09-18-2014, 02:05 AM
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...
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...