Approx? I know it differs on the deal you haggle but how much roughly?
Any salesman out there who can spill the beans!
Any salesman out there who can spill the beans!
How much do you reckon BMW make on a brand new GS?
- Thread starter Banger
- Start date
guess,
£9,000 bike
BMW £5,OOO
DEALERS £2,000
TAXES £2,000
£9,000 bike
BMW £5,OOO
DEALERS £2,000
TAXES £2,000
Dutchman
Registered user
Fact...........
..........my free replacement 1200GS, for which I received the 'paid' invoice....
£9450.00 on the road
£8099.00 dealer nett price
£1350.11 gross margin
or 8057.15/6908.12 without VAT
Dealer profit £1149.02 without the VAT
Cheers
Dutch
..........my free replacement 1200GS, for which I received the 'paid' invoice....
£9450.00 on the road
£8099.00 dealer nett price
£1350.11 gross margin
or 8057.15/6908.12 without VAT
Dealer profit £1149.02 without the VAT
Cheers
Dutch
mm! It always makes me laugh when thesales man at the japcrap showroom says "And thats all i am making mate about £50 cant do better than that, you are robbing me"-YEAH ALRIGHT!
I went to a recent showroom local to me that had decided to go sole Suzuki. They said :
Dave we are going up-market , we are going to have a coffee lounge, TV camera's of the latest racing, members ride outs, an area where members can sit and chat , even a nice area outside with tables and chairs and waitress service, oh yes and a pool table with bikes all lit up on turntables so we want to keep the customer in.
Bit like a similar BMW showroom then?
YEP! came the reply
I came 2 months later and it had an old sofa with table and on saturday only, a bag of dougnuts which where still left in the bag to help yourself-OH and a coffee machine that had run out of coffee!
I went to a recent showroom local to me that had decided to go sole Suzuki. They said :
Dave we are going up-market , we are going to have a coffee lounge, TV camera's of the latest racing, members ride outs, an area where members can sit and chat , even a nice area outside with tables and chairs and waitress service, oh yes and a pool table with bikes all lit up on turntables so we want to keep the customer in.
Bit like a similar BMW showroom then?
YEP! came the reply
I came 2 months later and it had an old sofa with table and on saturday only, a bag of dougnuts which where still left in the bag to help yourself-OH and a coffee machine that had run out of coffee!
Dealer profit £1149.02
Thats a 14% margin. I'd always assumed it was more than that. So a 5% discount (Ha! Ha!) would be a third of their gross profit and far more of their net profit.
Interesting. Shows the number of bikes/parts/service they have to shift to make a decent return.
Paul
Thats a 14% margin. I'd always assumed it was more than that. So a 5% discount (Ha! Ha!) would be a third of their gross profit and far more of their net profit.
Interesting. Shows the number of bikes/parts/service they have to shift to make a decent return.
Paul
eyeguy
Guest
Out of the 'profit' you have to take out overheads as well, which you seem to have forgotten. In reality, most discount operations rely heavily on you taking out finance and retro's from the manufacturer.
If you buy a bike, and finance it , the dealer has a minimum cost of money lent by the finance company, say 5%. If he sells you finance at 8%, he pockets the difference, if you buy at 10% he earns even more. And he gets a signing up fee, too. If you buy protected finance , in case of illness etc, he gets a bung, as he also does if you take out shortfall insurance( well worth having on a desirable bike, BTW).
At the end of the year he receives a payment for units sold/registered, hence so many pre-reg bikes on sale. This is a BIG part of their planning, financially.
A typical jap dealer makes very little out of a new bike, the money comes from retro discounts, finance, servicing, warranty work( for which they're paid a reduced workshop rate), and accessories. It is far more profitable to sell S/H bikes. BMW dealers should make a little more, but it's much the same for them too.
So, when you try and chip your dealer, and he says 'I'm only making £200 on a £7K bike, he's sort of telling the truth, and if you give it the big 'I'll pay cash', that's the worst news he's heard all day! Dealers are there to make money too, and, if they're screwed too often, they go bust. Motorcycle City, anyone?
If you buy a bike, and finance it , the dealer has a minimum cost of money lent by the finance company, say 5%. If he sells you finance at 8%, he pockets the difference, if you buy at 10% he earns even more. And he gets a signing up fee, too. If you buy protected finance , in case of illness etc, he gets a bung, as he also does if you take out shortfall insurance( well worth having on a desirable bike, BTW).
At the end of the year he receives a payment for units sold/registered, hence so many pre-reg bikes on sale. This is a BIG part of their planning, financially.
A typical jap dealer makes very little out of a new bike, the money comes from retro discounts, finance, servicing, warranty work( for which they're paid a reduced workshop rate), and accessories. It is far more profitable to sell S/H bikes. BMW dealers should make a little more, but it's much the same for them too.
So, when you try and chip your dealer, and he says 'I'm only making £200 on a £7K bike, he's sort of telling the truth, and if you give it the big 'I'll pay cash', that's the worst news he's heard all day! Dealers are there to make money too, and, if they're screwed too often, they go bust. Motorcycle City, anyone?
doctor_octor
Guest
Don't forget the price of the "free" first service... free to the owner but it comes from the profit they make from the sale ...
Glebe
Guest
.... how much??!?!???
hmmmmmm. Better not tell you lot how much I paid for my UK spec 12GS in Cyprus then......
hmmmmmm. Better not tell you lot how much I paid for my UK spec 12GS in Cyprus then......
how much I paid for my UK spec 12GS in Cyprus
Go on then. You know you want to.
Paul
Go on then. You know you want to.
Paul
kwh
Guest
Re: Fact...........
So, look at how many bikes a solus BMW bike dealer gets in a year - not that many, obviously. Then look at how many turkeys they are forced to take but won't be able to sell (R1200CL anybody?), then look at the demands from BMW central that they have all the marble flooring and carpets and flashy Point of Sale stuff, and keep re-investing in tarting up the premises and training etc etc. It's a wonder they stay in business at all on new bike sales alone. In fact, they probably don't. Which is why a dealer who gets my money for a new bike but so pisses me off in the process that I never darken their doors again has scored something of a phyrric victory.
Dutchman said:
So, look at how many bikes a solus BMW bike dealer gets in a year - not that many, obviously. Then look at how many turkeys they are forced to take but won't be able to sell (R1200CL anybody?), then look at the demands from BMW central that they have all the marble flooring and carpets and flashy Point of Sale stuff, and keep re-investing in tarting up the premises and training etc etc. It's a wonder they stay in business at all on new bike sales alone. In fact, they probably don't. Which is why a dealer who gets my money for a new bike but so pisses me off in the process that I never darken their doors again has scored something of a phyrric victory.
Geordie Foote
Registered user
£6000.00 !!!!!!!!!!!
Brand spanking new R1150GS...
ABS....
Pannier rails......
Panniers......
RID.......
OTR!!!!!!!!
£6000.00!!!!!!!!
Tax Free in Cyprus.
Work out the profit margin yourself.
Brand spanking new R1150GS...
ABS....
Pannier rails......
Panniers......
RID.......
OTR!!!!!!!!
£6000.00!!!!!!!!
Tax Free in Cyprus.
Work out the profit margin yourself.
