D & H Cycle prices

[jim oneill]

I have a question that I,ve wondered about for some time now.

I know everyone talks about the great deals they get on new FJRs at D & H but I,m wondering...... Just how does the dealership make any money selling the bikes at those low prices? I bought my 08 in NJ for 12599 plus tax and transportation and plate & title. Total was 13855. I know the dealer personally and he came up with the price after deducting from the 13899 list. He told me himself that I got a very good (not great) deal at 12599 and that he was in business to make money and felt that it was a fair price for both of us.

If D&H sells out the door for less than 12k I,m wondering how they make any real profit? especially when you consider all the out of area purchasers who likely will never go there again for service or parts? any thoughts?

 

[Geezer]

I suspect that the cost of maintaining a dealership in Alabama is somewhat lower than the cost in NJ. Also, even though D&H may not get much parts and service business from distant buyers, they do get reppeat sales from happy customers. And, the business strategy of increasing sales volume by discounting prices can be very successful even wiith other things being equal.

 

[Murph]

the business strategy of increasing sales volume by discounting prices can be very successful even wiith other things being equal.

It sounds like D&H is willing to bank on higher turns with less margin per transaction than holding out for fewer turns with greater margin. After all, it works for Walmart.

 

[jim oneill]

the business strategy of increasing sales volume by discounting prices can be very successful even wiith other things being equal.

It sounds like D&H is willing to bank on higher turns with less margin per transaction than holding out for fewer turns with greater margin. After all, it works for Walmart.

 

[jim oneill]

I understand the Walmart analogy, however I also understand that they get an unlimited supply of what they sell. I always was under the impression that Yamaha "rations" the number of bikes they sell to each dealership so should I assume that D&H gets all the bikes they want?

 

[Geezer]

I understand the Walmart analogy, however I also understand that they get an unlimited supply of what they sell. I always was under the impression that Yamaha "rations" the number of bikes they sell to each dealership so should I assume that D&H gets all the bikes they want?

I'm not a dealer or otherwise affiliated with Yamaha, but I believe Yamaha provides bikes to dealers based in part on how many of each model they sold in previous years.

 

[C&C]

D&H does move a lot of bikes, so I'm sure that their allocation is higher than the run of the mill dealer. That being said, I'm also quite sure Yamaha makes it their business to provide what D&H requests. On another note, but referrring to your deal, you did quite well with the price you got (by the time you traveled to Alabama, trip, food, lodging, and getting your bike back home, the $600 difference would be a wash).

 

[FZ/FJR Mike]

Don't be so sure that Yamaha necessarily gives dealers exactly what they order. I've worked in the parts dept of a newer Yamaha dealer in Western NY & talk frequently with the owner who's also my friend. For example, he sold many Yammie R1's & R6's in 03 & anticipated a better year for 04, especially with a new gen R1 coming out. He ordered more but his allocation was actually cut lower than his 03 year's sales. He complained but to no avail. Yamaha was heavily pushing the Star line of cruisers. Each dealer tries to forecast what will sell the next year & order accordingly but the manufactureres have different sales strategies. Many times if the dealer wants more of a hot selling bike, he can get them only by also ordering bikes that aren't selling well in his market just so Yamaha can move them. In our market, FJR's aren't a big seller & I know he's sitting on at least 2 crated 07 Black Cherry's that he'd love to sell.

 

[DaveInMn]

They can't be making much on the bike sale but there's also about a 3% holdback (based on MSRP, just like car dealers get) at the end the end of the year.

I'm going down there in a couple of months to pick mine up and spend about 3 weeks on the trip back. Can't wait!

Dave

 

[El Toro Joe]

I just talked with the woman (can't remember her name) at D & H last week about the Y.E.S. warranty. She said that they really appreciate all the business that they get from the FJR Forum.

 

[2WheelTiger]

D&H has also been in business for about a bazillion years. Their overhead, even by rural Alabama standards, is low. At his prices, their net profit is probably equal to other dealers across the nation.

I'll tell ya, you CANNOT find nicer people to deal with, and that goes a long way. When I put a deposit down on a C-14 last year, I told them I might need to cancel the order because of some health issues. They sent hand signed cards to my house! Yeah, signed by everyone in the dealership! What dealer do you know that would do that?

Even though I'm in Seattle now, I still trade with D&H.

 

[Scab]

D&H has also been in business for about a bazillion years. Their overhead, even by rural Alabama standards, is low. At his prices, their net profit is probably equal to other dealers across the nation.

I am confident that this is the case. The dealership has been there for quite some time. They don't appear to waste a lot of money on fancy, showy stuff. They just sell bikes.

Whatever the formula is, it works.

 

[Bounce]

no credit sales

keep overhead low

excellent customer focus

all part of reducing risks/losses, getting sales, and keeping customers

 

[charismaticmegafauna]

no credit saleskeep overhead low

excellent customer focus

all part of reducing risks/losses, getting sales, and keeping customers

Do they take trades? Often, a 'discount dealer' won't accept trades when selling for advertised, lower than competition, prices. I guess not taking trades lessens risk (when cutting it close)?

Essentially, then, not a 'full-service' dealer.

They don't appear to waste a lot of money on fancy, showy stuff. They just sell bikes.

Factories/Distributors are always after dealers to spec-up their stores. If they're rural enough they can sometimes get away with "selling out of a shed". But -- if it hurts competing dealers enough, they'll be complaining to the company (fact./dist.) for a level-playing-field.

Although, if the 'low-ball' dealer is shifting a considerable amount of product? -- the company may be a little deaf....

 

[scubatech]

I know often times there are profits awarded to dealers for the number of units sold. So at the end of the Quarter Yamaha gives a kick back. It's a great incentive,helps with tight deals.