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- Jul 18, 2017
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Thanks for that, I was wondering about how dealers were effected with sale pricing but wasn't sure. Wouldn't it be possible for a manufacturer to have a sale without cutting into dealer profits though? Or can it simply not work that way. I guess I always assumed that a manufacturer discount meant that they took the hit so to speak, or at least shared it.
As an aside, I get why manufacturers don't want dealers to put on their on sales, undercutting their direct sales or just creating competition between dealers, that sort of thing.
Ahh well some places do it. Take Morimoto (aka The Retrofit Source). So a week before Black Friday they allow dealers to get a little bit of a discount. It's not much usually (about 5% or so) but it's not bad. The problem is that during BF this particular brand typically has 25% off direct to consumers. SOO us dealers are kind of forced to match that. The 5% helps but let me tell ya, it still sucks to have to take 25% off without us getting massive discounts as well.
So usually there are not a lot of dealer incentives during Black Friday week (or the week prior), at least no where near the savings you'd think. So with Baja taking care of 100% of the rebate it REALLY helped us dealers. We got to keep our same profit margins AND sell more AND not worry about having to do a rebate ourselves. Baja handled it all.