Buying new 2019 Bike
#11
10-23-2018 | 12:53 PM
Tourer
Joined: Jul 2017
Posts: 413
Likes: 104
From: Detroit
2. Find out THEIR cost before talking to them.
3. Lay it out. Tell them “ I know it cost you this, I added $1000. I think that’s fair.
4. Tell the same thing to another dealer, or two, or three.
5. Explore savings of buying out of state. I’ve heard some people have saved quite a bit on the more expensive bikes.
6. If you’re financing. Know your credit score beforehand, and visit your own bank to at least know the current price of borrowing money.
7. If you’re trading in a bike. Know what it’s worth, and how likely you are to sell it yourself. Is it worth the cash hit to let the dealer deal with it for you?
#15
10-24-2018 | 04:49 AM
Club Member
Joined: Sep 2014
Posts: 7,522
Likes: 9,704
From: Des moines IA
1. Decide exactly what you want. Do NOT talk price, payments, tradein until you know.
2. Find out THEIR cost before talking to them.
3. Lay it out. Tell them “ I know it cost you this, I added $1000. I think that’s fair.
4. Tell the same thing to another dealer, or two, or three.
5. Explore savings of buying out of state. I’ve heard some people have saved quite a bit on the more expensive bikes.
6. If you’re financing. Know your credit score beforehand, and visit your own bank to at least know the current price of borrowing money.
7. If you’re trading in a bike. Know what it’s worth, and how likely you are to sell it yourself. Is it worth the cash hit to let the dealer deal with it for you?
You expect a business to sell at a less than 5% gross profit margin. They still have to pay rent/mortgage, taxes, insurance, salesman, utilities and all the other expenses.
I'm no mathematical wizard, but I'm pretty sure i'd be broke before the end of the year.
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#17
10-25-2018 | 07:46 AM
Road Warrior
Joined: Jul 2013
Posts: 1,561
Likes: 187
From: Florida
I'd laugh you out of my dealership with the bolded line.
You expect a business to sell at a less than 5% gross profit margin. They still have to pay rent/mortgage, taxes, insurance, salesman, utilities and all the other expenses.
I'm no mathematical wizard, but I'm pretty sure i'd be broke before the end of the year.
You expect a business to sell at a less than 5% gross profit margin. They still have to pay rent/mortgage, taxes, insurance, salesman, utilities and all the other expenses.
I'm no mathematical wizard, but I'm pretty sure i'd be broke before the end of the year.
No one is saying you have to sell every bike at that kind of profit. If you hit a few home runs from people who pay MSRP (or close to it) plus the B/S Dealer Fee, your store would be in a position to sell a bike at a low profit now & then. If you do sell a bike at a low price, you'll now have the opportunity to make some more money on the F/I and accessories.
The aggressive dealers I know are trying to maintain an average profit. This puts them in position to take the low profit deal now and then. Once again, not every deal. So if they have a slow moving bike sitting on the floor for 90 days, they sell it. If they get a customer who makes a low offer on a slow moving color, they take the deal & replace it with a fast selling color. If they have a fast selling model in a popular color, they hold out for a high profit.
Those aggressive dealerships may not sell every customer, but they never "laugh you out of my dealership......" Sometimes after shopping around, the customer may realize his offer is too low, but the chances of that customer returning to a store that "laughed him/her out of the dealership", is pretty low.
#18
10-25-2018 | 08:23 AM
Stellar HDF Member
Joined: Jul 2007
Posts: 3,387
Likes: 6,700
From: Bates County MO
MSRP isn't a home run- selling CVOs for MSRP+ is closer. Remember, there's a lot of mouths to feed. All the support staff are non-producers, so their wages are a cut off the top. Average net after expenses is less than 8%, and the dealer has to support their unearning partner (Federal, State, and Local taxes) after the fact.
The sad reality is lots of dealers could net a better return on their investment if they just put their $ into the stock market, but it is a fun way to keep busy.
The sad reality is lots of dealers could net a better return on their investment if they just put their $ into the stock market, but it is a fun way to keep busy.
#20
10-25-2018 | 01:46 PM
Novice
Joined: Jan 2017
Posts: 17
Likes: 1
From: Cary, North Carolina