Dealer profit?

[Motu]

What do you do for a living? Do you or your boss get enough return to make a reasonablr living.If you are an employee,if he made more money on the products or services,then you could get a pay increase....are you worth it? If self employed do you make enough on your products or services to make a living,give your employees a reasonable wage...do you make enough to put money into your business to allow growth?

Apart from insurance companies,finance companies and banks,everyone is entitled to earn a decent living.

[p.dath]

I would think 20% to 25% mark up would be appropriate. If it is a low value bike, then maybe 30%. There are a lot of costs, and part of the cost of being a good dealer is paying for some issue - even though you strictly shouldn't have to.

[triple-bee]

OK i will give u the numbers I am happy with the deal but i just wanted opinions

Bike was advertised at $16,750 NZD I got it down to 16K with a $400 helmet thrown in

Saw the e mail bike stood him at $1450,


I ended up getting a free $500 helmet so his profit was a grand I did take the hump a bit but rang the wife who thought it was quite reasonable like i said i am happy with the deal and will probably use the guy again

[Mully]

OK i will give u the numbers I am happy with the deal but i just wanted opinions

Bike was advertised at $16,750 NZD I got it down to 16K with a $400 helmet thrown in

Saw the e mail bike stood him at $1450,


I ended up getting a free $500 helmet so his profit was a grand I did take the hump a bit but rang the wife who thought it was quite reasonable like i said i am happy with the deal and will probably use the guy again

Presume you mean $14,500....

If you're happy, and he's happy, there's no issue.

You maybe could have saved $1k buying privately, but you'd have no comeback if something needed doing. To my mind, that piece of mind is well worth $1K.

[klyong82]

Could the dealer be selling the bike on behalf of the seller? Hence the small markup?

I know I traded a Fireblade for 6k and they sold it for 8k a month later but thats an old bike.

[p.dath]

...
Bike was advertised at $16,750 NZD I got it down to 16K with a $400 helmet thrown in

Saw the e mail bike stood him at $1450,
...

If that was meant to be $14,500, then that is about a 15% mark up. You were treated fairly.

[steve_t]

Holy crap. That dealer gave you a GREAT deal!! No wonder you're happy!! You should definitely buy from him again and know that you're getting great value

[Cr1MiNaL]

If a dealer isn't making $1500 Nett profit then he wont be in buisiness very long.
Keep in mind dude theeres a few "hidden" costs to add to that cost price.
1) rent,power,phone,insurances on the building are paid from profit on sales
2) wages
3) sales staff commissions.

I presume and hope the above mentioned costs were not "hidden" to the dealer! Then again a business with a good business and marketing plan should not have any "hidden" costs. Costs only become hidden because they were not planned for e.g. a tax bill in the first year payable in the second year with the second year's tax. Are you getting confused between fixed costs and variable costs?

[Headbanger]

Based on those figures I wouldn't want to be a motorcycle dealer. I'd be gutted.

[p.dath]

I presume and hope the above mentioned costs were not "hidden" to the dealer! Then again a business with a good business and marketing plan should not have any "hidden" costs. Costs only become hidden because they were not planned for e.g. a tax bill in the first year payable in the second year with the second year's tax. Are you getting confused between fixed costs and variable costs?

Frosty was meaning the costs are hidden to the buyer, not the dealer. e,g. The buyer has no idea what the component of the gross profit is that goes towards paying the building lease (for example).

[Cr1MiNaL]

Frosty was meaning the costs are hidden to the buyer, not the dealer. e,g. The buyer has no idea what the component of the gross profit is that goes towards paying the building lease (for example).

Well in that case that statement was so rhetorical it is almost redundant.

[smokeyging]

OK i will give u the numbers I am happy with the deal but i just wanted opinions

Bike was advertised at $16,750 NZD I got it down to 16K with a $400 helmet thrown in

Saw the e mail bike stood him at $1450,


I ended up getting a free $500 helmet so his profit was a grand I did take the hump a bit but rang the wife who thought it was quite reasonable like i said i am happy with the deal and will probably use the guy again

that guy is cutting it fine on a bike that price, hardly pay the rent. i'd be looking after that dealer, those guys are hard to come by.

[mossy1200]

Remember as well the markup on the bike is irrelevant as we have no info on what deal was done for them to secure the bike.They may have made good money to secure it or very little.Markup would be low for the shop at those figures.Remember for every bike sold quick theres the bike they have had in stock for 6months or more that ends up selling at cost to clear and held up thousands for ex amount of months.Alot of bike shops run because the shop owner loves bikes as much as money.I would suggest that return on investment could be higher selling different products.Also for every week they sells lots of bikes there is weeks they sell none or one but they pay staff and costs every week.

Was a sharp price at your end.Good buying.

[nallac]

shit i thought there would've been more of a profit margin than that.

cuts it fine for haggling and any come backs.+keeping the Business afloat.
only a grand profit you'd want to sell at least 10 per week to keep everything
humming a long and pay everyones wages,pay the tax man etc

[danchop]

i remember when the gn250s were released here again a few years back the profit was about $300 gross and you should see what the workshop guys had to do with putting the ferkers together!