850 gone down already??
- Thread starter ANTHONY11
- Start date
Ha Ha, dealers make nothing on new sleds, that's why they always have brand new trailers and $80,000 trucks. They just like to give them away so they can sell you a pair of bibs and a belt...
Anyone who believes at the end of the year after they get their rebates and discounts they are selling $14k sleds for a profit of only a couple hundred dollars must not understand the laws of economy.
Anyone who believes at the end of the year after they get their rebates and discounts they are selling $14k sleds for a profit of only a couple hundred dollars must not understand the laws of economy.
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LOL. I was like WTF?
Do you own an 850?
Exactly. That is like the car dealer trying to tell you they only make a couple hundred dollars on a new truck. Pretty offensive. I bet they make 10 grand on a new truck and 5 grand on a used one. You don't keep a dealership alive on a couple hundred dollars.
J
Jaynelson
Well-known member
You could probably estimate about 8% margin on a new car and truck profit and be in the wheelhouse. Not counting rebates and whatever... but most of that is advertised these days, so it’s not like you hold on to any of it. On the vehicle itself....not counting any extras, but also not counting any expenses. So if you grind the guy for some stuff/discount..he very well might be making a few hundred bucks. $4k profit minus the couple grand you wanted off minus the box liner you needed thrown in minus the $1k over allowance on your POS trade in = a few hundred bucks. People think there is magic fairy dust, but it’s very simple math. Now...you add some financing, accessories, future service, selling the trade (which the next guy will grind on and have some other POS to trade) ..and the business starts to make sense. But not everyone pony’s up for extras, so it’s a big risk to base business on that. A good rule of thumb is that every component of a business should be able to operate as a standalone business. So selling sleds or trucks at a loss hoping that people buy more parts is sketchy territory.... but you do end up riding that edge sometimes. Not sure why it’s offensive to tell it like it is.
I just never understand why so many people are jaded when dealers make money. Provide a service people seem to want...work hard....go spend money down the road just like anyone else....world keeps turning and all that good stuff. I’ve worked retail and bought/sold stuff my whole life and never been worried about what a welder or a farmer makes...and if they told me, I probably believed them...and didn’t really care. Everyone who collects a pay cheque is selling something to someone...either directly or indirectly. Dealerships are high risk, time consuming, volatile, no pension, and not for everyone....they should generate good money for those involved.
End rant
This is an AWESOME POST !
WOW ! I know you said you disagree with me.......
But I am pretty sure you would disagree with me if I said that about your dealerships.
But as for mid-size to small dealerships in the United States it’s on pay per with what I explained.
And you also brought up up the point I made about the margins getting smaller
You are completely reinforcing my point.
You are moving your dealership into the future at a blistering pace compared to the USA...... I believe you are.
And I believe my shop has & is doing The same thing.
BUT....... if the OEM ‘s keep shrinking the margins you will run out of digital ideas.
The margins cannot shrink is very year.
Your great ideas are suppose to give you more separation net profit so you can afford to expand.
If they keep driving your gross numbers up and your net numbers down you will soon run out of space and energy and you will then start to level off and soon begin getting smaller and when that happens the end is near.
You are so spot on about powersports people refusing to get up to speed.
Again ...... GREAT POST !
Dan
You are an uninformed moron.
And they do make more margin on the bibs and the belt... it’s mostly likely to sliver that pushed past NET zero
And you will forever be a employee...... if you think i’m Wrong smart man go buy a Polaris dealership and report back to the form in 2 years and show us your P&L
Funny there is always a few know it alls...... that actually know nothing at all.
Dan
Dan
This only happens when a new model with a new motor hits the market.
And it’s still a net zero EVERY YEAR after the typical warranty problems hit.
The few sleds they upsold on vaporizes and they are right back to the $300 average.
And you did mention.... and it is a factor..... ( can sell at almost cost ) and some do exactly that.
I will say this again..... except add ( in the USA DEALER ) I would see one Polaris dealer come on here and say I am dead wrong and owning a Polaris dealership is an organic experience and you can soon retire to the islands and live happily ever after.
Every w2 union worker with a full package in the USA makes more bottom line net then any owner of a midsize to small Polaris dealer.
Not counting the M & M type dealers.
I want to hear one argue with me & says its great to be a Polaris dealer.
I want to be wrong ! I would love to be a Polaris dealer if there was any money in it without it being a war.
I believe the reason you will not see a small to mid size dealer on here is because most of the owners do not know how to sign up and even log onto a forum.
And the only reason they have internet is to get e-mail and run their credit card machine..... and many donor use e-mail to this day.
Dan
Anthony11 how is the new mill running now? I think lots of guys would like to know on here.
R
Ride_The_Rockies
Well-known member
No disrespect to anyone but could we please stay on topic!! I have a new 850 and I am following this thread to find out about the motor issues. If you want to discuss how much a dealer makes or doesn't make or what "side" you are on. PLEASE start a new thread. I prefer not to have to sort thru all the stupid BS that has nothing to do with the original topic!! Thank you. rant over, I'll now hop off my soapbox.
Dan, thank you for all the input. Do you have an idea of how many failures there are to date?? As far as I can tell it would seem to be (internet reported) a hundred or less??
Wife and I are both over 200 miles and loving these sleds. Wife is improving quickly on her 850. Photo from yesterday, couldn't believe what she was trying and pulling off as she is not an aggressive rider.
Wife and I are both over 200 miles and loving these sleds. Wife is improving quickly on her 850. Photo from yesterday, couldn't believe what she was trying and pulling off as she is not an aggressive rider.
Dan...? I think you missed a post when you were responding to everyone about dealer profit margins...
A lot of the guys that are badgering the dealers to sell them a sled at just over cost because if not they'll drive 500 miles to another dealer that will are also driving those $80k trucks and new trailers! None of the sled dealers in my area (any brand) are driving brand new trucks and trailers.
I think some of the dealer discussion and margins are valid because it helps understand how/why Polaris will handle things if there truly is a 900 or 800 Dragon fiasco coming down the pipe. I ride Cats, but I wish no one ill will with their new sleds.
Wallmart
You are the Wall Mart of the polaris dealer in your area. You have the insight and forward looking mind to keep things going. New markets, internet sales, web advertising. If you were to open 12 more Polaris dealers you would be competing against yourself in online sells. Logistics is the biggest issue! No one likes to drive 2 hours to the dealer. Your success has come at the expense of your competition and the logistics for the consumer become farther. It is a catch 22 for the consumer as they shop online to get the best price and on a lot of parts logistics is not a issue. Free shipping is everywhere, even larger items as tracks are shipped free from a lot of places, but then we as consumers watch the one dealer we liked to buy our sleds from around the corner go out of business as he did not adapt as you did. I am not smart enough to know the answer but i am aware enough to see what is happening. This in no way is a bash to you, you just have evolved faster then your neighbor and adapted. I for one do not shop at Wall Mart and i try to support the little guy even if it cost a few more bucks. I think a lot of small business owners feel this same way but it is definitely the majority that follow the all mighty buck first and see the consequences later. I feel from Polaris mind set or any other manufacture they need to look at logistics. When the big keep getting bigger they swallow up the rest and we have one dealer within every 200 miles. What gives here? Maybe the future will be more Tesla like and you buy your sled online and the UPS guy drops it off at your door? Warranty claims UPS picks it up? Wait maybe i need to invest more in logistics companies and forget the lithium market i lost so much on in 2018? We the consumer are partly to blame for where we are and it is no fault of yours to take advantage of it. The question is, is this really where we want to be? I don't think we have a choice.
You are the Wall Mart of the polaris dealer in your area. You have the insight and forward looking mind to keep things going. New markets, internet sales, web advertising. If you were to open 12 more Polaris dealers you would be competing against yourself in online sells. Logistics is the biggest issue! No one likes to drive 2 hours to the dealer. Your success has come at the expense of your competition and the logistics for the consumer become farther. It is a catch 22 for the consumer as they shop online to get the best price and on a lot of parts logistics is not a issue. Free shipping is everywhere, even larger items as tracks are shipped free from a lot of places, but then we as consumers watch the one dealer we liked to buy our sleds from around the corner go out of business as he did not adapt as you did. I am not smart enough to know the answer but i am aware enough to see what is happening. This in no way is a bash to you, you just have evolved faster then your neighbor and adapted. I for one do not shop at Wall Mart and i try to support the little guy even if it cost a few more bucks. I think a lot of small business owners feel this same way but it is definitely the majority that follow the all mighty buck first and see the consequences later. I feel from Polaris mind set or any other manufacture they need to look at logistics. When the big keep getting bigger they swallow up the rest and we have one dealer within every 200 miles. What gives here? Maybe the future will be more Tesla like and you buy your sled online and the UPS guy drops it off at your door? Warranty claims UPS picks it up? Wait maybe i need to invest more in logistics companies and forget the lithium market i lost so much on in 2018? We the consumer are partly to blame for where we are and it is no fault of yours to take advantage of it. The question is, is this really where we want to be? I don't think we have a choice.
Just a guess, the mod that was here was insulted and disrespected several times, and probably doesn't give a rat's behind where this thread goes any more......
