Salesfloor comission on new bikes | GTAMotorcycle.com

Salesfloor comission on new bikes

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gqelements

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Does anyone know aprox. how much salesperson commission is typically paid out on Japanese bikes? I have an opportunity to call in a favor from a friend high up at a dealership on a bike I want (but consider overpriced) and want to know if it's even worth it to bother my contact or just buy a used version privately... The bike is ~14K.

Would you expect the sales commission (not the amount the dealership itself will make between wholesale and LIST, but actual sales guy portion) to be at least $400-500?

If you have first hand knowledge I'd appreciate your input here or via PM.

Thanks in advance.
 
Every dealership will be different. I know that isn't helpful. But i cannot imagine them making less than that. Or you'd have to sell a whack of bikes a month to make a decent living. You'd have to make that much at least for selling your top product (compared to a 7k or 8k bike). Having said that it would depend on the gross as well. If the guy gives you a large discount he'd probably make less. Again not helpful I know.
 
It varies from dealership to dealership but also model to model. I was talking to a Suzuki dealer last year (owner/main sales rep) about the new Van Van when it came out. I mentioned about how cool I thought it was and he said it was more of a pain in the a** for him than anything. He showed me his invoice from Suzuki and if sold for full MSRP they only make $350! He then pointed out that often they hope that after the sale they can sell you accessories for the bike as that is where the good money is for a shop but that in the case of the Van Van there weren't any accessories for the bike and even in markets where the bike had sold for a few years there was still basically no aftermarket for them as people buy them for what they are, and basically don't come back until they need tires.

So depending on what you are buying there may be more wiggle room on the price, but maybe not $500, especially if the model is typically an easy sell. Now try again in late fall when they are staring the prospect of hanging onto it all winter and then having the next model year arrive in spring, they may be more willing to deal.
 
From what I heard and read a salesman makes 400 give or take 100 on a harley sale..
I cant remember where i got that but that stuck in my head..
Its usually the dealership that makes the most and even then i dont think they make that much either..
I think most places use service, parts and used vehicles as their bread and butter because profit margins on new vehicles are low. i know this because my brother works at BMW.. but then again that could only be BMW...
 
dubz said:
From what I heard and read a salesman makes 400 give or take 100 on a harley sale..
I cant remember where i got that but that stuck in my head..
Its usually the dealership that makes the most and even then i dont think they make that much either..
I think most places use service, parts and used vehicles as their bread and butter because profit margins on new vehicles are low. i know this because my brother works at BMW.. but then again that could only be BMW...
Click to expand...

In addition to this, some dealers rely on bank kickbacks for financing. Oftentimes, if you ask for a higher interest rate like 8% vs 4%, you can actually save yourself nearly $1000 which is incredible. You'll want to pay the bike off quicker though. I'm not 100 percent sure, but I think I heard that the dealers get their kickbacks so long as you take at least 7 months or something to pay it off.
 
first hand knowledge
yeah, my second career was a commission based position
if I had found out the company put a unit into my region
and stiffed me on the deal because the buyer was a friend
I'd be raising hell, buy used, leave the salesman alone
 
I’ve got a network of friends of various trades and sales. I would ask them to work for free. As my time is just as valuable as theirs.

I don’t mind helping out a friend but, when it comes to their livelihood, I avoid looking for a “deal”.

If they are that good of a friend, they will be honest and tell you what they make, what they can do. And share a little about the inside dealings of their workplace.

A friend of mind is the sale manager for a ford dealership. I don’t want to get burned but, I don’t want sour grapes either. I’ve bought from him in the past and keep him in mind. But, I’ve bought other places too. Just depends on my needs at the time.

I know several buyers and owners in the furniture and appliances industry.

They do well in furniture but the appliances and especially electronics, the margins are peanuts and often lost leaders or only to be competitive with homes to keep marketshare and sell other merchandise that can generate revenue etc.

Look at bike shops. The big box shops are doing on and the little guys are struggling to keep the lights on and losing business to eBay and Amazon.

As it’s been mentioned, depending on the make and model, the commission can vary greatly. Even from the business aspect, the real money is in volume rebates based on monthly units sold. Inventory costs the business money. The have to pay for their products before taking delivery. So that is out of pocket and they have to pay the folks that work their, rent for the building or if they own, pay property tax, utilities and upkeep etc.

If it was easy, everyone would be doing it.

It’s not.

The best deal is owning the bike you want and knowing it’s worth the price you paid.

Everyone has a story about the better deal they got over the one you can tell them anyway.


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