OTD Cycles and Club Moto

[5150.4mx]

OK.. I've worked out a small deal with OTD Cycles. If anyone buys a bike from them, and comes in with a Club Moto Frequent Rider Card (which you can get for free at Club), then besides getting the lowest price on a bike in town, you'll get a $20 gift card that you can use at any of their dealerships for any purchase, including your new bike.

I got their new price list on some of their bikes, and I highly doubt any other dealer can beat their prices. If so, I'd be very suprised. For example, they are selling 07 CRF 450's for $6599 out the door! That means that before tax, license, prep, etc, you're paying less than $6000. They have a few 06 CRF 450's for $5900 OTD. They have 06 KXF 450's for $5200 OTD (double check that price, as I heard that from a person who went there, not directly from the dealer).

Anyway, as you can see, their prices are as inexpensive as they come. Also, as an FYI, Club Moto, nor I, make a nickle off this. Rather, I only set up the $20 gift card deal as a perk for people who go to Club Moto. It was designed to beneift you, the rider, as Club's way to say thank you for riding at our track, beyond the other perks we try to provide from time to time. Hope it helps, even if in a small way.

[sean 252]

Thanks Mike!! Great idea and cool to see someone interested in making their business work...I will check out the shop when I get back in Dodge,,,Address so I can Mapquest?? Sean

[Moto281]

10550 International Blvd., Oakland Ph# 635-6300

[5150.4mx]

Here's their web address too:

Out The Door Motorsports

[tractionaction]

I believe they where a big Sponsor at the SF SX. In some cases they gave away free riding gear with certain models.

Their deals are so good other shops in the bay area are forced to lower their prices also. In most cases loosing money on every dirt bike sold.

[5150.4mx]

Originally Posted by tractionaction

I believe they where a big Sponsor at the SF SX. In some cases they gave away free riding gear with certain models.

Their deals are so good other shops in the bay area are forced to lower their prices also. In most cases loosing money on every dirt bike sold.

I know other dealers don't want to compete, as they don't want to cut their profit margins down. But, I don't think they are losing money on every bike sold.

Keep this general business principle in mind: The factories don't have an incentive to limit the number of dealers who distribute their bikes. I.e, they want a mechanism (dealerships) to be able to get as many of their bikes to the public (in various locations) as possible. That means that OTD Cycles pays the same or nearly the same price on each bike as other dealers. However, OTD can earn rebates based on number of bikes sold, just like any other dealer can.

OTD apparently chooses the business model of selling lots of bikes by reducing their margins, and if they are successful, they earn part of those lost revenues back in the form of dealer rebates. They also earn money back in the form of ancillary sales, such as parts and accessories, to their large number of bike buying customers. Other shops don't seem to want to take the gamble of lowering prices in the hopes of gaining more customers, so they just try to sell less bikes at full markup.

I of course don't know the specifics of OTD Cycle's arrangments with any of the factories, or their target monthly margins, etc. However, the above formula is generally known in the marketplace. No dealer will sell a bike at a NET loss. I.e., at a price below cost without any offset, like a rebate from the factory or augmented ancillary sales. If they did, they'd go out of business in a hurry.

Anyway, I'm glad OTD has stepped up the competition. For us mere mortals that don't get deals because we are not pro riders, nor successful racers anymore (thus, doing PR for a particular shop), it is nice to get a new bike without breaking the bank. I appluad OTC's efforts to provide bikes at a low cost. Seems that since the 90's, lots of businesses, especially in the bay area, think that because they can get away with gouging the customer, that makes it OK.

[sean 252]

Originally Posted by mapicella

I know other dealers don't want to compete, as they don't want to cut their profit margins down. But, I don't think they are losing money on every bike sold.

Keep this general business principle in mind: The factories don't have an incentive to limit the number of dealers who distribute their bikes. I.e, they want a mechanism (dealerships) to be able to get as many of their bikes to the public (in various locations) as possible. That means that OTD Cycles pays the same or nearly the same price on each bike as other dealers. However, OTD can earn rebates based on number of bikes sold, just like any other dealer can.

OTD apparently chooses the business model of selling lots of bikes by reducing their margins, and if they are successful, they earn part of those lost revenues back in the form of dealer rebates. They also earn money back in the form of ancillary sales, such as parts and accessories, to their large number of bike buying customers. Other shops don't seem to want to take the gamble of lowering prices in the hopes of gaining more customers, so they just try to sell less bikes at full markup.

I of course don't know the specifics of OTD Cycle's arrangments with any of the factories, or their target monthly margins, etc. However, the above formula is generally known in the marketplace. No dealer will sell a bike at a NET loss. I.e., at a price below cost without any offset, like a rebate from the factory or augmented ancillary sales. If they did, they'd go out of business in a hurry.

Anyway, I'm glad OTD has stepped up the competition. For us mere mortals that don't get deals because we are not pro riders, nor successful racers anymore (thus, doing PR for a particular shop), it is nice to get a new bike without breaking the bank. I appluad OTC's efforts to provide bikes at a low cost. Seems that since the 90's, lots of businesses, especially in the bay area, think that because they can get away with gouging the customer, that makes it OK.

Mike from a guy who does this junk for living,,I couldnt have written it any better...They aint losing ****. They are calculating exactly what they have to do to recover that % of their margin...Reading their website and seeing who they also own,,,they are pros,,,They know their GIMROY backwards and forwards..I will give them a shot..I just forwarded this info to two buddies that are selling their 04 bikes and looking for 07 deals.....Thanks again,

[tractionaction]

I just wish I was in position to get a new one, maybe next year. And yes, I'll buy from OTD. Especially to get that $20 card!

Pricing from the Factory should be the same for all Dealers regardless of volume. I may be wrong on this.

I do know a local shop is selling bikes below there invoice and still business is slow.

Part of OTD's model may be to sell a bunch of bikes, then make money selling parts, service and appearal etc.

Originally Posted by mapicella

Here's their web address too:

Out The Door Motorsports

$13.00 less than I paid in January for my YZ450......at a local shop. Do I still get the 20 bucks ? I need gas for my bike ! lol

Seriously.....OTD is GREAT, and BIG, and it's just what the consumer needs. Motorcycle purchases have always been in the " dark ages ", and now they're sheading some light on what REALLY can be done.

[5150.4mx]

Originally Posted by tractionaction

...Part of OTD's model may be to sell a bunch of bikes, then make money selling parts, service and appearal etc.

I'm sure it is, just like Bay Area Motorsports. But, the guys at OTD don't make you want to take a shower, or check to see if you still have your wallet in your pocket, when you get home.