I hate to sound cynical but everytime a dealer discounts a scooter they reduce their profit, simple? But there is more to it.
The margins are being reduced from an importers level so their brand becomes more competitive and they increase market share. Everytime a model price is reduced the money has to come from somewhere. The importers can share this price reduction cost with the dealer (Please note that each importer is different with regards to this policy)
The second is that with fewer and fewer sales around other dealers have to discount harder to get the sale. I am all about being competitve within the market place but there is a point where the numbers have to stack up. Rent is only the tip of the iceberg for business expenses when you consider that business loan rates are almost double that of residential mortgages.
The third pressure is the media with their so-called investigative journalism programs like Today Tonight etc. They will have you believe that everyone in retail is ripping you blind. Now I can't comment on other types of retail (Jewellery when you can get 50% off a gold necklace and they still make money) but I know this information is plain wrong especially when it comes to the scooter small businesses.
What a shame, I bought my SportCity from them and they were much cheaper than other dealers.
Maybe this is the reason they aren't around anymore?
Supporting your local dealer is more important that ever and this ensures that they will be able to look after you in the future for service, spares or that new scooter you could be looking for. There are many reasons to purchase from one dealer over another whether it being a good price, fantastic service or just the knowledge that they will be around to look after you and your scooter for the long term. But unless the dealer earns enough money to keep the doors open how can he/she provide great service for the long term?
I am sad to see another scooter shop close taking with it alot of blood, sweat and tears. I know the feeling after closing two of our shops within the last 9 months.