fish_antlers
Administrator
The Truth is Out There
Posts: 21896
|
posted March 15, 2004 09:27 AM
okay, I'm up to speed, but yet now confused like Rich .... is the holdback 5% of the MSRP or is it 5% of the "ready to sell cost" ?
thanks....
and then of course KHI could lower the wholesale price or offer retail incentives if the bikes sits unsold on the floor?
anyone run a similar search for the ZX12R?
____________
What business is it of yours where I'm from, Friendo?
   
|
dougmeyer
Needs a job
moderated
Posts: 2713
|
posted March 16, 2004 03:59 PM
It means that actual dealer cost AFTER the holdback is paid to the dealer at the end of the year is 5% less than the about the dealer must may the manufacturer at the time the bike is sold (which technically is the "cost to the dealer of the unit). Holdbacks are not usually "assigned" to the unit at the time of sale. When the bike is sold, the accountant usually books the income as "Sale Price", and the "Cost of Goods Sold" as the cost with the hold back being recorded an "Account Recievable" due from the manufacurer at a later date. It really isn't figured into the deal as a rule. To be specific on basis of the percentage, if the Profit Margin is 17% on a bike using "List" minus "Invoice", the actual Profit Margin after recieving a 3% holdback would be 20%.
Speaking as a former dealer, it was one of my greatest frustrations dealing with customers who REFUSED to believe HOW LITTLE I made on a deal. I'd rather you all know the facts and hope you'll compensate a good dealer fairly, rather than keep this a mystery.
Doug
|
havabusa12r
Expert Class
Posts: 425
|
posted March 16, 2004 04:45 PM
I have been friends with my bike dealers, Although they would never disclose their price, (pre-internet days) they would say that more money is actually made AFTER the sale. Service, accs, (tires) the LABOR rates, etc.
____________
(68 Yam 175 2-stroke)
(99 Copper Busa) (99 Duc 900 SS full fairing) (00 MV Agusta F4S) (02 Aprilia RSV Mille) (02 ZX 12r CTB) (03 KTM 950 Adv)
(04 Yam R1) (05 LE Busa) (07 ZX 14)
|
guamaniac
Expert Class
Posts: 164
|
posted March 16, 2004 08:45 PM
That's the truth...alot of them also say they make most of their money on Used bikes/trades.....
|
swft
Needs a life
Full throttle!
Posts: One MEEEEEELLION
|
posted March 16, 2004 09:48 PM
The biggest problem I have with motorcycle dealers is how antiquated almost all their systems are:
Vehicle tracking - They can barely tell you what inventory they have on hand, let alone what's in their pipeline. And the distribution centers are partly to blame for that. There's some byzantine policy wherein the DC won't tell dealers what they are getting until product is released to them. Making it FUCKING IMPOSSIBLE for the dealers to match supply and demand. Additionally, there's no clean mechanism for the dealers to look and see what units are in their region. Instead a dealer has to literally call around to the other dealers and hope that they will even talk with him. The system almost seems to be designed to isolate the dealers from each other. Compare that to the typical auto dealer, who can quickly survey the entire region to find a particular unit and get it transferred to his dealership with a minimum of fuss.
Parts ordering - They've barely gotten past the microfiche stage... There's absolutely no way for a dealer to tell a customer the status of an order, beyond the fact that it's ordered or not. There's no order tracking mechanism, are nothign more advanced for notification of the customers than the goodwill of the dealership to call you and let you know that the part has arrived. Here's a thought: provide the customer with email notification of order status and when the part arrives.
Model information - Dealers need to be brought up to speed and live in the real world. Sales guys need to take computer based training on each new model so they are prepared to sell it. A simple test at the end of the CBT would let them be assessed on knowledge level. Periodic evaluations of the knowledge retention would be as simple as an online test. As it is, I don't think half the sales guys even read the pamphlets they get for the bikes.
Demo rides - Yes, we all know the risks...How about this? If you aren't willing to give them a demo ride, then you can't sell the bike to them? Think about it, you don't have enough faith in the customer to trust them with a bike, but you are willing to sell them something that may be completely over their head...But then again, that gets into the whole licensing debate, etc...There's probably no acceptable scheme for making demo rides happen, but the dealers are, at some point, going to have to accept responsibility for selling bikes... What would it take? Maybe a controlled area to test ride the bike? Given the choice, would you prefer a ride on an enclosed course or no ride at all? Not an easy puzzle to solve...
|
swft
Needs a life
Full throttle!
Posts: One MEEEEEELLION
|
posted March 16, 2004 09:49 PM
BTW - Ducati DOES provide training to their sales staff...Dunno if it tests for knowledge, but it does at least provide training.
|
havabusa12r
Expert Class
Posts: 425
|
posted March 16, 2004 10:00 PM
A lot of dealers do not even have bikes prepped that are not 'pre-sold'
You can sit on them, but can not even turn on the key to see the dash.
I guess if they think that a demo ride will make the sale, they will usually encourage you to take 'er for a spin.
____________
(68 Yam 175 2-stroke)
(99 Copper Busa) (99 Duc 900 SS full fairing) (00 MV Agusta F4S) (02 Aprilia RSV Mille) (02 ZX 12r CTB) (03 KTM 950 Adv)
(04 Yam R1) (05 LE Busa) (07 ZX 14)
|
guamaniac
Expert Class
Posts: 164
|
posted March 16, 2004 10:01 PM
I agree.... Check this out, on Saturday I went to a local dealer in the area (don't worry havabusa12r--it's too far to yours  ) no names, but most people from the Phoenix area will know the dealer-- Anyways, I go in there and ask one of the salesmen about the 10R-- His answer, " Uh...it's been delayed" ... me: " Because of the tranny, that's been fixed" Him "No..they recalled all the bikes because it's too fast" Me " your kidding me right?" Him: " nope, too much horsepower so they had to recall all the bikes" me wanting to laugh at the guy, motion for another salesman, now the "recall for being to fast guy" says to the new salesman, " you heard about the recall for the 10rs" Other salesman says "what? never heard about that" Now I'll call him doofus "yup, heard about it 3 days ago, they are also recalling the CBR1000" At this time I'm looking in astonishment and amusement expecting the other guy to fix things, he says "well, you can still put a deposit down and it will most likely be here in late April"... Too which I had to just walk out the door... After my questioning and the deer in the headlights look of the second guy I would have figured they would have at least checked with supervision...but nope--they actually believed themselves! ahhh...
The dealerships definitely need to get some stuff fixed...but the main thing is just to have competent people on the floor--it just sucks when you go in there asking questions about a bike, especially a bike that is going to be a hot ticket and know more about the bike then they do...... The 2 dealerships that I'm working with for my 10R are both pretty good--and that is why they will have my business!
|
havabusa12r
Expert Class
Posts: 425
|
posted March 16, 2004 10:11 PM
Maybe the idiot dealer in question, will not know that it is a hot ticket and will discount a 10r?
There will be a couple black 10r's in Show Low or Alpine just collecting dust behind some generators and snow mobiles?
____________
(68 Yam 175 2-stroke)
(99 Copper Busa) (99 Duc 900 SS full fairing) (00 MV Agusta F4S) (02 Aprilia RSV Mille) (02 ZX 12r CTB) (03 KTM 950 Adv)
(04 Yam R1) (05 LE Busa) (07 ZX 14)
|
guamaniac
Expert Class
Posts: 164
|
posted March 16, 2004 10:21 PM
Nah....let's just say they have a monopoly of dealerships in AZ...and if they can sell you a YZF600 for a GSXR1K price...they will. Hey man you trying to push me towards another dealer??
|
swft
Needs a life
Full throttle!
Posts: One MEEEEEELLION
|
posted March 17, 2004 01:48 PM
Sounds like it!
|
|
|
HOME
NEW TOPIC