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[grc]

These prices confirm what a buddy of mine told me.  He is the comptroller at a large Harley dealer in Arizona.  He told me that the standard markup for a bike is around 20%.

Yup, been around 18-20% discount structure for as long as I can remember.  And don't forget, invoice isn't necessarily the dealer's real cost, just like in the auto industry.  As I've said many times in the past, don't feel sorry for a Harley dealer selling at MSRP, he's still making one hell of a lot more per unit than any mainstream auto dealer I'm aware of.  When you figure out he's making over $6k on your SESG at MSRP, then another $1k or more on ESP and finance commissions, plus any accessories they add, it does make you wonder why they feel the need to also jack you up for a bogus $500 "prep" fee and doc fee's and all the other BS. 

I find it amusing how the same folks who willingly pay a Harley dealer a $5k to $10k profit for a motorcycle will walk away from a deal on a much more capable automobile or truck if the dealer won't give it to them for invoice and throw in some free stuff as well.  Now that Harley prices are up there with those of a well equipped automobile, it makes no sense at all.  What this market needs is some real competition so Harley would have to get real on the pricing side, and actually put out some competitive high quality products backed by a competitive warranty and good service.  Dream on, right? 


Jerry

[Rio]

Yup, been around 18-20% discount structure for as long as I can remember.  And don't forget, invoice isn't necessarily the dealer's real cost, just like in the auto industry.  As I've said many times in the past, don't feel sorry for a Harley dealer selling at MSRP, he's still making one hell of a lot more per unit than any mainstream auto dealer I'm aware of.  When you figure out he's making over $6k on your SESG at MSRP, then another $1k or more on ESP and finance commissions, plus any accessories they add, it does make you wonder why they feel the need to also jack you up for a bogus $500 "prep" fee and doc fee's and all the other BS. 

I find it amusing how the same folks who willingly pay a Harley dealer a $5k to $10k profit for a motorcycle will walk away from a deal on a much more capable automobile or truck if the dealer won't give it to them for invoice and throw in some free stuff as well.  Now that Harley prices are up there with those of a well equipped automobile, it makes no sense at all.  What this market needs is some real competition so Harley would have to get real on the pricing side, and actually put out some competitive high quality products backed by a competitive warranty and good service.  Dream on, right? 


Jerry

FYI, as a comparison.  Total profit on a $60,000 BMW is only about $6,900.00 TOTAL, and about $3,800.00 of that is not guaranteed income.  You must meet 100% of the manufacturers stipulations to earn what they call AVP or better known as trunk money.  One of the big criterias is CSI, customer service surveys for both sales and service.  SOMETHING Harley Davidson knows nothing about and quite honestly cares less about.  I find it amazing the amount of gross that they make from the sale of a motorcycle.  You would think with that level of profitability they would put lipstick on when someone walked through the door!  It starts with the manufacturer.  Its up to them to hold their dealer body accountable to a specific standard and tie it to profitability.