brand new pw50 dealer fees.

peltier626
Posts
1401
Joined
3/15/2018
Location
LA US
1/26/2019 6:53am
Buy new, I paid $1800 out the door for a 2018 model. My sons gonna ride it for 3 years then I'll sell it for 1k, so basically i paid $800 for a brand new one.
4
Spooner
Posts
1927
Joined
1/8/2011
Location
Kansas City, MO US
1/26/2019 6:53am
BobPA wrote:
Yes, we are a small outfit and I help with every aspect of the business.
Are you coming to Louisville?
peltier626
Posts
1401
Joined
3/15/2018
Location
LA US
1/26/2019 6:56am
Moto331 wrote:
Why would anybody buy a brand new PW 50… Buy one on CL, they go forever
4csHATER wrote:
because if your son/daughter is fast these pw's get ragged fast. We have purchased 3 in our lifetime, and we have more children gonna be boarding...
because if your son/daughter is fast these pw's get ragged fast. We have purchased 3 in our lifetime, and we have more children gonna be boarding them soon enough.
Awesome! How old is the lil one?
1
4csHATER
Posts
551
Joined
4/11/2017
Location
The sticks, KY US
1/26/2019 7:02am
peltier626 wrote:
Awesome! How old is the lil one?
he is on sr 50s full time now he was 4 in the picture
1

The Shop

Indy mxer
Posts
1633
Joined
6/15/2010
Location
Linton, IN US
1/26/2019 7:48am
SPYGUY wrote:
Invoice price isn't a real number anymore. It's just a marketing tool to make the weak minded feel like they're getting a price so good that...
Invoice price isn't a real number anymore. It's just a marketing tool to make the weak minded feel like they're getting a price so good that there's no room to negotiate.

No business owner is going to fork out thousands upon thousands of dollars for something with such a small return on investment. You can believe that or choose to keep your head buried in the sand, but it's just the way the world works.

Strangely enough, I feel like sometimes the salesmen selling these things are the most oblivious of them all.
BobPA wrote:
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the...
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the sale of a unit. If you make $200 on a kids ATV or motorcycle, when it is all said and done, you are prouder than a peacock. Margins are non existent on a $1500 unit.

And yes, dealers are charged freight...It is most definitely not a BS sales tactic. Most just eat it to help move a unit before it starts costing you $ in interest.
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
2
SPYGUY
Posts
2019
Joined
8/15/2006
Location
US
Fantasy
725th
1/26/2019 8:34am
SPYGUY wrote:
Invoice price isn't a real number anymore. It's just a marketing tool to make the weak minded feel like they're getting a price so good that...
Invoice price isn't a real number anymore. It's just a marketing tool to make the weak minded feel like they're getting a price so good that there's no room to negotiate.

No business owner is going to fork out thousands upon thousands of dollars for something with such a small return on investment. You can believe that or choose to keep your head buried in the sand, but it's just the way the world works.

Strangely enough, I feel like sometimes the salesmen selling these things are the most oblivious of them all.
BobPA wrote:
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the...
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the sale of a unit. If you make $200 on a kids ATV or motorcycle, when it is all said and done, you are prouder than a peacock. Margins are non existent on a $1500 unit.

And yes, dealers are charged freight...It is most definitely not a BS sales tactic. Most just eat it to help move a unit before it starts costing you $ in interest.
Indy mxer wrote:
Well put. Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so...
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins Laughing Why don’t they just put their millions in a bond fund and live on the beach?

Last week I bought a new vehicle and I’ll be damned if they also failed to make a dime on that $44k sale, according to the salesman.

All of these dealers play the same game these days.

I realize that we’ll have to agree to disagree because you and others lack the common sense to see that no one is going to have a million dollars in overhead (multi-million in some cases) and then sell things at or near cost.
4
yak651
Posts
6683
Joined
8/26/2006
Location
Appleton, WI US
Fantasy
214th
1/26/2019 8:45am
BobPA wrote:
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the...
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the sale of a unit. If you make $200 on a kids ATV or motorcycle, when it is all said and done, you are prouder than a peacock. Margins are non existent on a $1500 unit.

And yes, dealers are charged freight...It is most definitely not a BS sales tactic. Most just eat it to help move a unit before it starts costing you $ in interest.
Indy mxer wrote:
Well put. Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so...
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
SPYGUY wrote:
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins :laugh: Why...
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins Laughing Why don’t they just put their millions in a bond fund and live on the beach?

Last week I bought a new vehicle and I’ll be damned if they also failed to make a dime on that $44k sale, according to the salesman.

All of these dealers play the same game these days.

I realize that we’ll have to agree to disagree because you and others lack the common sense to see that no one is going to have a million dollars in overhead (multi-million in some cases) and then sell things at or near cost.
I like how the OEMs make bank on the SxS, quads, and street bikes but make nothing on dirt bikes. They must love dirt bike riders to give those bikes away with .5% margins!
1
1
1/26/2019 8:50am Edited Date/Time 1/26/2019 8:51am
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable...
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable on, let your kids ride it for 10 years and then sell for $600.
SIMX2 wrote:
Sad thing is now all the CL pdubs are $600-$800, for 15-18 yr old bikes!!WoohooWoohoo
But they’re the same bikes. good frame ? Great. Same parts.......basic mechanical aptitude will transform those things
1/26/2019 8:52am Edited Date/Time 1/26/2019 8:53am
RMT wrote:
Motocross is dying and these kind of threads just illustrate that the end is near. When people will pay hundreds of dollars for internet and phones...
Motocross is dying and these kind of threads just illustrate that the end is near.

When people will pay hundreds of dollars for internet and phones a month and then drive 5 hours one way to save $500 is very telling.

I could get into the socioeconomic angles of how crazy that is but it looks like it would go unoticed. The more important thing to know is if that dealer that charged me $200 for shipping got credit for that from the OEM!

And yes, Yamaha is making trillions on selling the PW. We know this because all the cost in making and selling a motorcycle is in the changes made year to year. The increased cost of labor, materials and then shipping it from one side of the world to your town has nothing to do with it. Tell ya what, price out what it would cost to ship a crate of PW50’s from CA to FL and get back to us so we can work the numbers backwards to calculate the dough big Y is brining in on that model. Lol
You say the end is near for motocross yet Yamaha makes trillions on the pw50. Strange.


Buy a new bike, support your local dealer and help keep moto thriving. There are many reasons why motocross is slowly declining, and one of them is the cheap ass consumer who refuses to support their local dealer.
1
Monk
Posts
866
Joined
1/11/2017
Location
CA
1/26/2019 8:53am
Spooner wrote:
There really is zero profit on them.
Yes, for the dealer... But I often wonder if it nots Yamahas most profitable motorcycle every. Built in 1980, outside of a few color color changes it hasn't changed at all. Nearly 40yrs later and they still seem to be able to sell them.
GasGasOrAss
Posts
153
Joined
1/24/2019
Location
Clark Fork, ID US
1/26/2019 9:11am
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable...
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable on, let your kids ride it for 10 years and then sell for $600.
SIMX2 wrote:
Sad thing is now all the CL pdubs are $600-$800, for 15-18 yr old bikes!!WoohooWoohoo
But they’re the same bikes. good frame ? Great. Same parts.......basic mechanical aptitude will transform those things
But by the time you spend the money to transform that 20 year old bike, you’re in it almost as much as a brand new one. Then when your kids outgrow it you’ll be trying to sell an even older bike on CL. If you can afford it, it makes sense to buy one brand new, not worry about anything mechanical, keep it clean, and when you go to sell it people will see a pw50 that’s only a few years old and it will sell for a premium. I think you’d be money ahead by buying one new.
1
BobPA
Posts
8027
Joined
10/31/2013
Location
PA US
1/26/2019 9:41am
Spooner wrote:
Are you coming to Louisville?
I do not think we will make it this year. But, if anything changes I will let you know.
GIwasB4
Posts
2585
Joined
7/24/2008
Location
Beverly Hills, CA US
1/26/2019 9:48am
You say the end is near for motocross yet Yamaha makes trillions on the pw50. Strange. Buy a new bike, support your local dealer and help...
You say the end is near for motocross yet Yamaha makes trillions on the pw50. Strange.


Buy a new bike, support your local dealer and help keep moto thriving. There are many reasons why motocross is slowly declining, and one of them is the cheap ass consumer who refuses to support their local dealer.
I believe you missed his sarcasm
1
rmgsxr
Posts
511
Joined
4/1/2008
Location
Oak Grove, MO US
1/26/2019 10:05am
All of you that work at dealers but haven’t commented on my question... dealers get rebates from the manufacturer for those fees that they charge the...
All of you that work at dealers but haven’t commented on my question... dealers get rebates from the manufacturer for those fees that they charge the customers, no? So The dealer is basically bullshitting the customer into paying extra money? This is ok by your standards but it is not ok for someone to not want to pay these fees?
A salesman’s job is literally to lie and con people into paying as much money as possible, more than they realistically should, but it’s unaccaptable for the customer to not want to be scammed?

As for customer loyalty, maybe you would have more loyal customers by being straightforward with them. People can buy anything online cheaper than they can in a shop. Anything. I go into my local shop for everything because they didn’t BS me with fees when I buy bikes.

Back on topic, it seems like most people are paying some fees on a pw50 because the profit margin is smaller, which is what I came to ask. Thanks.
That is not correct. The consumers can normally find out pretty easy if there is a "Rebate" on certain models. I think what you are looking for is if the dealer gets "hold back" or a "registration credit". Most bikes have a 3% or so "holdback or registration credit" that the dealer receives later down the road once he registers the sale of the motorcycle to the manufacture. Figure what 3% of $1500 is. It's not much.

Years ago a PW50 could be sold at the manufactures suggested retail price. The dealer can't do that now. What changed? The destination/shipping cost that the dealer pays the manufacture. Not so many years ago the dealer paid Yamaha $25-40 bucks per PW. Now it is probably $150 per. $150 is 10% of your profit gone. They manufacture just expects the dealer to pass that fee to the customer. It is very common for the retail price of a dirt bike to not go up from year to year but the manufactures keep raising the freight cost(even though fuel prices went down) so the cost to the dealer went up and the margin went down. Car dealers used to have a separate window sticker for destination. They don't anymore, car manufactures now show you the destination cost on the manufacture window sticker. If you want to know what the true cost of shipping is you can find it on the manufactures website for each bike.

I know of bikes out there, believe it or not, that if the dealer sells it for the manufactures suggested retail price he will lose money until he receives his registration credit/holdback money on his parts bill. Most of those bikes that way are the small stuff.

3
rmgsxr
Posts
511
Joined
4/1/2008
Location
Oak Grove, MO US
1/26/2019 10:34am
All of you that work at dealers but haven’t commented on my question... dealers get rebates from the manufacturer for those fees that they charge the...
All of you that work at dealers but haven’t commented on my question... dealers get rebates from the manufacturer for those fees that they charge the customers, no? So The dealer is basically bullshitting the customer into paying extra money? This is ok by your standards but it is not ok for someone to not want to pay these fees?
A salesman’s job is literally to lie and con people into paying as much money as possible, more than they realistically should, but it’s unaccaptable for the customer to not want to be scammed?

As for customer loyalty, maybe you would have more loyal customers by being straightforward with them. People can buy anything online cheaper than they can in a shop. Anything. I go into my local shop for everything because they didn’t BS me with fees when I buy bikes.

Back on topic, it seems like most people are paying some fees on a pw50 because the profit margin is smaller, which is what I came to ask. Thanks.
rmgsxr wrote:
That is not correct. The consumers can normally find out pretty easy if there is a "Rebate" on certain models. I think what you are looking...
That is not correct. The consumers can normally find out pretty easy if there is a "Rebate" on certain models. I think what you are looking for is if the dealer gets "hold back" or a "registration credit". Most bikes have a 3% or so "holdback or registration credit" that the dealer receives later down the road once he registers the sale of the motorcycle to the manufacture. Figure what 3% of $1500 is. It's not much.

Years ago a PW50 could be sold at the manufactures suggested retail price. The dealer can't do that now. What changed? The destination/shipping cost that the dealer pays the manufacture. Not so many years ago the dealer paid Yamaha $25-40 bucks per PW. Now it is probably $150 per. $150 is 10% of your profit gone. They manufacture just expects the dealer to pass that fee to the customer. It is very common for the retail price of a dirt bike to not go up from year to year but the manufactures keep raising the freight cost(even though fuel prices went down) so the cost to the dealer went up and the margin went down. Car dealers used to have a separate window sticker for destination. They don't anymore, car manufactures now show you the destination cost on the manufacture window sticker. If you want to know what the true cost of shipping is you can find it on the manufactures website for each bike.

I know of bikes out there, believe it or not, that if the dealer sells it for the manufactures suggested retail price he will lose money until he receives his registration credit/holdback money on his parts bill. Most of those bikes that way are the small stuff.

And I did just look at Yamaha's website, it has an "offers" tab that tells you exactly what finance rates are available and what customer cash rebate is available that the dealer would get.
Indy mxer
Posts
1633
Joined
6/15/2010
Location
Linton, IN US
1/26/2019 10:37am Edited Date/Time 1/26/2019 10:45am
BobPA wrote:
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the...
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the sale of a unit. If you make $200 on a kids ATV or motorcycle, when it is all said and done, you are prouder than a peacock. Margins are non existent on a $1500 unit.

And yes, dealers are charged freight...It is most definitely not a BS sales tactic. Most just eat it to help move a unit before it starts costing you $ in interest.
Indy mxer wrote:
Well put. Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so...
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
SPYGUY wrote:
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins :laugh: Why...
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins Laughing Why don’t they just put their millions in a bond fund and live on the beach?

Last week I bought a new vehicle and I’ll be damned if they also failed to make a dime on that $44k sale, according to the salesman.

All of these dealers play the same game these days.

I realize that we’ll have to agree to disagree because you and others lack the common sense to see that no one is going to have a million dollars in overhead (multi-million in some cases) and then sell things at or near cost.
Read my last sentence that sums it all up. My family has owned a successful dealership since starting it in 1974.
So I see the numbers.
Btw, your guy is making more than $100 on that SxS.
Although the real money on SxS's is in service, parts and accessories

Plus, I would say the majority of mx riders don't spend much for parts and gear at the dealership. But I know some do.

If you would ask any dealer, what is your least profitable type of units? Almost all would say mx bikes, small dirt bikes or small quads.
2
rmgsxr
Posts
511
Joined
4/1/2008
Location
Oak Grove, MO US
1/26/2019 10:48am Edited Date/Time 1/26/2019 10:52am
Indy mxer wrote:
Read my last sentence that sums it all up. My family has owned a successful dealership since starting it in 1974. So I see the numbers...
Read my last sentence that sums it all up. My family has owned a successful dealership since starting it in 1974.
So I see the numbers.
Btw, your guy is making more than $100 on that SxS.
Although the real money on SxS's is in service, parts and accessories

Plus, I would say the majority of mx riders don't spend much for parts and gear at the dealership. But I know some do.

If you would ask any dealer, what is your least profitable type of units? Almost all would say mx bikes, small dirt bikes or small quads.
There are some Honda SXS's being sold super cheap right now with the hope of money being made on F&I and accessories. I don't think Honda expects you to make money on the unit, they expect the money to be made on the backend. Just like the Auto industry on new vehicle sales makes more money on the finance and warranties than they do the car and they do that hoping to get a trade in because that is where they make the real money.


Go look at the new sport SXS from Honda. $940 in freight. That is a big chunk out of the margin.
Racerx930
Posts
767
Joined
4/1/2008
Location
Stillwater, OK US
1/26/2019 12:24pm
If I sell a new CRF50 for retail out the door without shipping I'm at $22 over invoice. Not $220 ............ $22
1
Racerx930
Posts
767
Joined
4/1/2008
Location
Stillwater, OK US
1/26/2019 12:27pm
Indy mxer wrote:
Well put. Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so...
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
SPYGUY wrote:
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins :laugh: Why...
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins Laughing Why don’t they just put their millions in a bond fund and live on the beach?

Last week I bought a new vehicle and I’ll be damned if they also failed to make a dime on that $44k sale, according to the salesman.

All of these dealers play the same game these days.

I realize that we’ll have to agree to disagree because you and others lack the common sense to see that no one is going to have a million dollars in overhead (multi-million in some cases) and then sell things at or near cost.
Indy mxer wrote:
Read my last sentence that sums it all up. My family has owned a successful dealership since starting it in 1974. So I see the numbers...
Read my last sentence that sums it all up. My family has owned a successful dealership since starting it in 1974.
So I see the numbers.
Btw, your guy is making more than $100 on that SxS.
Although the real money on SxS's is in service, parts and accessories

Plus, I would say the majority of mx riders don't spend much for parts and gear at the dealership. But I know some do.

If you would ask any dealer, what is your least profitable type of units? Almost all would say mx bikes, small dirt bikes or small quads.
I have Pioneers $100 over NET NET. I'm not talking over invoice, I'm talking after Holdback and everything. Hope they finance, buy a roof, windshield, etc.
AngryBear
Posts
765
Joined
4/1/2008
Location
Asheville, NC US
1/26/2019 1:23pm
Moto331 wrote:
Why would anybody buy a brand new PW 50… Buy one on CL, they go forever
4csHATER wrote:
because if your son/daughter is fast these pw's get ragged fast. We have purchased 3 in our lifetime, and we have more children gonna be boarding...
because if your son/daughter is fast these pw's get ragged fast. We have purchased 3 in our lifetime, and we have more children gonna be boarding them soon enough.
on PW #2 for us. training wheels yard riding unit vs one thats been track ridden is a whole different story on longevity


three9zero
Posts
1437
Joined
9/26/2010
Location
Kamloops B.C CA
1/26/2019 2:21pm
BobPA wrote:
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the...
Wildy inaccurate. I also work for a dealer and see the “behind the scenes” numbers. You guys would be surprised how little is made on the sale of a unit. If you make $200 on a kids ATV or motorcycle, when it is all said and done, you are prouder than a peacock. Margins are non existent on a $1500 unit.

And yes, dealers are charged freight...It is most definitely not a BS sales tactic. Most just eat it to help move a unit before it starts costing you $ in interest.
Indy mxer wrote:
Well put. Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so...
Well put.
Too many on here just read what they want to read and don't know shit about the business. If owning a dealership was so profitable there would be more new ones opening than closing. And that's definitely not the case.

As I said in and earlier post, dealers don't make much at all on mx bikes (small ones are even worse).
My brother is a longtime multi line dealer. He's into mx so he sells the bikes. But he will also tell you he could get rid of them tomorrow and not feel a thing. Btw, his prices are plus tax otd. No freight or set up fee's. And most riders buy their parts and gear online, so they don't make any money there either.

SxS's, quads, street bikes, parts and service is where they make their money. Fact!
SPYGUY wrote:
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins :laugh: Why...
Oddly enough, I was told by the owner of my local dealership that they only make $100 on a $20k Honda SxS. .5% margins Laughing Why don’t they just put their millions in a bond fund and live on the beach?

Last week I bought a new vehicle and I’ll be damned if they also failed to make a dime on that $44k sale, according to the salesman.

All of these dealers play the same game these days.

I realize that we’ll have to agree to disagree because you and others lack the common sense to see that no one is going to have a million dollars in overhead (multi-million in some cases) and then sell things at or near cost.
As a Honda dealer your guy is lying about the profit on a side by side.......my gross profit on the 2019 1000cc 5 seater I sold yesterday was $ 2773. No accessories on it which is a bummer.
ramey23
Posts
27
Joined
6/15/2016
Location
Franklin Furnace, OH US
1/26/2019 3:52pm
ricko wrote:
I am pretty good friends with my dealer and he said same thing he makes basically nothing on PW50. Used ones are far over priced so...
I am pretty good friends with my dealer and he said same thing he makes basically nothing on PW50. Used ones are far over priced so I bought new. I like one persons point in this thread, you don't go to Walmart and ask them to wheel and deal at the register and they are a billion dollar company but you go shopping at mom and pop shops and expect the small guy who donates to the local community, gives your friends jobs, etc etc to practically give you shit for nothing. I run an auto parts business and its the same here, everyone wants to pay nothing to the small people but has no problem going to Walmart and racking up $400 and doesn't even ask to adjust the price. Its tough being in business anymore.

I was looking at getting a new KLX110L recently, dealer gave me a price and said I'll make about $200 on this, that's all. They hope to sell you accessories and make some money on that end which I didn't argue on price or expect a deal of a lifetime.
That’s a horrible comparison. Walmart items are a set price, non negotiable, and they don’t tack on extra fees at the register. Walmart A charges a...
That’s a horrible comparison. Walmart items are a set price, non negotiable, and they don’t tack on extra fees at the register. Walmart A charges a 100$ restocking fee at the register but Walmart B doesn’t... I think most people would tell Walmart A to get fucked and go to Walmart B.
With bikes every dealer charges a different OTD price, different fees, etc. so those numbers are obviously just added on by whatever the dealer feels necessary. Some of them charge a few hundred bucks for the kid in the back to mount a front wheel and some handle bars. Some charge MSRP (plus tax) out the door with no fees. So these guys that aren’t charging fees are literally losing money? Of course salesman are going to tell you they only make a couple hundred bucks on a bike sale. Sales tactics 101. There’s no way in hell any dealer would be open if they only made that much. They would have to sell a thousand bikes per year just to pay bills and keep the doors open.

And to the guy who said to buy a used one on CL. It makes no sense to do that. A 2002 just sold in my area for 1000$ within 2 days of being posted. So I buy a 17 year old bike which I immediately have to put money into bearings, cables, maybe a top end and that’s minimum just to get my kid riding. Then in 4 years I’m trying to sell a 21 year old bike. Or I can pay 1600 for a brand new one, keep it clean, and then I’ll be selling a 3 to 4 year old bike on Craigslist and will most likely get a large portion of my money back.
Buy that motherfucker brand new for $16hundie, ride it, polish that plastic and get that large portion of cash back on the resale. Bam you just answered your own question!
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1/27/2019 1:01am
MotoGUY wrote:
The Industry standard is that most powersports stores operate on 2-2.5% Profit after sales. For simple math a 10 million dollar a year dealer will net...
The Industry standard is that most powersports stores operate on 2-2.5% Profit after sales. For simple math a 10 million dollar a year dealer will net 250k on that 10 Million after paying all the bills, payroll, floor plan, sales tax, etc. There is way more that goes into running a store and yeah the fees help keep the doors open. A mechanics time is worth whatever that shop charges an hour for labor so there is a true cost that goes into putting these things together. Sales keeps the doors open and most dealerships profit comes from the service department.
Indy mxer wrote:
Yep this is so true. My family started in the business in 1974 with Suzuki, then added Kawi and Polaris later on. Bikes had decent margins...
Yep this is so true.
My family started in the business in 1974 with Suzuki, then added Kawi and Polaris later on. Bikes had decent margins back then, I know, I worked there until 1981. Over the years margins got worse as OEM's tried to to keep the msrp's down.

Now, in today's marketplace with internet prices, it's much harder to make anything on an mx bike. Couple that with the fact many mx riders buy gear and parts from online stores, and you can see how little they make on them.
My brother carries them because he has a few loyal customers that ride and race. Plus, he's always been into moto.

He would be the first to tell you, he could stop carrying mx bikes tomorrow and it would have zero affect on his bottom line. Now, do some dealers get carried away with fee's? Yes, for sure.

That said, all you guys that have never worked in a shop and think you know anything about making money in the motorcycle business are full of s**t.
Motorcycles are supposed to be inexpensive. I have a hard time believing that a 450 costs 2/3rds the price of something like a base Ford Fiesta. At this cost motorcycles have lost their value but... they are fun. The bicycle industry has the same problem.

Years ago, 2002, I bought a liter bike. It retailed for $12,000 but the manufacture had a $2,000 dealer to purchaser rebate and then a $2,000 manufacture to dealer rebate. I got lucky and they gave me both.

Today I wouldn’t buy a $12,000 motorcycle and an $8,000 one is a tough decision. There are obviously limited options.
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1/27/2019 7:04am
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable...
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable on, let your kids ride it for 10 years and then sell for $600.
SIMX2 wrote:
Sad thing is now all the CL pdubs are $600-$800, for 15-18 yr old bikes!!WoohooWoohoo
I dont know why you would ever buy a brand new PW50....they run forever, super cheap to maintain...fresh set of plastics is $50. Pay $600 and sell it for $600 later.....So for all of you that buy brand new PW50's...Thank You for your service.
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GasGasOrAss
Posts
153
Joined
1/24/2019
Location
Clark Fork, ID US
1/27/2019 8:13am
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable...
Oh, and in before someone comes along and tells you to buy one off CL for 100 bux; clean the carb, throw a new throttle cable on, let your kids ride it for 10 years and then sell for $600.
SIMX2 wrote:
Sad thing is now all the CL pdubs are $600-$800, for 15-18 yr old bikes!!WoohooWoohoo
I dont know why you would ever buy a brand new PW50....they run forever, super cheap to maintain...fresh set of plastics is $50. Pay $600 and...
I dont know why you would ever buy a brand new PW50....they run forever, super cheap to maintain...fresh set of plastics is $50. Pay $600 and sell it for $600 later.....So for all of you that buy brand new PW50's...Thank You for your service.
Strong reading comprehension skills.

If you don’t live paycheck to paycheck and can afford a new one outright, you will be money ahead when you go to sell it. A 600$ PW50 that isnt 30 years old and runs is impossible to find. At least in my area
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1
RPM68
Posts
1560
Joined
11/18/2006
Location
DFW, TX US
1/27/2019 8:19am
Anyone else realize an avg of 3% of new unit sales at a dealership is dirt bikes? That’s right!

66% are utvs and side by sides. The money is made with the rednecks with paychecks, agriculture, and hunting. Listen to the op, asking about a $200 freight and setup fee. I get his perspective, but even with charging that, paying a setup guy to build it, salesman, to sell it, and finance guy to sin the paperwork, profit isn’t what keeps the lights on.

This is:

I sold a $4799 roof, $1600 wheel and tire kit, $1250 windshield, $850 winch, and a few hundred in bumpers to one guy. Imagine a roof that cost half of a 250f does! As an employee, I don’t mind my own dealer making a couple hundred even on me, someone had to build it, someone had to put together pricing, and someone had to spend time doing my paperwork.
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mattyhamz2
Posts
10866
Joined
7/6/2015
Location
So Cal, CA US
Fantasy
767th
1/27/2019 8:20am
SIMX2 wrote:
Sad thing is now all the CL pdubs are $600-$800, for 15-18 yr old bikes!!WoohooWoohoo
I dont know why you would ever buy a brand new PW50....they run forever, super cheap to maintain...fresh set of plastics is $50. Pay $600 and...
I dont know why you would ever buy a brand new PW50....they run forever, super cheap to maintain...fresh set of plastics is $50. Pay $600 and sell it for $600 later.....So for all of you that buy brand new PW50's...Thank You for your service.
Strong reading comprehension skills. If you don’t live paycheck to paycheck and can afford a new one outright, you will be money ahead when you go...
Strong reading comprehension skills.

If you don’t live paycheck to paycheck and can afford a new one outright, you will be money ahead when you go to sell it. A 600$ PW50 that isnt 30 years old and runs is impossible to find. At least in my area
Same with my area. Couldn’t find any PW’s with a title and in good shape for under $1000 so I went and bought new. Now I have a brand new PW that isn’t absolutely destroyed and will last my son 3 years. Don’t plan on moving him to a Ktm or husky 50 either so he will either move to big sisters ttr50 or go to a kx65 depending on how tall he is and his riding ability.
1/27/2019 8:58am
Freight & setup is factored into the dealers cost already (invoice) what the dealer adds for “freight & prep” is 100% profit. there is pretty much no markup on a PW so dealers add extra charges to make $$$$. It’s like when I sold Dirt Bikes at “$100 over cost” Plus $199 freight & setup Dealer nets $299 on that deal.
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TheCRKid
Posts
208
Joined
7/8/2008
Location
Bensalem, PA US
1/27/2019 9:26am
Before you walk into the local dealer try to remember that the folks actually motorcyclists just like you.
They have no Ill will twards you, they are actually just trying to keep the lights on and the store open because they love motorcycling. These shops are some of the last bastion of family owned and operated businesses.
There are plenty of other purchases in life you can make a bargain on instead of beating a fellow biker down to nothing
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drifto614
Posts
47
Joined
9/7/2012
Location
Irvine, CA US
1/27/2019 10:52am
4csHATER wrote:
i say buy new, just because by the time you purchase a used one and do new throttle cables brakes tires clutch and top end and...
i say buy new, just because by the time you purchase a used one and do new throttle cables brakes tires clutch and top end and get the little cosmetic mods, you will have just as much in a new one,

the damn clutch is almost 500$, also they upgraded the forks and shocks in 2018, and the did a carb mod in 2018, and i thing if your smart enough you can buy a woodruff key that advances the timing
Bad advice... Unless his kid has a chance to win Loretta's which it sounds like they are just starting off, it's a total waste. You can get one for $600-800 in great condition. No point in modifying a pw50
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