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+--- Thread: "Mystery" dealership (/showthread.php?tid=3382)
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"Mystery" dealership - pechorin75_imp - 09-18-2014
I was just posting on another topic about dealerships and pricing, and it reminded me of something I've been curious about. There's this small local Honda dealership. I think it's been around since probably the 1960s; it has an older mom-and-pop feel about it.
What I find odd about the place is this: They always have leftover new bikes on the floor. Seems like the inventory hardly changes. Last I checked, they still had a 2010 ST1300 sitting there brand-new, still asking $14,000 for it (looks like it was $16.5 new, only 5 model years ago). They have a low-mile used '08 XR650L that's been there over a year now, and they're still want the same money as they did a year ago. I inquired about it this summer, and politely asked if they were open to negotiation...and the person just looked at me and said, "You don't think it's worth $4,600? We do. What exactly DO you think it's worth?" This wasn't friendly...it was like, "How dare you even ask?" I just said "Thanks for your time," and walked away.
That little encounter basically ended my relationship with them, such as it was. But it's left me sort of curious. Do they have some kind of special deal with Honda, being an old-time seller, such that they can just sit on bikes at no cost to themselves? Is the business a money loser for some other purpose? Are they just bad salesmen, and if so how have they managed to stay open 40+ years?
Maybe somebody with sales experience can speculate...
RE: "Mystery" dealership - kDiqq_imp - 09-18-2014
I think they stay viable on other sales to be able to wait for an unknowing buyer to get ripped. Unlike a private seller, they have other bikes flying out of there.
But on a related note, when negotiating on my CB, the guy told me "My boss wants to know what makes you think you can get it that cheap." totally threw me off balance. He didn't expect me to pull up threads on the CB Forum.
RE: "Mystery" dealership - CIP57_imp - 09-18-2014
I have a Yamaha dealership down the road from me, they have been open since 1968 They recently gave up there franchise and just sell consignment motorcycle. Bring it in we will sell it type of deal. I have used them for many years for oil, tire mounting and other merchandise. They only receive about 30 bikes a year where larger stores triple they inventory. The would sell at list and not a dime below unless the leftover had some dealer kick back. They own the property and a house behind the store so there is no overhead except property taxes. The have to sell at MSRP to stay in business and i understand that. However i have never purchased from them because there always 1000 more then anyone else.
RE: "Mystery" dealership - pechorin75_imp - 09-18-2014
Yeah, they try to do the whole authority figure/intimidation thing sometimes. "The gall of you, asking for a lower price...I'm offended!" Which is always amusing to me...it's like, sure, somebody who sells vehicles for a living and does this 5 times a day is really going to take any particular offer as a personal insult.
RE: "Mystery" dealership - gossman_imp - 09-18-2014
There is a Honda dealership a mile from me, a couple of road bikes, some dirt bikes, and a bunch of quads. This shop has been around for over 40 years. It's old, dark, and can make one wonder how they stay in business. I never think of going there to buy a motorcycle. But I do go for oil, parts, and other OEM items because of them being so close. And I noticed that all the farmers in the area are there, buying 4 wheelers, and they service a lot of quads. These guys don't budge either on prices, guess they can afford to sit on them.
RE: "Mystery" dealership - rdtshaw_imp - 09-18-2014
We have a local Honda dealer here in Monterey, CA that is the same way. When I bought my VTX a number of years ago (2007), they seemed offended that I suggest they get close to the price of a dealer just 50 miles away in San Jose. Told me that it was a scam and the San Jose deal was running a bait and switch and he knew all about it.. Bla-Bla.. I called the dealer in San Jose and they had exactly the bike I was looking for at the price they advertised. Rode up, signed the paper work, and picked it up the next day with ZERO fuss. Peninsula Honda/Ducati, would go back anytime and suggest them to friends. Fast forward to 2 weeks ago. I saw the Yamaha FZ09 and was looking at purchasing it before I get the CB. I saw Costco had it available through their purchasing program so I filled out the form and they sent me to that same dealer here in Monterey. Same guy there, he left me wandering around the sales floor for 45 mins while he was on the phone and then leaned out of his office to inform me that the Yamaha FZ09 does not qualify for the Costco program. (BS! purchases made via the Costco program are all over the FZ09 forums. It's on Costco's site you schlubb!!). He said he'd do me a favor though and give me a locals deal $9500 out the door. Deal? MSRP is 7990, Tax is $659, DMV is ~$300. and Freight and prep ~$550. Ya. Gracias for the *DEAL*, amigo! Pass. Everytime I go in there it seems like they think they're doing me a favor by letting me in the door. The Service and parts depts there are very helpful thankfully. Went to another dealer in Hollister, and I'm lucky I didn't walk out with 3 bikes, the salesman there was really good! They gave a very respectful offer on my trade, offered the CB1100 for $450 off plus a $300 rebate from Honda I didn't know about. All without me beating them up. Then still knocked off $250 on the deal to get the payment where I wanted. Got into finance and they offered the 5 year Honda care with road side at a discount for driving in from out of town. Got the warranty for $600. Amazing how some places are run and how they treat their customers. Local dealer has 2 military bases full of trainees to prey on, er, sell to.
As a customer, it is smart to ask for a discount. You know the person you're asking would too. I understand if they do not want to discount the item, but responding like an A-hole is certainly not going to coax the money out of my wallet and everyone I talk about the place is going to hear exactly that. Why act like that? Just a simple, "No, I'm sorry we really need to make a certain amount on the sale and have to be firm on the price." Whip out the A-hole routine when I act like one myself. lol.
RE: "Mystery" dealership - The Spaceman_imp - 09-18-2014
I'm not sure anything will compare to Harley dealerships in the late 90's and early 2000's. Buyers would happily pay 20-30% over MSRP, they'd bribe the managers to get moved up on the waiting lists (often a year long). A friend bought a Buell he didn't really want just to get on the list to buy a Fat Boy a year later. It blew up in '08 though when all that home equity money dried up. Ft. Lauderdale went from 4 dealerships to 1 in two years.
RE: "Mystery" dealership - rboe - 09-18-2014
I'm a bit surprised that Harley prices have not dropped more than they have. Amazed really.
RE: "Mystery" dealership - ClassicVW_imp - 09-18-2014
Yeah, I know all about the Harley wait lists back then, and the dealers did suffer when the market blew up, but H-D themselves sure didn't suffer. They went from worldwide sales of a little under 100,000 units (then) to the 300,000 units today.
RE: "Mystery" dealership - mininsx_imp - 09-19-2014
There's a Honda dealer in my hometown that has old inventory like that. He has an 1100XX Blackbird that's brand new. When did they stop making them, almost 10 years ago? He will not deal off MSRP, either. I guess he stays in business because some people don't know to not pay full price.