Bike shop profit margins?

[AllanB]

They will stock what sells and what they hope will sell – everything else can be ordered in.
A couple of the importer have had the bright idea to product a booklet with their goodies in free at the shops – “Road Guide” springs to mind, your shop can order anything you desire from his.

With respect to holding stock in Christchurch tyres are pretty much covered by two tyre specialists – Pit Lane and Budget – many of the shops no longer stock tyres and just send you to them. One shop commented to me that it works well as they do not need to hold thousands of dollars of stock in tyres – more money for bikes.

Basically if you don’t like the service go elsewhere.

[cave weta]

... and what sage advice awaits those that don't own a business? Shop somewhere else perhaps? Get the best deal you can by shopping around? Don't bitch and moan about others when all you need to do is move along?

A heads up about your experiences with a particular bike shop is fine - if there is a balancing right of reply. Or is this the interweb prerogative being exercised yet again, beating up someone in their absence... again... ?

A balanced right of reply!?- im not sure whether you are addressing me personally or all the people who have posted here....
But if you read my posts more carefully - you should see that I started by backing up Carvers tyre purchasing experience with a damn good bike shop!
then I mentioned that another shop that sells Aprilias- not sure of its name-
was taking a different approach to customer service. And further down my dealings with another Hamilton Dirt Bike Specialist Store...This has just been
"A HEADS UP ON MY EXPERIENCES"

[FROSTY:Me]

I'm probably kinda qualified to answer this one.
Its bloody hard in todays market to find a balance that works.
To stay open in reality its not about making margin its about $$$$$
After paying rent,power ,phones,wages,warranty claims we need to actually make money or we might just as well go on the dole.
So one shops philosophy. --Lots of staff each taking say $500-600 from the business (thats about 400-500 nett by the way) might well work for them as long as they keep selling lots of accessories.
Another shop might think sod it -less staff cuts the overheads so we make our money that way .
Either way you should do the best you can to offer good customer service. People tend to talk with their feet if you do or dont.

[Katman]

you should see that I started by backing up Carvers tyre purchasing experience with a damn good bike shop!

My workshop would be selling at a loss if I tried to match the deal Carver's got.

Are you suggesting that's what I should do?

[Ducky848]

Last 2 times my bike was in the shop they did it whilst i waited
Now thats service

Or a really quiet day and they had nothing else on........

The best form of service is simply dealing with someone who under-promises and over-delivers.

I'm also reminded of the 2 outta 3 rule:

The 3 things a customer wants:

Cheapest price
Best Quality
Fastest Service

You can only ever have 2 of these things...very, very seldom do you get all 3.

You choose.

[cave weta]

My workshop would be selling at a loss if I tried to match the deal Carver's got.

Are you suggesting that's what I should do?

I sell bikes too - just for the day though, and I fix bikes- just for me though,

and I provide customer service too- just like you guys. So Im kinda in the same boat.

But now that you have read what the buying public have to say about one or two different shops- Its plain to see that it is a balance - but the next man who walks into your store with a helmet in his hand is the most important customer you have ever had- make him feel that way and he will be.
I recon that some operators need a wakeup thats all!

You know that you do your best- its just that some bike dealers have the wrong attitude- and yes.... we old bastards have heard it all before. But the newbies reading this need to understand that a big shiny showroom doesnt always mean that its a safe place to spend your money...

Years ago I bought My first bike from Manurewa Motorcycles, shiny showroom - gullible young bloke with access to finance- the bastard saw me coming! - his business went broke eventually, but he ripped off countless naieve teenagers before Suzuki took his franchise away from him and he closed up.

[Crasherfromwayback]

If you go back and carefully read again what I said.....

All I have said is that there are a couple of different approaches to retailing
and the customers prefer the one that benefits them.

If you own a business and it is not doing well - dont jump on me for making you feel that you could be doing better- get around the other shops and see what makes them more successful!

I read and fully understood what you said don't worry. You slagged a shop off, not knowing what their particular circumstances are. Yeah Boyds may have 20 people running round doing the bizz...and that's probably why they can pass stuff on at a better price...because they're going through more from a particular wholesaler...they're probably getting it at a better price.

I've worked in BOTH small and LARGE dealerships over 21 years (3 here in Welly and 2 in Brisbane)...and in that time dealt with many more.

99% of dealerships are owned by motorcycle enthusiasts that are simply trying to have a lifestyle and pay the bills. I've yet to meet anyone that owns ANY motorcycle shop that wants to or intends to rip people off.

So no mate...I'm working for a dealership that's been round for 35 years and has always done just fine...but I also sympathise for the lil guys.

Give them a break.

[cave weta]

I read and fully understood what you said don't worry. You slagged a shop off, not knowing what their particular circumstances are. Yeah Boyds may have 20 people running round doing the bizz...and that's probably why they can pass stuff on at a better price...because they're going through more from a particular wholesaler...they're probably getting it at a better price.

I've worked in BOTH small and LARGE dealerships over 21 years (3 here in Welly and 2 in Brisbane)...and in that time dealt with many more.

99% of dealerships are owned by motorcycle enthusiasts that are simply trying to have a lifestyle and pay the bills. I've yet to meet anyone that owns ANY motorcycle shop that wants to or intends to rip people off.

So no mate...I'm working for a dealership that's been round for 35 years and has always done just fine...but I also sympathise for the lil guys.

Give them a break.

The little guys... OK Top Fun is a one man band and is getting bigger and bigger year by year, check out his online store - www.topfun.co.nz
he has what you want and at a good price.he has hoards of customers every day proving that it can be done.

The un named Aprilia shop that has huge margins on all their stuff and treat you like shit is always empty.

My point isnt small vs large, it started as high margin vs low margin but other posters turned it into bad vs good.

Must admit though- that the stories that came out about the Aprilia shop totally made my mind up about them. (by the way- I would say thay are mid sized with about 4 staff)

[retro asian]

Yeah, give the shops a break... I haven't found any to be too overpriced so far...

We want them to make money and stay in business, for our convenience.

Otherwise I'll have to open a bike stall at the Sunday markets selling fake FOX gear, and the like. Prices will start on a 3 times mark up -if you're good you can haggle down to 10% margin...

[SwanTiger]

I will not bother reading through this thread, however after skim reading through the initial post and realising it relates to Carver, I will offer this input; Carver is a piece of shit and a retarded imbred idiot who poses a real threat to the future generations of New Zealand if he breeds.

[vifferman]

Carver is a piece of shit and a retarded imbred idiot who poses a real threat to the future generations of New Zealand if he breeds.

So... you quite like him then?

[nallac]

ummm, this didn't start off as a shop bashing thread altho everyone else turned it in to one....
it was a simple question does anyone know of other shops who are doing/do well compared to others,? similar to Boyds in hamihole.
only been in there once came away impressed .(with free stuff).

[alanzs]

When I purchase a bike, It has to be a win-win for everyone involved, or I go elsewhere. I expect to be treated fairly; get a fair deal on a trade in and a fair deal on the new bike. If I feel like the sharks are circling, trying to rip me off, I walk.

If it's a win-win situation I will be a loyal happy customer and spend a lot of my money there and tell others about it. Very simple.

[FROSTY:Me]

Hey folks Im interested to hear
What do you concider a fair profit from a bike ??
$100,$500,$1000 , $1500 $2000??

Ok so what mark up on cost do you think a shop has to make to acheive this?




Before you answer take this into concideration.
Aunty helen takes 12.5% of the profit
All operating expenses of the business have to be paid from the profit.
Including rent,rates,power phone,advertising,staff,insurance,and cost of stock
All warranty claims have to be covered from that profit.
So what then would you say is Fair?

[Pussy]

When I bought my K3 GSX-R1000 brand new, the selling dealer showed me the invoice from Suzuki NZ. I was surprised how little was actually in it for the dealer.
All I expect is a fair deal, too. For everyone involved