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Wholesale Dealer Cost


Guest montana07

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Guest montana07

So I placed a deposit on one of only two FZ-07s my local dealer will be getting this summer(MT woes), and he was open enough to show me the invoice and pricing he was paying to Yamaha.  Of course I expected that you all would be interested as well.  His cost was $6350ish(sorry wasn't taking notes) and $330ish for shipping.  He agreed to sell to me at the $6990 MSRP which leaves him at just over $300 in profit.
 
I don't claim to know the industry well, and I'd assume that larger dealers that move more volume are able to negotiate better rates, but I figured this would at least offer a starting point for some of your negotiations.  I was definitely surprised at how little he would be bringing in.
 

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First off, welcome! thanks for joining us. When this site is full of FZ-07 owners and busting at the seams, you will be one of the old timers!
 
Secondly, congrats on getting a deposit on an FZ-07. Which color did ya pick? What part of Montana are you in?

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Guest montana07

Didn't get to pick unfortunately, white is my preferred color, but he was only able to get two units all summer, red in about a week and graphite in mid August. Red was my second choice, and still pretty damn sexy, so I'm still happy. I'm located in Bozeman, MT.

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olderthandirt
So I placed a deposit on one of only two FZ-07s my local dealer will be getting this summer(MT woes), and he was open enough to show me the invoice and pricing he was paying to Yamaha.  Of course I expected that you all would be interested as well.  His cost was $6350ish(sorry wasn't taking notes) and $330ish for shipping.  He agreed to sell to me at the $6990 MSRP which leaves him at just over $300 in profit. 
I don't claim to know the industry well, and I'd assume that larger dealers that move more volume are able to negotiate better rates, but I figured this would at least offer a starting point for some of your negotiations.  I was definitely surprised at how little he would be bringing in.

Well first of all he lied....or somebody forgot about sales tax and title fees. The dealers profit margin on a FZ07 is 14%.....and there is no such a thing as "shipping". Dealers add on these fake shipping charges...documentation fees...setup fees.....and anything else they can get away with so that IN THE END......all customers end up paying MSRP at least...bare minimum. The cost of getting a bike to the dealer is included in the MSRP...which is $6990.00 for an FZ-07.What he showed you was his own YAMAHA pricing sheet. They are forbidden to show you an official invoice from Yamaha...and in fact he doesn't HAVE any invoice from Yamaha until the bike arrives at his dealership. I already had a dealer trying to con me with fake invoices just a week ago. Every dealer I went to had a different fake shipping charge ranging from $350 to $799. That should tell you how fake the charges are. A dealer can't survive on $300 profit.....so don't fall for the bullshit. If he agreed to sell you the bike for $6990.00 he didn't lose a dime on the deal. You'll have to pay sales tax on that amount and a title fee and for a plate. Your out the door price should be about $7500.00which is exactly what most of us will pay. MSRP is a decent deal on a new model motorcycle. No sense of you engaging in any debate with your dealer. You're just paying what most of us do.
 

Congress is the only whore house in the United States that loses money.

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Guest montana07

Eh, he could have faked it, as I said I'm not familiar with the industry. But he did show me the numbers in his inventory management system(my term, not sure what they actually call it), which is the same system he used to pull up the shipping date when I was in last week. His claim is that he typically prices at his cost + 9% and that he usually makes more money off service and gear sales. But who knows could be bull.
 
As for sales tax, title fee and plate, and my out the door fee being $7,500? Sorry, but no. $6,990, no set up, no shipping fee, no documentation fee, and thankfully no sales tax in my state. I negotiated out the door price, and made sure there were no hidden fees.
 
And let me ask, where do you get your info? 14% profit margin? no dealer shipping fees? Dealer paying a shipping fee seems logical to me, I'd expect Yamaha to charge a dealer 1500 miles away more than one one 200 miles from port. I don't doubt that dealers sometimes make up their own shipping fees, but that's not the same as assuming they don't pay shipping to Yamaha.

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Killafornia

I've read from a website that all Japanese brands ship their bikes for free. Do u guys know anything about this?

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Have seen some FZ07's listed on CycleTrader for $5990, but no mention of "fees".
 
Local dealer showed me "invoice" of $6358.
 
Demo'd the one they had, nice ride, was surprised to see a fuel gauge & gear indicator-nice touches. Seemed to run out well, has my interest.

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olderthandirt
Eh, he could have faked it, as I said I'm not familiar with the industry. But he did show me the numbers in his inventory management system(my term, not sure what they actually call it), which is the same system he used to pull up the shipping date when I was in last week. His claim is that he typically prices at his cost + 9% and that he usually makes more money off service and gear sales. But who knows could be bull. 
As for sales tax, title fee and plate, and my out the door fee being $7,500? Sorry, but no. $6,990, no set up, no shipping fee, no documentation fee, and thankfully no sales tax in my state. I negotiated out the door price, and made sure there were no hidden fees.
 
And let me ask, where do you get your info? 14% profit margin? no dealer shipping fees? Dealer paying a shipping fee seems logical to me, I'd expect Yamaha to charge a dealer 1500 miles away more than one one 200 miles from port. I don't doubt that dealers sometimes make up their own shipping fees, but that's not the same as assuming they don't pay shipping to Yamaha.
Shipping is included in the MSRP.  Been riding every year since 1965....owned 67 motorcycles and worked for dealers in 4 states. If you get the $6990 OUT THE DOOR price in writing.... I'll believe it. Post it up here on the forum.
 

Congress is the only whore house in the United States that loses money.

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I got my FZ-09 at $100 off MSRP plus sales tax. Had them waive all the fees. The secret to doing this is to buy your bike when there is snow on the ground. They need sales in Winter and will deal alot more than when everyone is riding and buying bikes. Heck, they even delivered it to my Garage for no extra cost.

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Guest brickst3r

haha that is a good plan. but we are months away from that type of weather and people want their fz NOW! haha. Smart of them to drop it in the summer so they know people will buy them. Sucks to live in SoCal because we don't get that type of weather and we would hardly see a price drop. Only time is went the bike is an older year and the newer models make their way onto the floor. They only dropped $500 off of last years R6 at my dealer.

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The sad thing is, if you don't buy the bike, they know someone else will so they are not too keen on making any deals...especially on what will likely be a very hot seller such as the FZ-07.
 
What is a reasonable out the door price to pay for one of these?  What are you guys paying?  I'm about to pull the trigger so I'd like to have a general idea of where I should be...
 
- Paulie

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My dealer showed his cost as well: $6600 +$295 shipping. He wasn't faking.
Yamaha charges their dealers shipping on everything. Even for promotional material.
That's Canadian $. The bike retails here for $7299.
 
It doesn't leave them much room to play with. I value my dealer relationship so I was willing to pay a fair price (for both parties).

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The sad thing is, if you don't buy the bike, they know someone else will so they are not too keen on making any deals...especially on what will likely be a very hot seller such as the FZ-07. 
What is a reasonable out the door price to pay for one of these?  What are you guys paying?  I'm about to pull the trigger so I'd like to have a general idea of where I should be...
 
- Paulie
I paid $6,990 out the door.  There really was no negotiations, all I could negotiate was the financing side.  
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Guest brickst3r

I think in Socal you can expect to pay at least $8,000 OTD. Unless you have a good relationship with your dealer or a hook up. But that's what i'm expecting to pay.

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Killafornia
I think in Socal you can expect to pay at least $8,000 OTD. Unless you have a good relationship with your dealer or a hook up. But that's what i'm expecting to pay.
How much did u end up paying? I just got mine for 8000, 9500 for everything including 800 for 3 years extended warranty.
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Guest brickst3r

I have not gotten mine yet. I'm just assuming I will pay at least $8,000 plus. So you paid $8,700 without the extended warranty? I'm hoping to not go that high over $8,000 Out the door.

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I really want the bike but I think I'm going to play the waiting game to let quantity catch up with demand. Westfield Yamaha, near Indianapolis, IN has the bike listed on Cycle Trader for $5999.00. I pretty sure that's without tax, title and everything else but so far it's the cheapest I've seen. It's a five hour drive from my house and would be a bit of a road trip. Not sure if a 5 hour trip would be the best way for me to get comfortable on the bike.

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Guest brickst3r

maybe have a friend with a truck help you take it back if you don't want to ride 5 hours back. If you can get it for a great deal i would do it too.

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I am definitely not an expert, but $1000 below MSRP seems a bit suspicious. I expect there will suddenly be unexpected fees and charges when you actually start negotiating the price. They have to be losing money if they actually sold it for that price. Just my opinion. Let us know how it goes if you decide to buy from there.

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I am definitely not an expert, but $1000 below MSRP seems a bit suspicious. I expect there will suddenly be unexpected fees and charges when you actually start negotiating the price. They have to be losing money if they actually sold it for that price. Just my opinion. Let us know how it goes if you decide to buy from there.
Before I'd drive 5 hours I would request paperwork showing the specific purchase agreement with all fees listed.
 
Curious to hear what that dealer's actual sell price is.
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i talked to a dealer in columbus ohio today. he quoted the msrp at 6990$. he estimated out the door at 8810. ohio has extremely high state sales tax. wish i were in a state that didnt have any. the price feels high to me. any thoughts?

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TwistedTorque
i talked to a dealer in columbus ohio today. he quoted the msrp at 6990$. he estimated out the door at 8810. ohio has extremely high state sales tax. wish i were in a state that didnt have any. the price feels high to me. any thoughts?
That is pretty high if you ask me. If I calculated NYS 8.875% tax + NYS fees on MSRP the OTD price would be around ~$7600-7700. So that would be about ~$1100-1200 in dealer fees.  
But like everyone says, it's all about the demand. If people are willing to pay that price, the dealer is going to charge it. Shop around first.
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good call gamer. it seemed a bit high to me too. im going in tomorrow to talk to the dealer face to face. if he insists on the out the door price i wont bite. it will be hard to turn away the bike but im not made of money. thnx for the input.

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