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Author Topic: pricing surcharge  (Read 2831 times)

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92fxsts

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pricing surcharge
« on: November 17, 2021, 10:47:21 AM »

I was looking at new bike specs and under pricing there are listed the bike price, CA emissions, freight, and a surcharge of $1000.  Is this added to the price , freight, etc.?  Is this a factory gouge, or is it negotiable.  I never noticed it in previous years.
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JCZ

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Re: pricing surcharge
« Reply #1 on: November 17, 2021, 11:00:44 AM »

Some dealerships have marked up from MSRP for years while others have sold below MSRP.

Those that mark up try (and often succeed) at playing hard ball because if you're not willing to play (pay their price) somebody else with more money than brains will.  It's very similar to the RV industry in that regard. 

Choose a radius that you're willing to travel and then shoot them all an email advising what model you're looking for and ask their best "out the door cost, minus tax and license".  You will be surprised at the differences.
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92fxsts

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Re: pricing surcharge
« Reply #2 on: November 17, 2021, 12:28:44 PM »

I was just surprised to see this on the factory website.  I have seen additional dealer markup in stores but but not on HD.com
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GregKhougaz

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Re: pricing surcharge
« Reply #3 on: November 17, 2021, 12:38:36 PM »

From HD.com:

Prices listed are the Manufacturer’s Suggested Retail Prices for base models. Options such as color are available at additional cost. Prices exclude tax, title, licensing, registration fees, destination charges, surcharges (attributable to raw materials costs in the product supply chain), added accessories, and additional dealer charges, if any, and are subject to change. Harley-Davidson reimburses dealers for performing manufacturer-specified pre-delivery inspection and setup tasks. Dealer prices may vary.
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Re: pricing surcharge
« Reply #4 on: November 17, 2021, 12:43:42 PM »

Some dealerships have marked up from MSRP for years while others have sold below MSRP.

Those that mark up try (and often succeed) at playing hard ball because if you're not willing to play (pay their price) somebody else with more money than brains will.  It's very similar to the RV industry in that regard. 

Choose a radius that you're willing to travel and then shoot them all an email advising what model you're looking for and ask their best "out the door cost, minus tax and license".  You will be surprised at the differences.

This one is coming from MoCo. Not the dealers themselves. MoCo has cut production for reason "X" (parts shortages due to the Crud) and with less bikes to sell they're trying to make it up somewhere else. This "Surcharge" or HD Tax as I call it is a way of raising the prices until production can be returned to "Normal" without raising MSRP. Once back to full production, MoCo can drop the surcharge and make people feel good about getting a "Deal" because they didn't pay the HD Tax.
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Re: pricing surcharge
« Reply #5 on: November 17, 2021, 01:28:44 PM »

I was just surprised to see this on the factory website.  I have seen additional dealer markup in stores but but not on HD.com

I didn't realize that it is the MoCo that's adding the surcharge.  Just another way of increasing the profit margin for the factory to compensate for sales falling off. 

The surcharge (aka additional profit margin) will not be coming out of my pocket.  If I buy another new bike it'll likely be the BMW Grand America.
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Re: pricing surcharge
« Reply #6 on: November 17, 2021, 01:58:26 PM »

Pricing strategies such as this surcharge are a marketing attempt to squeeze out some more profit.  For me, they are a good way to choose to change my buying preference to somewhere else.  They had might as well put a "Go Away!" sign on their website.

Those that really want the bikes, or have not been around auto/bike sales as a buyer for very long, will be more likely to pay. HD is betting on that, and HD is the casino in this case with their house odds for those who choose to play. 
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92fxsts

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Re: pricing surcharge
« Reply #7 on: November 17, 2021, 03:58:40 PM »

We have been considering moving to a trike, but seeing this blatant $$ grab I think I will rethink that consideration at least for now.
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phato1

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Re: pricing surcharge
« Reply #8 on: November 17, 2021, 06:35:05 PM »

This one is coming from MoCo. Not the dealers themselves. MoCo has cut production for reason "X" (parts shortages due to the Crud) and with less bikes to sell they're trying to make it up somewhere else. This "Surcharge" or HD Tax as I call it is a way of raising the prices until production can be returned to "Normal" without raising MSRP. Once back to full production, MoCo can drop the surcharge and make people feel good about getting a "Deal" because they didn't pay the HD Tax.

That won't happen....as long as they sell bikes with the extra charge it will be here to stay....
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Mofo67

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Re: pricing surcharge
« Reply #9 on: November 18, 2021, 05:25:47 AM »

Look around almost everything you are buying today will cost more than it did a year ago. Everything from cost of raw materials to labor has skyrocketed.
My guess on the HD surcharge it is a way to keep margins in place while not taking a “price increase” mid model year. As with most things I do not expect prices to go down in the near future. I think HD will raise prices for 2022 to include the amount of the surcharge.
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FLSTFI Dave

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Re: pricing surcharge
« Reply #10 on: November 18, 2021, 07:16:20 AM »

Harley is not the only one to add a surcharge due to the supply chain issues.  Not saying I agree with it.  But they cant get parts to build bike, they cant get accessories for bikes.  Dealers cant get bikes to sell.

Auto makers are in same issue.  My brother tried to order a 22 GMC crew cab dually diesel truck last week.  He was told 6 to 8 months to get it and they want his trade now, an 06 of what he wants to order.
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blacktop

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Re: pricing surcharge
« Reply #11 on: November 18, 2021, 07:55:32 AM »

Checked the Canadian Website and no surcharge yet or wording like above. But it will come and probably be $1300 with the exchange rate included.
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deldago

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Re: pricing surcharge
« Reply #12 on: November 18, 2021, 10:45:10 AM »

Harley is not the only one to add a surcharge due to the supply chain issues.  Not saying I agree with it.  But they cant get parts to build bike, they cant get accessories for bikes.  Dealers cant get bikes to sell.

Auto makers are in same issue.  My brother tried to order a 22 GMC crew cab dually diesel truck last week.  He was told 6 to 8 months to get it and they want his trade now, an 06 of what he wants to order.
Tell your brother to get it in writing that he will get tax credit on his trade when his new truck comes in. If the dealer sells his trade before his new one comes in the DMV may not let them use it as a tax base against his new one since the title on his trade was transferred before the new title work was done.
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kevin_n

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Re: pricing surcharge
« Reply #13 on: November 18, 2021, 09:08:12 PM »

Harley is not the only one to add a surcharge due to the supply chain issues.  Not saying I agree with it.  But they cant get parts to build bike, they cant get accessories for bikes.  Dealers cant get bikes to sell.

Auto makers are in same issue.  My brother tried to order a 22 GMC crew cab dually diesel truck last week.  He was told 6 to 8 months to get it and they want his trade now, an 06 of what he wants to order.

We are in the process of building a Chevy 2500. Dealer told us the truck would be in around feb or March. They also wanted our trade now and I told them no.
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FLSTFI Dave

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Re: pricing surcharge
« Reply #14 on: November 19, 2021, 07:24:53 AM »

Tell your brother to get it in writing that he will get tax credit on his trade when his new truck comes in. If the dealer sells his trade before his new one comes in the DMV may not let them use it as a tax base against his new one since the title on his trade was transferred before the new title work was done.
My Brother decided to wait and order a 2023, it will have the new interior.  1/2tons get the interior upgrade and redesign in 2022, HD the following year.

Tax credit is second issue, dealer doesn't want to do paper work for him to be able to do that as his truck would be in there hands in 21 and his not in his new one not here until 23.

Dealer keeps telling my brother he can get the truck sooner if he didn't want a crew cab dually diesel. 
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