FJR Dealer Margin

[bender]

Does anybody know what kind of margin dealers have on FJR's and what types of incentives and kickbacks they get on the backend?

My local dealer has complained consistently over the last six months about the financial hit he took when I ordered during the Spring 05 PDP, and that he gave me such a "good price". I didn't think it was all that good, definitely not in the league of D&H, but I thought it was fair.

Information is usually pretty readily available on margins and incentives on cars, but it seems to be a big secret on bikes. I'd really like to go in knowing this stuff before ordering an 06.

 

[SkooterG]

Your dealer is a whiner.

Unfortunately, dealer costs/margins/holdbacks/incentives are closely guarded secrets. From what I have learned in the past, expect that D&H is probably making approximately $500 off each FJR they sell, at the prices they sell them for. Maybe a little less than that. From what I also understand, at the end of the year, dealers receive a 5% holdback payment for every motorcycle they have sold.

I once found a website where you could pay to get the above information. I never used it so can't say how valuable or accurate it is. I'll see if I can find it again.

 

[pronomian]

Have him read this. Part of a series of letters to a Dealer in Texas.

From: Frederick Leathers

Date: 10/02/05 09:34:10

To: Tony Orihuela

Subject: Re: Pricing

Is the price of 11,995 accurate for the 1300A?

Mike

--------------------------------------------------------------

The price is accurate. If you are a Texas resident there will be taxes and registration fees added, but if you live out of state this is the total price. You would then have to pay your taxes at your local license office.

Tony Orihuela

Yamaha Sportscenter

1-800-YAMAHA-0 (926-2420)

www.yamahasportscenter.com

 

[DrEvil777]

When I ordered my '05, i got the salesguy talking and he showed me the invoice for my FJR with 10,2 for the non-abs. I paid 12,499 OTD so when I got the YES 4-year for 389, I did not feel so bad. He made his money on my sale.

They make a nice margin on the higher price bikes. But the real money is on parts and service.

 

[charismaticmegafauna]

I certainly don't know what the margin is but think that SkooterG is probably pretty close? Remember that the holdback on an FJR would amount to $600 or more. I think the actual price could be found out if you really wanted to know.

As to profit from parts and service: I'd agree with parts and accessories at small dealers or those who don't have direct competition -- they can often make a buck. But, when it comes to service, I think most dealers would readily give up the service department -- it's a loser for most dealerships. Riders hate to pay the high hourly rates dealers must charge for service work and therefore don't often get needed work done. There's constant pressure for less work to be done, also. The dealer hates to pay for a top-flight mechanic and gets by with lesser skilled ones. The dealer also hates to spend money to get them trained and for all the equipment up-grades, etc. It all adds up to a downward spiral relating to service. And, poor profitability -- imho.

 

[Bounce]

In year 1 (US 2003), the details were out here for everyone.

Dealer price (including allowances for delivery and setup) was about $9200.00. D&H sold them for $9999.00 (flat). The following year D&H marked up their price exactly as much as Yamaha raised the price to D&H. The same has been true every year since to the best of my understanding.

So reverse-engineer your numbers and back in to what the current dealer cost should be (including an allowance for delivery and prep).

 

[2tsnon]

DrEvil has it about right for the 05 as I recall. I seem to remember 10,900 for the ABS on the invoice. I also read on the dealer sheet that the PDP is charged through the parts dept of the shop. This puts the bike in the que. When you take delivery and pay the bike in full, with cash, your loan the Yamaha 0%-0 payment for 6, etc. The dealer gets $100 kicked back in their parts account. I would assume a sililar set up for the 06. That would make the margin anything over the 10.2 or 10.9 plus the $100.

Edit to add

I also think I saw that Yamaha also pays the dealer for set up out of the 10.2 or 10.9 and freight is included also

 

[TexasTigress]

When I looked at the 2005 ABS model at East Bay Motorsports in Hayward, CA, the sales dude mentioned $1,000 (more or less) for set-up and another grand for shipping.

Seemed like dealer BS to me.

 

[Coyote]

Hayward is a long way from Texas. Have you bought or still looking??

He hasn't even added in the charge for being friendly or the penalty for saying BS . That'll be $300 more.

 

[Bluestreek]

A couple of weeks ago the dealership in Quincy was selling an 05 with ABS out the door(that includes all tax's and lic. fee's) for 13299.00. They seem to be nice people to deal with. I've heard nothing but good about them. :cownoy: