whitesands26
Mod Ban
- Nov 17, 2002
- 220
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They DO make profit on the small bikes....
More Suzuki/Kawasaki Merger news
- Thread starter XRpredator
- Start date
- Jun 15, 2001
- 2,552
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lol, whitesands, in all your infinite wisdom you have proven me the most gullible of all. Because you have oh so much more experience than I in actually being a dealer, I bow to your inpenetrable, robust experience. I am not worthy. :worship:
It's funny how I never even considered that... :laugh:
Cards are usually in the 1-2% range.
You also need to keep in mind the INCREASE in sales due to cards. Many people who buy bikes don't have the cash on hand to buy anything so without using a card or financing they wouldn't be able to buy
You don't need to look any further than eBay to see a perfect example. Anybody who uses paypal gets hit 2% or so but I won't buy from somebody who doesn't take it. It takes WAY to long and is WAY to much of a hassle and expense to get a money order etc. No paypal, no sale.
When I sell items on eBay I always take paypal and I don't look at it as loosing profits I see it as higher selling price do to an increase in buyers.
As for the Kawi/Suzuki deal I don't like it as an RM owner. I don't think any good will come of this. Maybe my next bike will be a CRF450 instead of an RMF450.
.02$
You also need to keep in mind the INCREASE in sales due to cards. Many people who buy bikes don't have the cash on hand to buy anything so without using a card or financing they wouldn't be able to buy
You don't need to look any further than eBay to see a perfect example. Anybody who uses paypal gets hit 2% or so but I won't buy from somebody who doesn't take it. It takes WAY to long and is WAY to much of a hassle and expense to get a money order etc. No paypal, no sale.
When I sell items on eBay I always take paypal and I don't look at it as loosing profits I see it as higher selling price do to an increase in buyers.
As for the Kawi/Suzuki deal I don't like it as an RM owner. I don't think any good will come of this. Maybe my next bike will be a CRF450 instead of an RMF450.
.02$
- Oct 28, 2001
- 4,704
- 0
whitesands26 -
Small Bikes = Small Markup. I've seen actual dealer invoicing. Have you? It was a lot less than I would have thought.
Regarding "Delivery Fee" - In the invoicing that I've seen, this is a direct cost from the manufacturer, which in most cases is passed directly down to the buyer; no markups and no discounts. Now I'm sure that there are unscrupulous, a$$hole dealers (just like some customers ;) ) who will try to increase their profit margin by either marking this up or charging exorbitant prep fees.
They're in business to make money - we're here to get a good, fair deal. Unfortunately it sounds like you don't have any good dealers in your area. Too bad, because you sound pretty jaded.
Small Bikes = Small Markup. I've seen actual dealer invoicing. Have you? It was a lot less than I would have thought.
Regarding "Delivery Fee" - In the invoicing that I've seen, this is a direct cost from the manufacturer, which in most cases is passed directly down to the buyer; no markups and no discounts. Now I'm sure that there are unscrupulous, a$$hole dealers (just like some customers ;) ) who will try to increase their profit margin by either marking this up or charging exorbitant prep fees.
They're in business to make money - we're here to get a good, fair deal. Unfortunately it sounds like you don't have any good dealers in your area. Too bad, because you sound pretty jaded.
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I'm certainly glad that you guys know some good dealers...........I've NEVER had a dealer come off of MSRP on a new bike. I had to hagle the dealer to GIVE me MSRP on my CRF. MSRP was $6,200 and they were trying to sell it for $6,500. I've even had a dealer go as far as to quite sarcasticly tell me that if I found a better price at the other dealership that I should go THERE......... :eek: Imagine my response.... :flame:
In addition I'd have to say that I've yet to find a honest dealer until I moved to NC. I passed 2 dealerships to get to the shop I did all my buisness through when I lived in Va. If it hadn't been that I wanted new bikes I would've never dealt w/dealers. Again I'm not saying that all dealers are liars..........as again I feel I have now found some good ones....I just think whitesands has only run into the kind that I used to have to deal with.
my understanding was always that the dealer has a set price for the bike, but could charge whatever he wants for freight, set-up, service fee, and anything else they add on. and that these fee's were 100% profit.( how much set-up is there on a pw 50?) that is why when i went to inquire about a brand new pw 50, the salesman said out the door for $1800.($999 msrp for bike) anyways, correct me if i'm wrong, but that is where the dealer makes most of his money on bike sales.
- Oct 28, 2001
- 4,704
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Dealers can charge whatever they want. Basically what the market will bear. If all dealers in your area are selling XYZ-250 for $100 over cost, that's probably what you, as a dealer, will price the bike at. If you as a dealer have the only CRFX-450z within a 600 mile radius, you may be able to price it at $300 over MSRP, and sell every one you can get your hands on.
Assuming you were implying *net* profit (after taxes, fixed overhead, salaries, etc.), then no, they're not.
I'd say that you're not getting a good deal. If that's what this particular dealer is doing, then yes, that is where he is making most of his money. I can't believe that tacking on outrageous fees like that is the norm though. If he has found a way to get consumers to buy bikes this way, then shame on the consumer!
Like with everthing else you purchase, do your homework, and caveat emptor!
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I get to work for my local Handa shop in the summer doing his set up, and I can tell you I have seen both good and bad examples of what you guys are talking about, to start with (my experience is only with Honda) the little dirt bikes require more set up than a full size one. They come 2 to a carton and have more parts that need to be attached. The dealership I am associated with does check torque on key points, (pinch bolts, axles, barclamps etc.) then drains fluids and refills them with good quality oil, and on the dirt bikes they re-jet them ( we are at about 6000 ft.) I have only seen one street bike that came pretty much fulla assembled and that is the Gold wing. Terry ( the dealer) charges a standard fee (1OO) for every model beacause he would rather sleep at night than charge more. We have other dealers in town that charge up to 500 for the set up and do less work. My brother in law lives in Denver and there it is not uncommon for the dealer to advertise a below retail price, charge you a 500 to 1000 set up fee, and then charge you to re-jet the bike. It boils down to the ethics of the dealer I guess, but there is some set-up involved! Befor you buy a bike from any dealer I would ask some of these questons. I have also seen that there is less profit on the 50's.
- Nov 22, 2000
- 4,392
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Lemme give you some real numbers from a recent experience. I bought an 03 XR50 pit bike a couple of months ago, and I got it for $899 out the door. $899 was the entire price - tax/freight/set-up, etc.
I went to a local shop last week, and the exact same XR50 was priced at $1099 PLUS set-up/freight/taxes. Tax in the great state of Alabama is 8% on anything other than cars and trucks, so the added costs would put the price above the $1300 mark. The friendly salesman told me that the price was not negotiable.
Do your homework. Make some calls, ask some questions.
I went to a local shop last week, and the exact same XR50 was priced at $1099 PLUS set-up/freight/taxes. Tax in the great state of Alabama is 8% on anything other than cars and trucks, so the added costs would put the price above the $1300 mark. The friendly salesman told me that the price was not negotiable.
Do your homework. Make some calls, ask some questions.
