Thanks for the replies. However, I don't understand the line of thinking that implies that if I try to get the best deal I can that I'm somehow responsible for the dealer going out of business. Does anyone think that I (or any buyer) can force the dealer to take my offer? I wish I had such power! A business savvy dealer will only take my offer if he feels it's in his best interest to do so at the time.
Hi JLoss:
I'll offer an opinion that appears to be quite different than that of many others.
First off, the OTD price offered is not a good deal. You can do much better. Time is money, how much money is relative to the individual. For some, paying full retail to save several hours or a couple of days may be well worth it. For others, spending several days to save several hundred or even a couple of thousand may also be well worth it. Disregard the value that a unit of time holds to others. Consider only what a unit of time is worth to you and your unique situation. Also, "getting a good deal," may be worth far more than the cash saved. For me personally, it’s a fun game and an interesting challenge in negotiation and persuasion.
With regard to being charitable to dealers vs. taking them to task, do consider the following:
It does not matter how much a seller pays to acquire a product, nor does it matter what that seller's costs are. Such considerations are, frankly, irrelevant.
There is a price that the market will bear and competition is the mechanism through which that price is discovered. The price will reflect the economic costs involved in the aggregate, though not necessarily for a specific unit of production.
If your dealer has ready and easy access to additional units, then any unit that he sells for more than he can source a new unit is a profit. Such profits may be through kick-backs, cash from you, or intangible benefits through higher volumes, such as market penetration, future sales opportunities for service or products, enhanced carry terms from the manufacturer, etc.
Thus, if your dealer perceives that any benefit can be had from selling to you at a given price, and further negotiations have utterly failed to extract a higher price from you, then the dealer is better off selling to you at that price, rather than not selling to you at all. Even if the dealer makes next to nothing, if another unit is easily had, then the dealer should take the small profit/gain/benefit and get another unit to sell. This is sometimes referred to as regression to the mean and represents the concept that over time, competition will move the market price toward the marginal cost of production, or the price at which selling just “one more unit,” no longer yields a benefit or profit.
If however, the dealer has limited availability of additional units, then the dealer must consider whether it is best to sell this unit to you at a given price, or hold out for a better price, despite the risk.
Sometimes, I have found it necessary to explain to a dealer that selling to you, even at a low price, is better than losing the sale completely. Especially in a down economy, you as a purchaser are in the driver's seat. Sometimes, negotiating the most favorable price possible, and then leaving the dealer with your proposed price as a "standing offer" and your phone number should they wish to make the sale is helpful in helping encourage them to see that your price is a fair price. Remember however that it is a negotiation, and the dealer will use his own tactics to encourage you to see that offer is a fair price, such as allowing you to leave, and then not calling you back.
In any case, if it were up to me, I would do everything in my power to get the best price possible, assuming that your time, or the joy of getting a good deal, is worth it to you.
If you do not wish to upset your local dealer, then purchase elsewhere and then let your local dealer service your bike. They'll obviously be happy to do so, as they make money on that too. Why not get the best of both worlds?
Sorry about the long post.
PS: If a dealer goes out of business, it is unfortunate, but it is a function of the market, not of your lack of charity in a business negotiation.
