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Old 07-23-2010, 08:59 PM   #1
BrownMichael
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Default Suzuki Dealer Pricing Strategy

I'm interested in buying a 2011 DL650 this winter to replace my 2004 - been thinking about it for a couple of years and watching the local Suzuki dealerships for bargains without any luck.

I happened to be in my nearest Suzuki dealership today to have a tire mounted and asked someone who worked in sales if I could talk to someone about the best way to obtain a 2011 model. She said I was smart to ask now, since they might not be getting many bikes from Suzuki and that they would be placing their order soon. She had the sales manager call me back for more info.

He said they had already placed their order and had "maybe four" DL650s scheduled for delivery around November or December. I asked what kind of price they could offer me and what kind of deposit would be needed. I told him I was looking for a discount off the MSRP since I was offering to take a bike immediately on arrival with no risk on their part. (I'm one of those guys who never pays list price for anything. I'd rather go without.) He had to go check and got back to me a few hours later.

As I expected, he said that Suzuki had not published an MSRP yet. He also said that he would need to get at least MSRP and maybe a bit more for the usual shipping, setup, etc... Exactly the same line I've gotten from other Suzuki dealers in the area for the last couple of years. I told him I wasn't interested at that price.

So now I'm wondering why all the Suzuki dealers are the same. In an honest market, there should always be a dealer who wants to make an easy sale with less profit to pump up their sales numbers. I know that I used to buy Hondas and Yamahas well below MSRP, but that was more than a decade ago.

Do the Suzuki dealers have some kind of agreement among themselves? Is their business model illogical due to some kind of tax laws? Does Suzuki enforce price discipline like I see with Canon cameras? Is Suzuki slowly withdrawing from the US motorcycle market? Don't they care about market share?

Mike Brown
Vancouver, WA

Last edited by BrownMichael : 07-24-2010 at 01:28 PM. Reason: typo
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Old 07-24-2010, 07:10 AM   #2
MOKE1K
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Suzuki pricing strategy? That's simple,... they want to make enough to keep their doors open that's about the only strategy they are trying to hold onto at this point.

Listen if you really want a deal isn't it common sence to buy it after it's been sitting on the dealer floor for a year? Every bike that sits in their inventory the dealer is paying a floor plan for, meaning the longer they sit there the more the Dealer must pay throughout the year. Buy the end of the year they owe so much their much more motivated to sell it.
Also any dealer should beable to locate any bike from another dealer through dealer trade. The DL650 is not as popular a bike as other models so they may not order that many. Mainly because they don't want to get stuck with them at the end of the year. See what the dealer can do about an older year model, even if they don't have one they should be willing to locate one for you. If you want the newer model wait until the end of it's year then hit them up.

And go easy on your shop with price, they need to make money as well to keep the doors open, or you may return to find them closed next year. One less dealer just makes it that much more harder to find another dealer to get you a good deal. One reason I am no longer in the business is because customers think they can just steal it, so go easy and remember all the enjoyment you'll get. Most sales guy/gals are making a straight 50.00 once you try and get under all the fees. The reason you may have gotten under Msrp
in the past is because they made enough profit on all their other customers. These days everyone wants unrealistic deals so they are probably less likely to deal as hard specially if they have big sales going on already. I think even if your around msrp your doing good.
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Old 07-30-2010, 02:13 PM   #3
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people like you come into my auto repair shop and just make life miserable, people that always haggle get what the pay for. i hope that dealer that gives you the price you want has a 17 year old put your bike together. it will be a while before you find out how screwed up the bike is. have a nice day.
i hope you are as poorly paid as you want everybody else to be paid.
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Old 07-30-2010, 07:25 PM   #4
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The DL650 isn't radically different in 2011 from the previous years. If you're that concerned about price, buy it from a dealer on eBay. These guys, for example, have multiple showrooms. I'm sure they can locate one for you: ridextreme items - Get great deals on Motorcycles items on eBay Motors!
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Old 08-01-2010, 04:41 PM   #5
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I agree with the previous poster. Is it that important that the bike be a 2011 model? I don't recall when the last changes to the bike were, but it's been a while, hasn't it?
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Old 08-01-2010, 08:19 PM   #6
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I don't believe there has been any change it's always offered an abs model. However he may be looking at a specific color which would force him to a certain year.

I hated this particular bike because as soon as we ran out everyone and their mother would come in asking for one. The dealer in question that I worked for is the oldest in Florida. A dealer will trade to get your bike but not to break even.
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Old 08-01-2010, 08:22 PM   #7
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Quote:
Originally Posted by trenttheuncatchable View Post
The DL650 isn't radically different in 2011 from the previous years. If you're that concerned about price, buy it from a dealer on eBay. These guys, for example, have multiple showrooms. I'm sure they can locate one for you: ridextreme items - Get great deals on Motorcycles items on eBay Motors!
I'd rather have a face to talk to if something were to go wrong in shipping. Besides there will be no more shops to walk into if people keep buying their bikes of ebay.These places just kill someone trying
to make a living in this Industry.
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Old 08-01-2010, 09:26 PM   #8
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Quote:
Originally Posted by MOKE1K View Post
I'd rather have a face to talk to if something were to go wrong in shipping. Besides there will be no more shops to walk into if people keep buying their bikes of ebay.These places just kill someone trying
to make a living in this Industry.
Moke, it's my understanding that a lot of these places sellin' on ebay ARE brick-and-mortar Dealerships.
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Old 08-02-2010, 04:23 AM   #9
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Support your local economy. Buy local (if at all possible)! Don't get raked over the coals, but don't rake them over the coals as well. Negotiate a fair price -- pay a fair price. In the end, everyone's happy.
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Old 08-02-2010, 05:37 AM   #10
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Quote:
Originally Posted by The_AirHawk View Post
Moke, it's my understanding that a lot of these places sellin' on ebay ARE brick-and-mortar Dealerships.
Brick and mortar?
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