Why do business with the dealer?

[kanem]

Just hunting up some parts for my ST1100. Came across the following info:

Local Dealer Internet Dealer Dealer Markup

Thermo Switch $50.49 $34.15 42%
O-ring $3.49 $1.30 39%
Thermostat $45.49 $24.37 73%
O-ring $3.79 $1.56 51%
Sending Unit $57.79 $32.09 65%

Total $183.44 $93.47

Are you kidding me? Must be a pretty profitable business and another reason
I will not use the local dealer unless absolutely necessary.
The only advantage I see here is the local dealer usually gets it in 2 or thee days where as the internet dealer takes a week.

[MNwing]

Local dealers usually employee local people, pay taxes to the community and state, and all the other expenses that go towards running a business. I don't buy everything I need from local dealers, but still feel I should support them now and then.

[STindy05]

Now I see you have listed parts for an ST1100, but if you have a 1300 under warranty. You want your dealer on your side for when the Tstat goes bad, or the water pump seal, or any other work. Or...you may not get it covered under the warranty.

[FrankO]

I think your math is incorrect.

From your examples:

Item 1- local dealer's price is 47.8% higher than internet dealer
Item 2: 168% higher
Item 3: 86.6% higher
Item 4: 142.9% higher
Item 5: 80% higher

Also, the difference in price between the internet dealer and the local dealer is not 'dealer markup'. Dealer markup is the difference between what he paid for the item, and what he charges for the same item.

And, I agree with MNwing.

[STindy05]

Also...I don't see where you added any shipping in for the internet dealer.

[coty_jim]

In Illinois at least, the sales tax usually covers the shipping from most internet oem parts suppliers. I do support the local dealer on relatively low cost items, but when spending >$100 I usually shop around (internet, eBay, etc).

[John Anthony]

I try to support my local dealers, especially on routine stuff. Big ticket items I'll shop on line, but I like to keep a relationship going with the folks I may need service from.

John

[kempco]

Just think what the local dealers could sell if they sold for Mother Honda's suggested retail price.

[STindy05]

In Illinois at least, the sales tax usually covers the shipping from most internet oem parts suppliers. I do support the local dealer on relatively low cost items, but when spending >$100 I usually shop around (internet, eBay, etc).

:th1:

Speaking of that. How long do you think our fine goverment is going to let that continue where there is no sales tax on items bought out of state online? I imagine they are losing lots of dollars by not collecting on those items. All good things have to come to an end.

[kwslhs]

So long as you have no problem with your dealer being out of business, by all means vote with your dollars anyway you like.

I like having a dealer to serve me and therefore I will support them.

When its all about the price and nothing about the community then Wal*Mart wins.

[motorcyclelarry]

Being in the fishing/ marine industry and motorcycle parts a 40% markup is pretty much bare minimum that a store can charge and stay in business. Most like 50% and 100% on small dollar items. I try and keep the balance of business fair and profitable for my local dealer so like today when I bring my FJR up there to fix a flat I got over the weekend he will get on it and have it in by 9 out by 5. Quite often I know when I am buying a pair of gloves from him or a helmet that I can get it cheaper on-line but also knows that it takes some loyalty for him to give me the fast service he does.

The mom and pop stores in this country are almost gone taken over by the mega retailers. The ones that have survived have not done so by being low ball price but by providing a service not found at Home Depot or Best Buy.
I have seen a few MEGA motorcycle stores pop up here and there that sell 3 to 6 brands of motorcycles and everything to go with them. One thing (my experiance only) has shown me is there service normally is about as low as there price. I don't think it would be good for this industry for there to be a "Cycle Depot" chain in all 50 states.

On keeping him profitable. I do business with Simi Kawasaki in Simi Valley. I bring my ST-1300, FJR-1300 and used to bring my Vstrom there for service. I know I can buy parts cheaper and install them myself but it is worth it to me to know I am supporting them. Everyone I do business with and want to again I hope to hell they are making a profit off me, good suppliers, dealers and vendors are real, real hard to find and develop.

Larry

[drrod]

MCL is quite correct about the cost of doing, and staying, in business. I have no issues with supporting local dealers at a fair price, providing that there is "service" to go along with the price. When you get "couldn't care less" attitude, along with high price, it is only natural to look elsewhere. The problem we are having up here in the Great White North, is it appears we are getting the "couldn't care less" attitude from Mother Honda!
Rod

[TPadden]

So long as you have no problem with your dealer being out of business, by all means vote with your dollars anyway you like.

I like having a dealer to serve me and therefore I will support them.

When its all about the price and nothing about the community then Wal*Mart wins.

I quit using dealers when they quit stocking parts. Not only are internet parts cheaper, most of the time I get them quicker, and they are delivered to my door.

I live waaaaay in the country and also LOVE Walmart :D!

[AZ711]

It is noble and wise to try and support your local vendors and businesses, but in reality when it comes right down to it, I need to support my "local" business, better known as my family and my household. With that being said, if I can get it cheaper on line and do the work myself, that's all the better for my margins and profitability. Although I am spending my money on line, it is enabling me to have more money in my pocket to spend locally. That helps keep someone in a job locally who may then end up and take his paycheck and go spend it at the local motorcycle shop. It's all just one big circle.

[George]

fMy local dealer doesn't support me! They don't even stock common nuts 'n bolts.

My dealer is a Harley dealer first, Honda and Yamaha are poor step-children. Last itme I was in there, I was looking for a headlight bulb for my Yamaha (functional part, not in stock.) The lady ahead of me was returning some chrome do-dad for her husband's Harley. Apparently didn't fit. Counter guy came up with _TWO_ more variations from in stock. "Well, I don't know which model it is, so..." Took about 15 mintues of haggling before he could take time to tell me, "...not in stock. I can order it for you."

That's three failed trips in a row to this local dealer. Yeah, I know they can't stock everything, but JEEEZ!

If I have to wait anyway, I can save time, gas, and money by ordering on line.

[leveredge]

If the local guy charges twice more, is open only limited hours, and can't fix anything any better than I can, they are going broke anyway. No matter how much of your money you give them, I don't think you will save them from themselves. Although a gov. bailout might work.

[FLSTRDR]

I went to my local dealer when I needed parts to repair the deer collision last year and ask the parts mgr if he would sell me the parts I needed for the amount which is half of the difference of their retail price and the internet price. Figuring he would not make as much as normal but he would make some ; otherwise nothing. And he agreed. That tupperware and radiator are expensive!
Sonny

[mjblair]

My beef is not with the dealer's prices but with the poor quality service. Not all of them but some. My next bike will be purchased on the quality of the service not the brand of the bike.

Say what you want about Harley, they've got the best trained mechanics I've seen so far.

[kempco]

I used to do my shopping on line because the local dealers would add 20 to 40 % on top of Honda's suggested retail price. Now that I have moved to a different area the local mom & pop Honda dealer is very fair and I think that I am paying under suggested retail. I will support them as long as I don't feel i'm being screwed. :04biker:

[st11ray]

I went to my local Honda dealer for three items. An air filter, brake light bulb, and fairing fasteners. They did not have any of them in stock! The parts guy wanted to order them and I told him it was ridiculous that a Honda dealer didn't stock air filters and light bulbs and left. They are only about 10 miles from my house. I had to drive all the way across town to the other Honda dealer, who did have all the parts. The first dealer is owned by a mega car dealer/nascar team owner, so you would think money to stock parts would not be a problem. I don't mind paying a little more to support a local dealer, but they have to support their products and provide good service as well.

[STill Fiddlin]

For ST1100s, you'll be lucky to find anything in stock, other than valve shims, maybe the odd screw or oil drain plug screw, if it is common on other bikes. I know better than to waste gas going over there in hopes of finding something, so always call first. But, I'm lucky to have a big dealer who gets stuff 2nd day air from Honda warehouse, so if I need 1 or 2 small, relatively inexpensive (< $50) things, and especially if I need them in a hurry, it's often worth ordering it there. Much faster, and usually not a lot more expensive once s/h are included. If I had to pay for the 2nd day air (e.g., from S-H) it would actually be cheaper. Once I get to a $100 part or big order, there's no comparison, of course.

The good thing about this bike is I almost never need anything from the dealer.

[Txrebel]

The closest Honda shop is about 20 miles away. They screwed me over on my previous bike when they did some work on it and it never ran the same again. They refused to take responsibility for damage they did while it was in thier control. So I refuse to do business with them. Funny, I go on some charity rides with the owner, nice guy but he does not care if his shop is worthless...
The other Honda shop I visit is about 35 miles away. Not on my way in any way to anything. I recently had to replace the fork seals. I went to the dealer and inquired about the seals, and the bushings. The parts guy told me the bushings were not a normal replacement item so were not in stock. I got the seals and fork oil and headed home. Opened the forks, found the bushings on my 60k mile '05 need to be replaced. So I ordered them online. When the bushings came in, I put the forks back together and dicovered the parts guy had given me one set of ST fork seals and 1 set of GL1800 fork seals... so I had to drive 70 miles RT to swap the GL seals for ST seals. I guess it's my bad for not verifying the part #'s before I left.

[STPaulK]

Local dealers usually employee local people, pay taxes to the community and state, and all the other expenses that go towards running a business. I don't buy everything I need from local dealers, but still feel I should support them now and then.

Bob, not all of us are lucky to have a Moon Motors within a reasonable drive. :) I just don't consider Motoprimo to be a "dealer" as much as they are a mega-boutique. They botched a recall job on my VFR, never again.

Now I do support an independent shop (Midwest Cycle Supply). They can get parts for a reasonable price and their accessories are reasonably priced so we shop there when we can. I do purchase most parts from the internet but get accessories from Midwest.

[dduelin]

My beef is not with the dealer's prices but with the poor quality service. Not all of them but some. My next bike will be purchased on the quality of the service not the brand of the bike.

Say what you want about Harley, they've got the best trained mechanics I've seen so far.

They get lots of practice.

[dduelin]

I try and support my local dealer to a point. I have to vote with my dollars too. For OEM Honda parts I shop online places like Southern Honda and Ron Ayers then take that price to the local Honda of Jacksonville. Most of the time they match the internet rates. Nothing is stocked anymore in many businesses so they order it and I get it in the same time as ordering online.

I think for me working on a personal relationship with anyone including a dealer makes sense. When I had an oil leak during warranty they comped the diagnostic time and charged me cheap for a couple of parts needed to put things back together and the leak was my fault in the end. If I walked in off the street as some unknown jackleg an hour of shop time plus parts would have been my bill. They give me priority for tire installs when it is real busy because I make an effort to chat it up and learn everyone's name and what type of ride they like doing. It costs nothing to be nice and pays me back from time to time.

[STBNE]

I dont have a local dealer anymore...they had been a mom and pop outfit for at least 25 yrs...then the owner sold into the Honda Powersports franchises and they're personal service attitude dropped way off.Everytime I needed parts they had to order them.While I was always treated well their lack of sound management led them to close their doors for good.Sad because this dealership had been an integral part of the community.In their heyday they did alot for their customers.These days I'll get what i need online and do the work at aNJ Tech Day event Thankyou Randy:bow1:So I not only save money but I learn something and meet up with other ST owners too.:cool:

[RaYzerman]

You have to understand how the retail business works..... to generalize, Honda has a dealer cost price they sell for, Dealers have a retail price Honda suggests. Mom & Pop can't buy genuine OEM parts from Honda directly, so dealer discounts to legit businesses to a 'trade' price. Mom & Pop usually sell to you at retail price, making a smaller profit on OEM. Other more generic stuff they buy from monopoly distributors like Parts Canada, Parts USA or Parts Europe, or Motovan just to name the big ones. Then they retail to you. If you dig deeper you find independent sources to bypass all this distribution markup scheme. That is generally discouraged by those distributors where possible, just by the nature of their large volume/control. In the US, you have more opportunity to find those independent sources, but not so much in Canada.
Service on the other hand has nothing to do with retail, except to be at the source of OEM parts (your dealer). You should choose service based on whether you need it to satisfy warranty, and whether they have properly trained personnel. Is there a local mom & pop who is a better mechanic, yes in many cases. Again, they may not have all the special tools and procedures, but that's the only place a "relationship" counts where you can talk directly to the mechanic. The reason there aren't as many mom & pops, is because they simply can't charge the big bucks dealers do to stay in business. Dealer costs are higher to maintain their building, maintenance and image. They really can't charge any less either, or they go out of business. The harsh reality is they all have to compete with each other, and you have to choose what's best for you or what's available in your area. IMHO, Walmart isn't always the cheapest or your best choice, but why do so many go there? Free enterprise. If you can support Walmart, then you can go buy somewhere on the internet if it's cheaper. Those are the realities of consumer behaviour. Yes, it will be a different world someday when only the big ones exist, or all the mom & pops are gone (already happened!) or there's only one big dealer per state. OK, turning rant OFF now.

[STPaulK]

You have to understand how the retail business works..... to generalize, Honda has a dealer cost price they sell for, Dealers have a retail price Honda suggests. Mom & Pop can't buy genuine OEM parts from Honda directly, so dealer discounts to legit businesses to a 'trade' price. Mom & Pop usually sell to you at retail price, making a smaller profit on OEM.

Not sure I understand you correct so bear with me. The local independent (Mom and Pop) shop I do business with is able to get parts direct from Honda distribution, at some sort of reduced cost. This seems to conflict with what you are saying. I know he does not need to go to some local dealer because I asked him.