It is illegal for the MOCO to dictate selling price directly. They can however strongly suggest a price and they can legally stop the advertising of prices below msrp, this is called map pricing. You all seem to think that doing business is cheap. I can tell you that average gross profit needs to be 30 percent to try and stay in business. The government is going to take 5 to 8 percent off the top regardless of profit or loss that is just part of the picture, if you think dealing with the MOCO is easy anti up 2 million and stop griping. [ were not talking credit we are talking cash] You should realize the dealer pays for every thing in his store , racking , signage , stuff he might give away every thing is billed to him by the MOCO. I don't mean to sound like the dealer can do no wrong but to have the MOCO dictate every aspect of your business after putting out as much money as they do you should expect for them to make a fair return in exchange.
Bigdog,
Everybody understands that the dealers are in the business to make a profit, and if they can, a huge one. That's not the issue. Auto dealerships are basically the same way, but you can deal with them. Harley dealerships still go off of the old 80's supply and demand theory of selling motorcycles. When the demand is higher than the supply, we can pretty much charge what we want and you'll still buy it. (a prime example of that thinking is the outrageous gas prices we're paying now.) Up until the housing market burst and the economy started sliding, the dealers could sell at or above MSRP and they knew they would sell...unfortunately, for the dealers, that is not the case today. The supply is larger than the demand, and the dealers pay up front for those motorcycles and they are inventory that's costing them money the longer they sit in the store. Some of the dealerships are starting to realize they have to budge off of the MSRP bandwagon to sell their inventory now...that's why I shopped around when I bought my Street Glide and got it from a dealership (smaller one) that had approximated 350 bikes in inventory and they weren't moving. I got the bike for just about $1400 less than sticker. But even this dealership had that attitude that if you didn't press them, and just assumed that they were like any Harley dealership and would only do MSRP, then that's what they would do. You had to bring the issue up, which I did and got the previously mentioned discount. I don't really shed any tears for a dealship if they can't get MSRP for a bike anymore, considering a dealership is the whole package now; bikes, service, accessories, and clothing. With clothing and accessories having at least a 30-40% markup, and getting $80.00 an hour for service, they are more than making up their profit margin if they sell bikes for under MSRP. Some dealers will tell you they have to sell the bike for MSRP, but will give you free shipping, setup, and a sizeable discount on accessories, which in their mind still makes them an MSRP dealer and you feel that you're getting a good deal. But when you get the sizeable discount (usually 20%) on the accessories, they are still making a profit on the accessories, PLUS they are charging you $80/hour to install those accessories, (which total time to install may or may not get "padded" a little), so in the long run, the dealer maybe gives up shipping and a little profit on the accessories, but has you back as a repeat customer cuz you thought you got treated better by them than any of those strictly MSRP, won't budge, dealerships. It's all good market and how you present it, but trust me, don't cry for the dealers, cuz they are still making their profits. The motorcycle industry is considered, although I don't necessarily subscribe to this thought, a luxury industry. So when the market softens and money gets tight, the first things that suffer are the luxury items (bikes, boats, jet skis, ATV's, RV's, etc.). The HD dealerships during this time of financial "stress" are going to have to get creative and come off of their "MSRP high-horses" or they won't be in business much longer. (Unless they run a "Disney World" environment like "Fat Bastard" does in Daytona.) JMHO and not meant to be taken seriously, unless you want to.
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Topic: What makes MSRP a good deal? (Read 4811 times)