Discounts on new motorcycles...

[motodan]

I've had the opportunity to use MOA's membership discount benefit when obtaining a new RT in February 2022. Parlaying a $49.00 membership cost into a $500.00 savings is an excellent benefit and I thank Ted Moyer and all others involved in making that a reality.

I have a question regarding the purchase of multiple bikes with use of OTHER than MOA qualifying discounts, within twelve months. A second bike was purchased in April 2022, of course the MOA discount would not apply because it qualifies only once every twelve months. However, shouldn't a First Responder, Military and/or other qualifying BMW discount apply to any second qualifying unit purchased within twelve months of first unit?

 

[3putt]

I'm not 100% sure how it works, but I've used it twice this year, at two different dealers. The first dealer made me prove my membership but didn't care if it was legit. Ask me if I knew Photoshop. At the second dealer, all I did was ask for it and they gave it to me, no one asked to see my membership card.

I've been a member since 2007.

 

[RadioFlyer]

I'm not 100% sure how it works, but I've used it twice this year, at two different dealers. The first dealer made me prove my membership but didn't care if it was legit. Ask me if I knew Photoshop. At the second dealer, all I did was ask for it and they gave it to me, no one asked to see my membership card.

I've been a member since 2007.

That's because what is portrayed as being a BMWMOA benefit is really something that BMW is just prepared to give because it knows the cost of customer acquisition through other means is higher than the "discount". An important metric for many companies in a competitive market is churn and the cost of acquisition. Churn measures what percentage of previous owners decide to replace their purchase with a competitor's product. The cost of acquisition measures all the money spent on promotion divided by the units sold. Giving a discount is cheap acquisition since its isn't really much of real expense - it's not as if BMW actually handed you cash. The benefit is more of a feel good. BMWMOA gets to claim a membership benefit, BMW gets a customer they might otherwise lose and the purchaser feels like they got a better deal. BMW doesn't require that the dealership prove that they sold the unit to a bonafide member because it need not care.

Post script #1
I should elaborate on why I say that this is a "feel good". I have mentioned churn as important metric. Other important metrics are percentage of market share and percentage sales growth year-over-year and of course profits. Someone in any given BMW market area (e.g. BMW NA) has the difficult job of determining the starting point for pricing - whether its the dealer's reduction thereto (if the dealer is permitted to do so, not always the case) or the various incentives, promotions and discount programs offered in the market area. The starting point is often cited as the MSRP. That someone has to strike a difficult balance. The higher the MSRP the higher the profits (all other things being equal).

But of course a higher MSRP brings the risk of losing new sales to competitors and increasing churn. Those tasked with setting the MSRP have to do a pretty extensive analysis involving the anticipated sales and post-sales revenue as well as sales volumes. I mentioned churn earlier because churn considers the customers that bought BMW motorcycles but then switched to another make at their next purchase. Repeat purchasers outnumber new purchasers.

Amongst repeat purchasers you will find owners who belong to a brand affinity club like the BMWMOA and its chartered clubs, as well that those who don't. Those who are in brand affinity clubs are members because they have formed an emotional attachment to the brand and the role of the clubs is to strengthen that emotional attachment.

When the analysts sit down to set the MRSP they have to consider how price sensitive the various potential purchasers are (ecomomists will call this demand elasticity). A new purchaser will probably be the most price sensitive (elastic) whereas repeat purchasers will probably be the least price sensitive (inelastic). Amongst the repeat customers those who participate in brand affinity clubs are the least price sensitive (most inelastic) of all (for the bikes, the service and the parts) because of their emotional attachment to the brand. Essentially they are willing to pay more because they find value in a lifestyle.

The analysts look at the willingness to pay across all the potential purchasers when they set MSRP. The higher the proportion of potential purchasers there are in the inelastic brand affinity category the more aggressive BMW can be in setting a higher MSRP. So perversely when we belong to the BMWMOA we contribute to BMW's ability to set a higher MSRP. Then we get to feel good when they offer us a "discount" when the purpose of the discount in part is to keep us in the brand affinity club. Like I said elsewhere here there is no free lunch.

The objective to increase market share tempers MSRP but getting that increased market share is really tough in NA because Harley dominates sales and its customers have really serious brand affinity to Harley. If you want to increase market share against Harley you need to offer inexpensive bikes to beginners (before Harley gets them) and hope that they become brand loyalists later on or imitate Harley by offering cruisers. The latter failed on its first attempt and the jury is out on the current attempt.

Post script #2
There is a limit to brand loyalty. For some of us BMW's decision to discontinue the provision of service informations was a tipping point. I won't buy a motorcycle for which the manufacturer will not provide service information.

 

[riderr1150gsadv]

In the past I have seen discounts for former/current service members and first responders from BMW and others. You can always ask the dealer and see what's up. YMMV

 

[BC1100S]

That's because what is portrayed as being a BMWMOA benefit is really something that BMW is just prepared to give because it knows the cost of customer acquisition through other means is higher than the "discount". An important metric for many companies in a competitive market is churn and the cost of acquisition. Churn measures what percentage of previous owners decide to replace their purchase with a competitor's product. The cost of acquisition measures all the money spent on promotion divided by the units sold. Giving a discount is cheap acquisition since its isn't really much of real expense - it's not as if BMW actually handed you cash. The benefit is more of a feel good. BMWMOA gets to claim a membership benefit, BMW gets a customer they might otherwise lose and the purchaser feels like they got a better deal. BMW doesn't require that the dealership prove that they sold the unit to a bonafide member because it need not care.

To add some clarity....

The benefit is more than a "feel good" - it's $(X) the member doesn't have to pay. The cost to BMW is $(X) it isn't going to collect as the discount is applied after one negotiates their best price with the dealer. And, in Canada at least, the dealership certainly does need to prove the buyer is a bona fide member as the discount process is completed before the purchase is made.
In my time, I've signed many discount approval certificates. No certificate - no discount.

Lastly, I hope you're a member of the Valley BMW Riders. https://www.valleybmwriders.com/

 

[RadioFlyer]

Well of course in Canada we do everything by the book and the discounts are much more limited here because the market is less competitive.

In the US (where the previous posters are) the discount program is also described as "exclusive" but its available to domestic military, emergency service ("Federal, State, and local governmental and nongovernmental emergency public safety, fire, law enforcement, emergency response, emergency medical (including hospital emergency facilities)), and related personnel, agencies, and authorities", MOA members, MSF coaches....

Taken together and interpreted liberally (as I expect it is) a large part of the potential purchaser population qualifies.

And you can be sure that the discount program doesn't cost BMW money, it makes BMW money or else they would not offer it. You can be sure that someone at BMW has done a careful analysis that shows that the discounts are net positive when all the revenue of the sale and the post-sale (parts, accessories, extended warranties...) transactions are accounted for. The customer always pays in the end. There is no free lunch.

 

[motodan]

No direct answer yet so please keep trying. In other words, has anyone used a MOA incentive (where the dealer(s) cared) when purchasing a new BMW bike, then used a different BMW incentive when purchasing a second new BMW bike, all within 12 months?

 

[exgman]

Well of course in Canada we do everything by the book and the discounts are much more limited here because the market is less competitive.

In the US (where the previous posters are) the discount program is also described as "exclusive" but its available to domestic military, emergency service ("Federal, State, and local governmental and nongovernmental emergency public safety, fire, law enforcement, emergency response, emergency medical (including hospital emergency facilities)), and related personnel, agencies, and authorities", MOA members, MSF coaches....

Taken together and interpreted liberally (as I expect it is) a large part of the potential purchaser population qualifies.

I'd urge readers to go to the URL and read the details of the offers in every category: https://www.bmwmotorcycles.com/en/offers/bmw-appreciation-offers.html

Seems to me that BMW NA increased motorcycle sales in the US in 2021 by about 32% through such programs but also by making fine bikes. I guess I don't understand why any of these "exclusive" categories is an issue? Looking only at MSF graduates...a discount on safety apparel is a problem? Finally, why would BMW NA marketing success a problem for the MOA?

 

[RadioFlyer]

I'd urge readers to go to the URL and read the details of the offers in every category: https://www.bmwmotorcycles.com/en/offers/bmw-appreciation-offers.html

Seems to me that BMW NA increased motorcycle sales in the US in 2021 by about 32% through such programs but also by making fine bikes. I guess I don't understand why any of these "exclusive" categories is an issue? Looking only at MSF graduates...a discount on safety apparel is a problem? Finally, why would BMW NA marketing success a problem for the MOA?

I added a para to my post.

I don't think anyone said these were issues or problems. Just putting the "benefit" into proper perspective.

 

[exgman]

I added a para to my post.

Cute tactic RF.

 

[RadioFlyer]

Cute tactic RF.

I took advantage of the ability to edit the post to provide a more fulsome response after thinking about it. Nothing tactical about it.

 

[lkraus]

I've had the opportunity to use MOA's membership discount benefit when obtaining a new RT in February 2022. Parlaying a $49.00 membership cost into a $500.00 savings is an excellent benefit and I thank Ted Moyer and all others involved in making that a reality.

I have a question regarding the purchase of multiple bikes with use of OTHER than MOA qualifying discounts, within twelve months. A second bike was purchased in April 2022, of course the MOA discount would not apply because it qualifies only once every twelve months. However, shouldn't a First Responder, Military and/or other qualifying BMW discount apply to any second qualifying unit purchased within twelve months of first unit?

As shown on my dealer's site(and probably yours), the terms and conditions of those discounts say that incentives cannot be combined, but there is nothing to prohibit using a different incentive for a separate purchase. Actually, I think you could use the same incentive each time - I see no limitation on the number of times you use the incentive. You might ask the dealer for a copy of the full terms of the incentives.

 

[motodan]

As shown on my dealer's site(and probably yours), the terms and conditions of those discounts say that incentives cannot be combined, but there is nothing to prohibit using a different incentive for a separate purchase. Actually, I think you could use the same incentive each time - I see no limitation on the number of times you use the incentive. You might ask the dealer for a copy of the full terms of the incentives.

Actually MOA guidelines state their incentive can not be used more than once a year. Still looking for someone who has used it and then purchased a second bike within 12 months using a different qualifying incentive.

 

[lkraus]

Actually MOA guidelines state their incentive can not be used more than once a year. Still looking for someone who has used it and then purchased a second bike within 12 months using a different qualifying incentive.

Actually, one per year is BMW limitation on the MOA/CCA discount, not a MOA guideline. You've used that discount, so it was not a consideration in my response.

Reading the published terms more closely for each of the military, emergency worker and rider coach discounts, BMW does impose a similar limitation of one per year of that type of discount, but there is no language excluding the use of a another type of discount for another purchase.

It really does not matter if someone here has purchased two bikes and received two or more discounts, you still have to talk to the dealer about it.

 

[motodan]

Actually, one per year is BMW limitation on the MOA/CCA discount, not a MOA guideline. You've used that discount, so it was not a consideration in my response.

Reading the published terms more closely for each of the military, emergency worker and rider coach discounts, BMW does impose a similar limitation of one per year of that type of discount, but there is no language excluding the use of a another type of discount for another purchase.

It really does not matter if someone here has purchased two bikes and received two or more discounts, you still have to talk to the dealer about it.

Yes it does matter and MOA’s/BMW’s guidelines are one in the same, regardless of which Appreciation Programs sites is used. The dealer does not establish the guides. They are directed by them. BMWNA should know if what I’m asking is doable however after several contacts they are unable to determine. Therefore I would like to know if anyone has done as described. A dealer will not know what every purchaser has done. I realize you are unable to answer the question.

 

[RadioFlyer]

To add some clarity....

The benefit is more than a "feel good" - it's $(X) the member doesn't have to pay. https://www.valleybmwriders.com/

I added a post script to my post #3 to explain the "feel good".

 

[adamchandler]

I have used it once a year for 6 years...maybe have skipped a year some where in there but that's at least $2500 off motorcycles. MOA's lifetime membership was I think $1200 and if I consider hotel discounts, KOA, the magazine, the rallies, $2500 in BMW discounts, 10% off at Bob's BMW for parts (Mention MOA sent you), the podcasts from Wes and Mark and all of you great folks on the road via anonymous book, I could stop doing MOA activities today and would have already gotten $1200 in value.

I don't know if lifetimes are still available but I met a guy in 2019 who said he became a lifetime member in the 80s for $200 and it's the best money he ever spent.

If you are an active MOA member, the money you put up every year feels like peanuts.

 

[pglaves]

I don't know if lifetimes are still available but I met a guy in 2019 who said he became a lifetime member in the 80s for $200 and it's the best money he ever spent.

Voni and I both, in 1986. I forget for sure but I think it was $300 for both of us.