Sale/Discount Question

[michaels cycle]

When a cycle retail dealership sells at a discount, are they cutting their profit, or does that reduce price come from the manufacture???

Just Curious

[bjt]

Unless the manufacturer is giving the dealership special discounts to pass onto consumers or discounts for being a high volume, special service, etc. dealership, any discounting one dealership gives over another is strictly coming out of their pockets.

[Tom in NM]

When you say "discount", I am guessing you mean something less than MSRP.

It is nearly impossible to know what the dealers cost is on a vehicle - the salesman usually won't know and I know some car dealers who I have met, don't know either. Besides what Brian mentioned, there are things like advertising allowances and other incentives. They also have costs associated with inventory, storage, taxes, and other general business costs.

It takes a special breed of cat to run a successful ( business-wise ) dealership.

Tom