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[Ed45]

I have always wondered how much gross profit there is in a new Harley. My guess is that its about 33% but that is just a SWAG. Does anyone on here know? Thanks

[kb]

12%

[tazmun]

I'm not sure about the 12%, if your a Harley employee it's 20% off.
With that I'm thinking it's about the same.
If an employee buys a Sporty, it's 10% off.
Another thing, if your an employee, you get 20% off all
P & A.
I'm thinking I should not be saying this.. because
it may be "Top Secret!

[moscooter]

 

Well,  this discussion will be meaningless without an agreed to "base price point".   As in car shopping,  MSRP and/or window sticker price is more or less meaningless too.   You really gotta know the cost the dealer is paying for the bike and there are incentives and "kick backs" that make the whole thing hard to pin down

[bikerbum11]

I was told at one time from a person that worked at a HD dealer that there is 15% to 20% profit, depending on the bike.

[OTIS]

My wife used  to manage a Harley store i would not talk about this then now i dont care, parts are all around 28%, small twins 21% big twins varied from 26% to 28% SE touring 32% that was 5yrs ago. 

[OTIS]

My wife used  to manage a Harley store i would not talk about this then now i dont care, parts are all around 28%, small twins 21% big twins varied from 26% to 28% SE touring 32% that was 5yrs ago. 

I for got about factory  incentives which are on small twins 9 mounths out of the year which varies 3 to 5 % on top of what they already have and i was told lately by a buddy who is a manager  that the big twins and some of the SE have had incentives on them for over 1 year now.

[indcoltz]

My wife used  to manage a Harley store i would not talk about this then now i dont care, parts are all around 28%, small twins 21% big twins varied from 26% to 28% SE touring 32% that was 5yrs ago. 

   
OTIS is correct on everything but the parts, hard parts which are like spark plugs or anything that is not considered an accessory. Hard parts have less markup than accessories. He is correct in the markup on the bikes, example a 2001 Ultra Classic in 2001 had a $5000.00 markup on it. That is not including anything else not shipping assembly test ride or anything.

[Wanna ride]

My wife used  to manage a Harley store i would not talk about this then now i dont care, parts are all around 28%, small twins 21% big twins varied from 26% to 28% SE touring 32% that was 5yrs ago. 

I could easily see this being accurate.
I've talked to some dealer employees that have said they only get 10% on P&A. They also said they average less than 10% off of bikes.
I've heard that MoCo employees get pretty deep discounts on bikes. I'd hope so, they deserve to be able to afford what they build for everyone else.

[hard10]

...I've talked to some dealer employees that have said they only get 10% on P&A...

Remember, anyone here can get a 20% discount on parts. Jenni usually gives this discount on non HD parts as well.

[JCZ]

And so does Chicago HD and several other dealerships.  Which means that there has to be more than 20% profit margin in hard parts.  Accessories and motorclothes is even greater than that.

I know a young lady here in Nor Cal that got an FXRG (leather, not the textile) at 50% off.  So what's the real profit margin on motorclothes?

Having said all that, they are running a businnes for profit.  They have over head, benafits and burdens to meet for each employee, mortgage payment, utilities, advertising, etc. etc.

[Wheelsnkeels]

My wife used  to manage a Harley store i would not talk about this then now i dont care, parts are all around 28%, small twins 21% big twins varied from 26% to 28% SE touring 32% that was 5yrs ago.  

There is a ton of burdened overhead on the required fancy showrooms by the interstate required by the MOCO these days adding payroll and benefits its a tuff nut to crack. I heard the local dealership here burdened expenses runs 30k a month.

Perhaps the old 2 car garage dealerships made some sense?

[Dan_Lockwood]

I could easily see this being accurate.
I've talked to some dealer employees that have said they only get 10% on P&A. They also said they average less than 10% off of bikes.
I've heard that MoCo employees get pretty deep discounts on bikes. I'd hope so, they deserve to be able to afford what they build for everyone else.

This light of a mark up, 10%, doesn't make any sense.  Take Jenny for instance, she sells as much as she can at 20% off each and every day.  I highly doubt that her boss would promote these loss profit sales.

The company I work for sells equipment to HD at one of the plants in WI.  While they were down running off the new equipment, I of course picked their brains for info on the new SE bikes at the time and also the employee purchase discount came up.  All that I've talked to that work at HD say that they DO NOT buy from HD, they have to buy through a dealer and they only get what discount the dealer allows them.  I'm sure though that the dealer that supports most of the HD employees in the WI area give them good deals, but buying a new bike like GM employees buy new cars, is not what I've been led to believe.

As far as the discounts that have been thrown out for the new bikes, these numbers run pretty much in common with auto dealer pricing; cheaper bike/cars, less markup etc., high end SE's/cars/trucks have the highest markups.  But the 32% on SE bikes seems a bit high by may 6% or so; but hey, it is HD we're talking about.

    

[Twolanerider]

Does anyone remember what MSRP on the SEEGs were?  I think it was $29,995 but couldn't swear to it.

The little girl doing the title clerk work when I bought mine made the mistake of pointing a pile of docs saying "that's all the paperwork on your bike" before excusing herself to use the restroom.  It was all docs on my bike but not docs for me.  One of the docs described a factory invoice price of $24,699.

Have no idea how authoritative was the doc, how complete nor what else might have weighed in to other figures.  That's just what I saw that day.

[Wheelsnkeels]

This light of a mark up, 10%, doesn't make any sense.  Take Jenny for instance, she sells as much as she can at 20% off each and every day.  I highly doubt that her boss would promote these loss profit sales.

The company I work for sells equipment to HD at one of the plants in WI.  While they were down running off the new equipment, I of course picked their brains for info on the new SE bikes at the time and also the employee purchase discount came up.  All that I've talked to that work at HD say that they DO NOT buy from HD, they have to buy through a dealer and they only get what discount the dealer allows them.  I'm sure though that the dealer that supports most of the HD employees in the WI area give them good deals, but buying a new bike like GM employees buy new cars, is not what I've been led to believe.

As far as the discounts that have been thrown out for the new bikes, these numbers run pretty much in common with auto dealer pricing; cheaper bike/cars, less markup etc., high end SE's/cars/trucks have the highest markups.  But the 32% on SE bikes seems a bit high by may 6% or so; but hey, it is HD we're talking about.

     

I believe you've been misled have a couple former MOCO employees in the family and they buy at 20% off on bikes. They do get them from a dealer not the plant perhaps this is where the confusion lies?

I don't know if the MOCO subsidizes the sale to the dealer but the 20% employee pricing discount on touring models stated earlier appears to be accurate.