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This is for CS, the comment about Triumph not having a holdback is total BS. Whether you call it a "Dealer Reserve" or holdback it makes no difference. You have the MSRP, you have the invoice price, you have the price they pay for the bike, and then you have the "holdback" and for those who do not know how it paid, it is not an immediate benefit for the dealer he has to wait usually either quarterly or semi annually for it to be paid back to him. It is called that for a reason The dealer can maneuver as best he can to try and maintain as much profit as he can get away with, however if you have a knowledgeable customer who knows approximately what the dealer has in a particular model to deal with he can usually get a good deal. Dealers usually do not like to have the holdback money touched as if somebody gets a "rock bottom" deal, this may be the only profit he gets for the bike unless he sells a heck of a lot of accessories. Now some dealers will go into the holdback on some occasions if they deal in a large volume of sales, they can usually make it up somewhere...usually accessories. Don't forget the dealer has to pay overhead, salaries, commissions, order new merchandise, and pay somebody to do all that warranty work till he gets reimbursed, he can't do that if he doesn't make any profit at all. I suppose you think the salespeople, paper work people and mechanics work there for free just because they're happy they are not outdoors in the rain...get real.
Sorry if I came off pretty heavy handed. But if somebody paid your salary like you go out and buy a motorcycle you would probably look for another job.
And I am not saying the dealer should always sell at MSRP, that is a risk he is taking, he may get some that don't know any different and sell it at that price. These type of sales are the ones that make up for the loss of profit sales that he may have to do to move cycles off the floor so he can order new ones.
As an example suppose you are good at what you do and you charge $15 an hour (can be $25.00 an hour) for your time. And you get someone who tells you I don't think you are worth $15 an hour, I'll give you $12...what are you going to do, walk out or suck it in and do it for $12 as you have got bills to do. You may do it, but you sure aren't going to like it.
Dennis
[ This message was edited by: Molinoman on 2006-11-12 02:56 ]
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