MSRP & Related Fees
We frequently get asked "Why did the price change? That's not what the price says on-line?". Here's a brief summary of the fees that make up the difference between the unit advertised price and what the consumer pays.
MSRP (Manufacturers Suggested Retail Price)
price, also known as the manufacturer's suggested retail price (MSRP), or the recommended retail price
(RRP), or the suggested retail price (SRP), of a product is the price at which
the manufacturer recommends that the retailer sell the product. As seen in the
picture below from the manufacturer, the MSRP does not include freight, PDI or
taxes. Those charges (freight & pdi) are the responsibility of the
Freight & PDI in the Powersports Industry
Freight and PDI are required services to get the unit from the factory to the customer ready to ride. As with all consumer goods, that cost needs to be allocated against the product and in most industries it's included in the MSRP but, in our industry, as shown above, usually it's not.
Our units arrive at our facility from all parts of the world. As mentioned, the cost is not built into the MSRP, it is the dealers expense. The associated freight cost is dependent on the unit size and weight as it costs much more to ship a 1500 lb side by side versus a 50 lb generator. If you've ever sold something and had to ship it, you know the costs, now imagine shipping a hundred 1000 lb units across boarders from another Country? Shipping of products is an expense and until the factory's all move locally, which will never happen, there will always be a related freight cost.
PDI (Pre-Delivery Inspection)
Units do not show up at the dealer ready to ride. They need final assembly & PDI involves unpacking, crate disposal, assembling, checking all fluids, pressures, chain\belt\track tensions, select bolt torques, electrical function, ergonomics, damage inspection, charging the battery, adding fluids, pre-running the unit, covered storage etc, etc. The associated cost varies depending on the time required to complete the PDI process. Below is a time lapse video showing the PDI assembly process on a KTM 250 XC-W. When it comes to assembling a unit, dirt bikes are among the quickest, most being approx 2 hours start to finish. In this case the customer wanted aftermarket handlebar guards so we did not put the factory ones on and it went a little quicker.
Tire Tax Recycling Fee
Again, another fee that we have no control over and have to pass along to the customer is the Alberta Tire Tax. $4.00 per tire.
Doc Fees (Varies, pending the required products & services). Many dealers don't provide in-house financial services, but we do. Doing so provides our customers more options and an extra level of convenience. The purchasing process may include many administrative steps that require staff & support services such as:
- Method of payment. Depending on the customers financial situation and credit rating, securing the required funds to purchase a unit can take multiple hours. We deal with many financial companies, all providing numerous options. Again, depending on the customers situation, it takes time to filter through the financial options to ensure we get the customer the best rates available.
- Additional Coverage. We also provide other services such and extended warranty, life and disability coverage, theft recovery options and more. These services take time and overhead to research, implement and support. While some services may not be applicable to some, depending on your financial situation they may be a very wise investment.
- Securing Binder Agreements.
- Assisting customers in finding an Insurance Provider.
- Pre-Delivery Inspection review, unit walk through and sign off.
- Unit registration with the OEM.
To sum up, for new units the advertised price usually does not include freight, PDI, doc fees & tax. Fees are also somewhat dependent
on the make, model, year, status (New\Used), available rebates, promotions and financing options. If you ever have question, always ask your