 8:05pm
stackman17 wrote:
Earlier this year I went to buy a 2015 CRF110 pit bike. MSRP $2,000. I do the paperwork and they tell monthly payments ( I know...
Earlier this year I went to buy a 2015 CRF110 pit bike. MSRP $2,000. I do the paperwork and they tell monthly payments ( I know, why finance small amount? Building my credit back up), I do the math in my head and it doesn't add up. I ask to see itemized bill of sale. Without asking or offering, they added a $750 maintenance plan. I asked if it was required by finance company and they say no. Really? I said nope don't need it. They redo paperwork, come back with $500 plan, nope don't need.....$250 plan. I finally get up to walk out with my son (his pit bike) in tow and they finally say ok on no plan. I had purchased bikes at this shop previous under original owner, no problems. New ownership really left a bad taste in my mouth. I will not be making any further purchases from the shop.
slipdog wrote:
Caught a car dealership trying to pull something similar after we negotiated the final price. I just gave them the "you're #1" sign and walked out...
Caught a car dealership trying to pull something similar after we negotiated the final price. I just gave them the "you're #1" sign and walked out as the salesman and manager chased me to my car begging to give them another chance.
Years ago me and my ex went into the Ford dealership to get a truck.. we started asking prices and of course we get the salesman's repeated returns with papers marked up in black sharpie about payments and years and no prices. Well, my ex had a badass financial calculator and using his "numbers' came up with something like 5 grand OVER MSRP!

We stuck it out though and 4 hours (and two IV's) later we rolled out the F150 for $500 under invoice... we thought that was smoking but reallly not even that was great at the time... fricken crooks..lol
kkawboy14
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10/1/2015 8:17pm
Dumbest thing in the world that they do!

I'm selling hamburgers for .50 cents but they are $5.00.......what I thought they were .50 cents? Well we have to cook it and assemble it and then get to your table! SEEEYa
lostboy819
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10/1/2015 9:37pm
bob567 wrote:
I pray for the day I can order a new bike shipped to my door from Amazon. The internet has kicked the local dealers ass in...
I pray for the day I can order a new bike shipped to my door from Amazon. The internet has kicked the local dealers ass in parts availability, response time, and price for the past 10 years. Been in 1 dealer in the last 10 years and left wanting to kill myself.
You should have followed up on your gut feeling.Pinch
JG463
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10/1/2015 9:49pm Edited Date/Time 10/1/2015 9:50pm
yak651 wrote:
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds...
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds good, so email them to see if there are any other fees. No response...ok give them a call. You still have the YZ250f on your site? Let me check, come back, yes the blue one for $5999. Ok, can you do $6250 out the door (we have 5% tax)? No, bike is $6,899 before tax. What, you just told me it was 5999? Well that doesn't include freight and set up. No thanks...Why not just advertise the real price?

http://www.fuelpowersports.com/default.asp?page=xNewInventoryDetail&id=…
I'm in Wisconsin. Shoot me an email Jon.garrett463@yahoo.com and I will get you hooked up with some Yamaha guys in the area (I live in New Berlin and have been working in the industry for 10+ years). One of the district reps for our area posts on here regularly. Hes a good guy as well.
IceMan446
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10/1/2015 9:51pm
Roscoe33 wrote:
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change" This was on the bottom of the 1 st page, why don't...
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change"

This was on the bottom of the 1 st page, why don't people READ.
Same thing I was going to post.

Not the dealerships fault the dude didn't read the entire ad.



10/1/2015 9:54pm
Some get real sneaky. They advertise the price, and keep it up on the site for a real long time. You call them. "Hey you guys got that bike for $xxxx ? Yea we got that bike, come on in, talk to Josh in sales when you get here."

You get there.

Oh Josh isn't here right now. I'm Ted, and "Oh we just sold that other bike!" But we have....this....bike. "It's only slightly MORE." (by like a grand)

Ye olde, bait and switch.
Indy mxer
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10/2/2015 4:31am
Good for you and well said.
My family owns a Suz/Kaw/Polaris dealership here in Southern Indiana. Started selling Suzuki in 1974. My Dad started it and my brother runs it now.
They do things old school. All advertised pricing is out the door, plus tax and a $15 doc fee. They do sell extended warranties but it's all done when you're finalizing the deal. No hidden fees.

There are still some good dealers out there, as some have said. Try and find them and give them your business. Most of them are honest hard working people. It's not an easy business to be in.

It's easy to say " I can buy everything on line" until you need your dealers help or advice.

I understand sometimes you need something fast. But I've found that they can get close to internet prices on most things. Which is good enough for me.

Btw, I don't buy at his cost (my choice) even though my son runs the parts dept and they would do that for me. They need to make money too.
526
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10/2/2015 4:50am
yak651 wrote:
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds...
So currently bikeless and looking to get a yz250f. Looking around different websites of dealers within driving range, find dealer advertising one for $5999. That sounds good, so email them to see if there are any other fees. No response...ok give them a call. You still have the YZ250f on your site? Let me check, come back, yes the blue one for $5999. Ok, can you do $6250 out the door (we have 5% tax)? No, bike is $6,899 before tax. What, you just told me it was 5999? Well that doesn't include freight and set up. No thanks...Why not just advertise the real price?

http://www.fuelpowersports.com/default.asp?page=xNewInventoryDetail&id=…
They have to pay for that New Big Building they just put up, they also own Cedar Creek and Action powersports so same BS Business tactics at those dealers as well STAY AWAY FROM THAT WHOLE GROUP. I had a buddy who bought a "leftover" RMZ 450 and the forks fell apart after 6 months, Pro Action let him know the forks were revalved and not reassembled correctly. Dealer said.... To Bad.

Yamaha Of Port as I am sure you already know is a stand up dealer. Southeast Sales for a KTM, Honda Or KX
yak651
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10/2/2015 5:24am
Roscoe33 wrote:
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change" This was on the bottom of the 1 st page, why don't...
"Prices exclude dealer setup, taxes, title, freight and licensing and are subject to change"

This was on the bottom of the 1 st page, why don't people READ.
IceMan446 wrote:
Same thing I was going to post.

Not the dealerships fault the dude didn't read the entire ad.



Let's see no licensing, no title on off road bikes in WI. I did email them asking for any additional fees, no response. Surprised they didn't tell me that I need to come down to talk to them, can't tell me over the phone what the fees will be. Just be upfront, if you're ashamed of your prices that don't post them at all.
Markopolo400
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10/2/2015 5:52am
I called the dealer I bought my KTM from and asked for a price. MSRP on bike was 7299, he said come in pay 6799 + tax...

I showed up, paid exactly what he had told me on the phone, and I left happy as a clam.

I will gladly pay a couple bucks more and deal with a straight forward dealer than any shady one.
resetjet
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10/2/2015 5:58am
You are going about it the wrong way. You know what you want. Go in person and make an offer, if its not what you want go to next dealer. Somebody needs to sell a bike today. Same with cars. If u have to so over the phone, call and explain that you are buying this bike today from somebody, what is their best offer. Go in person if you can. What the price tag says is somewhat irrelevant.
ToolMaker
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10/2/2015 6:01am
scott_nz wrote:
ok, are taxes collected on the position of the dealer, or the buyer? i always presumed it was the position of the dealer,
The answer to your question is yes. And if you don't know which rate to charge you get in trouble for over charging customer or take money out of profits for under charging.
TM
10/2/2015 6:12am
I called the dealer I bought my KTM from and asked for a price. MSRP on bike was 7299, he said come in pay 6799 +...
I called the dealer I bought my KTM from and asked for a price. MSRP on bike was 7299, he said come in pay 6799 + tax...

I showed up, paid exactly what he had told me on the phone, and I left happy as a clam.

I will gladly pay a couple bucks more and deal with a straight forward dealer than any shady one.
Had a similar experience when I bought my leftover yz250 in march. Called and asked for the OTD price and he gave it to me. Was cheaper then other dealers listed price and I felt it was very fair. Went to the bank, widthdrew that exact amount and went and got my bike! In hindsight maybe I should have tried to haggle them down a few bucks but the price was fair and they were straight up with me no BS! Highly recommend Tri County Honda Yamaha in Petersburg, WV!

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