Negotiating Bastardry
This is one of the best pieces of media I’ve seen on negotiation in a long time, from a YouTube channel better known for cinematic motorcycle reviews. The single, enormous caveat is that you must watch to the end. It’s a two-act play to be taken as a whole.
What do I have to add? A few notes for non-moto people, not spoiling anything. Then some thoughts that might be spoilers. Finally, a quick note on what’s missing.
For Non-Motorcyclists
There’s a bunch of jargon about the “up-spec” motorcycle, all to the effect of “it’s all souped up fancy”:
-
A “flashed ECU” is a performance upgrade to a bike’s computer.
-
Őhlins is a famous brand of high-end motorcycle suspension.
The whole initial part of the mock conversation with the salesman is the host playing dumb. Everything he says suggest an insecure newbie trying to sound like he knows about motorcycles.
-
“This Italian bike” is in fact a Royal Enfield made in India.
-
“Oil injections” is a corruption of “oil change”. No savvy owner would say this.
-
“Valve clearings” is a corruption of “valve clearances”, a common maintenance specification that that many riders rely on mechanics to check and adjust.
-
“V-twin underhand ram shaft” is a mix of wrong and word salad.
The reference in the trade-in discussion is to emphasize that the trade-in bike is terrible. The 2009 Suzuki Gladius is an infamously hideous motorcycle.
The part starting “Jawa, CZ…” is a long list of different motorcycle brands.
Thoughts, With Spoilers
Based on my experiences negotiating professionally, the stress on knowledge about the financing and sales incentives of the dealership is spot-on. The effects of those kinds of pre-existing agreements, timetables, and conventions are exactly what I end up thinking about, and advising on, a lot, when it comes to tactics.
Some of the tactics described I’d throw out as foul play, largely for involving dishonesty. Others seem fair game.
I would generally be okay:
-
ignoring offers shouted after me as I left a dealership
-
trying to negotiate for an up-spec model first, even if I’m open to a lower-spec version, as long as I think there’s an actual chance they could offer a price on the pricier model that I’d pay
-
timing my purchase to the end of a month
-
focusing on inventory that’s lingered in stock and might be costing the dealer money to hold
On the other hand, I would not:
-
lie about interest in accessories or maintenance services
-
lie about need for financing, though I wouldn’t feel compelled to mention cash before they ask
-
lie about having a trade-in, spring it later, and pretend to have forgotten
-
doubt the integrity of a salesperson who took back deal points after having changes on these points sprung on them
Psychological levers based on framing, such as timing the shift to the lower-spec bike after hearing an expected low offer on the trade-in, have generally been fair play in my world. But not when either the set-up or the shift hinges on dishonesty.
This isn’t just about conscience. Everyone can make a mistake under pressure, in the wrong circumstances. It’s true a moto salesperson might, and sign the kind of deal the host conjures up. But if you’re dealing with a half-decent pro, you can’t expect them to sign up to lose money on you just because you found a dance to do ahead of proposing it.
This is especially true if that salesperson works for any half-competent manager. Unless they’re brand new, their manager has probably trained them—by correction, explanation, or both—to do and check basic profit math. They’ve also likely set up a procedural checkpoint with its own psychological tilt. In US auto and moto dealerships, that’s a point when the salesperson has to take an offer to a supervisor, “to finance”, or both, at which point they check the math together. Some internal negotiation can go on here, especially where the salesperson’s incentives aren’t fully aligned with the manager’s. Think end of the month, just before the accounting period for the salesperson’s incentive compensation closes. But this is the point where management can spot and veto a deal.
What’s Missing
I think the video was written and shot to make the broader point in the contrast between hardball and the alternative. But in terms of actually advising people on how to buy motorcycles from dealers, I do think the video misses the two most important points.
First, research. Dealers have more time and resources for getting good information on supply, demand, and prevailing prices. But you can do an awful lot for little cost to catch up, especially if you’re focused on just one brand or model, where they may stock dozens, as well as quote prices for used bikes on the spot. You can and should specialize in the bike you want to buy at a good price. You are going to specialize in it far more as you ride it.
Second, competition. Having a social, repeat-business, maybe even pan-generational relationship with a business can and maybe should push you to into dealing monogamously. But in the prevailing, parallel universe of largely interchangeable dealerships where civil-but-assertive negotiation makes sense, your biggest lever on price is likely setting dealerships up to bid against each other. Get quotes, compare, and tell the losers when they’ve bee undercut.
As usual, this isn’t just sharp-elbowed play, and shouldn’t embarrass anyone. If one dealership has had your model on their floor long enough to start losing money on it, while another just pulled theirs out of the shipping crate, you may very well get a better offer from the former. Those savings may make a better overall deal for you, even if that seller is further away.
Do some auto or moto dealerships collude, to stop this kind of competition? Very likely. But coordinating a conspiracy is work. The more conspirators, the more work. And the more potential for defection. Owners and managers face their own incentives, live by finance, and keep calendars, too.
Your thoughts and feedback are always welcome by e-mail.