Dealer profit?

[ynot slow]

Was going to say trade maybe $14000,with hope he made more from what was traded on,then only having so called cosmetic cleaning to resell.He may have a buyer for your bike (if applicable)and also hoping you will buy from him associated parts,and or use his workshop services.

Makes some retail margins seem either large or small,have seen beds sold at wholesale x 2.1.

[YellowDog]

How do you know that price wasn't left on the screen for you to see?

IMO - No motorcycle dealer is that stupid or would make such a small return.

[IdunBrokdItAgin]

I always work on the assumption that bike shops make around 20% profit on everything. That is profit before expenses mind. The expense aspect to shops has already been listed above.

The reason for my guess of 20% is that most dealers offer discount cards of 10% with the purchase of a bike (and yes I know this is on gear and accessories only not purchases of other bikes). So if they are content to give away an ongoing 10% profit margin to secure a large deal then I must assume that the remaining profit margin must be equal to or larger than that.

Just my 2c.

[mynameis]

Well if he bought it for $14.5k and sold it for $16k to you that's a markup of about 10.5%.

$1.5k in profit margin, take out all the 101 expenses I'd say he would be left with $500 or less.

Fuck all money for the amount of work involved to be perfectly honest. I hope his other deals are better.

[McJim]

I used to sell flat packed kitchens in the UK in the late eighties. A markup of 400% was not uncommon. People wondered how we could knock 60% off the price of a kitchen sometimes.

Usual rules apply though - if you can shift more units per period you can afford to make less profit per unit.

Maybe he's flicking losts of bikes really fast so he can afford to give you a good bargain.

[Headbanger]

Or maybe that figure of $14500 was the lowest figure he could go down to before the manager kicked his arse.......

[Pedrostt500]

The way I look at it is , you can go for a big proffit margin and have the bike sitting on the show room floor for months on end, taking up valuble floor space, or you can shave the proffit back, turn the bike over faster, thus making it look as though you are getting fresh stock through the shop, and keeping the cash turn over happening.

If your shop has a lease of $ 15 per foot per anum, and you have an object wort $10, that is one foot square in the middle of your shop and you need a clear space of one foot right around the object, ate the end of the year that object would have to sell for $ 135 just to reclaim what it owes you in rent.

[mynameis]

I used to sell flat packed kitchens in the UK in the late eighties. A markup of 400% was not uncommon. People wondered how we could knock 60% off the price of a kitchen sometimes.

Usual rules apply though - if you can shift more units per period you can afford to make less profit per unit.

Maybe he's flicking losts of bikes really fast so he can afford to give you a good bargain.

Not in little ol New Zealand.

Or maybe that figure of $14500 was the lowest figure he could go down to before the manager kicked his arse.......

Could be, just doesn't sound right to me anyway. Could also be a one off case.

[Sparky Bills]

Its been said before but dealer margins are crap.
It pretty much costs a dealer money when selling a scooter. Next to no margin in those.

Oh what am I saying!!? Dealers are sharks who make huge amounts of money!
Thats why they all drive around in the Lambo's...

[breakaway]

Quit bitching so much. You have no idea of the overheads that the dealer has to put up with.

[Swoop]

you can go for a big proffit margin and have the bike sitting on the show room floor for months on end, taking up valuble floor space

A great comment from Kerry at KTL, was "I want to sell bikes, not collect them and have them taking up floor space". I was quite impressed with his attitude... and also the great service!

[sidecar bob]

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.

4) ACC. (all you guys are bleating about your bike ACC but my business already pays over 10k a year ACC)
5) Tax
6) Sick pay, stat hols
7) Rates, (all paid by the business wether you are tenant or building owner)
8) Plant repairs & replacements.
9) Company vehicle upkeep, rego insurance.
10) bad debts from losers that think you are rich & they dont have to pay.
11) The list goes on & on, Only a munter would complain that a business had a very small gross profit margin on a product.
Oh, and for all our trouble of being in business, it would be nice to make at least as much as our highest paid staff member at the end of it all.
Not something that all business owners do.

[steve_t]

4) ACC. (all you guys are bleating about your bike ACC but my business already pays over 10k a year ACC)
5) Tax
6) Sick pay, stat hols
7) Rates, (all paid by the business wether you are tenant or building owner)
8) Plant repairs & replacements.
9) Company vehicle upkeep, rego insurance.
10) bad debts from losers that think you are rich & they dont have to pay.
11) The list goes on & on, Only a munter would complain that a business had a very small gross profit margin on a product.
Oh, and for all our trouble of being in business, it would be nice to make at least as much as our highest paid staff member at the end of it all.
Not something that all business owners do.

Could there be any more stat holidays?! As an employer there are WAY TOO MANY!
But I'm sure all the employees around here are gonna say there are way too few

[FROSTY:Me]

Could there be any more stat holidays?! As an employer there are WAY TOO MANY!
But I'm sure all the employees around here are gonna say there are way too few

Actually dude I have an issue with stat holidays. To me ALL non essential organisations should shut down for ALL stat holidays.
Logic says that for example if ALL car dealers had to close it would affect profit not one tiny bit. Same with the likes of red shed etc.

[R1madness]

I dont mind my guys getting time off. The work hard for my business, but still 4 weeks annual leave, 1 week sick leave and 2 weeks of stat days is probibly enough.... That totals to almost 2 months of the year off per employee. Not counting the odd goodwill 1/2 day here and there as well.
I wonder when i get a holiday lol....