Re: Dealer profits exposed!
Posted: Wed Feb 13, 2013 1:22 pm
Well I kinda find this one funny as too. As some of you know I just went through a dealership thing and I can and will tell you what you can make.
#1 it depends on the product your selling as some manufacturers guarantee a sales and service area and some do not.
There is some profit in selling but it averages between 10 and 20% that is it. The machines I sold were my cost on a 125cc $500 now, they are available on the internet for $659 with free shipping so how much can you get. To sell it in a store front I'd have to put it together and with my shipping cost for the first 5 pieces I bought, the 125cc quads for $608 each. What could I charge to put it together it takes about an hour so I would be making about $50 on each unit I sold. The service for the unit is where the money is made plain and simple. I get $50 to tune one up it takes 15 min soup to nuts 4 in hour $200. Parts have a good mark up as well but you have serious competition in the internet too. With sales alone a store front would quickly close.
#2 Volume discounts with better name manufacturers the more you sell the better your return it can go as high as %30 but it's not cash it's in purchase incentives which is just as good as long as your moving product.
#3 Warranty issues, the manufacturers differ greatly on this, The manufacturer I used had 0 on labor but 100% on parts only, no shipping costs are paid. Big name brands would pay something on warranty but not much.
There is no way with new units your making 100% mark up no way. The funny thing is with used units
I have sold em at a 500% mark up go figure.
#1 it depends on the product your selling as some manufacturers guarantee a sales and service area and some do not.
There is some profit in selling but it averages between 10 and 20% that is it. The machines I sold were my cost on a 125cc $500 now, they are available on the internet for $659 with free shipping so how much can you get. To sell it in a store front I'd have to put it together and with my shipping cost for the first 5 pieces I bought, the 125cc quads for $608 each. What could I charge to put it together it takes about an hour so I would be making about $50 on each unit I sold. The service for the unit is where the money is made plain and simple. I get $50 to tune one up it takes 15 min soup to nuts 4 in hour $200. Parts have a good mark up as well but you have serious competition in the internet too. With sales alone a store front would quickly close.
#2 Volume discounts with better name manufacturers the more you sell the better your return it can go as high as %30 but it's not cash it's in purchase incentives which is just as good as long as your moving product.
#3 Warranty issues, the manufacturers differ greatly on this, The manufacturer I used had 0 on labor but 100% on parts only, no shipping costs are paid. Big name brands would pay something on warranty but not much.
There is no way with new units your making 100% mark up no way. The funny thing is with used units
I have sold em at a 500% mark up go figure.