I didn't expect to get any negative comments about my situation. But I guess that's the way it is, there are always different points of view.

Let me say that I'm not a deal ***** and running around looking for a cheaper deal all the time even though I have 5 dealers within a reasonable distance. I have had the first dealership install many parts and accessories at full price. I've done that because they have been willing to give me a deal on some occasions. After spending tens of thousands of dollars at their store, I expect them to be willing to cut me a deal sometimes. This year on all three occasions that I mentioned, they haven't been willing to deal or match a price. Meanwhile I have paid full price for two tires and several services on my bike and my wife's bike this year (we ride about 15K each year). They have sold parts at 20 percent off previously, so I don't know why they didn't this time. Even at 20 percent off, they are still probably making 20-30 percent on the item.

In the future, for now, I'll still do business with the first dealership because I have a great mechanic and service writer at that store. In fact I'll probably take it back there to have the chrome forks installed. But if they keep playing hardball, they may find that they have lost a customer.

BTW, I found out about the better deals through advertisements. As a result of those advertisements I decided to buy the warranty and get the new wheels. I wasn't currently in the market for those items, but because of the good prices, I decided to buy them. I thought I was being considerate to my first dealership by letting them match the offer before I went elsewhere.

 

Like others have said i too have no loyalty exept to my bottom line when buying parts. If i did not do my own work then maby i might work on building a relationship with a dealer or an indy.

 

Sigh! Times are hard, dealers are not necessary greedy, but they have to maintain a certain sales $ to the moco in order to get more merchandise, bikes, parts and even apparel. This is a thin line and most of us don't understand.

I'm in sales (not bikes, or cars), and have attended more than several sales trainings. It's hard for customers to grasp the concept of simple things like discounts. For example, if a company gives out only 10% off discounts to everything they sell, in order to maintain the same profit $, they have to sell 1.8X more.

And sometimes it make more sense to "turn a customer lose", than to sell products at a continuous discount. The concept of rather not "making less instead of nothing" is hard to understand. Been in sales over 20 years, and it took me a long time to understand this particular concept.

It'll be way too long and complicated to explain here; basically it's just like a pie, everyone under the dealership has a share in every dollar the dealership make in sales (not profit). All the way down to the person whose job maybe just to clean toilets or parking lots. And to maintain a certain level of quality service, cleanliness, etc, a dealer has to make a certain $ in sales (once again, sales, not profit), in order to keep quality personnel.

Now taking accounts of all these mumble jumble, the bottom line is still $. We don't want to spend more, and the dealership don't want to make less, and have to work harder to recover the grounds. So the dealership has to meet us, as consumer, somewhere whereas both of us are happy. And that, my friends, is a hard job.

Sorry for the long post. Ride safe

 

the bean counters can do all that computing, but 10 employees dividing $10 profit is better than 10 employees dividing $0 profit no matter what the theory is.

backing up that redicuolus theory, my step-son manages a Best Buy, he'll tell me what to buy at Wallmart so I do not hurt his margin's. Now there's some employee discount's, from 1%-80%. Jeg's has very good discounts too.

 

Thought it was best explained when I went 80 miles to get my 2012 RGC. After having my 2009 Nightster serviced there and attending most dealer events for a year, new (and better) management took over a poorly run dealership. I mostly went there because they hadnt pissed me off (yet, according to most of my friends). We moved back home his summer, and have about 5 dealers that are closer. Because of my relationship with the sales/parts/apparel/svc people, I gave them first shot when I went looking for a leftover 11 RGC. They couldnt locate one that another dealer was willing to let go, so they made me a great offer on a 2012. Told them I'd think on it a day or so, and would see what i could do on an '11 before i made any hasty decisions. Checked with my local dealer (12 miles away) on a 2011 RGC w/ 96" and cruise and they beat the deal on the '12 w/ cruise by $24. They basically called me a liar, said that there was no way that deal could be made on a '12, and that the deal would still be there after my friends 80 miles away broke my heart. When picking up the 2012 6 days later, I asked the salesman "Why are yall willing to deal, and the other guys weren't?" He simply said "I wanna make some of the money, and they think they have to make all of it." My experience has been that the biggest dealers w/ a bigger local customer base, tend to be higher, and think they're doing you a favor by letting you in their dealership.

 

To all those that share the philosophy of "no loyalty except to my bottom line..." That is the same reasoning the corporate executives use to justify closing down here and moving operations to a foreign nation. You condemn them but feel righteous in doing the same thing. The term hypocrite seems appropriate.

 

+1 .... They're tryin' to keep the doors open too !!

 

MOCO is only worry, about what the dealer pays for said part, not what the dealer sells the part for. It's only how much volume you buy that matters.

MOCO doesn't worry about how much shop business they sell, only about billable hours for the shop.

 

There's one key element missing in your theory. If you don't know your % of cost, you can't tell how much more sales you need to maintain the same amount of profit if you give a 10% discount across the board.

 

From a Business Perspective. From a Business publication. I am NOT the author

First, when you or your organization cuts your price for a product that say has a 35% gross margin (Price minus cost of goods sold equals gross margin. Then, what percentage is the gross margin from total sales or individual product price minus its cost as a percentage?) Say, the price cut is 10%. Here is the scary part – with a 10% price cut cuts your gross margin percentage drops by more than 20%. (as a percentage of its former level.)

Okay, let me cut to chase here. When you cut price 10% on a gross margin of 35% – YOU WILL HAVE TO DOUBLE YOUR SALES VOLUME TO MAKE UP YOUR ORIGINAL GROSS MARGIN. Yes, I’m shouting at you because this fact is so scary relative to your company staying in business. What am I implying here?

Just remember this important factor. When you cut a price be it 5% or 10% or even 20%, you are placing yourself in a serious hole. Your ability to drive a doubling or tripling of unit volume to offset this price cut is a daunting task for anyone – even in good times. Today’s economic condition reduces your probability of success in offsetting this cut in gross margins.

Hold the line on your prices and when you get really good at holding prices, think about increasing them.