Fair price....

[Eric Sheley <eric@xxxxxxxxxx>]

First, let me preface this message with the following - I am not making 
these comments to single anyone out for attack - these are just my 
thoughts.....

As I read the recent thread on ST pricing, I couldn't help but wonder, "who 
are you (addressed to no one in particular) to determine what is an 
acceptable profit margin for the dealer ?"

I saw numbers batted around and the figure of 10% used repeatedly. 
Obviously you have a much better idea of your dealers financial standing 
than the average consumer...... How much does it cost the dealer to get the 
bike (freight is charged to US dealers) and to prep it (oil and setup)? 
Have you examined this dealer's overhead (rents, insurance, etc) ? Do you 
have any idea how much he pays his sales staff ? Who pays the costs of 
salaries and overhead during the slow times of the year (or should they 
just lay everyone off during the slow times) ?

Unfortunately too many people have the automobile mentality where a 
dealership can sell a car at "invoice" and still make $$$ because of 
incentives and holdbacks. While the motorcycle industry has some similar 
types of programs, they are no where near the level found in the auto 
industry. And of course there is the issue of volume - lower margins can be 
sustained if the volume is high enough - but look at an average car 
dealership and compare the number of units sold per month with the average 
motorcycle dealership......

Also, volume has a limit - the point was made that it was better to sell 3 
bikes at 500 profit than 1 bike at 1500. That may be true, IF there is 
sufficient volume (demand) to support those lower margins. However dropping 
the price to that level does not guarantee a three fold increase in sales - 
if the market is 2 purchases at the $9500 price point in a month, who is 
better off, the dealer that sold one with $1,500 profit or the dealer that 
sold two and only has $1,000 in profit ? ........

I was in a position to shop between two dealers when I bought my ST and 
could have easily pitted one against the other and knocked more off my 
purchase price. I then weighed that against how I had been treated by the 
dealer in the past and what I expected from them in the future. For me it 
was an easy choice.... my dealer had earned my business.

Knowing what I know now about the ST, I would be happy paying full retail 
for the bike and the accessories....... if that makes me a "sucker" that's 
fine - at least I am a sucker with a big ass grin on my face riding down 
the open road........

Just my .02

- - Eric    

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