Bike shop profit margins?

[alanzs]

sorry to corect ya there dude. We claim GST on the purchace price but we PAY Gst on the sale price. so there is 12.5% GST on any NETT profit.


Can I put the boot on the other foot.
If you had taken say $300000 to buy a bike shop. Worked 12 hours a day 6 and (Mt eden MC as an example) 7 days a week what would you want back out of it?

Im not having a go just wondering how you folk think about this stuff

I'd want to make at least $100k (net) a year. Otherwise, why take the risks associated with owning a dealership/business.

[carver]

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.

feeling a little serious today?

http://www.kiwibiker.co.nz/forums/at...3&d=1142754619

why not meet me in person one day

http://www.kiwibiker.co.nz/forums/at...4&d=1142931629

[dpex]

This thread started out illuminating the significant differences between sundry retailers, and then went elsewhere.

So, to back up the bus for a moment I also notice that many Auckland bike shops have staff (particularly in the spares depts) with a significant attitude problem. I don't expect any staff to fawn over me, but I do expect them to notice I'm at the counter while they chat to others behind the counter or on the phone.

Perhaps they're seriously underpaid and thus the Peanuts/monkeys paradigm operates.

But then I discover places like Henderson Yamaha. I go in to buy a couple of screws and nearly always come away $500 poorer having been sold something I 'really' needed.

I have discovered I can buy some stuff way-cheaper than they charge but four things allow me to accept the extra margins. 1) They all just make me feel like I have some value to them. 2) They are always straight with me. No bullshit. 3) I can wander in and ask a question and get an answer without being made to feel I'm taking up their valuable time. 4) They are all, to fault, just damned nice people.

So I don't mind paying a bit extra.

By comparison...Last weekend I headed off to Manfield, bereft of any CO2 cylinders, lest I should get yet another bloody puncture....I seem to be prone to getting nails in my rear tyre.... The troops at Henderson Yamaha had none in stock but got on the phone. No luck.

From there I headed South and called into seven bike shops. All had the same attitude. My prob was too small amongst their very busy day. Till, finally, I entered the portals of Hamilton Motorcycles. The young bloke behind the counter was working two phones (they were short-staffed, I learned) plus there were three other folk in the shop wanting 'stuff'.

Somehow, in between working the phones and dealing with the others, this young bloke asked the nature of my problem, did three-second think and said, 'Over there's the coffee machine. I'll sort something out for ya. Might take a while.'

Jesus H Christ! A staffer with a good attitude. Twenty minutes later he'd sourced the cylinders, taken my money, given me a doc to take to the wholesaler who "never" allows customers to enter their doors, and my prob was solved.

Three cylinders cost me 30 bucks. What a rip-off! Did I mind? Not in the least. I'd had a staffer work out my problem like it was his own. I wouldn't have cared if they'd wanted 60 bucks cos he made me feel like I was a valuable customer.

So that covers the start of this thread.

Where it got to was profit margins. I think someone in this thread has made the point.... You want to make comments about profit margins, then go into business yourself. Until you have, or are, then kindly restrict your comments to stuff you know a bit about.

One particular car dealer of my acquaintance busts his hump seven days a week for an income for which I personally wouldn't get out of bed.

He's self employed and, as all self-employed suffer during the hard times, this guy does the 2am sweats, unlike employees whom, by simply turning up to do their job, get to put out their hands on Thursdays.

Someone else on this thread made the point about stock holding. I estimate that Henderson Yamaha are sitting on about $700,000 of stock, and upwards of $300,000 in equipment. Seven staff. That's $400,000 a year with wages and all other costs.

That means the business has to earn $32 an hour, 24/7, just to pay the wages, and I haven't mentioned rent, rates, phones, power, accounting, bureaucratic conformance, et al.

So the guy who owns it has to do better than bank-rates on his investment otherwise he may as well put his bucks in the bank and go fishing...or riding.

I have to say having been in business on my own for upwards of thirty years, the dude who runs Henderson Yamaha, and in fact any dude who runs a high-stock-value business has got way bigger nads than I will ever have.

And so I offer significant respect to any person who has the nads to set up a bike shop, but a I really do get quite annoyed when I find the conduit to their salvation, aka the staff dealing with customers su ch as I, have such a bad attitude.

[98tls]

Nice post dpex,ive sold cars for Toyota and Ford,sold bikes in a Suzuki dearlership and made bloody good money doing it,over the years since giving it away at times ive been appalled at the service offered in some dealerships once even writing a letter to the dealer principal (including a photocopy of my references to show i had some experiance in the game) suggesting if he wanted better sales figures to lose the loser he had out front.On the profit thing in my day it was 12% in a new car but rarely was it accomplished in fact ive often seen dealerships sell a car for no profit if approaching the end of a 1/4.

[fridsy]

This thread started out illuminating the significant differences between sundry retailers, and then went elsewhere.

So, to back up the bus for a moment I also notice that many Auckland bike shops have staff (particularly in the spares depts) with a significant attitude problem. I don't expect any staff to fawn over me, but I do expect them to notice I'm at the counter while they chat to others behind the counter or on the phone.

Perhaps they're seriously underpaid and thus the Peanuts/monkeys paradigm operates.

But then I discover places like Henderson Yamaha. I go in to buy a couple of screws and nearly always come away $500 poorer having been sold something I 'really' needed.

I have discovered I can buy some stuff way-cheaper than they charge but four things allow me to accept the extra margins. 1) They all just make me feel like I have some value to them. 2) They are always straight with me. No bullshit. 3) I can wander in and ask a question and get an answer without being made to feel I'm taking up their valuable time. 4) They are all, to fault, just damned nice people.

So I don't mind paying a bit extra.

By comparison...Last weekend I headed off to Manfield, bereft of any CO2 cylinders, lest I should get yet another bloody puncture....I seem to be prone to getting nails in my rear tyre.... The troops at Henderson Yamaha had none in stock but got on the phone. No luck.

From there I headed South and called into seven bike shops. All had the same attitude. My prob was too small amongst their very busy day. Till, finally, I entered the portals of Hamilton Motorcycles. The young bloke behind the counter was working two phones (they were short-staffed, I learned) plus there were three other folk in the shop wanting 'stuff'.

Somehow, in between working the phones and dealing with the others, this young bloke asked the nature of my problem, did three-second think and said, 'Over there's the coffee machine. I'll sort something out for ya. Might take a while.'

Jesus H Christ! A staffer with a good attitude. Twenty minutes later he'd sourced the cylinders, taken my money, given me a doc to take to the wholesaler who "never" allows customers to enter their doors, and my prob was solved.

Three cylinders cost me 30 bucks. What a rip-off! Did I mind? Not in the least. I'd had a staffer work out my problem like it was his own. I wouldn't have cared if they'd wanted 60 bucks cos he made me feel like I was a valuable customer.

So that covers the start of this thread.

Where it got to was profit margins. I think someone in this thread has made the point.... You want to make comments about profit margins, then go into business yourself. Until you have, or are, then kindly restrict your comments to stuff you know a bit about.

One particular car dealer of my acquaintance busts his hump seven days a week for an income for which I personally wouldn't get out of bed.

He's self employed and, as all self-employed suffer during the hard times, this guy does the 2am sweats, unlike employees whom, by simply turning up to do their job, get to put out their hands on Thursdays.

Someone else on this thread made the point about stock holding. I estimate that Henderson Yamaha are sitting on about $700,000 of stock, and upwards of $300,000 in equipment. Seven staff. That's $400,000 a year with wages and all other costs.

That means the business has to earn $32 an hour, 24/7, just to pay the wages, and I haven't mentioned rent, rates, phones, power, accounting, bureaucratic conformance, et al.

So the guy who owns it has to do better than bank-rates on his investment otherwise he may as well put his bucks in the bank and go fishing...or riding.

I have to say having been in business on my own for upwards of thirty years, the dude who runs Henderson Yamaha, and in fact any dude who runs a high-stock-value business has got way bigger nads than I will ever have.

And so I offer significant respect to any person who has the nads to set up a bike shop, but a I really do get quite annoyed when I find the conduit to their salvation, aka the staff dealing with customers su ch as I, have such a bad attitude.

AMEN!

The deal breaker of any retail outlet is the Staff! their attitude and commitment to GREAT customer service makes or breaks the business

[MadDuck]

Perhaps they're seriously underpaid and thus the Peanuts/monkeys paradigm operates.

Or perhaps the shop is quilty of not providing adequate training or supervision. But thats ok you can come on an internet and demean them..

So I don't mind paying a bit extra.

Yep I agree

From there I headed South and called into seven bike shops. All had the same attitude. My prob was too small amongst their very busy day.

Maybe they heard you were coming

Jesus H Christ! A staffer with a good attitude.

I was telling a KBer about the great service I got at an Auckland bike shop and described the person to them. They laughed and said that they had the opposite experience from the same person.

One particular car dealer of my acquaintance busts his hump seven days a week for an income for which I personally wouldn't get out of bed.

His choice. Theres a lot of businesses suffering out there.

I really do get quite annoyed when I find the conduit to their salvation, aka the staff dealing with customers su ch as I, have such a bad attitude.

Training and supervision. It aint that hard ah?

[98tls]

Or perhaps the shop is quilty of not providing adequate training or supervision. But thats ok you can come on an internet and demean them..



Yep I agree



Maybe they heard you were coming



I was telling a KBer about the great service I got at an Auckland bike shop and described the person to them. They laughed and said that they had the opposite experience from the same person.



His choice. Theres a lot of businesses suffering out there.



Training and supervision. It aint that hard ah?

Toyota used to (rarely) put us through a bit of a training course,the only thing i remember of them was when the bloke in summing up once said "all this aside people will generally deal with someone they like,even at times ignoring a better deal dollar wise",best salespeople i ever met where ones like myself who had had no training,basically put its about people skills methinks,the ability to deal with joe bloggs or Sir Joe Bloggs and never presume anything.The only thing that matters really is the numbers next to your name at the end of the month,how you do it doesnt matter if your top of the heap month in month out.

[MadDuck]

best salespeople i ever met where ones like myself who had had no training,basically put its about people skills methinks,the ability to deal with joe bloggs or Sir Joe Bloggs and never presume

That has to be one of the better responses. What service works for me will vary completely to what works for Mr Big hairy biker.

[98tls]

That has to be one of the better responses. What service works for me will vary completely to what works for Mr Big hairy biker.

Can still remember an Asian couple arriving on the yard about 5.30 ish one friday night,cars all locked up and in a hurry to get down to the pub with the rest of themthese 2 looked like a couple of street bums with not a $ between them,an hour later they came back with from memory mid $20,000 in cash and bought a GLX liftback demonstrator,bloody sales manager had gone home and i didnt have the safe combo so had to wait mucho boozing time before he turned up.Turned out these two owned a very succesful Asian resturant,as i say presume nothing.

[Swoop]

The last time i had my Aprilia at a shop the Demented salesman gave me a 1098 Duke to go back to work on. Now thats more like it!!

What a nutter. Who would ever go to a shop that does that.

I'm more worried about confidence in the service department.

Damn right. Confidence in their spares and "back-up" department is vital as well. Most dealerships forget this and put the "boy" in spares...
A dealership on Barry's Point Rd pops into the head for some reason.

Agreed, I've just gotten used to th amount of haggling that happens since I started working in a bike store. , A smile and a how is your day is nice when walking in the front door.

A quick learner...

[DMNTD:Me]

The last time i had my Aprilia at a shop the Demented salesman gave me a 1098 Duke to go back to work on. Now thats more like it!!

LOL...happy you enjoyed it Steve.
Not often you get offered a 1098 as a loan bike eh?
Damn I love my job!

[98tls]

LOL...happy you enjoyed it Steve.
Not often you get offered a 1098 as a loan bike eh?
Damn I love my job!

makes me wish id never givin the game away.

[MadDuck]

these 2 looked like a couple of street bums with not a $ between them,an hour later they came back with from memory mid $20,000 in cash

When I go to purchase anything that has a high (or reasonable) value I rock up in my dirty ole track pants. I find sales people leave me alone so I can have a good look around without being hounded.

Love to see their faces when I ask for a discount for cash

[DMNTD:Me]

makes me wish id never givin the game away.

It has its up sides for sure!
Last thing I was dong tonight was licking the fairing of a brand new Desmosedici...serious

[carver]

It has its up sides for sure!
Last thing I was dong tonight was licking the fairing of a brand new Desmosedici...serious

and people think the mormon few are gay!