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Dealer Cost ???


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No, it does not vary by quantity. The only thing that might vary is flooring terms.

And if retail is $6900, then cost is around $5900-$6000.

But what does it matter? Do you expect a dealer to sell it to you for that?

I heard that dealer is around $5300, not sure though

get this, yesterday, a friend of mine went to a shop in Corona California, they have a 07 KX450f, they want $8000 for it they must be wiffing chemicals over there :devil:

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I don't usually pay more than $100.00 over cost on any of My race bikes. I am sure the prices are posted elsewere but didn't want to waste My time searching them out. Thank's for the help.......

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Well, dealer cost is fairly easy to figure out. The dealer gets a 15% profit margin, with a 3 - 5% holdback, which they don't get till the end of the model year (usually at the dealer shows in Sept/Oct) So again, if you take $6900 - 15% = $5900(approx). NO dealer counts the holdback in their dealer pricing. Thats purely to ensure that the dealer can make something on the bike should they have to sell it cheap.

Then you have to figure in some freight charges and some set up time (and not the over inflated freight and setup fees a lot of dealers charge) and you have a true dealer cost of around $6100.

And depending on how long the bike sits in inventory, there can be flooring charges as well, which can eat up ones profit in a hurry.

So that gives the dealer about a $800 profit to work with, depending on what they charge for F&S on the retail end, if any.

So now you know

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Well, dealer cost is fairly easy to figure out. The dealer gets a 15% profit margin, with a 3 - 5% holdback, which they don't get till the end of the model year (usually at the dealer shows in Sept/Oct) So again, if you take $6900 - 15% = $5900(approx). NO dealer counts the holdback in their dealer pricing. Thats purely to ensure that the dealer can make something on the bike should they have to sell it cheap.

Then you have to figure in some freight charges and some set up time (and not the over inflated freight and setup fees a lot of dealers charge) and you have a true dealer cost of around $6100.

And depending on how long the bike sits in inventory, there can be flooring charges as well, which can eat up ones profit in a hurry.

So that gives the dealer about a $800 profit to work with, depending on what they charge for F&S on the retail end, if any.

So now you know

:devil:??

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I believe that $5300 is the discounted price (Dealer) for existing '06s.

The '07s gonna cost the shop around 6 grand(+)...if you think the shop should sell it to you for that, you're an idiot.

Especially for an Early Release Unit! :devil:

Hey, I know!

Why don't you go to work today and do you job for free!

Ya! That's it!

Hey, I know! Since you're doin' so much for Kawasaki by just Riding one of their bikes, well, they should pay YOU like they do James!

You see where I'm goin' with this?

Do you go to the Car Dealer and tell them I want it for "Cost"...

And when you "Think" you really are gettin' for cost, well, are you?

Hold-backs, Back-Side/End-Build Incentives, Attrition-n-Volume Scales...

There's SO MANY ways that they get compensated...

Treat your local shop right and expect the same outta them.

PERIOD.

Sorry if this seems a lil' harsh. Some of you guys don't seem to understand what it takes to run a business or get a sponsor.

It takes a LOT of WORK!

It takes a LOT of MONEY!

It takes a LOT fo TIME!

Sorry about the angst.

I'm concerned for the "Local" independent dealer.

Especailly in/near "Big City America"...

Oh, well...see ya in Vegas!

Look for the guy cheerin' DV12.

He's back.

He's hungry.

He's got a Great Team behind him...finally.

Manny

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teamgreen,

I think your email has been a long time coming, and is spot on!

There are to many people trying to get something for nothing and it makes it hard on all those who really are trying to support shops and the industry.

thanks for throw-down man.

-OC

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I whole heartily agree. I only posted the "formula" for dealer cost so people would see how little a dealer really makes on a $7000 motorcycle. They are entitled to their profit. The salesman has to make a commission. If someone is fortunate enough to get a bike at dealer cost, or some where close to that, great. Your are one of a chosen few. But the general public should NOT expect to get a bike for that, ESPECIALLY at the start of the model year. Sure, when a bike has been sitting there for 6 months or more, and there are some dealer incentives, then one could get one for dealer cost, or maybe below. MAYBE. But even then, the dealer is entitled to make a profit.

Bottom line, if the dealer feels inclined to sell one cheap, for whatever reason, great. But one shouldn't just expect a dealer to do so just because you think they should.

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  • 5 weeks later...

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