Price negotiation

[HenryDorsetCase]

Depends if your trading a bike in on a new one,ive sold both bikes and cars for a living and more often than not the guy buying wants retail for his trade and to pay nothing for the new one.I remember when the profit margin was 12% in a new car so you want 15% off

But I thought the customer was always right?

[Maha]

My bike was $2K less than the black FZ8 right next to it because it 800Kms clocked up already.
Dealer Whealer had taken it around the Coromandel a week or so earlier.
So if you pay full retail on a bike, take it back in 2 days for its 1st service, try trading it in, it could be worth $2K less than what you paid for it 2 days prior.

I got them to do its 1st service before I rode away..by then it had about 930Kms on it due to my test ride.
ORC's/1st Service/Pack Rack all for no extra charge..Im happy.

[onearmedbandit]

anything you can pay cash for should be 15% straight off, especially if they're offering "finance"

I'm in car sales. We already lose when selling for cash, in other words we get a commission from the finance company for putting the finance through them. So when someone wants a discount for cash it's a very unlikable situation for us.

[Akzle]

Dude can you even count? 100% of $200 is...... $200.

200-175=25
100% x 25 =25,
25+25=50
200-50=150.

get it?

[Crasherfromwayback]

i've known people ot walk out of car yards with <50% off stickered price (the salesman was nearly crying). just walk around the car and point to every dent, scratch, uneven tyre wear etc etc etc.

consider that most stores have ~100% markup (profit margin), and can generally afford to go a lot lower than you'd think. but you wont know until you ask.
[/COLOR]

You've got no idea whatsoever.

[5150]

200-175=25
100% x 25 =25,
25+25=50
200-50=150.

get it?

Now where is my calculator?

[scott411]

GST exclusive both cases? 10% GP? really?

by the time the have assembled it, and freighted it (in some cases) it is about what most dealerships work off on average,

[bogan]

If I can buy something new off eBay including shipping and it ends up cheaper than buying exactly the same thing in NZ, then someone is making a lot of money.

Not if you buy it off ebay they're not I think the key error you make, is that someone, is actually someones, and the bike shops probably aren't at the top of that list.

As to the op, how about asking for some gear or servicing thrown into the deal?

[HenryDorsetCase]

by the time the have assembled it, and freighted it (in some cases) it is about what most dealerships work off on average,

but, but, but that is completely unsustainable! i.e. if you were a retailer, no way could you keep the doors open based on that. So new bikes are almost a loss leader?!??!

[tigertim20]

So guys when buying a "new" bike, how much do you think is appropriate negotiate off the price. Do you think there is a standard 15% off for cash etc when;

1) Buying New from a dealer
2) Buying Used from a dealer
3) Buying from a private seller

I read an article one time (about buying a cage) that used dealers expect you to negociate up to 15% off the sticker price.

what have your experences been. I had $2k knocked of the hornet when I bought that from a dealer used.

Ive not read the other answers, but you need to mark the article you read as total bullshit.
the margins on cars and bikes are very slim.

When buying a new bike from a dealer, you might, MIGHT get a couple hundred off the bike, what you will have more success with though, is asking what they could throw in for you, like say a helmet and a pair of gloves, or a jacket, maybe a voucher for some rider training instead, or 15% discount on labour for any servicing for the next 18 months etc etc etc.

buying used from a dealer, same deal, it might look like they make money, but they take the risk, and the hit if the second hand bike lunches its engine in a week, and there are other costs for the dealer.

buying from a private seller is a totally different matter entirely, from what I can see, the majority of people inflate their prices quite heavily, because they expect some bargaining, however there are those who state their price, and will not accept a dollar over it - which is fair enough. I fall closer to the second category than the first.

[tigertim20]

If I can buy something new off eBay including shipping and it ends up cheaper than buying exactly the same thing in NZ, then someone is making a lot of money.

here are a few things youve failed to consider.
a retailer/dealer pays probably the same (or very close to) as you have for the item.
then they pay import duties and tariffs etc.
they then have to factor in GST to their sale price.
then they have to add a small amount to ensure they make a profit - remember that this profit needs to consider overheads, do you have any idea how much it costs in rent or mortgage payments on a business premise? the amount of electricity just for being open? advertising to get the customer there in the first place? wages for sales staff who have to be paid all day, even though they might spend 4 hours a day doing fuckall cos no customers have come in yet have to stay there, getting paid, in case someone comes in and wants something?

there is much, much more to it than you realise.

But I thought the customer always thinks they are right

I fixed that for you

You've got no idea whatsoever.

+1

by the time the have assembled it, and freighted it (in some cases) it is about what most dealerships work off on average,

these are yet more costs!

[98tls]

i've known people ot walk out of car yards with <50% off stickered price (the salesman was nearly crying). just walk around the car and point to every dent, scratch, uneven tyre wear etc etc etc.

I spent many years selling Toyotas and Fords,never once did i see someone buy a car for 50% of window price,or nowhere near it.Cant imagine it happening to be honest,at times we a set fairly high asking price.if its a good car and its just come into stock why not you never know but no dealer ive ever met could afford to inflate the asking price 50%,that aside the salesman wouldnt be crying he gets paid by units out the door not what they sell for.

[98tls]

Will just add that in many cases franchised dealers end up making fuck all outta new cars,its the second hand cars and the service dept that keeps them afloat.

[Drew]

but, but, but that is completely unsustainable! i.e. if you were a retailer, no way could you keep the doors open based on that. So new bikes are almost a loss leader?!??!

There is a lot of robbing Peter to pay Paul between bike shop departments. There is fuck all money in the bikes themselves.

If there was $2000 profit in a bike, consider the fact that said bike is in a shop that cost money, with sales people needing to be paid for waiting for a buyer, if it's a demostrator or used, warrants to be paid for every six months, lights running to make it look shiney, and so on and so fourth.

I happen to have a very close mate that owns a successful bike shop, you'd be surprised how little profit the business makes.

So if you do happen accross a bike you like, can afford, near you, don't be offended when you get laughed out of the shop for trying to get 15% off.

[onearmedbandit]

but, but, but that is completely unsustainable! i.e. if you were a retailer, no way could you keep the doors open based on that. So new bikes are almost a loss leader?!??!

It's been said here before that most if not all new dealers rely on service and parts to keep the businesses open. Selling the bike/car is just the vehicle to getting paid for servicing/repairs/parts.

Same as electrical goods (from a salespersons perspective). A new TV/Fridge/Washing machine will have 22-24% in it. Almost every weekend there is a '20%' off sale. Salesperson gets paid 5% of profit. So on a $1000 TV with 20% off you could expect that TV will earn the salesperson a few dollars commission. Where they make their money is in the extras, warranties, cables, cleaning cloths (I kid you not). These products have up to 70% (and in some instances much more - 'Monster' brand HDMI cables for $400??) profit in them.