Thanks!

 

Bingo. Knowing that the mark up is a good tool, but not all dealers have the same overhead or sales. When I purchased my new bike, my local dealer does not and would not negotiate, but another dealer 30 miles away who serves a more rural area was happy to make a deal saving me several thousand and offering a healthy discount on new parts.

 

Makes you want to go right out and get bent over doesn't it?? Those numbers alone irritate the hell out of me. However, I just bought a new Chevy truck about a month ago and now they are offering $15k off of MSRP depending on model. Talk about getting bent over. I didn't pay near sticker for my truck but I sure as hell didn't get $15k off either. Thanks GM, next time lube me first.

 

Good luck with that. It doesn't matter if you do know their cost. Do you really think they will give you a better price just because you know their cost? No. They will just wait for the next guy to walk through the door and pay what they want. The only time you are going to get a substantial discount is on a slow moving model or one that's been on their books for a while.

I don't know this for fact but I suspect the dealerships get pressure from the MoCo to sell everything at close to MSRP. This keeps prices and values pretty stable from state to state. You can find this practice with other products.

 

I would never begrudge a business a fair profit. Businesses are not charity organizations and I understand that. I do however believe they do not need to make all there profit in one sale, especially to me. I can use this info to give a starting point and try to lower the sale price. I always feel that I have accomplished a savings if I can get "something" off the sale price of an item.

 

Dealer makes $$ off of new bike sale invoice is Not what dealer pays its about three percent less than invoice. Called a holdback. This is used by dealer to pay floorplan cost of holding inventory if financed by the mothership

Dealer makes $$ on used bike by offering trade in value then selling at retail after reconditioning

Dealer makes $$ in finance office on interest rate. Typically 1 to 2% that gets kicked back by finance co

More money made on ext warrenty and wheel tire plans

More money made on extended service plan due to low miles ridden

Dealer makes $$ in motorclothes
Mark up is approx 50%

Dealer makes $$ at parts counter mark up is approx 40%

Dealer makes $$ in service due to high labor rate per hour vs rate paid to help. 20 to 25%

Dealers make $$ on oil, filters, etc
Again 20 to 25%

Dealer makes least amount of $ on tires. Never been able to tie this % down as it moves with price of oil due to limited shelf life of tires

My limited knowledge on dealer pricing.

 

The prices are set as all prices are in an economy such as ours. Supply vs Demand. The cost of an item has zero to do with the price. Very basic economics and a hard fact. The dealer couldn't care less if you know his markup. All he cares about is how many people he has coming in the door ready to buy. If his experience tells him that you've offered as much as he thinks he can get, he'll take your offer. If he thinks another guy will walk in later and give him some more money, he'll hold out for more money.

 

if you think that is bad learn the markup on jewelry/diamonds. your wife/girlfriend/mistress will never get another gift again

 

The markup the Honda's and Indians are quite a bit less than Harley..

 

This info is amazing!