Price negotiation

[Crasherfromwayback]

Geeze Pete, you'd be paying way too much mate as content is 90% water and that's free.

Think you'll find his 'icecreams' have slightly different contents to most. Probably taste a tad salty.

[Muppet]

I know someone has to, but why you'd buy a brand new bike is beyond me. You'll always be the biggest loser of $$$$$

As far as all this extended warranty crap goes with regard to electrical goods, yet another con. I had a Bosch induction cook top throw its toys out of the cot a couple of years ago. It was out of it's 2-3 year warranty and the shop wasn't going to play ball. When I told them I don't expect something that cost (at the time) $3000 to fail after 2-3 years and quoted the Consumer Guarantees Act, they came to the party, I just paid for the labour which was bugger all.

I had a woman from an aluminium window company quote $2500 for a set of bi-folding windows. When I told her no thanks she said "Ok if I drop it to $1800 will you you sign up now?" So she was going to make money on $1800 and thought she'd throw in an extra $700 for good measure? Yeah right! I ended up getting wooden french doors from another bunch of assholes, but that's for another day....

[Crasherfromwayback]

I know someone has to, but why would you buy a brand new bike is beyond me. You'll always be the biggest loser.

.

Because if you can afford new, there's nothing nicer. Out of god knows how many bikes I've owned, the new ones are always the nicest.

[mossy1200]

I think its hard to make general statments on profit margins. Lets say a clothes shop buys shorts for $10 and sells for $30. They make 200% margin on the cost price but when you add wages,power,lease,theft and so on the operating cost of the shorts could be $20 so profit is now 50%. when that shop has a sale and has 50% off the book profit is negative but they are clearing an item away that may become unsold and the profit from presale has covered the other costs. So while making money they are also not making money on paper.
Reduced return is better than no return if you only have 3 size smalls and 2 size xxl.

Bike shops are going to operate differently. When you order a part they may work on cost plus 30% which would be a good margin on a part that hasnt been stocked using the shops money for a unknown time frame to make money. If its on the floor and on display the margin needs to be higher to cover the risk of slow sale or no sale.

Moving to bikes. Some bikes will be owned by the shop and some will be on consignment. The shop owned bikes will need to return a good margin to cover investment say 15%-20% but they wont want to reduce this profit alot unless the bike has become hard to move. The consignment bikes could be sold at reduced margins as long as the shop sees a couple of k to make the sale worth while. You may find the sales staff will see a total cost(cost plus expenses figure) in alot of cases and the owner operator will be the only person able to slash prices as low as possible so the shop manager can be the best person to barter with when buying high price items.

Or what im saying could be utter crap and crasha will most likely say so.

[Crasherfromwayback]

Or what im saying could be utter crap and crasha will most likely say so.

What you're saying is quite right. But margins on new bikes are slimmer than most would think, used as well now days.

[Drew]

I think its hard to make general statments on profit margins. Lets say a clothes shop buys shorts for $10 and sells for $30. They make 200% margin on the cost price but when you add wages,power,lease,theft and so on the operating cost of the shorts could be $20 so profit is now 50%. when that shop has a sale and has 50% off the book profit is negative but they are clearing an item away that may become unsold and the profit from presale has covered the other costs. So while making money they are also not making money on paper.
Reduced return is better than no return if you only have 3 size smalls and 2 size xxl.

Bike shops are going to operate differently. When you order a part they may work on cost plus 30% which would be a good margin on a part that hasnt been stocked using the shops money for a unknown time frame to make money. If its on the floor and on display the margin needs to be higher to cover the risk of slow sale or no sale.

Moving to bikes. Some bikes will be owned by the shop and some will be on consignment. The shop owned bikes will need to return a good margin to cover investment say 15%-20% but they wont want to reduce this profit alot unless the bike has become hard to move. The consignment bikes could be sold at reduced margins as long as the shop sees a couple of k to make the sale worth while. You may find the sales staff will see a total cost(cost plus expenses figure) in alot of cases and the owner operator will be the only person able to slash prices as low as possible so the shop manager can be the best person to barter with when buying high price items.

Or what im saying could be utter crap and crasha will most likely say so.

But wait a second, you and I seem to understand how it works, but Coneamahfone said that only the sellers took this side of the argument.

I'm confused.

[5150]

Or what im saying could be utter crap and crasha will most likely say so.

We should start "Just ask Crasher" thread

[Drew]

Wanted to explain what consignment stock is for those out of the know.

Essentially it's a wholesalers product on loan, you don't have to pay for it till you sell it. There is no or little difference to profit on them for what they are, there's just no cash outlay for the stock. So consignment stock also has a rising cost figure for time spent in the store.

[Crasherfromwayback]

We should start "Just ask Crasher" thread

lol. No, because a lot don't like the answers they're given.

[Drew]

lol. No, because a lot don't like the answers they're given.

Making it an even fucken better idea...Back in a mo with the link.

[Drew]

http://www.kiwibiker.co.nz/forums/sh...post1130352705

That was easy.

[HenryDorsetCase]

Because if you can afford new, there's nothing nicer. Out of god knows how many bikes I've owned, the new ones are always the nicest.

the other thing is if you intend to (or end up) keeping the vehicle for a long time: Owning from new means you know all its service history, and the bell curve flattens out a lot. I am tending to do that with cars, which are really just appliances, so they're on an 8 year replacement cycle. buying new also makes sense for a work vehicle (if you rbusiness is making a profit and you want to drive a new car and reduce your taxable income )

I know a guy whose business owned a "Forklift" that had a V twin engine and instead of Komatsu had a "Harley Davidson" badge.

[mossy1200]

Would i be correct to say that the increased savings on a run out model due to the next years version coming out would be because the shop has received a rebate from the NZ supplier to move the stock quickly so they can stock the latest model into the shops?

[Crasherfromwayback]

Would i be correct to say that the increased savings on a run out model due to the next years version coming out would be because the shop has received a rebate from the NZ supplier to move the stock quickly so they can stock the latest model into the shops?

Sometimes we get help, sometimes we wear it.

[mossy1200]

Sometimes we get help, sometimes we wear it.

Idd say that help is easier to get on consignment stock than rebates on shop owned stock