19 Kaw 450 price? In a pickle

Indy mxer
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Linton, IN US
9/4/2018 3:17pm
gristle568 wrote:
Dealer cost for one at my local kawi dealership is $8380. they are gonna sell me one for that plus tax. not sure if the bigger...
Dealer cost for one at my local kawi dealership is $8380. they are gonna sell me one for that plus tax. not sure if the bigger dealerships that order more units get a better price but they only ordered 3 of them.
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business. I could...
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business.

I could be wrong about that, and im sure there are a million loop holes
My brother has been a Kaw/Suz/Polaris dealer for many years. My oldest son works in sales there.
Dealers pay the same for the bikes.

But they can get better finance terms from the OEM when the buy quantity. Or get a discount on an accessories package. Sometimes if they take enough they can get a free bike. Like a KLX-140. But that's not too common.

Dealers really don't make much on bikes, especially offroad bikes. He's happy if he can make 100 bucks.
And with the internet they don't make much on parts and gear. Since many riders buy online.

Although, they do well on SxS's plus all the parts and accessories for them.
You can spend a bunch on those things, I know, I have a Kawasaki Teryx my wife and I cruise around on. lol

1
BS12
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9/5/2018 12:21am
Just got a deal lined up 8300 otd at a different shop my buddy rides for. My local shop will be probably be bummed seeing how...
Just got a deal lined up 8300 otd at a different shop my buddy rides for. My local shop will be probably be bummed seeing how my family has bought all our bikes there since they have opened years and years ago, but they offered me a deal roughly $1,700 more.
BS12 wrote:
There's a good chance your dealer will be happy to see you go if you are continuing to hound them on price every time you purchase...
There's a good chance your dealer will be happy to see you go if you are continuing to hound them on price every time you purchase a bike, and then shopping it around further.
Spydee wrote:
You never heard of haggling? Dealerships expect their customers to haggle... don't tell me you're one of those people who pay the price they see on...
You never heard of haggling? Dealerships expect their customers to haggle... don't tell me you're one of those people who pay the price they see on the price tag? Don't get me wrong, you couldn't haggle at a grocery store, but when purchasing a high value item such as a vehicle, dealerships expect their customers to haggle, and their price tags are adjusted for this.
The responses after yours justify my initial comment.

If the dealer is only making say 15% on MSRP (I could be way off on this) and they're getting haggled down to the point where the bike is going out at cost + tax, it makes no financial sense beyond moving units, except you've had to deal with a haggler for however long. Again as assumption here, but unless the customer is buying parts and accessories continuously from the store, what's the point in letting a bike go at cost if you're never going to see that customer again?

I do agree however that when the shoe is on the other foot (dealer offering prices for trades) that haggling appears fair game to them.
1
Spydee
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Wales GB
9/5/2018 2:07am
Yeah I see what you mean dude, and I do agree to that extent that it's not in the interest of the business to lose profit or even break even just to keep one customer happy. Guess it depends on their margins. Some businesses just can't beat a deal offered elsewhere.
2
NeedMoto
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Lincoln, CA US
9/6/2018 4:57pm
pummel wrote:
PM me for a price quote- Probably best deal you can get..
I sent you a PM for a quote.

Let me know!

Thanks!

The Shop

pummel
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9/7/2018 4:46pm
Anyone trying to IM me I didn't have my account set up right so I didn't get them hopefully I have it fixed.
Ozy
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9/23/2018 3:35pm
Just got a deal lined up 8300 otd at a different shop my buddy rides for. My local shop will be probably be bummed seeing how...
Just got a deal lined up 8300 otd at a different shop my buddy rides for. My local shop will be probably be bummed seeing how my family has bought all our bikes there since they have opened years and years ago, but they offered me a deal roughly $1,700 more.
Did you buy the 19 kawi? what dealer did you buy from?
honda65
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Post Falls, ID US
9/26/2018 11:59pm
Tpog496 wrote:
Is this a fact? Are dealerships only making less than 10% on a 9000$ investment?
kkawboy14 wrote:
Yes that’s why they hit you with all the “others”

Car dealers try to make $1000-$2200 on a car
Tpog496 wrote:
I have a hard time believing they only make 900$ selling a bike at MSRP. I have worked sales in a few different industries and margins...
I have a hard time believing they only make 900$ selling a bike at MSRP. I have worked sales in a few different industries and margins were always between 30 and 40%. If that is the case than the dealerships have lost a substantial amount of money on every bike I've ever purchased.
I sold bikes for 20 years and yes, they operate on a 10-15% margin with a 2-5% dealer holdback. Frankly I cannot believe that a dealer is selling one for 8300, 8400. Maybe before a high freight and setup but no way OTD and doubtful at a base price before taxes (if applicable)
2
1
honda65
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9/27/2018 12:04am
gristle568 wrote:
Dealer cost for one at my local kawi dealership is $8380. they are gonna sell me one for that plus tax. not sure if the bigger...
Dealer cost for one at my local kawi dealership is $8380. they are gonna sell me one for that plus tax. not sure if the bigger dealerships that order more units get a better price but they only ordered 3 of them.
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business. I could...
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business.

I could be wrong about that, and im sure there are a million loop holes
kkawboy14 wrote:
Typically in that kind of sales world the price is the same for everyone per unit BUT if you order 5 right now we will give...
Typically in that kind of sales world the price is the same for everyone per unit BUT if you order 5 right now we will give you a free one OR if you sell 20 you will get a big bonus check back from a manufacturer, in the form of a quantity sales incentive. That way “Technically” they aren’t lying about the price!
A dealer would have to buy way more than 5 bikes to get anything free. Like 50- 100. And even then probably not free but greatly reduced like a Team Green deal. The dealership that Pummel works for (not 100% sure but I'd bet money on it) gets 6 demos a year that they give to local industry reps or small shop owners, only 1 or 2 racers gets one. But of course they have to give them back after a year
honda65
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9/27/2018 12:06am
pummel wrote:
PM Me I'll hook you up-
Are your initials BP?
pummel
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9/27/2018 9:38am
You got it.
jeffro503
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9/27/2018 10:55am
Ben and Dave!! You both own 19' Kawi's and I know a guy up this way who would really , really , really like / appreciate to test one out before he buys one. Laughing think you guys might know him as the coolest guy you ever met , and definitely a legend around these parts haha. That guy will be at Albany on Saturday if either of you can make it.
Wade221
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9/27/2018 2:16pm
pummel wrote:
Anyone trying to IM me I didn't have my account set up right so I didn't get them hopefully I have it fixed.
PM sent
jeffro503
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9/27/2018 2:36pm
jeffro503 wrote:
Ben and Dave!! You both own 19' Kawi's and I know a guy up this way who would really , really , really like / appreciate...
Ben and Dave!! You both own 19' Kawi's and I know a guy up this way who would really , really , really like / appreciate to test one out before he buys one. Laughing think you guys might know him as the coolest guy you ever met , and definitely a legend around these parts haha. That guy will be at Albany on Saturday if either of you can make it.
Plans just changed. Can't make it now damn it.
pummel
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9/27/2018 2:45pm
Unfortunately I have to work Saturday anyway--
MX558
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9/28/2018 7:28am
kkawboy14 wrote:
Yes that’s why they hit you with all the “others”

Car dealers try to make $1000-$2200 on a car
Tpog496 wrote:
I have a hard time believing they only make 900$ selling a bike at MSRP. I have worked sales in a few different industries and margins...
I have a hard time believing they only make 900$ selling a bike at MSRP. I have worked sales in a few different industries and margins were always between 30 and 40%. If that is the case than the dealerships have lost a substantial amount of money on every bike I've ever purchased.
honda65 wrote:
I sold bikes for 20 years and yes, they operate on a 10-15% margin with a 2-5% dealer holdback. Frankly I cannot believe that a dealer...
I sold bikes for 20 years and yes, they operate on a 10-15% margin with a 2-5% dealer holdback. Frankly I cannot believe that a dealer is selling one for 8300, 8400. Maybe before a high freight and setup but no way OTD and doubtful at a base price before taxes (if applicable)
I paid 8800 otd including taxes even IL taxes lol .
9/28/2018 9:51am
So for Dealers..how do they square loosing 1000's every year on non-currents?
GPrider
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La Mesa, CA US
9/28/2018 10:07am
RiverockMX wrote:
So for Dealers..how do they square loosing 1000's every year on non-currents?
its not the dealers losing cash, the manufactures create the factory discounts, dealers are just passing it along
honda65
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Post Falls, ID US
2/17/2020 1:23pm
I know this thread is a year and a half old but now left over 19s range from 6500 to 6850 OTD. I just bought a 2020 for 7498 OTD. And I bought in Oregon so no sales tax
2
2/17/2020 10:55pm
I know when I worked for Chrysler credit a lifetime ago, the MSRP on the vehicles was between 15 - 17% markup on dealer cost. There was also holdback that the dealers would get from the manufacturer on the sale of units. You need to take into account the floor plan financing the dealer is using. Chrysler used to give free floor plan financing for up to 90 days on units that the manufacturer wanted to move and less on other models. Floor plan finance charges can eat up margin real quickly so dealers have an incentive to move units.
SweetDaddy
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Orlando, FL US
2/18/2020 4:51am
Last month a buddy of mine paid $7000 otd for a 2020 RMZ450 - it was advertised for $5999.
1
2/18/2020 7:48am
honda65 wrote:
I know this thread is a year and a half old but now left over 19s range from 6500 to 6850 OTD. I just bought a...
I know this thread is a year and a half old but now left over 19s range from 6500 to 6850 OTD. I just bought a 2020 for 7498 OTD. And I bought in Oregon so no sales tax
With those savings on the 19 why did you go with the 20? Bike is unchanged.
kkawboy14
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TX US
2/18/2020 8:50am Edited Date/Time 2/18/2020 8:52am
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business. I could...
I believe all dealers have to pay the same price, there is no discount for bulk. This is to keep smaller dealers in business.

I could be wrong about that, and im sure there are a million loop holes
kkawboy14 wrote:
Typically in that kind of sales world the price is the same for everyone per unit BUT if you order 5 right now we will give...
Typically in that kind of sales world the price is the same for everyone per unit BUT if you order 5 right now we will give you a free one OR if you sell 20 you will get a big bonus check back from a manufacturer, in the form of a quantity sales incentive. That way “Technically” they aren’t lying about the price!
honda65 wrote:
A dealer would have to buy way more than 5 bikes to get anything free. Like 50- 100. And even then probably not free but greatly...
A dealer would have to buy way more than 5 bikes to get anything free. Like 50- 100. And even then probably not free but greatly reduced like a Team Green deal. The dealership that Pummel works for (not 100% sure but I'd bet money on it) gets 6 demos a year that they give to local industry reps or small shop owners, only 1 or 2 racers gets one. But of course they have to give them back after a year
It was just an example.

I purchased my 2020 KX450 for $9000 out the door in November last year. I live in Texas purchased it in Clearwater Florida.

They offered me a 2019 450 Suzuki for $6600 out the foot.
2/18/2020 12:32pm
So, it is said the dealer only makes a small profit on the sale of a current model, how then do they offer big discounts on older models, do the oems offer dealers rebates on stock that won't shift in the next year/ years ?

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