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At what price dealer loyalty???

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There was a question posed in the Yamaha forum about new bike prices from dealers and such. There was a comment made about supporting your local dealer as opposed to buying out of state or out of country (Canada).

At what price dealer loyalty? Do any of us think the dealer is actually loyal to the customer or do you think they just want our cash? :)

Consider this...

Considering that is sometimes a $1000 difference between the sale of an IDENTICAL motorcycle, why would one spend that much money to support a local dealer who is basically giving the customer a raw deal.

Here's the logic...As a rule, dealers are reimbursed upon sale by the manufacturer for the freight cost. Set up is a charge that, in essence, is a premium that is the manufacturer's and dealer's responsibility to sell you a product that is not defective. A franchised Big 4 dealer is strictly forbidden to sell a bike to the customer in the crate. The reason for this being that the part of the responsibility of a dealer is to verify that the bike they are selling is complete and defect free, and the only way to verify that is to assemble it themselves. :)

I will agree that the margins on bikes has become smaller over time, however a larger percentage are being financed than ever before. Did you know that the dealer receives an incentive if they finance the bike as opposed to selling it outright for cash? This varies between financial institution, however say your Yamaha is financed on the Yamaha plan, the dealer receives a kickback for this.

Also, if one finances throght a dealer's third part financial insitution, they most likely receice some sort of "participation" in the form of percentage points. It works like this...you agree to purchase the bike and to finance it. the salesperson says they can finance you through, say, Transamerica, for 12.99%. The thing that the dealer is not telling you is that the actual rate to the finance company is 9.99% and the difference between that and the 12.99% you are financing the bike at is 3%. So, your $6500 finance for your WR450F just paid the dealer an ADDITIONAL $195.00!!

Now, you wear out the tire on your WR and you happen to like the D739 that is on the bike. My local dealer charges $103.95 for that tire and an additional $20.00 to mount it! The SAME TIRE at any number of mail order companies is about $58.00 plus $9-$12 shipping. That is about a 30% difference!!

It is the same on chains, sprockets, bars, you name it.

Is dealer loyalty worth $1000 extra on you bike and 30% on everything you buy?? :p

Just somethig to consider, next time you are down at your LFYD (Local "Friendly" Yamaha Dealer). I ride Yamahas so I am not picking on Yamaha dealers specifically...it is just an illustration. All of the Big 4 operate in this manner.

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The same thing is very true with cars...

Why anyone would ever buy a late model Ford has got to either....

A. Have a ton of brand loyalty.

B. Be a diehard Alan Jackson or Toby Keith fan.

c. think Professional Wrestling is real.

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I agree that dealer prices can be excessive when comparing to internet/mail order. However, I support my dealer when purchasing bikes, even though they might be more expensive. I do it becasue the local dealer supports many initiatives to keep riding areas open, supports local riders, sponsors many racing events, and organizes many street rides.

Yes, I'm sure the dealer is making money on the events, but they would not happen unless the dealer has the support from the community.

As money is moved away from the local economic base, in this particular case, Canada and Mail order companies, it can have dire consequenses on our ability to ride in already politically stressed riding areas. Plus dealer support for races, etc. can be hampered.

Granted we live in a free enterprise socity and everyone is always shopping for the best deal, but one must realize the long term impact purchasing bikes or merchandise outside of the area where you ride can have.

Although I know I can get a better deal on mail order for parts, I always buy parts from the local motorcycle shop that specializes in parts and service. Plus I know I'm doing my part by putting food on the table for the owners and workers of the shop. It makes me feel warm and fuzzy inside.

Cheerio,

Unoracing

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The dealer/salesperson is the enemy. They're not your friend, but merely the people bent on separating you from your hard-earned money. They throw their ridiculously high price at you and you counter with a ridiculously low price. Somewhere in between is what you'll ultimately spend. I go where I can get the most "bang" for my buck. Can't tell you how many times I've had to "educate" salespeople that I don't care about their quotas or even whether they're still in business the next day. Think they really give a rats arse about you? Think again.

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The same thing is very true with cars...

Why anyone would ever buy a late model Ford has got to either....

A. Have a ton of brand loyalty.

B. Be a diehard Alan Jackson or Toby Keith fan.

c. think Professional Wrestling is real.

Fall asleep in front of my '03 Ranger FX4 and I will grant you your wish. :)

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My dealer does crap to keep riding areas open. The staff, albeit one guy, are not very helpful, so I place most of my orders online. They usually never have any stock, even the littlest of things, if I'm going to wait for a part I might as well save a trip to the dealer, and have it delivered to my door! By the way one of the parts guys has a private track, invitation only!I have a loyalty to my wallet!

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A couple hundred bucks difference, I will support the local guy.

$1000 difference, I am getting it elsewhere.

As for tires, no way am I paying $95.00 or so dollars plus tax locally for a Dunlop that I can get delivered to my door from Rocky Mountain MC for about $55.00.

There is a difference between loyalty and stupidity. Hence the old sayings:

"A fool and his money are soon parted"

"There is a sucker born every minute"

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The dealer/salesperson is the enemy. They're not your friend, but merely the people bent on separating you from your hard-earned money.

well, there are dealers like this. they don't get much of my bizness. there are also excellent, friendly, helpful dealers. dan at motoxotica, cycle-pro in santa rosa, thin air in truckee, the ktm/husaberg shop in reno.... I don't mind paying a little more to shop at these places. sometimes i'll be upfront and say "look, xxxx sells this on the internet for $50 less. i'd rather buy from you. can you get close to that price?"

i have found many shops that are willing to sell tires at close to mail-order prices. so when i lived in civilization, i bought tires at those shops, and alot of other stuff too.

mw

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Does your dealer know your name?

Fortunately, or unfortunately, I am on a first name basis with all the dealers in the area. It is a little harder to get a break on OEM parts by going elsewhere, but my large orders always go to Midwest Action Cycle for OEM parts.

MAC always have every item in stock and can ship it to me faster than the local dealer can order it, besides it is one stop shopping for multiple brands.

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here's a perfect example of why the whole dealer loyalty is crap....

i just bought brand new '05's - crf230 and crf70 from my "LOCAL" dealer.

when i decided that the 230f was not the right bike for me... i called my dealer and talked about the KX250F and CRF250R...what would be the best OTD price I could get... my sales guy goes I can get you the KX for 6150.00 OTD.... :) ..... 10 minutes later he calls me back alright 4 you I can do 6000.. flat :) .....

I call a dealer an hour away from me... never spoke to the sales guy before... ask him what's the best i can get the KX for OTD.... without a bit of haggliing... 5600 OTD :D

unreal

i just ended up buying a used '03 yz250f.

a week after i bought the YZ i go into my local dealer... my sales guy sees me and says... hey dude i shouldnt be telling you this but my service guy is selling his '03 kx for 3900.oo

i know you want something else.... so i wanted to let you know about it first :p ................... yeah SURE.....lmao

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WOW...I guess I'm pretty lucky. I have been dealing with my "local dealer" for almost 31 years. It started out with small discounts but at least it was something. I continued to deal with them because in the early 70's there weren't all of the on line shops like there are now.

As I proved my loyalty to them they in turn showed loyalty to me and my discounts gradually became larger. After a few more years of buying more bikes, parts, accessories and gear I got discounts well beyond the average customer. Over the last 20 years I get discounts that rival the best on line prices.

IMHO dealer loyalty is a two way street, if you don't show it to them then why should they show it to you.

Dealer loyalty....you bet I have it.

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I have a dealer that is about 15 mins away from my house that I won't do business with because they try to rape you one everything, new bikes, used bikes, parts, etc. etc. They make you wait a week for everything you need except a spark plug. I drive about 35-40 mins to the next closest dealer because they have alot of stuff in stock. What they don't have they get in 3 days max. The prices are pretty much in line maybe a little high but not way out of line.

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I called my local Peninsula Honda dealer in Sunnyvale, CA and ordered a mainjet for a CRF 80. I go to pick it up and they charge me $10.00. I needed it that morning so I paid for it in disgust and promised myself to never step foot in there again. I spend thousands of dollars a month on MX and will never go to Peninsula Honda again.

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I called my local Peninsula Honda dealer in Sunnyvale, CA and ordered a mainjet for a CRF 80. I go to pick it up and they charge me $10.00. I needed it that morning so I paid for it in disgust and promised myself to never step foot in there again. I spend thousands of dollars a month on MX and will never go to Peninsula Honda again.

I know the dealer well--right on El Camino Boulevard. My wife lived in South San Fracisco before we were married and I used to come down to visit and ride out at Metcalf Cycle Park and down at Hollister.

You are right...I needed a part for my XR400 when I was down there once and I remember that the experience was not good. The parts department came off as totally unprofessional.

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Here in SLC the local YAM,HON,KAW dealer has a salesmgr that qualifies all of his statements with "Back when I was a pro motocross racer..." Or I'm an ex-pro motocross racer and when I ride that bike I think it's...blah, blah, blah.

Meanwhile all they care about is how much money he can get out of me.

When I was shopping for my 04 WR 450 last fall, I had found a dealer in Elko, NV. 3 hours away that had several for $5499.00, I went to Plaza Cycle and asked them if they would be willing to match the price. They just about called me a liar, that there was no way any REAL Yamaha dealer would sell a bike at that price. As close as they would come was $1200. more! and that was their best deal :)

I used to buy most of my parts and tires from another shop in town, The owner and I are on a first name basis, I bought a snowmobile from them 8 yrs ago. Then I started to check prices from other sources like catalogs and the internet. On the same Dunlops they were charging me $30.00 more than other places. My loyalty got abused. I belive in loyalty as long as I'm not being taken advantage of, the first time that happens is the last time I give them my money.

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I've had similiar experiences with Plaza Cycle. Sad thing is I haven't found a decent dealer in town. A year ago I called every dealer in town to get quotes for my bike. The lowest was South Valley and Plaza, or so I thought. Having no real experience with either of them, I went to Plaza because it's closer. I went in checkbook in hand only to find out I misunderstood on the phone. I guess my brain couldn't fathom that they were $1000 more than SV, $500+ more than everyone else and even higher than MSRP. After an hour with an over eager newbie salesman who made three trips to his manager's office I got the bike for $12, yes twelve, less than SV. Only reason I got that was because I had my checkbook in hand and made it very clear I was ready to walk. Funny thing is after all this, I give them a check from a Texas bank and I had them so flustered they didn't even check my ID.

I later had another experience with them. My sister was shopping around for a quad and I tagged along so I could look at bikes. We were at Plaza, her husband had pretty much decided on the Yamaha Big Bear, I believe. At the time Plaza had bought out some dealer of their '02 stock, this was mid '04. The slimey salesman wouldn't even discuss the '04. They had the '02 the same price as the '04. After 10 minutes of trying to get info on the '04 and saying they wouldn't pay as much for a two year old quad, they finally walked out on him mid-sentence.

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I agree that dealer prices can be excessive when comparing to internet/mail order. However, I support my dealer when purchasing bikes, even though they might be more expensive. I do it becasue the local dealer supports many initiatives to keep riding areas open, supports local riders, sponsors many racing events, and organizes many street rides.

Yes, I'm sure the dealer is making money on the events, but they would not happen unless the dealer has the support from the community.

As money is moved away from the local economic base, in this particular case, Canada and Mail order companies, it can have dire consequenses on our ability to ride in already politically stressed riding areas. Plus dealer support for races, etc. can be hampered.

Granted we live in a free enterprise socity and everyone is always shopping for the best deal, but one must realize the long term impact purchasing bikes or merchandise outside of the area where you ride can have.

Although I know I can get a better deal on mail order for parts, I always buy parts from the local motorcycle shop that specializes in parts and service. Plus I know I'm doing my part by putting food on the table for the owners and workers of the shop. It makes me feel warm and fuzzy inside.

Cheerio,

Unoracing

I wouldn't be at all sure that the dealer is making money sponsering events. That is the exception.

You do it as advertising, customer good will, publicity, etc

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See if your opinion changes when you have NO local dealers anymore because everyone could save $10 ordering online......... :)

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I wouldn't be at all sure that the dealer is making money sponsering events. That is the exception.

You do it as advertising, customer good will, publicity, etc

I agree 100% with the above statement, but I thought I would leave it open for opinions.

Below is directed to all

It's too bad how this tread truned into a dealer bashing thread. I can understand complaining, but the folks who have had bad expreiences could have met the sales person or parts person on a bad day. We've all had them at one point in our careers. Perhaps the experience was an isolated incident. Therefore, it's my opinion that bashing a dealer or any business by name is inappropriate unless your safety was at risk. Just my .02$.

Rant over.

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