Motorcycle dealers sell motorcycles for a good amount of money. Many of you might think they get a huge sum of that money as a profit but that is not the case. If you’re interested to read more about this and what happens to the amount of money you pay for something and the amount the seller ends up with. It’s a really interesting business and it’s interesting to see what goes on with everything, things we as customers often don’t really know much about.
So first off you buy the motorcycle that you want to have. Let’s say you buy a Honda and you pay €10.000,- for it. Most of the time you get a warranty with that purchase, sometimes you’ll get some free items – which aren’t huge expensive things most of the time – and that all takes away from the profit the dealer makes already. The motorcycle trader probably sells different brands of motorcycles, which all lay in different price ranges and different quality and warranty rules. This is all something that the trader has to keep up with and that takes a lot of effort.
What does it depend on
Before motorcycle traders had a profit that was around 15%. Right now profits have been much much lower and have been laying around 5% on average. All percentages vary from 4% to 7%, this all depends on what brands are being sold and if the brand is imported or anything. It also depends on what they sell in comparison to what new motorcycles they buy you put on display. Costs that are also included in the profits are the costs of the building, costs of other materials used in the showroom and the dealer itself. There is a lot that needs to be kept in mind when looking at the profits that are being made.
When is the profit the highest?
Of course a dealer gets a very high profit off of a motorcycle that isn’t expensive when they buy it to sell, but they sell it for a good price. Again depending on the brand and whether the motorcycle is imported from another country – especially well developed countries like Germany – the price is decided and that decides the profit they get off of the motorcycle. Enough of those gives them a good profit, if they don’t sell enough or don’t sell at all, profits will be very low, and in the worst case the dealer could go bankrupt.