Additional Fee when buying from a motorcycle dealer

[holycromoly]

As a motorcycle rider and cyclist, just wanted to inform others about the ADM dealer fee.

Additional Dealer Mark-up... ADM Fee.
It might cost you more than MSRP if you buy from a moto dealer. As an industry, many dealers add a fee called "ADM Fee" that can be up to an additional $500. ADM stands for Additional Dealer Markup. So your $3499 Yamaha Wabash in the example motorcycle dealer ad below is more $3889. Bicycle shoppers are not used to this added fee and it can be something that deters buying altogether. To avoid fees, you can buy from a traditional bicycle store that carries Yamaha e-bikes. An additional $300-$500 is palatable if someone is buying a $17,000 Yamaha R1 motorcycle, but not on a $3500 e-bike. This not just true for Yamaha dealers, I see it across the board with many moto brands selling e-bikes through their motorcycle dealership, such as Ducati dealers selling the Ducati mountain bikes.

In more recent times, dealers have begun to get rid of ADM, but many do still charge it.

 

[2wheels4fun]

I would buy a different brand and not pay the fee.

 

[holycromoly]

I would buy a different brand and not pay the fee.

Same here. Adding to that, the experience of buying from a moto dealership can be like buying a car. That's another negative consumer experience factor.

 

[Asher]

Is it possible to buy Yamaha ebikes from bicycle shops?

No, not in my area. The dealership network by far is the worst thing about Yamaha. I tried going to the nearest one and the last couple miles was a death trap highway (if you were on a bike) with no alternative routes or sidewalks

 

[holycromoly]

It's hard to find a bike shop that carries Yamaha. The politics of the bike industry. In order for a shop to offer a brand, manufacturers like Trek or Specialized have huge annual dealer minimum order requirements. So bike shops have to stick to as few brand as possible to make sure they sell enough particular brands just to be able to carry it on the floor.

New school "e-bike only" shops are an exception and I've seen some carry Yamaha.

Being a moto rider and cyclist, I can say from experience that Yamaha will have a tough time growing their USA market share because the moto dealership network is very different from the bike shop experience that consumers are used to.

 

[Brendon@OEB]

It's hard to find a bike shop that carries Yamaha. The politics of the bike industry. In order for a shop to offer a brand, manufacturers like Trek or Specialized have huge annual dealer minimum order requirements. So bike shops have to stick to as few brand as possible to make sure they sell enough particular brands just to be able to carry it on the floor.

New school "e-bike only" shops are an exception and I've seen some carry Yamaha.

Being a moto rider and cyclist, I can say from experience that Yamaha will have a tough time growing their USA market share because the moto dealership network is very different from the bike shop experience that consumers are used to.

Having been a Yamaha e-bike dealer and former GM of a 6 line motorcycle dealership, Yamaha's dealer process is long winded to put it politely. It's REALLY challenging to get signed up with them and their limited product offering is challenging to get excited about when other Bosch equipped brands make phenomenal stuff that's easier to get.

 

[PedalUma]

If I saw this markup I would ask about it. There are possible justifications. I can imagine a dealer being allocated less stock then they had counted on to keep the lights on due to supply chain issues beyond their control and having to finance inventory that is still sitting off shore in a container, so they cannot sell it. Stuff like that adds up. It does not necessarily mean that they are gouging. It could be like a restaurant charging more for a steak this Spring.

 

[Mike TowpathTraveler]

Over on the Adventure Rider forums, I've read from alot of disgruntled new motorcycle buyers having to deal with these arbitrary dealer mark ups. Good old fashioned greed; taking advantage of low supplies coming in all due to the virus, from factory shut downs, supply side issues when building the bike and topped off with the shipping gridlock that still has a hold in our ports. This greed is not just exclusive to Yamaha. Honda has come out with a 125cc CVT drive scooter disguised as a motorcycle called the Honda Navi. Manufacturer suggested retail price of some 1800 dollars. Most dealerships are letting them go from anywhere in the mid to upper 2 grand all the way above 3000 dollars, plus......for an 1800 dollar motorbike. A sign of the times.

The Yamaha Power Assist Bicycles website has a dealer locator where one can bypass a motorsports dealer and go with a traditional bike shop.

 

[PedalUma]

I like the bike shop idea. That is where you would go for support anyway. It took many people months just to get a battery that they paid upfront for. If you were a dealer and this happened with your stock it would be reasonable to ask a little more.

 

[Brendon@OEB]

Over on the Adventure Rider forums, I've read from alot of disgruntled new motorcycle buyers having to deal with these arbitrary dealer mark ups. Good old fashioned greed; taking advantage of low supplies coming in all due to the virus, from factory shut downs, supply side issues when building the bike and topped off with the shipping gridlock that still has a hold in our ports. This greed is not just exclusive to Yamaha. Honda has come out with a 125cc CVT drive scooter disguised as a motorcycle called the Honda Navi. Manufacturer suggested retail price of some 1800 dollars. Most dealerships are letting them go from anywhere in the mid to upper 2 grand all the way above 3000 dollars, plus......for an 1800 dollar motorbike. A sign of the times.

The Yamaha Power Assist Bicycles website has a dealer locator where one can bypass a motorsports dealer and go with a traditional bike shop.

While I disagree with blatant "markups" there are things that we used to do for free and/or eat costs that simply aren't sustainable anymore. Shipping/Freight/Assembly/Prep, all of those things take time and a skilled set of hands and those hands are harder to find, thus more expensive from an expense standpoint.

Sure some charges are greed derived, but for the majority of dealers it's survival, especially with supply constraints contributing to a limited revenue stream.

 

[Asher]

Is there any prospect of Yamaha improving it's dealer network for the new ebike releases?

I'm guessing not, but network aside, Yamaha has perhaps the best value mid drive and support on an ebike, especially for a class 3.

 

[dodgeman]

When we bought are Treks last fall I talked to the dealer about prices. They aren’t suppose to mark bikes up or down and he said Trek checks them on it also. That means there are no deals to be had but also no price gouging.

 

[Djangodog]

We are fortunate to have a very nice bike shop locally that does carry Yamaha and does not mark them up at all. They are Hanover Adventure Tours in Norwich Vermont. They are friendly and can service your bike on site as well. I bought my Cross Core from them. My wife bought her Cross Core from a Yamaha Motorcycle Dealer in New Hampshire and they did not mark it up, but their mechanic is not great with bicycles. The Yamaha warranty is honored by all Yamaha dealers, so online purchases are not a negative, but I still prefer to keep my local shop in business, (I say local, but they are about 30 miles from our home, which is local for rural, Northern New England).