What is Dealer Cost?

36 replies to this topic
  • SM421

Posted 26 October 2007 - 12:36 PM

#1


I just purchased an '08 KXF450 recently. In the process I worked between 3 different dealers trying to get the best price for the new bike and the most money for my trade in. I had one dealer tell me that they would sell me the bike for $100 over cost, which he said was $6484...now I was born at night but I wasn't born last night. If that figure is actully correct, that means there is only a $515 mark up (MSRP $6999) on that bike :confused: . Like I said I have already made my purchase but I would love to know exactly what dealers pay for the '08 KXF450...Do any of you guys know for sure what it is?

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  • er193

Posted 26 October 2007 - 01:42 PM

#2

I don't know dealer cost but $6584 is not a bad price. What did you end up paying? Mine was $6590 OTD in the first batch of 'em out and I was pleased.

  • Open_Class

Posted 26 October 2007 - 03:26 PM

#3

aprox. 6,150. Honda's are a bit more.

  • mx317

Posted 26 October 2007 - 06:22 PM

#4

A dealer is selling on Ebay for $6300 http://cgi.ebay.com/...sspagenameZWDVW

  • mx317

Posted 26 October 2007 - 06:40 PM

#5


  • SM421

Posted 26 October 2007 - 07:28 PM

#6

er193 said:

I don't know dealer cost but $6584 is not a bad price. What did you end up paying? Mine was $6590 OTD in the first batch of 'em out and I was pleased.

I think you got the real deal. When I said the deal gave a price of $100 over cost, I was referring to the base price. That doesn't include their dealer fee (which they refuse to wave) and tax. So their OTD was $7044.

  • Darkkyn

Posted 26 October 2007 - 08:46 PM

#7

dealer price varies on the amount of units that dealer sells per year... there are multiple pricing tiers...when they say 100 over cost... its really 100 over the highest dealer cost ( the mom and pop shop in timbuktoo that only sells 6 bikes a year ), not that actual dealers cost level... its the same for car dealers as well.

plus there are promos from the factory at any given time for certain models.... but usually not the newest models.

as a marker, i got an 06 kx450f for 4500 flat before taxes... no dealer fee or prep or shipping...( which FYI are all bogus... most a dealer ever pays for shipping is about 60 a bike... and the factory pays the dealer to assemble each bike ).

but, everyone has to make a living, and the dealer has to pay to floor the models that dont sell after a certain time... so i dont hold too much of a grudge.. mostly look for a close deal from a good dealer that will poffer you support or carries products you use the most often.

  • Open_Class

Posted 26 October 2007 - 10:08 PM

#8

actually there is no tier pricing for dealers. There are other spiffs and credits that they can get based on units sold, but every dealer pays the same price for the units, otherwise the dealers would sue the manufacturers.

High volume dealers get credits and first crack at units, plus there are not enough dirt bikes sold to matter compared against all units sold. Street bikes out sell dirt many times over.

  • j-man

Posted 27 October 2007 - 03:53 AM

#9

Ok for all those that are guessing the dealer cost, the real amount of $6139 is actual dealer invoiced amount. No rebates or kick backs for the unit. This price is what every dealer in the country pays. Amount may vary overseas.
Now with that said supply and demand changes the retail amount at every dealer, plus a charge that some call freight & set-up or a handling fee. Just more profit, but profit is not a dirty word when you run a buisness. So when you guys call them stealerships, remember that without profit we would have fewer dealers and thus prices would not vary as much as they do.

  • SM421

Posted 27 October 2007 - 04:48 AM

#10

j-man said:

Ok for all those that are guessing the dealer cost, the real amount of $6139 is actual dealer invoiced amount. No rebates or kick backs for the unit. This price is what every dealer in the country pays. Amount may vary overseas.
Now with that said supply and demand changes the retail amount at every dealer, plus a charge that some call freight & set-up or a handling fee. Just more profit, but profit is not a dirty word when you run a buisness. So when you guys call them stealerships, remember that without profit we would have fewer dealers and thus prices would not vary as much as they do.

J-Man how do you know that $6139 is the actual dealer invoice? Are you a Kawasaki Dealer? I'm not saying you are wrong (because I don't know what the price is) but my original post was to seek out proof of what a dealer pays for the unit. I assume the only way to know is for someone who works for a dealer to see the actual paperwork from the manufacturer and let us know.

As for profit, I totally agree that the dealers need to make a profit on every unit they sell. After all they wouldn't be in business long if they didn't. But I hate sleezy sale tactics that make it sound like they giving away the farm in order to sell you the unit. Honestly, I don't loose sleep over a couple of hundred dollars if it's for a bike I just have to have. I just hate being lied to!

  • mx317

Posted 27 October 2007 - 05:01 AM

#11

If a dealer is selling them for $6300, then J-man's price sounds about right. I work for a Kaw dealer in the summer (I'm a teacher), but I haven't seen the 08 prices.

  • walent215

Posted 27 October 2007 - 06:22 AM

#12

i was just in a dealer yesterday trying to pick up a 65 for my son and the sales guy showed me his book with the supposed dealer cost and he then rambled off a price and said this is the best i can do,this is a cost deal,blah blah blah.well,here in cali the cycletrader has alot of dealers that will advertise "otd" prices and there were some quite a bit lower than this guy.i asked him if he would meet somewhere in the middle of the price he was quoting me and the other prices.he wouldnt budge and i didnt come home with the bike.i wouldnt have even tried with this dealership but they were alot closer to where i live and i would like to establish a good relationship with a closer dealer but not at my expense.idk how the dealers offer up such different pricing but it sure is frustrating to be given such a good deal from some and then the one that is closest to me is almost laughable. i wish i could just order online and have my bikes shipped.

  • j-man

Posted 27 October 2007 - 04:22 PM

#13

SM421 said:

J-Man how do you know that $6139 is the actual dealer invoice? Are you a Kawasaki Dealer? I'm not saying you are wrong (because I don't know what the price is) but my original post was to seek out proof of what a dealer pays for the unit. I assume the only way to know is for someone who works for a dealer to see the actual paperwork from the manufacturer and let us know.

Yes, I'm a dealer of Kawi, Yam and Suz and I'm sure the cost of 08.
But I also forgot to say that if the dealer is a Team Green Dealer then 2% off the invoice price. If the rider that buys the bike is supported by Kawi under the rider support program then take $1,000 off the bike and $750 to the rider for parts.:applause:
But once again $100 over cost plus doc and freight is still a good deal. Most dirt bikes make less then 5% profit, because no one pays retail anymore.

  • vet55

Posted 27 October 2007 - 08:35 PM

#14

got my 08 in aug. for 6123 otd. so dought i payed below inv.

  • j-man

Posted 28 October 2007 - 03:23 AM

#15

Whatever Vet55, I dought you paid below invoice also.
I know what the price is, so you guys can take it or leave it. I answered the question that SM421 posted.

  • mx317

Posted 28 October 2007 - 04:23 AM

#16

I looked at the 08 dealer prices at the shop yesterday and J-man is on the money.

  • walent215

Posted 28 October 2007 - 06:27 AM

#17

vet55 said:

got my 08 in aug. for 6123 otd. so dought i payed below inv.

was that including tax?and where did you pick it up?

  • Darkkyn

Posted 28 October 2007 - 09:03 AM

#18

DAMN... nice steal!

  • Darkkyn

Posted 28 October 2007 - 09:04 AM

#19

I know there used to be tiers... but... that was when i was a salesman for a kaw/ suz dealer in Oklahoma in 1996... so things might have changed.

  • vet55

Posted 28 October 2007 - 05:44 PM

#20

j-man said:

Whatever Vet55, I dought you paid below invoice also.
I know what the price is, so you guys can take it or leave it. I answered the question that SM421 posted.

well, j-man hate to ruffle your feathers, but i got my 07 crf450 last oct. for 6150 otd. and now my08 kxf for 6123 otd. from tenn. the great outdoor store. maybee you should shop there, since your own store has got the wool pulled over your eyes!

i,ve been @ this for a while and if your patient and shop around someone will sell you a new release model for under 6200 otd. unless you shop @ j-mans:excuseme:

also forgot, doc & freight are made up numbers, i know for a fact these are payed by the dist.( yam,kaw,suz.) and are incl. in the inv. the dealer pays for the unit. however these dealers like to try and charge you for that.oops! did i let out a secret.



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