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Cruiser
Posts: 156
dinwiddie, va | I have been reading posts and responses on this website for a couple of years of Victory customers complaining about prices and discounts of motorcycles and parts. I would like an honest guess of what people think the mark up is on a Vision and accessories. This means dealer cost to retail price. All input would be appreciated.
Edited by nightvision 2011-01-13 6:15 PM
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Visionary
Posts: 4278
| No body knows what dealers market up is on the bikes. Parts can be as much as 50% like harley.
There is nothing we can do about it and we pay what we pay.
I'm waiting my time even thinking about it. |
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Cruiser
Posts: 156
dinwiddie, va | The point is that I know what mark up is and what dealer cost are on everything. I would like to know what you guys thiink they are. I was looking for responses to the questions though. |
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Cruiser
Posts: 131
Edmond, OK 2012 Vision, 2012 Cross Country | Which mark up and profit margin are 2 different things. Mark up on parts is probably around 20% on parts and probably on the bike its self is somewhere around 1-3% is my guess. |
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Cruiser
Posts: 258
Akron, Ohio | 30% on parts and 10-12% on bikes. |
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Cruiser
Posts: 273
Midlothian, Va. | 35% on parts. I paid $17,700 last March for a brand new '09 Vision tour premium (color) plus TT&T's so it's hard to tell about incentives from the factory to the dealer. BTW, I was very happy with this price because it was the best out of 7 dealers I spoke with some close to this amount and others way above it. It cost me $115 air fare to go get it. |
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Puddle Jumper
Posts: 44
Middleburg, Fl. | I don't know about bikes but I used to work for a foreign brand auto importer-distributor and the markup from the manufacturer to the distributor was about 30% and from the distributor to the dealer about another 30% to get to MSRP; parts similar... I wish I was a middleman!!! |
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Cruiser
Posts: 156
dinwiddie, va | I stand corrected. Profit margin.
Thanks Duval |
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Cruiser
Posts: 238
SF Bay Area | Whatever the markup is, consider that the dealer has to pay overhead to stay in business. These are considerable costs including things like rent or loan payments, advertising, insurance, salaries and commissions, theft losses, showroom damage, insurance, workers comp insurance, medical plans like Kaiser, or Blue Cross, monthly flooring interest on the bikes themselves, un-crating and shipping of the bikes, environmental costs like hazardous waste pick-up, uniform and floor mat rentals, janitorial and facilities maintenance, website and web maintenance, sales staff training (like RPM) and much more. That 10-12% (maybe) gets stretched pretty thin.
Incentives are the way to go... if Polaris will kick down 1000 - 2000 to the dealer, we all save, and the dealer can still make a little profit.
Parts are another thing altogether... what you see in the parts department are bought with cash. More risk = higher mark-ups. Service is another thing... all bikes end up needing a repair sooner or later. For many dealers, part & service are the only things keeping them in business during the winter months.
I have seen dozens of dealers go out of business due to not being able to pay their monthly nut with meager mark-ups of sold bikes. The thing we all have to consider is that, if a Vic dealer cannot make any profit on these bikes, why would they want to continue to sell them. This would be a simple business decision, beyond American pride. If I were a dealer and could make $1000 on a Raider, and only $200 on a Victory, my choice would be easy.
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Cruiser
Posts: 156
dinwiddie, va | Very well put. I wasn't even gonna begin to go that in depth, but you did it with grace! It's good to know people out there have some business smarts. Do you own a dealership!? Haha! With an answer like that I would almost assume you do. I wish everyone would take into consideration, all of these things you rattled off next time they decide not to buy from a stealership. We don't have our dealership anymore, but I still don't hesitate from buying the parts that I want or need for my bike from the closest dealer. I would like to keep the dealer open and happy with their customer network.... But that's me |
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Cruiser
Posts: 196
| That's why I bought most of my add-ons thru the dealer.
The few things I didn't get thru the dealer was beacuse they were aftermarket anyway... Just wish a few more had, so maybe our dealer would still be around.... |
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Tourer
Posts: 320
Savannah, GA -Year round riding!! Yay! | My husband and I own an independent accessory and service shop. One thing that you forgot to mention was initial and yearly licensing fees to the parent company (Victory, Harley, etc.). These costs would stun some of you guys. Our Vic dealership here lost their licensing. (Part of the reason that I am selling my Vision.) I totally understand the wanting the best cost, but I also understand the need to support your dealer. We need to support our dealers, but it's hard when Polaris doesn't support them, and then they end up disappointing us. |
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Visionary
Posts: 1359
New Bohemia, Va | I bought my single add-on from the dealer, the luggage rack. I also got the taller windshield. Other than that, she's still the same as the day I rode it away. It's hard to change perfection. |
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Visionary
Posts: 2118
Pitt Meadows, BC Canada | Get my oil and tires at a Victory dealer - and spend my 'what if' time doing some riding. Ain't never going to be rich - just satisfied and happy. |
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Visionary
Posts: 4278
| Ok I worked for parts unlimited / drag specialties. To start off the after market world came about cause harley was marking there parts up 50% now the after market started marking parts up by 35% and on really small items it was 40% wheel frames and motors are about 27% exhaust was a good 30%.
Our customers are the dealers and we would set reatil prices so the could make the same profit as we did. We dealt with the biggest name in the industry.
As far as the price of bikes we never new cause the deal would get better prices by ordering more then one bike and no dealer ever ordered one bike despite what you were told. We would order parts by the lot of fifty or more. Vendors make money on long runs not ones twos. I vendor to sell has to carry a 5 million dollar insurance policy in case a mirror you installed feel of and hit a car you know the car owner is suiting every one he can to get the most money.
If you were a dealer and had to pay the bills they do and the loans for ever bike sitting on the show room floor cause dealers don't have that kinda money so they have a bank to help them. You would charge what ever you could to pay for the bike and the sales men. Most of those guys only get paid when they sell a bike.
Now that I think of this post I don't under stand it. You don't or maybe you do ask target or walmart what they make off there toasters or clothes.
Its a fact of life there is a mark up and we as consumers pay for it but we shop to find the best prices we can. So make the best deal you can and if your happy thats all that counts.
I all most for got. You think that the guy that makes the covers sells his stuff for a 20% markup your crazy or the guy that makes the luggage rack of windshield. Go buy some aluminum and make the part pay a kid to run it to the platters in you truck and the pick it up. Now you have to pay the platters and the kid and the gas and you only going to make 20 % on something you have forty five bucks into. So that means your going to sell it for a nine dollar profit and the pay for your light bill. Glad your not running the country or are you.
Edited by john frey 2011-01-18 2:41 PM
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Cruiser
Posts: 118
Spfld, IL but temp Bay area, CA | 100% on parts
20% on current year bikes
I've purchased 2 new bikes off ebay, 03 TC (summer of 05) and an 08 vision Tour Premium.
My dealer got nearly 12K off me for the Vision as I bought it totaled with 3 miles on the odometer.
I was hoping to cut a fat hog but still ended up with 21K in it but have not regretted it a bit as she is one sweet ride plus I have all the chrome body panels now.
Both bikes are mainly serviced at my dealer but I'm not beyond occasionally doing an oil change if I don't need anything else looked at.
Dealers must be able to make a profit to stay in business. |
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Iron Butt
Posts: 785
Mt. Vernon, WASH. | The markup on furniture and jewelry is around 300% so I'd rather buy a goodie for the bike rather than a new couch.........................................and I'm long past purchasing any more useless jewelry for me or anyone else- |
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Puddle Jumper
Posts: 18
Charleston, WV | I don't know what it takes for a cycle dealer but I doubt it's very much different from the small business I run.
If I sell a new job with just 10% mark up I will just break even most of the time. You cannot give things away and stay in business, most of my jobs are in the 30 to 40% range and I don't get every bid I submit so someone can always sell it cheaper. Our parts markup is 50% and is in line with my competitors.
I have built my business with servicing the customer in mind and it has worked very well for 33 years. Relationships are worth more to me than a few dollars I'll save going somewhere else.
I have gone back to and will continue to do business with my dealer, (FYI Blizzard's Victory Motorcyles So. Charleston, WV), because of the service they give and the welcome I feel when I walk in the front door. I hope they make money from me because that means I'll have a dealer that will be there for me in the future.
Just my 2 cents worth.
Dean
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Cruiser
Posts: 262
Flowery Branch Ga | Personally----- I don't worry about the mark up. I have bought all but 2 parts from my dealer (luggage rack from a dealer off egay that was too good of a deal to pass up and the rack bag). I like others believe if we don't spend some money with the dealers they will have to close up. I don't want that to happen. If my dealer closed, then my bike was stolen and I needed a replacement where would I go? What if I had a warrenty issue where would I go? I can change my own oil, I could find a cheaper place to get tires, But then that is that much less proffit for the dealer to pay employees, taxes, the power bill, so on, and so on. Just sying...
Wayne |
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EVERYBODY TELL ME WHAT YOU THINK