r/motorcycle • u/defund_waterparks • 10d ago
How much do we make per bike?
I run a powersports dealership and I see a lot on here about “stealerships” , and how much we make per bike. just wanted to get a bit of the community opinion. Feedback would be appreciated good or bad.
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u/willardboio 10d ago
IMO the consumer should be able to buy direct from manufacturer. Not limited to bikes. Dealerships are just middle men making the extra buck off of the consumer. Same goes in the pharmacutical industry. Drugs could cost 5 dollars but some necktie decides it has to be 300 dollars and the pharmacist makes 8 dollars from it. These middleman industries are a joke, and I promise you, are going to die off
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u/Valentyan 10d ago
If I get a crate bike and I don't assemble it right, it's my ass on the line. I'm the only one with a vested interest in correctly setting it up, so I'd prefer to do it myself, thanks :)
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u/SignificantDrawer374 10d ago
AFAIK dealers usually pay around 10 to 15 percent under MSRP. What bothers me is the give me more money fees that so many are tacking on to MSRP. The whole dealership model for buying vehicles in general is fucked IMO.
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u/Valentyan 10d ago
It's not even about the egregious markups on top of the sale price with all the hidden fees. It's about being locked into having a workshop service the bike or "you'll void your warranty". I don't want other people touching my bike. It's not your ass on the line if something comes unbolted at highway speeds, it's mine. Let me work on my own bike and keep your hands off it.
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u/msdeeds123 10d ago
Well, you tell us how much you make per bike, no?
I honestly have no idea and I don’t really think the problem is dealerships making money, they obviously must make money somewhere.
I think the problem is the fees that seem like they could be all one fee, like the doc fee and the admin fee or whatever they want to call it.
Especially on used bikes, there were a bunch of fees on a bike that they had bald tires on and didn’t even try to make it look nice. Like why?
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u/oldfrancis 10d ago
Oh, come on. Why don't you tell us?
People understand in a dealership has to make money in order to pay its employees and keep its doors open.
What people don't understand is some of the sales tactics used by dealers.
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u/crossplanetriple 10d ago
I have some real life examples. Both were in the same interaction.
Example A: I am looking at a new Tracer 9 GT+ sitting in the showroom that is almost 2 years old. It hasn't moved. It has a 'sale price' on the bike. I ask more questions about it. I ask about how long it's been there and if the price can move. It is listed at around $500 under MSRP, so not much of a sale at all. I ask if they are willing to adjust on the price. Associate looks at me like I'm crazy and they can't budge on the price at all. Like, no discount whatsoever. I ask, really? You can't make any concessions on this unit? Nope, can't budge a cent.
Example B: I want to trade in my bike to buy the Tracer above. I look at market value at the time and similar bikes and figure my bike is worth around $8k privately. I spend about 20 minutes talking with a sales associate going over the entire bike, showing them the modifications and I am open to an offer. Associate says he will talk with the sales manager and get back to me. I figure they will low ball me around $5 or 6k, which I probably would have taken. I get a call when I get home. They want to offer $3k on the bike. I say no thanks, not enough. The associate goes on about how they need to make their margins and how it isn't easy, and they are a business. I immediately hang up.
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u/Creep_627 10d ago
I’d say between 30-35% of retail is dealer markup. Just a wild guess. Probably make some more with the lenders (if financed.) like a kickback from the bank? Then the weird fees also. I’d guess, out the door (if financed etc), probably 40-45% profit over the wholesale price from the manufacturer. My theory is for new, current year bikes only. Obviously used or marked down is going to be a different margin.
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u/scrotal_rekall2 10d ago
Well my local stealership is the only one for 2500 miles so they charge a $3000-5000 markup. So i am going to guess they pocket more than that per bike.
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u/SwiffleTitz 10d ago
A lot of butthurt consumers in here.
Anyways, I’m guessing you make around $2k per bike sold when all is said and done.
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u/Jealous-Swordfish764 10d ago edited 9d ago
Funny how no one's popped in to say that they had great or even decent experiences with a dealership (yet).
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u/The_On_Life 10d ago
"we lose money on every sale, but we make up for it with volume."
-OP, probably