Dealer profit?

[scrivy]

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....

Dude, you forgot 1 weeks bereavement leave also....... or should I mean to say, have you deemed to have suffered a bereavement.......??????
$$$$$$$ all good money paid out by business owners.
I didn't get into business to become a social welfare provider!!

Customers just don't get the jist of what the term 'OVERHEADS' is!

[Headbanger]

The "customers" don't have to care or know about your overheads, Anymore then you need to care about their outgoings.

They are there to buy, You are there to sell, So find the common ground (price, product, service)....or not.

[boman]

My old boss used to say that a Dollar in his pocket was better than a dollar in the competitions poket. I have known him to make $300.00 profit on a $4000.00 set of mags rather than lose a sale. It usually paid off in return sales, ie punctures replacement tyres etc. It was handy to know that as long as some profit was made then he didn't care how much. It worked very successfully. Stock turn over was fast, and the benifits of selling lots of a certain product ment better buying on that product.

[Robert Taylor]

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.

Exactly! What also riles me is the amount of dishonesty that often happens when a bike is traded. Expensive faults that are not immediately obvious will not be disclosed by the owner. How many dealers have been scewed in this way?
Its little wonder that many dealers shy away from especially trading in 250cc 4 stroke MX bikes.

[Robert Taylor]

My old boss used to say that a Dollar in his pocket was better than a dollar in the competitions poket. I have known him to make $300.00 profit on a $4000.00 set of mags rather than lose a sale. It usually paid off in return sales, ie punctures replacement tyres etc. It was handy to know that as long as some profit was made then he didn't care how much. It worked very successfully. Stock turn over was fast, and the benifits of selling lots of a certain product ment better buying on that product.

Its also sending a message to the market that the product has little value, that creates a rod for everyones back and lowers living standards. Especially the wage packets of wage and salary earners. This self perpetuates.

[FROSTY:Me]

Its also sending a message to the market that the product has little value, that creates a rod for everyones back and lowers living standards. Especially the wage packets of wage and salary earners. This self perpetuates.

Indeed it does but then price fixing is against the law.
You sir have built your buisiness based on having a unique product and service and quite frankly I admire you for that.But there are a lot of us buisiness owners who don't have that luxury.
There are products --for example digital cameras you can buy from many different places. So if within a 1km circle one can buy EXACTLY the same product from 5 different stores for 5 different prices what do you do?
Go for the cheapest price?
Or offer the better reputation stores the opertunity to match the deal?

[boman]

Indeed it does but then price fixing is against the law.
You sir have built your buisiness based on having a unique product and service and quite frankly I admire you for that.But there are a lot of us buisiness owners who don't have that luxury.
There are products --for example digital cameras you can buy from many different places. So if within a 1km circle one can buy EXACTLY the same product from 5 different stores for 5 different prices what do you do?
Go for the cheapest price?
Or offer the better reputation stores the opertunity to match the deal?

You tend to go for the cheapest price, or the next best price if the service is better. It can be the difference, great service and good price, or ok service and a great price. I bought the Sv on a good price and great service. Never regretted the decision. The shop always delivers.

[Hinny]

My old boss used to say that a Dollar in his pocket was better than a dollar in the competitions poket. I have known him to make $300.00 profit on a $4000.00 set of mags rather than lose a sale. It usually paid off in return sales, ie punctures replacement tyres etc. It was handy to know that as long as some profit was made then he didn't care how much. It worked very successfully. Stock turn over was fast, and the benifits of selling lots of a certain product ment better buying on that product.

Succinctly summed up by a former employer...

"Half a loaf of bread is better than no bloody bread at all."

[sidecar bob]

The "customers" don't have to care or know about your overheads, Anymore then you need to care about their outgoings.

They are there to buy, You are there to sell, So find the common ground (price, product, service)....or not.

Yes, but in this case its not the dealer that has had a bleat on a public forum about how much the client is making.
What my clients are worth (& many of them are worth some millions) is none of my business. My business is to give them the best deal that i can, so they return with all their mates.

[Ducky848]

The shops margin is the difference between what they can get the goods for and what someone is prepared to pay for them. end of story.

The margins move, sometimes better sometimes not. Don't forget margin does not equal profit or cash in the pocket. Unless you have been in business you just won't understand how hard it can be to make margins that exceed overheads and leave anything left.

Many employees make more than their boss. Certainly get more holidays!!

[FROSTY:Me]

Many employees make more than their boss. Certainly get more holidays!!

I'd suggest nowadays thats more like MOST

[sidecar bob]

I'd suggest nowadays thats more like MOST

Id suggest youre right.

[Robert Taylor]

Indeed it does but then price fixing is against the law.
You sir have built your buisiness based on having a unique product and service and quite frankly I admire you for that.But there are a lot of us buisiness owners who don't have that luxury.
There are products --for example digital cameras you can buy from many different places. So if within a 1km circle one can buy EXACTLY the same product from 5 different stores for 5 different prices what do you do?
Go for the cheapest price?
Or offer the better reputation stores the opertunity to match the deal?

I wasnt suggesting price fixing. Im always for fair and resonable profit for every party involved and great service.
This dutch auction mentality is in the end event destructive to everybody.

[ynot slow]

I wasnt suggesting price fixing. Im always for fair and resonable profit for every party involved and great service.
This dutch auction mentality is in the end event destructive to everybody.

Have first hand from a manufacturer,who when they developed an excellent product about 15 yrs ago,the idea was the concept was the breakthrough technology meant no need to discount the item.Was distributed to select outlets,and the word from the directors(retailers) to staff was no one is discounting the item,supplier thought the wholesale price to retail was such that a good mark up was available to the retailer if everyone sold at rrp.Was ok for a while,then one outlet decided to discount,then back to square one.I personally went to my manager,and then to director to say can we match this price,in the end we matched a price from competitor in another town,made 2% after gst,but the client returned and spent more so worked both ways,we could've said we can't match and the other outlet has ongoing bussiness maybe.

[Morcs]

Remember he has to allow for haggling

This is true, especially in NZ. When I was selling boats, we had to add on about 2k to an average 30k boat just to allow for the fact that Kiwis will haggle - if you put the price at 28k, theyll want it for 26k say, so put the price at 30k, and theyll haggle to 28k.
We used to need $4k per $20k of boat we used to sell generally.