Price

[Ijuggle]

The local dealer adds;

Shipping/trucking costs and assembly costs to the MSRP as a starting point for pricing their bikes. Approximately $500 + $500.

Are these legitimate costs? Or just added markup?

I know the dealer has to make a living and pay for their business costs but I suspect that they could sell the bike for less than MSRP and still make a profit. Is this true.

 

[garyahouse]

We talking about a new Cali model 2014? Sounds like they're looking to make some big profits here. Sooo - are people lined up to get the only available bikes? Lemme guess: they've had inquiries, buyers are on a waiting list, and they know they can charge whatever they want (and get it too). Isn't that always the case when too many people are lined up wanting to buy the same thing? Whether it's a house, a car, or a new FJR, seller's market means more $$.

Gary

darksider #44

 

[900gc]

About 13-14 years ago I worked at a MC dealer in sales and then at a Mercedes dealer in sales. The dealer does pay a delivery fee and normally charges for dealer prep. (shop time; un-crating, assembly, fluids, etc.) BUT not at break even of course. Usually it is 2-3 X the cost to pad the profit (at least it was at the dealers I worked at).

As far as MSRP goes, dealers have a set profit in mind for each vehicle/sale. How they arrive at that figure can be a juggling of numbers between the MSRP and the other charges but they still get their bottom line met.

Then there's the price gouging on hot bikes as Gary mentioned...

 

[bgross]

They can charge more as long as there are buyers willing to pay more - it's a "new & improved", shining RED bike.

At this time last year, new 2013 cost considerably more than they do now.

It'll happen again next fall....

 

[escapefjrtist]

Are these legitimate costs? Or just added markup?

Nope, yes.

These costs are nothing more than car dealers "adjusted market value" BS add-on stickers.

Everyone is entitled to a fair profit to stay in business. Do your research and offer a fair price to the dealer...if they won't talk, walk! You are in a captive market in Cali so your options are relatively limited regarding shopping around.

--G

 

[MCRIDER007]

Shipping costs, set up, and document preparation are real costs......so are salaries, commissions, rent, utilities, taxes, and fees. The question is....should any of those costs be added to MSRP or the advertised sales price? I think NOT!

 

[gregory]

Try Red Bluff Yamaha, I got a great deal on a '13 when they were first out.

520-527-1466

 

[LgFJR]

Good method if you really want the bike..........do the math do a reasonable discount add in what you think is fair for the "extras" if any. Write a check out for that amount. Walk in and ask for the sales manager, hand him the check and tell him what you want and say he has 5 minutes to give you a yes or no. If it's no, you walk. No negotiation and head for the next dealer. It's fun and no stress. Obviously trade ins and financing destroys that method. Personally I toss out the shipping and handling charges automatically. We have some "mega" dealers down here in SoCal that add in $1,500 for those things and that's just laughable.

 

[ionbeam]

Ijuggle, the dealers juggle too.

The following was true in '08:

This will be close --> If MSRP is $15,890 the dealer invoice will be ~84% = $13,347. A Forum member that claims to be a Yamaha dealer says that he receives a 2% hold back from Yamaha. This is a very common practice in car sales. Yamaha = $267. Then the pirating games begin with trade-in, financing, shipping, assembly, advertising, paper work fees and delivery fees. These can be added on to full MSRP or the dealer can make you a deal and include some of them in the MSRP.

A dealer can sell 1 motorcycle for $2.5k profit or 3 near minimum pricing and still realize nearly $1k profit. The dealer that sells 3 bikes may then sell 3 bikes worth of options and warranties. It is most likely that the dealer will have 3 motorcycles coming to his shop for service too, as well as some good will earned with the customers. Plus, it gets one more bike off his floor plan thereby avoiding further costs. Another IF, if the dealer purchased this bike through an auction he may own the bike for less than dealer cost.

A man walks into a diner and orders a $3.99 omelet breakfast. To which the diner adds egg deliver fees, egg destruction charge, gas fees for the grill and a surcharge for printing the menu... Now, how does that make ya feel?

 

[900gc]

Ijuggle, the dealers juggle too.
The following was true in '08:

This will be close --> If MSRP is $15,890 the dealer invoice will be ~84% = $13,347. A Forum member that claims to be a Yamaha dealer says that he receives a 2% hold back from Yamaha. This is a very common practice in car sales. Yamaha = $267. Then the pirating games begin with trade-in, financing, shipping, assembly, advertising, paper work fees and delivery fees. These can be added on to full MSRP or the dealer can make you a deal and include some of them in the MSRP.

A dealer can sell 1 motorcycle for $2.5k profit or 3 near minimum pricing and still realize nearly $1k profit. The dealer that sells 3 bikes may then sell 3 bikes worth of options and warranties. It is most likely that the dealer will have 3 motorcycles coming to his shop for service too, as well as some good will earned with the customers. Plus, it gets one more bike off his floor plan thereby avoiding further costs. Another IF, if the dealer purchased this bike through an auction he may own the bike for less than dealer cost.

A man walks into a diner and orders a $3.99 omelet breakfast. To which the diner adds egg deliver fees, egg destruction charge, gas fees for the grill and a surcharge for printing the menu... Now, how does that make ya feel?

Yeah, can't forget the hold back and at times, dealer incentives direct from the mfg. that the public doesn't know about.

Having been on the inside years back, I learned a lot about how it worked. I tell my friends and relatives to talk to me first before they buy so they don't get ripped off. Can't help them though if they want the hottest thing that came out yesterday where 20 people are lined up to buy the only one.

 

[Wlfman]

Just bought a '13 and the Dealer Prep/Doc fees was $150

 

[Ijuggle]

Thanks for the info. I will put it to good use.

 

[SoCalFJR1300]

Are these legitimate costs? Or just added markup?

You are in a captive market in Cali so your options are relatively limited regarding shopping around.

--G

Why is Cali a "captive market"??

 

[SkooterG]

Try Red Bluff Yamaha, I got a great deal on a '13 when they were first out.
520-527-1466

Uhhhh....... that would be an Arizona phone number.

Are these legitimate costs? Or just added markup?

You are in a captive market in Cali so your options are relatively limited regarding shopping around.

--G

Why is Cali a "captive market"??

Because residents of California can't buy a new vehicle from out of state.

 

[SoCalFJR1300]

Try Red Bluff Yamaha, I got a great deal on a '13 when they were first out.
520-527-1466

Uhhhh....... that would be an Arizona phone number.

Are these legitimate costs? Or just added markup?

You are in a captive market in Cali so your options are relatively limited regarding shopping around.

--G

Why is Cali a "captive market"??

Because residents of California can't buy a new vehicle from out of state.

So If I'm vacationing in Michigan for a month or so and decide to buy a new car I can't bring it back to Ca. and register it??

 

[ionbeam]

Why is Cali a "captive market"??

Because residents of California can't buy a new vehicle from out of state.

So If I'm vacationing in Michigan for a month or so and decide to buy a new car I can't bring it back to Ca. and register it??

That's right. California considers any vehicle with less than 7,500 miles on the odometer at the time of purchase or trade by a California resident or business to be a new vehicle. This holds true whether or not the vehicle has been registered in another state. But, I believe that if the vehicle is made to meet CA emissions and has a CA emissions certification it could be registered. Here is a list of all the motor vehicles that meet this requirement: .

If you are moving to California from another state, you may register a new 49-State vehicle if it was first registered by you in your home state, or for military personnel, in the last state of your military service. When applying for vehicle registration in California, you must provide evidence that the vehicle was registered.

 

[deanw]

They can charge more as long as there are buyers willing to pay more - it's a "new & improved", shining RED bike.
At this time last year, new 2013 cost considerably more than they do now.

Maybe. This time last year, I bought a 2013 with 48 month YES, and after title, registration, (no tax in Oregon) came away a kilobuck under MSRP.

 

[art miller]

Keep in mind, Yamaha produces an FJR1300 with suffix C (California). When you take the bike to DMV for registration they check the VIN info to see if it has California certification.

 

[SoCalFJR1300]

Why is Cali a "captive market"??

Because residents of California can't buy a new vehicle from out of state.

So If I'm vacationing in Michigan for a month or so and decide to buy a new car I can't bring it back to Ca. and register it??

That's right. California considers any vehicle with less than 7,500 miles on the odometer at the time of purchase or trade by a California resident or business to be a new vehicle.

I've heard of that 7,500 mile rule for cycles but not for cars.

Not saying it's not true, just that I never heard of it for cars.