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[RoadDawg]

I got mine new at below MSRP out the door including tax and tags ($300 maximum tax in SC). We negotiated. Then I proceeded to put another $7,000 into the bike. No regrets. CVOs hold their value better than non-CVO Harleys. I've seen older CVOs go for astronomical prices (IMO) at my dealer. This is a great site with tons of valuable information from knowledgeable members, but the constant Harley bashing from the same few gets old. If Harley-Davidson wasn't getting a decent number of buyers for their high priced bikes they'd lower the prices. Value for any product is what the customer is willing to pay.

[DesertHOG]

You want to talk about value drop, look into a BMW GTL

Allowed me to grab my '14 GT for 33% off original MSRP.

[BigLew]

I would like to know given the current conversation about profit at the dealers and how they jack everything up, how much profit/markup there is from the MotoCo to the Dealers? So if the dealers true cost is $XXXXXX how much does the Company make?

BigLew

[HighOnHD]

 

I got mine new at below MSRP out the door including tax and tags ($300 maximum tax in SC). We negotiated. Then I proceeded to put another $7,000 into the bike. No regrets. CVOs hold their value better than non-CVO Harleys. I've seen older CVOs go for astronomical prices (IMO) at my dealer. This is a great site with tons of valuable information from knowledgeable members, but the constant Harley bashing from the same few gets old. If Harley-Davidson wasn't getting a decent number of buyers for their high priced bikes they'd lower the prices. Value for any product is what the customer is willing to pay.

Whole heartedly agree!

[DesertHOG]

I would like to know given the current conversation about profit at the dealers and how they jack everything up, how much profit/markup there is from the MotoCo to the Dealers? So if the dealers true cost is $XXXXXX how much does the Company make?

BigLew

I've read 20% on CVO. So clear $8k on $40k bike plus any extra charges.

[262 CVO 16]

 

I have... 

One way for a company to increase profitability is to improve quality and service to the customer, and increase sales and market share (increase volume) because of the improved value to the customer.  Another way for a company to increase profitability is to lower manufacturing and purchasing costs (sometimes in a manner that decreases the value of the product to the customer) while at the same time increasing the price of the product to the customer - resulting in lower volume with higher pricing.  The goal of every company had better be to make money.  How each company chooses to make money determines the continued long term viability of the company.  The business landscape is littered with examples of once strong companies that died or were overtaken by rivals because their product no longer provided value to customers.  Customers by in large do not know or care what the profit margin is for any company, as long as the product they purchase is what they perceive as value for their money.  That is true no matter the business...

[Para Bellum]

If Harley-Davidson wasn't getting a decent number of buyers for their high priced bikes they'd lower the prices.

Another approach would be to make fewer of them.

[SDCVO]

Allowed me to grab my '14 GT for 33% off original MSRP.

Perfect!

[chaos901]

I believe the dealers make most of their income on the clothes, parts, accessories and service.  The bikes are simply to get you in the door.  They make far more selling t-shirts than they do bikes.  Look at how much floor space is dedicated to the other items at the new dealerships, that is where the money is located.   

[bigchuck]

I believe the dealers make most of their income on the clothes, parts, accessories and service.  The bikes are simply to get you in the door.  They make far more selling t-shirts than they do bikes.  Look at how much floor space is dedicated to the other items at the new dealerships, that is where the money is located.   

X2. But don't forget financing and licensing rights sold

[charles05663]

I believe the dealers make most of their income on the clothes, parts, accessories and service.  The bikes are simply to get you in the door.  They make far more selling t-shirts than they do bikes.  Look at how much floor space is dedicated to the other items at the new dealerships, that is where the money is located.

At $40 for a tee shirt I can see why!

 

[HUBBARD]

I believe the dealers make most of their income on the clothes, parts, accessories and service.  The bikes are simply to get you in the door.  They make far more selling t-shirts than they do bikes.  Look at how much floor space is dedicated to the other items at the new dealerships, that is where the money is located.

I would agree that Motor Clothes and T-Shirts are a definite profit center, as are Parts, and Bike Sales, especially in volume.  But as for the highest percentages of margin on COGS, the Shop always leads the pack.  Industry standard reports a 70% margin, at full Door-Rate, with Techs being assigned to a job 85% of the time, and billing 82.5% of the time they are assigned to that particular job.  Perfect world would be better than that, but that only happens in budgets.  Lol.  There endeth the lesson.  Later--HUBBARD

[Yellow09SERG]

We look only at the Harley world here, but look a little wider. Go price a new truck, hell for that matter a used one. I bet every one of us here can remember a time when $3500 would buy you a hell of a nice, jump in it and take a trip, pick up. That buys a rust bucket now and if you want anything that could ever leave the farm it's going to be $10,000. Labor at a Harley shop is what now days? $80 $90 an hour? Bet if your car makes a trip to the dealership for repairs you will pay right around that rate also?? Guess the big differences is I  can't remember going into the car dealerships to buy a Tee Shirt but sure remember at time where I could make a trip without coming home without a bag full of Harley shirt for along the Rt and I have got so fat I cant wear 3/4 of them.....lol

[Yellow09SERG]

As bad a I hate to say it....and I know I will catch crap over it, but the video that was posted in the joke section explains a whole lot as to why prices on HD is where they are IMO

[HUBBARD]

We look only at the Harley world here, but look a little wider. Go price a new truck, hell for that matter a used one. I bet every one of us here can remember a time when $3500 would buy you a hell of a nice, jump in it and take a trip, pick up. That buys a rust bucket now and if you want anything that could ever leave the farm it's going to be $10,000. Labor at a Harley shop is what now days? $80 $90 an hour? Bet if your car makes a trip to the dealership for repairs you will pay right around that rate also?? Guess the big differences is I  can't remember going into the car dealerships to buy a Tee Shirt but sure remember at time where I could make a trip without coming home without a bag full of Harley shirt for along the Rt and I have got so fat I cant wear 3/4 of them.....lol

Hehehe.  I can sure relate to that!     Later--HUBBARD