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The Shop
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!
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.
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.
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.
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.
Go look at the new sport SXS from Honda. $940 in freight. That is a big chunk out of the margin.
Pit Row
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 $8,000 one is a tough decision. There are obviously limited options.
If you don’t live paycheck to paycheck and can afford a new one outright, you will be money ahead when you go to sell it. A 600$ PW50 that isnt 30 years old and runs is impossible to find. At least in my area
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.
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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