04-05-2014, 08:34 AM
While I think that how much a dealer pays for a CB11 can vary, I know that once a dealer has a bike, how much he paid no longer matters at all. Whether he somehow paid 15,000 for the CB11 (and someone's in trouble for that mistake!) or he somehow (equally mysteriously) got that particular CB11 for free, it is now a sunk cost. It has no effect on what price he sells that particular bike for.
He seeks only to get the maximum sales price possible. And to do that, he needs only to figure out if you're a "real" buyer and whether or not he can get another real buyer in a reasonably short time to buy it for more than you will.
How long is reasonable for him to wait for a buyer who will pay more? That depends on his real cost to hold the bike (overhead expense and such) and the opportunity cost, or in other words, if that particular CB11 were sold and the floorspace was therefore available, how much profit could he make by putting another bike there and selling it.
In other words supply and demand set the price. Problem for us and for the dealers, is that supply is not precisely known, nor is demand, and they're both always changing over time. Even at a given time, the supply and demand situation is different in different regions. Weather, gas prices, a buyer's alternatives to meet his bike need all affect demand. Honda's intent and execution and Yen/$ exchange rates and even regional (like Cali) emissions requirements affect supply.
So while I think it's probably somewhat useful and it's certainly interesting to know what prices deals are going down at, and what negotiating techniques are working for buyers, I think each of us is well-served to take those examples with a grain of salt and know that they don't *completely* apply to our situation when we go to make our best deal.
So I always try to have fun and enjoy my interactions with dealers and the whole buying experience. I also look at my opportunity cost - what else could I do that's more profitable or enjoyable with time I spend squeezing the last extra $100 out of my purchase of a drop-dead gorgeous CB1100.
He seeks only to get the maximum sales price possible. And to do that, he needs only to figure out if you're a "real" buyer and whether or not he can get another real buyer in a reasonably short time to buy it for more than you will.
How long is reasonable for him to wait for a buyer who will pay more? That depends on his real cost to hold the bike (overhead expense and such) and the opportunity cost, or in other words, if that particular CB11 were sold and the floorspace was therefore available, how much profit could he make by putting another bike there and selling it.
In other words supply and demand set the price. Problem for us and for the dealers, is that supply is not precisely known, nor is demand, and they're both always changing over time. Even at a given time, the supply and demand situation is different in different regions. Weather, gas prices, a buyer's alternatives to meet his bike need all affect demand. Honda's intent and execution and Yen/$ exchange rates and even regional (like Cali) emissions requirements affect supply.
So while I think it's probably somewhat useful and it's certainly interesting to know what prices deals are going down at, and what negotiating techniques are working for buyers, I think each of us is well-served to take those examples with a grain of salt and know that they don't *completely* apply to our situation when we go to make our best deal.
So I always try to have fun and enjoy my interactions with dealers and the whole buying experience. I also look at my opportunity cost - what else could I do that's more profitable or enjoyable with time I spend squeezing the last extra $100 out of my purchase of a drop-dead gorgeous CB1100.