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Maybe Someone Can Explain This To Me, I Don't Get It...

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  #41  
Old 12-22-2010, 11:08 AM
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Originally Posted by peddler
Question: If increasing your (dealer) parts business by discounting on the internet is such a slam dunk great idea, why are there less than a handful of dealers that do it?
I don't know why more don't do it. I buy quite a few big ticket items from LSHD because I can save quite a bit of money. Some of these items I wouldn't buy at all if not for the 20% discount. You say they take a 50% revenue loss (40% to 20%), but I say they just earned 20% profit from me on a sale that they wouldn't have made otherwise. $0 profit compared to 20% for having a website, slapping a part in a box, and having UPS pick it up at their door seems like a pretty good deal for them. Not to mention all the wasted time looking up part numbers (takes me a lot less time to find a gasket part number than it does them) and jawing with all the other hammerheads behind the counter.

I'm sure their internet sales is a very small component of their total sale, but for a person like me it would be a missed sale and a 100% revenue loss. FWIW
 
  #42  
Old 12-22-2010, 11:21 AM
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Question 33,333.33 avr. per yr. for the last 6 yrs.

Originally Posted by ripper43;7686014_
First off I am not braggin, but I have spent over $200,000.00 in the last 6 years at my dealer of choice (great guys) and I get most times 10% to 15% off and that is about it. Throw in an odd 20% off on a mens night or the like and I am happy. My point is, I don't think it matters how much you spend, they have to keep the doors open and if they were to give every Tom, Dick and Harry 20% off it would be much harder to do.

And no I am not rich...


????????????????????? WTF ????????????????????????????
" And no I am not rich "
Calling you out on this one pal.
1. Maybe you made a typo and meant 20,000 over 6 yrs.
2. There is a considerable difference in defining the word " rich "
3. 33,000 plus a yr for the past 6 yrs. Or putting it this way, a new SE Ultra every year..... if you bought it on the " odd MENS NIGHT w/ 20% off.
4. ???????? WTF ???????
5. Repeat # 4
 
  #43  
Old 12-22-2010, 11:27 AM
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Originally Posted by Faast Ed
It all boils down to overhead costs, and it indeed makes good sense to me.

The online shops will dedicate one person to handle all the online orders and it often is done in their spare time. They don't have to look up parts for the lazy customers, they simply process orders that have already been placed. Lots of time saved there.
Often the parts aren't even in inventory so they don't have those costs either.
One person in their spare time can expedite everything without adding to overhead costs. The little profit they make after discount is enough when you consider the volume.

The regular local dealer is wasting his time discounting everything, lowering his income while still paying all the overhead. For what, to break even or show a loss at the end of the year? That would be poor business sense.
This is exactly why...brick and mortar are expensive, as are knowledgable employees...
 
  #44  
Old 12-22-2010, 11:42 AM
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Originally Posted by Faast Ed
The online shops will dedicate one person to handle all the online orders and it often is done in their spare time.
been to zanotti's lately? they have at least 4 people working in internet sales, and i doubt it is in their 'spare time'. granted, they only have a 2 hr window for talking to them on the phone, but their online chat is monitored the entire business day.

they put some time and effort into their online sales. and it shows. i used to 'price check' them against other online retailers, but their prices were always in the ballpark and with the level of customer service that i got from them, i don't even bother to check price difference anymore.
 
  #45  
Old 12-22-2010, 11:50 AM
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Originally Posted by VTGlideRider
We all know and appreciate that there are online dealerships that will sell us our parts and accessories at a discount, often 20%. I'd be crazy not to look at them when shopping. I would, however, like to give the business to my local dealership where I bought my bike and get my service, but certainly not at the expense of my wallet!

Whenever its a semi-expensive order I will bring a printout of the shopping cart to my dealership and tell the parts guy I would rather give them the business and would gladly do so if they can come close to the price I'm getting from someone like a Zanottis or Surdyke. A couple of times they took 15% off, but most times they won't even come close. Seems like they would rather lose the sale than take the discount. While I in Long Island for work I was at the local dealership to get a t-shirt, and just out of curiosity I asked the parts guy there if they would match an online price. His answer was "we wont ever do that". When I asked why he said "when you have a problem or need to return a part you order online, where are you gonna go?".

This attitude just doesn't make sense to me. I'm sure that even if they took 20% off there is still a ton of profit for them, but they would rather lose the sale than take the discount. I have a great relationship with my dealer, get my biker serviced there, and will bring him the stuff I buy to install if its beyond my skill level to do, but they, and the vast majority of dealers it seems, won't do what a handfull of online dealerships will do every day. I just don't get it.
You have an interesting point, but as others have said: it's not really apples to apples. I wouldn't assume my dealer would be willing to match an online price simply because of overhead costs are not the same. When the shipping costs are free, then the costs savings are pretty high (on high $$ items).

What I don't get is my dealer will offer only some items online, but other items are 'not available online'. I am a mercenary shopper, get in, get out. I really don't like 'browsing' at the store. Consequently, I'd buy a lot more from my local dealer if they offered everything online.
 
  #46  
Old 12-22-2010, 11:51 AM
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Originally Posted by skratch
been to zanotti's lately? they have at least 4 people working in internet sales, and i doubt it is in their 'spare time'. granted, they only have a 2 hr window for talking to them on the phone, but their online chat is monitored the entire business day.

they put some time and effort into their online sales. and it shows. i used to 'price check' them against other online retailers, but their prices were always in the ballpark and with the level of customer service that i got from them, i don't even bother to check price difference anymore.

Chances are they have grown into the need for so many employees dedicated to that. Must have quite a lot of sales to justify that.
They indeed have a wonderful rep.

I recall talking to someone at Chicago HD a few years back and it certainly was a one man thing there at one time (if not at present).

You can't burn a lot of resources on small margin sales.
 
  #47  
Old 12-22-2010, 12:50 PM
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We have one dealer here who always gives at least $750 or more worth of stuff when you buy a bike to sweeten the deal. That's OK I guess but it requires picking the parts up front. I would have much rather spent that money over the last two years on 20% discounted parts. I'm not sure how they would have lost money on that plan.

Beary
 
  #48  
Old 12-22-2010, 12:57 PM
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The attitude indicated by the OP is prevalent at my local dealer as well with a couple of exceptions. Most of the staff hold firm on the owner's "no discounts ever" attitude. I have spent $40,000 dollars in the last 16 months (two bikes and an SE 120R engine plus other parts). The owner still doesn't feel he should give any kind of a break but key folks on his staff understand the need for flexibility to keep business local. I buy there when I can but when they can't or won't try to come close I buy online.

Do I begrudge to local shop a living or profit? No quality service and technicians cost money, but when I am ordering a $5000 item and they won't budge, 20% of that figure makes it worth looking around.
 
  #49  
Old 12-22-2010, 04:14 PM
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I'm a bit confused about your dealers attitude also. My local dealer is doing a MVP Program www.seacoastharleymvp.com .

Basically you pay a one time fee of $79.95 (was cheaper when I first joined) for life and you get a minimum of 11% off MotorClothes, General Merchandise and Parts/Accessories. You also get 15% off rentals, a couple free parties a year with food & booze, early entry into sales, etc.. You also earn points that increase your discount upto 15%. When they have 10-15% off sale for the general public your MVP gets you 20%. A bunch of local businesses in our area also give various discounts with your MVP card.

So you're basically paying for a discount, but I made that money back the first week in accessories! It's not 20% off but it's enough to make me want to order through them. Maybe you should give your dealer a link to this program?
 
  #50  
Old 12-22-2010, 04:25 PM
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And you have to figure that there are some out there who still haven't gotten the message that they need us worse than we need them.
 


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