Dealer claiming profit down

[flavor]

Was at the dealer recently and when talking to one of the service counter guys who's been around forever. He was talking about having a lot of work, business etc. but profit decreasing. The first example he brought up was loss in tire profit. He blames the internet and it's sales. Bringing up the fact that I can buy a motorcycle tire about $30 cheaper on the internet then what he want to charge me for the same tire, I basically said "what do you expect"... Then you want to charge $35 to put it on.......

He mentioned they were considering not even mounting tires that weren't even bought there. I told him that wouldn't be an issue for me because because I mount my own tires and don't have to worry about balancing because I use Dynabeads, right before I mentioned I have a car tire on the rear.

Now don't get me wrong this dealer has been around bikes of many types for a long time (3rd generation) and racing all circuits, but it's time for them to change their mindset.

I bought my Nad as a leftover for $10,000 when he wanted almost $13,000 and wouldn't budge. I bought it from Toledo OH and had it shipped for $500. Paid taxes in RI on the sale and saved boo-cu dollars. Wake up...............if you work with people and look to increase sales you don't have to make a killing on one bike.......and sell higher volumes of bikes........as well.

Don't charge exorbitant prices for aftermarket and dealer parts.

Utilize the Internet more because there is so much potential.................

Anyway I've said my piece.

[phred]

Well said and well spoken.

[audiogooroo]

Every business man I know (myself included) has had to rethink their business model in order to survive in this economy. You adapt or you die. It's that simple.

[kenb]

There should be some incentive for the "service counter guy" to bring such conversations with customers to the manager/owner to revamp the business plan. He also knows there still is the customer that will buy goods and services from them no matter what the cost. He also knows there are people that go elsewhere for goods and services as well. He also has to put up with people that tell him they can get goods and services cheaper and can do it themselves. He knows they will usually buy something sooner or later. Its part of doing business.

[ringadingh]

If the suppliers on the internet can buy parts and sell them cheaper and still turn a profit I don't know why a dealer can't be competitive also. Most dealers stock very little inventory nowadays, therefore when they have to bring it in for you its already sold. They get there money when you pick it up and the deals done. I think some dealers are still living in the past where they think they are the only show in town.

[audiogooroo]

No doubt that dealers have a much greater overhead than web vendors. But some of the price differences are a bit much. Again, yet another reason to re-evaluate the way they do business.

[ringadingh]

Originally Posted by audiogooroo

No doubt that dealers have a much greater overhead than web vendors. But some of the price differences are a bit much. Again, yet another reason to re-evaluate the way they do business.

They do have more overhead, but there is nothing stopping them from selling online as well.
Smith Bros. in Alabama used to sell online when they had Sam in the parts dept, she's gone and they stopped selling online.
I called to buy a ignition switch, and she told me they don't ship to Canada. They didn't want to get involved with cross border shipping. A lot of places are intimated by shipping here, but once you do it, its really no different than any other location, a small form is all the extra paperwork to complete.

[AlabamaNomadRider]

Speaking of the cost of mounting a tire and balancing my local Honda, Kawasaki and Yamaha dealer charges $73 to take your wheel off your bike then take the old tire off and then balance and mount the new tire. He did mentioned that the balance carries a lifetime guarantee. Thanks a lot.

I purchased a Memphis Shades windshield off the internet for the last Honda I owned and it was being sold by a dealer in Arkansas at a very good price. So some dealers are using the internet. Others are behind the times.

[glwilson]

"Deflation"...

It has been happening all around in bits and pieces within various industries and businesses for the last three years.

Many businesses realize a bottom-line profit decrease in this cycle.

While it could be argued there is a benefit enjoyed by some in a deflationary environment; there are plenty of others that will lose the battle against its effects altogether.

The real problem in a deflationary cycle will be when interest rates rise to much higher levels; while downward price pressure continues to reduce profit margins. If you add-in stagnant growth of the GDP; which is typically the result when reduced profits are realized... well... now you have a concoction that most don't want to live through; and is in fact what many fear the most at the moment.

At that point... it becomes a real serious problem whereby the tools of the "FED" become almost useless to help -- thus those promoting Keynes' economic theory will find out why it is a flawed theory.

This IS the FED's biggest fear at the moment; because his tool-box is nearly empty.

On a good note... typically in history, it is during these periods where new industries, inventions, and such are created -- which have been known to lead into new cycles of prosperity.

[cactusjack]

Just because you are a motorcycle dealer, it doesn't make you an astute businessman. If these dealers could see beyond nickel and diming their customers to death, they would find there are a lot of things customers are willing to pay for. Value-added services, accessories, apparel and the like. Look at all the crap you can buy in an H-D dealership. People will pay for good service, but when you have to keep their bike in the shop a week because you don't stock a $3 gasket, the customer sees that as a week of riding lost forever.

I do my own wrenching, not because I'm cheap - because I want to know what work was done and that it was performed correctly. My dealer (who is no longer in business) was open inconvenient hours, didn't call to let me know my bike was done (I had to call them), and asked me how many cylinders my Nomad had once when I called to schedule an oil change. Make it hard for your customers to do business with you and your customers will go elsewhere.

[borto1990]

my local dealer sucks and I about refuse to go to him unless I"m in a pinch. when I bought my bike, I had cash in hand and he would barely look at me, went 30 miles away to another dealer and got the same bike 2K cheaper. I think, to me anyways, having some of the basic accessories IN STOCK... would go a LONG way. maybe like the popular grips, highway pegs and clamps. I just had an instance where I needed to switch my highway pegs from my 750 vulcan to the nomad. I needed new kury quick clamps.. NO ONE this side of the state had them in stock. I would have GLADLY spent oh, 20 bucks more then internet price to have them on for this ride. but hell, if I had to wait for them to order, I might as well do it myself. which is what I did.

[flightdoc]

Doing business with dealers can be difficult for sure. I'm considering purchasing a new Voyager and went to the local dealer I purchase accessories and those type of things from, the past seven years, and told them what I was considering and asked them if they were negotiable concerning pricing the way many dealers are who advertise on the internet......they said no way, won't discount a penny off the price of a bike and that if I did buy it elsewhere "where was I going to get it serviced from"?? Sounded like a threat to me. it bugs me that I give them a great deal of my hard earned cash and then the "real" dealer comes out of the closet for the big purchase. I guess they have the right to do it the way they want to do business but I would think, if it were me, that if a customer purchases a bike elsewhere that they would be very happy to service it for you. You'll most likely purchase aftermarket stuff for your bike thru them. When I get the answer I got and the attitude I'll just ake my money elsewhere......which is my right!!

vin

[nomad561]

The local dealer here won't get another dime of my money. I took my Nomad in for a rear tire change after I was told it would be $60 for the service. Dropped my bike off in the afternoon and called them the next day to schedule a time to pick it up.I was told it wasn't ready call back later. When I called later I was told it wouldn't be ready until the next day. I showed up to pick up my bike and was given a bill for $130. When I asked what the extra $70 over the quote I was given was for,I was told it was because they had to remove the bags . Talked to the tech,the service manager and the general manager. Pretty much got the same story"if you don't like the way we do business, go somewhere else. They ARE the ONLY Kawa dealer in the the area but not the only authorized service center.
BTW- they are hurting now due to the fact that Competition Accessories opened their internet distribution warehouse in town last year.

[reloader]

Sometimes the dealer poor attitude causes better choice. In my case I was getting ready to head east to Daytona for bike week with plans on buying a new bike from the reportedly #1 place to buy a H. D. (Rossmeyer). So I call them up and ask for the sales manager. Explained that I had the cash in hand for a new bike and gave him the the two models (Heritage and a Road King) I was interested in. I just wanted to set the price before hand. (had already searched around my area for listed prices). What I got from the manager was "I'll let the Road King go for MSRP and the Heritage I'll work with you". I told him again, I have the cash and will be buying a bike all I needed was a firm price. Again he just gave MSRP & I'll work with you. The call ended there. Having done recon at various dealerships I knew no one was asking full MSRP for any Road King. So much for the #1 Dealer.
At this point I began looking for more dealerships and other bikes. Long story short I ended up heading up to Tennessee instead of Bike Week and picked up my new 06 Nomad. So thanks Rossmeyer for helping me save a ton of money and getting a far better ride!

[billz410]

Originally Posted by cactusjack

Just because you are a motorcycle dealer, it doesn't make you an astute businessman. If these dealers could see beyond nickel and diming their customers to death, they would find there are a lot of things customers are willing to pay for. Value-added services, accessories, apparel and the like. Look at all the crap you can buy in an H-D dealership. People will pay for good service, but when you have to keep their bike in the shop a week because you don't stock a $3 gasket, the customer sees that as a week of riding lost forever.

I do my own wrenching, not because I'm cheap - because I want to know what work was done and that it was performed correctly. My dealer (who is no longer in business) was open inconvenient hours, didn't call to let me know my bike was done (I had to call them), and asked me how many cylinders my Nomad had once when I called to schedule an oil change. Make it hard for your customers to do business with you and your customers will go elsewhere.

A hearty amen to this....It would be nice to work with a dealer who knew what was actually going on, but when you have 19-year old kids on the sales floor who know nothing except Ninja's, and a service manager that asks you what cc is a 2008 Nomad, you begin to wonder.

There is a dealer in North Phoenix that has been pretty good, but a sixty mile drive into Phoenix for miscellaneous parts- it just ain't gonna happen.

I would say probably the worst Kawasaki dealer on the face of the earth would be Andrenalin Motorsports of Casa Grande, AZ. Needed two exhaust gaskets for a Nomad- only had one in stock. Phone may ring up to ten times before someone answers. Parts guy cannot talk on the phone and look up a part at the same time. Nothing in stock- ever.

I can order parts from a plethora of online vendors and have the parts quicker and for less money than a dealer. What do I owe a retail dealer? Knowing how to do your own work is part of motorcycling, as far as I'm concerned.