More Suzuki/Kawasaki Merger news

[XRpredator]

This press release is being circulated around Europe:

MOTORCYCLE CO-DEVELOPED BY SUZUKI AND KAWASAKI
18 February 2003: Suzuki Motor Corporation, Kawasaki Heavy Industries, Ltd. Tokyo
- Suzuki Motor Corporation and Kawasaki Heavy Industries, Ltd. announced that they would start distributing their co-developed motorcycle to the worldwide market in September 2003.

On August 29, 2001, Suzuki and Kawasaki announced an agreement on their business alliance. As a first step of this alliance, in February 2002, they started mutually supplying motorcycle and ATV OEM models in the Japanese domestic and overseas markets.

The first co-developed motorcycle is a motocross model with 250cc 4-stroke motor. It is jointly designed by both companies and will be produced at Kawasaki factory in Japan. Sales of this model will be done separately through each brand's own dealer network as
Suzuki and Kawasaki product respectively. Both companies will also utilize All Japan Motocross Championship starting this April as a final test around and research by letting their supporting racers
ride the prototype of this model.

By fully utilizing both parties' combined resources, Suzuki and Kawasaki made it possible to co-develop new product in a short period. This is another milestone accomplished by both companies through their business alliance next to on-going mutual OEM products supply.

Both companies are going to get the practical synergy out of this alliance by positively promoting furtherOEM supply, co-development of future products and commonizing parts and components.

 

[marcusgunby]

Sounds stupid to me-most mergers normally end up with one company dissappearing-im guessing the RMs will be no more.

 

[nephron]

My local dealer (lady) comes in, and we talk about this stuff all the time. Right now, there's a lot of bickering going on between ZOOK and KAWI dealers all over the nation, she says. Basically, if there's a model that's really popular and in demand, the primary producer (eg, Suzuki produces the JR50/KDX50) hogs all the bikes and won't give 'em to the other brand. At least that's what's going on around here. I had her order a KDX50 about 6 months ago--nada. I found 2 at a distant dealer, however, told her about it. She couldn't get any, called her regional manager, and chewed his ass. Still nada. So I bought one from the other dealer. :ugg:

At any rate, I agree with Marcus. I think there are too many egos, and the brand loyalty and competition are there--enough so that this kind of bickering will cause either a divorce or takeover by one side or the other.

"No KDX50 for me? Okay, no DRZ110 for you."
That's the story here. :think:

 

[nephron]

It's also notable that NOBODY makes money on these small bikes. No profit. Zero. In fact, when I bought my KDX50 from the other dealer, she chewed my ass for using a bank card, saying that "they charge us more"--she actually lost money in the transaction. Apparently, the companies charge the dealer an XS amount for the bikes, and then tell the dealers they cannot mark up the price.

Are there any dealers on board here that can confirm or dispute this? Why is this? So far, I've talked to 3 dealers, they all say the same. PW50, KDX/JR 50, etc.--no mark up. :ugg:

That blows. It's also why I never try to bring a bike dealer down on the price. I don't feel they make enough already, for whatever that's worth. Maybe I'm an idiot.... :uh:

 

[Smit-Dog]

Nephron - You'd be surprised at how little the mark-up % is on Jap bikes, and you're right, there is very little on the smaller bikes. A dealer really makes their money on parts and accessories.

And the credit card deal is right on the mark. A dealer gets haggled down to next to nothing on a deal trying to beat another deal from across town, and then the buyer pays with a credit card, effectively negating all profit, and in many cases the dealer loses money on the deal.

That's why some only allow x amount to be paid on CC. When I bought a mini van a few years ago, I wanted to put $6,000 down on CC for the air miles. Dealer only allowed $1,500. But when I bought my enclosed trailer, the dealer let me put the entire $3,000 on CC.

 

[los36]

I don't get it...do they lose profit when you pay with a card because you're not financing it through them? So, car/bike dealers must also hate it whey you finance through your bank or credit union, right?
If I'm far off, let me know...if not, then answer this:
What if you finance 100% of a 20K car because they wont let you use your CC, and then pay 50% in the first billing cycle (I'm talking about a good financing, not one of those "interest first" things). Won't they lose their "profit" anyway?

 

[los36]

Also, I have a bad feeling about this RMF/KXF 250...

 

[Camstyn]

Credit card companies skim the top of the businesses that accept the cards as method of payment, if I remember correctly, it's somewhere in the ten percent range.

 

[oldguy]

Los36 I believe that there is a service charge that the dealer has to pay the credit card company everytime you use your card. It is a % of the amount and could eat a small profit quickly.
Ever notice gas stations that have a cash price which is less then the credit price- that is the reason

 

[bclapham]

Originally posted by nephron
That blows. It's also why I never try to bring a bike dealer down on the price. I don't feel they make enough already, for whatever that's worth. Maybe I'm an idiot.... :uh:

Maybe you should move back to san diego nephron, CRF540, $8500 out the door :eek:

 

[XRpredator]

Dang, a CRF540 must be a rare one! No wonder it costs so much! :p

 

[bclapham]

they have to sell the crf540 around here just to give the locals a chance of keeping up with me!:)

 

[Smit-Dog]

The CC issue has nothing to do with financing. That's not to say that a dealer could not make up for a low profit deal on a bike if you choose to finance the purchase through their lending source. They'll then make it up through interest revenue.

CC companies charge a transaction fee to the dealer. It is based on a percentage of the sale. High volume CC sales generally result in a lower, more favorable percentage for the dealer. That is to say that if you as a dealer process $1,000,000 in CC transactions, you'll get a more favorable percentage than the guy down the street that only processes $100,000 in CC transactions.

Let's say that dealer cost on a bike is $4500. After much negotiation and haggling, the agreed selling price is $4600 (despite the fact that MSRP is $5600!). The dealer does this to get the business, and to beat the dealer across town. Buyer now tells dealer he wants to pay entire price by CC.

Dealer pays 1.75% in CC transaction fee, which takes $80 off the $100 profit, leaving $20. Pay for the kid to process your paperwork and wheel the bike out, and the dealer has just lost money. Without the CC fee, the dealer could have at least made a (very small) profit.

Keep in mind that these are all hypothetical numbers, but the concept is the same.

 

[los36]

the service charge is the anwswer I was after. that makes sense. Thanks Old Dude...I guess it's true, you DO get wiser with age

 

[nephron]

This was a bank card--granted it's labeled VISA--but still, a check card, debit card, whatever you call it....I didn't understand how that would cost her more than a check. Came out of a checking account...go figure.

 

[bclapham]

LOL, i bet that if you had turned up with dollar bills they might still have moaned, ooohhh, to much cash fopr security reasons. Its quite hard toi spend a $100 bill these days!

 

[marcusgunby]

Checks here cost about 10p to process-cards(debit/credit etc) are around 1.5% i think-dont know why its different but it is.

 

[bclapham]

marcus, when i got here, imagine how surprised i was on finding out i had to buy my own checkbooks! $15 for 100 checks!

 

[oldguy]

Originally posted by bclapham
Its quite hard toi spend a $100 bill these days!

Take my wife or son along they will find many ways to spend it and you won't have to worry about change :whiner:

 

[bclapham]

maybe they know my wife too!:)

 

[rickyd]

The whole CC deal is a rip off too the dealers, and stores in general IMO.. One way a dealer makes $$ is when you finance through them.. Say you finance for 9% on a bike, they may make a % or 2, thats why they don't care is you pay cash.. Either way (if you finance or pay cash, they get there money) so never bargain w/the "I'll pay cash" hey get there money either way and would rather you finance..
Rick

 

[limitless]

around here "I have cash" gets a a couple hundred knocked off the price....

 

[Ricky]

The credit card companies charge merchants a % of the sale price for processing credit card transactions. The % depends on the volume of sales the merchant does. Visa / Mastercard fees are usually 1.5 to 3.5%. I've seen American Express charge up to 5%. You can usuallly get a 2 to 3% discount right off the top if you offer cash but some dealers will actually charge you a 3% premium if you use a credit card.

Smit-dog maybe they don't mark bikes up in Michigan but they sure do in California, even the little bikes. I went to my nearest dealer (in a different city) and got a price quote on a TTR 90E. His best price was $2200. I asked what kind of discount he could do if I bought 2. He said "there is very little margin on these", but he would give them to me for $2150 each if I bought 2.
I went home and called an out of state dealer. They delivered them to my door step this morning $1450 each including delivery. After I pay sales tax of $105 and $21 registration that is $1576 each . 36% less than my local dealer "who makes all his money on parts and accessories", plus they shipped them half way across the US. Now tell me there isn't any margin on these things.

 

[Sawblade]

Originally posted by nephron
This was a bank card--granted it's labeled VISA--but still, a check card, debit card, whatever you call it....I didn't understand how that would cost her more than a check. Came out of a checking account...go figure.

Because it says Visa on the card. Visa still charges a fee to the merchant, but it is less then a credit card. A number of national retailers are currently engauged in a lawsuit with Visa and Mastercard about fee structures the cc companys charge merchants for excepting their cards.

 

[whitesands26]

Originally posted by nephron
It's also notable that NOBODY makes money on these small bikes. No profit. Zero. In fact, when I bought my KDX50 from the other dealer, she chewed my ass for using a bank card, saying that "they charge us more"--she actually lost money in the transaction. Apparently, the companies charge the dealer an XS amount for the bikes, and then tell the dealers they cannot mark up the price.

Are there any dealers on board here that can confirm or dispute this? Why is this? So far, I've talked to 3 dealers, they all say the same. PW50, KDX/JR 50, etc.--no mark up. :ugg:

That blows. It's also why I never try to bring a bike dealer down on the price. I don't feel they make enough already, for whatever that's worth. Maybe I'm an idiot.... :uh:

LOL......She didn't lose money in that transaction...It's funny how gullible some people are that go and buy motorcycles.....They love to tell poeple that stuff so you walk away all rosy feeling like you got a really good deal...Did she charge you a prep fee too ? LOL
I walk into a shop one time and the salesman is selling a KX125 to some poor guy and charging $300 for a "prep fee" stating they have to put the whole bike together and all that....BULLCRAP!!! LOL
When those bikes(mx bikes) come in the crate basically all they have to do is put on the front wheel, handlebars, triple clamps, and add transmission oil...Do you actually think those guys Torque everything to specs? Heck no!
The streetbikes and sportbikes come complete and thet STILL charge that bogus "setup" fee. All they really do is put on the mirrors and add oil and charge you $300 or more for it...Yes I've seen some outrageous set up fee prices...Some are less but I've seen some as high as $600.

It's a 15 minute job that anyone can do and they charge you $300 for it...

Dealers are usually notorius liars...Sometimes I'll go in a shop just for fun and act like I don't know anything about motorcycles....I'll act like I'm going to buy one and then theystart talking about that "prep" fee...I'll ask them what they do for prep and sometimes they'll say "I really don't know what they do"...Then I say, well you better find out so I know why I'm being charged $300...Then they go ask someone and then that guy feeds you a line of lies.....If they do answer the question outright it's the same old lie every time.."We have to put the whole bike together and check everything"...Whatever...

Listen....These dealers make money on the small bikes too..They make money on the parts.....They don't sell stuff lower than what they paid for it..Period...

I've got an RC51 and I bought a michelin sport teck rear tire for it from Parts internet warehouse...It was $132 total shipping included....
For fun I went to my local Honda shop and saw that VERY SAME tire for $250...They make money on your ignorance...plain and simple.