Dealer Profit

[BA APEX]

I paid $1,800 less than list price last yr. was a snow check order.

 

[dfroster]

I made it through two interviews with Yamaha motor corp. for a district sales manager trainee positon a few years ago. Didn't get the job but learned quite a bit about the powersports industry. I recall hearing 7-9% profit margin for sleds and dealer cost inlcludes freight. The figure seemed accurate becasue I found a webiste shortly after the interviews with dealer cost info for ATV, bikes, sleds, etc. I can't remember the name. I checked cost on 02' Viper and the difference between dealer cost and MSRP was about 9%. Also, learned that Yami allocates sleds to dealer, dealer recieves a holdback and dealer gets reimbursed for warrenty work regarless of where the sled was purchased. Of course all of the above may have changes since my last interview.

6" of fresh heavy snow in Lac du Flambeau, WI

 

[RDPOWER]

I happen to know for a fact that these 07 Apex GT's that list for 11,199 cost dealers 10,166 BEFORE they pay their warehouse to build and set it up which can add about 100-150 bucks to that. The only exception is if you order very large quantities but most dealers don't even come close to half of that and even if they hit it, its only a couple hundred bucks. The reason dealers will take a loss so quickly is because they pay interest on their inventory so if an 06 costs the dealer 10,000 they might blow it out for 9,500 to stop the bleeding. Try not to beat your dealers up too bad though because you want them to make some money so they stay in business

MXD is right on the money. i own a honda suzuki dealership and bought a 07 apex gt from a good friend of mine who owns a honda yamaha dealership - 10,166 is invoice - he gave me the invoice and told me he wanted to give me the holdback when yamaha paid it to him (around $550) i told him to keep it - he thought i was nuts (he know's that i could buy it cheaper from a dealer who had to much inventory and was willing to lose money) i told him i didn't care about the money as much as i cared about him staying a snowmobile dealer - almost all of the sled dealers are gone in our area - please buy from your local dealer - you will be sorry when you won't be able to buy a belt,plugs or oilfilter in a 50 mile drive and all you are doing by trying to get the cheapest price is driving the value of your sled down - what do you think your used apex would be worth if the cheapest price on a new one was $11000

 

[Coondog2707]

I understand the idea of buying local, but tell me what you would do here? My dealer 10 miles away wants $1200.00 more than another dealer 180 miles away. Thats a lot of money to me. If he could get within $500.00 I would stay local, but 1200.00? Thats like getting free fuel for the year!!

 

[Sled Dog]

I understand the idea of buying local, but tell me what you would do here? My dealer 10 miles away wants $1200.00 more than another dealer 180 miles away. Thats a lot of money to me. If he could get within $500.00 I would stay local, but 1200.00? Thats like getting free fuel for the year!!

Ask him to split the difference, if he wont then go get the better deal. This way you are at least giving him the oppurtunity to get your business.

 

[jimmie d]

What other industry exists every year losing money in a good years even. To be a dealer in recreational products is nuts hell hot dog vendors make more money with minimal nvestment.

Jim

 

[OTB]

No one has mentioned anything about putting a value on their time. Yes there is a price difference up front but a some point you need to look at the time you spend running around. Everybody needs to make money (reasonable profit). Time is a commodity that you cannot get back and many people forget this.

 

[Sled Dog]

What other industry exists every year losing money in a good years even. To be a dealer in recreational products is nuts hell hot dog vendors make more money with minimal nvestment.

Jim

I agree with you mostly. The sleds quads what have you are priced high enough IMO so the dealer can make a half decent profit. It is Yamaha that should charge the dealers less for their products. In Canada we are paying $3000 more for a sled then in the USA as it is. I dont blame anyone in Canada to look for the best deal. In Canada at least it Yamaha to blame as far as I can see.

 

[DaveyBoy]

I buy were i ride. I also bought a sled i never seen even to this day But i have that much faith in my dealer and i didnt haggle over price with him His service has been above and beyond even before i bought anything from them. I believe Ulmers motto is Not only are u paying for a product but service and knowledge and this is what it is all about. I even buy all my parts from them now. IMO its hard to find a dealer with the whole package price,service,etc but i have found it so far @ Gary`s yamaha in caribou maine. I may even buy a wheeler from them if it doesnt snow soon

 

[berge75]

See, i see things a little differently.I go after the lowest price,document it,then go to the big filthy rich dealer(you know, the one's with the new diesel shop trucks,and the ones driving new Harley's every year)waste a whole afternoon Jewwing them down to the point where they have to sell because they have too much time already into the sale,and then buy all the parts and accessories and all the repair work done by the little guy,who doesn't treat you like a number. My dealer doesn't mind,he understands me

 

[sledskiing]

I recently was really close to buying a non yamaha dealership and I can tell you there is not a lot of money is selling sleds. That's why dealers add in so many costs. When a unit comes off floor plan and is now being financed the interest rate is Prime plus 6 in some cases. Dealers have to finance that every month. Manufactures will require dealerships to buy a certain amount of sleds sometimes. It leaves the dealership with a lot of inventory to move. I bought a brand new 06 Vector Mtn for $8,600 (cover included). I think that price is dealer cost less any holdbacks/incentives.

After going through all the due diligence on the dealership I wanted to buy and realizing how much I value a good service tech, I probably wouldn't have shopped the price so much. The advice and guidance that I now get from my Yamaha guy is priceless.

Understand that a lot of the owners of dealerships are in the business because of their love of the sports. The best dealers in my areas are the smaller ones. They don't have the flexibility to price stuff very aggressively but they are the ones that keep our sport alive and where I get the best service and advice.

There are a few dealerships out here that have too much money to throw around and could care less about sleds.

Shop around but don't rape your dealer. Try to work something out.

 

[**sj**]

See, i see things a little differently.I go after the lowest price,document it,then go to the big filthy rich dealer(you know, the one's with the new diesel shop trucks,and the ones driving new Harley's every year)waste a whole afternoon Jewwing them down to the point where they have to sell because they have too much time already into the sale,and then buy all the parts and accessories and all the repair work done by the little guy,who doesn't treat you like a number. My dealer doesn't mind,he understands me

I understand the context of your post but find your wording offensive!

 

[SharkAttak]

sad thing today i see more and more dealers going out of business and if these winters get any warmer there will be fewer and fewer next year, i bought my 06' attak in pittsburg n.h. last year, got a great deal, good service, great people to work with, this year they are out of business

 

[jds1000]

I think the dealers are there own worst enemy. Maybe if they stuck to their guns and sold sleds for a certain profit margin then we wouldn't be tempted to go elsewhere. The problem is there are dealers out there undercutting everyone else and selling sleds below cost! If the dealers are going to sell them cheap then what are we to do? turn our heads and look the other way?

 

[DoktorC]

I think the dealers are there own worst enemy. Maybe if they stuck to their guns and sold sleds for a certain profit margin then we wouldn't be tempted to go elsewhere. The problem is there are dealers out there undercutting everyone else and selling sleds below cost! If the dealers are going to sell them cheap then what are we to do? turn our heads and look the other way?

That is a HUGE issue in the sled industry...and it only takes one guy to do it. Once one dealer advertises the price anyone else who doesn't match it is "ripping off" the customer. I've seen dealers at each other's throats at dealer meetings because of this....some are too stupid to understand and if they're that stupid do you want them setting up your sled .