My dealership has gone sour!
#41
11-19-2011, 09:05 AM
I don't understand why people want to get on here and complain about their local harley dealer. Stop going to them. I never go to the dealer, I don't buy extended warranties either, your just throwing your money away. If you can spend 40k in four years, you got enough cash to be foolish with your money. So quit bitchin. God I get so amused @ all the foolish spending.
#42
11-19-2011, 09:11 AM
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PnDegc's post above nailed it. This concept is hard for consumer to understand.
#43
11-19-2011, 09:17 AM
Elite HDF Member
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.
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.
At 50% cost of sale, you have to increase sales by 25% to maintain the same amount of profit if you discount by 10%
If your cost is 25% which is pretty much standard for apparel, you need to increase sales by 15.4%.
In any case, this doesn't take into account competitive pressure and the fact that the longer the products sit on the shelf unsold, the more they cost. So what's best, wait 3 months to sell it to a sucker at full price or sell it quick at a discount?
WalMart has realized before everyone else that the faster you rotate your inventory, the better you are. Why? Because it's a cash flow generating machine. Say you pay your suppliers 60 days after receiving the stuff. If it takes you 20 days to sell it you will get paid by your clients 40 days before you pay your suppliers, in other words, you will have sold 3 deliveries before you pay the first. You clients (and suppliers) finance your operations. How smart is that?
#44
11-19-2011, 10:00 AM
Road Master
I think that all of this business about the OP asking for too much is ridiculous. These dealers get their parts from H-D at the same (or close to the same) cost. By refusing to match a price that dealer is making no profit rather than a small profit. Too bad for them.
Also, good customer service is not always about lower prices and free parts. Often it is about general respect for the customers and valuing their business. Something as simple as an old fashioned thank you card after someone buys a bike can go a long way to making the customer feel valued and making them loyal to that dealership. Sometimes it is nice to know that we are more than an open wallet for these guys.
Also, good customer service is not always about lower prices and free parts. Often it is about general respect for the customers and valuing their business. Something as simple as an old fashioned thank you card after someone buys a bike can go a long way to making the customer feel valued and making them loyal to that dealership. Sometimes it is nice to know that we are more than an open wallet for these guys.
Jonnierock
#45
11-19-2011, 10:27 AM
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I will stop going to them if they don't want to throw me a deal on occasion when other dealerships can.
Trying to get a better deal isn't consistent with being foolish with money.
Last edited by Ozoneman; 11-19-2011 at 10:31 AM.
#47
11-19-2011, 11:39 AM
Outstanding HDF Member
Plain and simple... it's all about money.
I can promise you, that they wouldn't be so friendly to you if they thought you had no money to spend. They're not in the "friend" business, they're in the "money" business. Not just this particular dealer, but all of them. They want you happy, because happy customers spend... money.
It would be bad business on their part to let you find better deals, and it would be bad business on your part, to not shop around.
Yes, there's a degree of loyalty on both parts, yours and theirs. Like any other customer/provider relationship. Your insurance agent doesn't want you to shop around, but you're a fool not to. That being said, there's some things to consider other than strictly the price. Good service and fair treatment goes a long ways.
Denver Dave summed it up pretty accurately... Price, quality, service. Pick any two, chances are good that's all you will get anywhere. If you want the absolute LOWEST price, you will most likely sacrifice some customer service. If you want good customer service, then you'll probably sacrifice some price.
Only you can decide which combination or balanvce of those three items you want, buit don't expect all three. Not only in this industry, but all others as well. If you are lucky enough to experience all three, then it's rare and you should really appreciate it.
I shop around, and expect a degree of fallout because of it. But there's a balance. A wise consumer understands this. I subscribe to the theory of not putting all of my eggs in one basket. It can be easy to find yourself with no resources otherwise. In any sucessful business, you'll find multiple providers.
Just my 1.5 cents... Why not two? I'm always shopping around and don't want to spend it all.
I can promise you, that they wouldn't be so friendly to you if they thought you had no money to spend. They're not in the "friend" business, they're in the "money" business. Not just this particular dealer, but all of them. They want you happy, because happy customers spend... money.
It would be bad business on their part to let you find better deals, and it would be bad business on your part, to not shop around.
Yes, there's a degree of loyalty on both parts, yours and theirs. Like any other customer/provider relationship. Your insurance agent doesn't want you to shop around, but you're a fool not to. That being said, there's some things to consider other than strictly the price. Good service and fair treatment goes a long ways.
Denver Dave summed it up pretty accurately... Price, quality, service. Pick any two, chances are good that's all you will get anywhere. If you want the absolute LOWEST price, you will most likely sacrifice some customer service. If you want good customer service, then you'll probably sacrifice some price.
Only you can decide which combination or balanvce of those three items you want, buit don't expect all three. Not only in this industry, but all others as well. If you are lucky enough to experience all three, then it's rare and you should really appreciate it.
I shop around, and expect a degree of fallout because of it. But there's a balance. A wise consumer understands this. I subscribe to the theory of not putting all of my eggs in one basket. It can be easy to find yourself with no resources otherwise. In any sucessful business, you'll find multiple providers.
Just my 1.5 cents... Why not two? I'm always shopping around and don't want to spend it all.
#48
11-19-2011, 11:47 AM
Outstanding HDF Member
Gotta call you out on that statement. That's the EXACT reason the MoCo's been cranking down on the dealers (we know who they are), that sell for 20% online.
#49
11-19-2011, 12:15 PM
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It's a question of balance.
In my old business (unrelated to bikes), we had some customers who we would just as soon had gone elsewhere. They were SO high maintenance that they chewed up any $$ we made from them and even if they didn't chew up the $$, they made life so unpleasant, it wasn't worth their business.
We had other customers who never asked for anything special, paid whatever we asked and were a real joy to deal with. We bent over backwards for them.
Some customers returned our consideration with consideration of their own. Some customers bought on price and no matter how well they were treated, they bought on price for the next order, too.
As a business, we did our best to attract all the customers, but every once in a while, we did cut some loose. Addition by subtraction.
In my old business (unrelated to bikes), we had some customers who we would just as soon had gone elsewhere. They were SO high maintenance that they chewed up any $$ we made from them and even if they didn't chew up the $$, they made life so unpleasant, it wasn't worth their business.
We had other customers who never asked for anything special, paid whatever we asked and were a real joy to deal with. We bent over backwards for them.
Some customers returned our consideration with consideration of their own. Some customers bought on price and no matter how well they were treated, they bought on price for the next order, too.
As a business, we did our best to attract all the customers, but every once in a while, we did cut some loose. Addition by subtraction.
#50
11-19-2011, 06:55 PM
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It's a question of balance.
In my old business (unrelated to bikes), we had some customers who we would just as soon had gone elsewhere. They were SO high maintenance that they chewed up any $$ we made from them and even if they didn't chew up the $$, they made life so unpleasant, it wasn't worth their business.
We had other customers who never asked for anything special, paid whatever we asked and were a real joy to deal with. We bent over backwards for them.
Some customers returned our consideration with consideration of their own. Some customers bought on price and no matter how well they were treated, they bought on price for the next order, too.
As a business, we did our best to attract all the customers, but every once in a while, we did cut some loose. Addition by subtraction.
In my old business (unrelated to bikes), we had some customers who we would just as soon had gone elsewhere. They were SO high maintenance that they chewed up any $$ we made from them and even if they didn't chew up the $$, they made life so unpleasant, it wasn't worth their business.
We had other customers who never asked for anything special, paid whatever we asked and were a real joy to deal with. We bent over backwards for them.
Some customers returned our consideration with consideration of their own. Some customers bought on price and no matter how well they were treated, they bought on price for the next order, too.
As a business, we did our best to attract all the customers, but every once in a while, we did cut some loose. Addition by subtraction.
Very well said. Some customers are so demanding, high maintanence and never reciprocate any "loyalty" or appreciation whatsoever.
Early in my business, a manager explained that an important part of running a successful business is eliminating the ********. Some of my happiest and rewarding days in business comes when firing an unreasonable/obnoxious client.
The most rewarding days come from assisting a client who truly appreciates your sincere effort and services.
