The tolerance for speedometer's at my former employer was -1/+5 at 60 mph indicated. As noted by glens, the tolerance is biased toward the high side to make sure we weren't blamed for speeding tickets. In actual practice, our speedometer supplier was able to maintain actuals of -0/+2 over time as evidenced by their statistical process control charts that I had opportunity to review occasionally.
Mr. Cole stole my thunder on another point I was in the process of posting before I noticed his post. If the actual error turns out to be 1.8 mph at an indicated 60 mph (3%), that is actually better than most Harley riders report on their stock bikes. I don't know that I'd go out and spend $500 to correct that tiny error, and then have the error creep right back anyway as I wore out tires and then replaced them with new. You will never achieve perfection, since you are always dealing with a moving target. Spend the $500 on something important, like a better front suspension.
Jerry