fizzle said:
Which should make it all the more appealing to a salesman to try to work a deal, right?
Here's more info than you probably need . . . ;)
Markup on new motorcycles is apparently minimal compared to cars.
In new cars in 2002-2003, Chrysler/Jeep/Dodge, frontside markup was approx $4000.00 on a $40,000.00 Diesel one ton dually and $800.00 on a $13,000.00 Neon.
It's quite difficult to work a profitable trade on a Neon if the person trading is "upside-down" on their trade - if they owe more than the trade-in value of the car - which is probably 75% of the people in this area. After all, you've only got $800 to work with.
On used cars, anything priced over $10,000.00 typically had $4,000 markup so they could show the person trading $2000 extra on their trade - and still make $2000 profit - that was the goal profit on a used sale for the dealer I worked for.
The salesmen were getting paid 25% of the gross on any deal, new or used. On any new car sale, the salesman would also get a check for $50-200 direct from Chrysler. It was the only thing that made selling new cars worth doing because the average gross on most new cars was not very high. I sold several new cars for $200 gross - I made $50+ the check from Chrysler.
A guy I worked with at the car dealer is now at the local Honda/Yamaha dealer. He told me he gets paid a flat $25 per new unit sold and gets a small check direct from the Corp. However, it's normal for him to sell 4-6 units per day - mostly ATV's.
The lack of markup on new motorcycles would probably make trading somewhat difficult since the trader would probably want more for the trade-in than the dealer was willing to give - and the dealer wouldn't have much markup to work with to "show" the person more for their trade.
Thus, the salesman is probably less likely to move on the trade because even though he is probably on a flat pay, he still needs to keep the average gross up on his deals to make the manager happy - or he might lose his job.
That's my theory, but I haven't worked at a motorcycle dealer, so I'm not sure. . .