just got invoice price fot a 15 RG special.

the list is$23,199.00....$4640.00 bucks don't seem like a lot to make considering employee cost, lights, heat,rent...etc. no wonder why they fight for every nickel.

They do make about 8k off the CVO

 

FROM HD:


Financial requirements
The minimum requirements that Harley-Davidson looks for when reviewing Prospective Dealer Applications are $2 million net worth and $1 million unencumbered funds (liquid assets).The investment requirements for a sellout of an existing dealership are often higher than $1 million unencumbered funds.

 

We all know there is a difference between gross profit and net profit and them stealers gotta eat too! But.... how many businesses today operate on a 20% margin for a big ticket item before they double those dollars packing the deal with over-inflated prices and margins for F&I, P&A, labor, the set up charge double dip, etc.

Love my Harley's as much as the next guy but they are way over priced for what they are.....imho an inferior, technologically deficient piece of machinery.

Oh wait,don't forget the extra $10k it takes just to get the bike where you'd like it and it should have been from the factory in the first place.

PS: almost forgot the $3k+ GP that will be made on your trade too boot.

 

Suppose they sell a bike every day, and get full list price for every one of them, that would give them a gross monthly profit of $139,200. That is if they never take a day off, nor discount even a penny.

They would need to put up with all the employee hassles, the constant whining from people wanting over the top discounts, free goods, free labor, and trying to save every penny they can by lying to the salespeople.

Out of that they need to pay rent, utilities, taxes, sales people, vacations, sick days, mechanics set up costs, all governmental fees and costs, pay someone to do all the paperwork, advertising, weekend bands and food.

Who wants to step up to the plate and invest several $million of their own money, and read all the crap about stealerships in the forums.

 

The only person who can define "worth" is the guy that writes the check. What something is "worth" to one guy is not always the same as what it's worth to the next. I wouldn't give you two nickels for a nice boat yet I'd probably fight you to the death for my bike.


At the end of this season I traded the SG in after 2 1/2 riding seasons and those seasons cost me 3k dollars. When I look back at the 2 trips to Sturgis, 2 other trips to The Hills, 2 trips to LaCross, 2 trips to Sioux City and the hundred or so day trips I took in that time, it's some of the best money I've ever spent.


It's more than gas, oil, chrome and rubber. It's a lifestyle.

 

Many years ago I looked into a dealership with a partner and got all the financial details on running the business. One expense not yet mentioned is flooring cost, which can be substantial. However, the sale of the bike is usually the lowest margin part of the operation. Some dealerships can literally survive on the margins from accessories, clothing and service.

 

I agree

What's your point?

 

Actually with those figures it is a 25% mark up. Then you have to add the set up cost, usually about $700 and the title fee $250, neither of which is worth that much, but it seems to be pretty standard charges throughout the network.

Technologically inferior, yes but that is because the studies HD has done have shown this to be the product we want. As far as quality, it is probably no better or worse than most of the products produced by the corporations of the world today.


Now there are Harley owners out there that are perfectly fine with routine maintenance and riding. I'm not one of them, for me it is more like $20k, just dropped $5k on a new 117" motor.

 

What's your point?[/QUOTE]

Its over your head.

 

The sales of the bikes is not the only revenue stream the dealers have. They also have parts, clothing, and most of all the service department. Many years ago, I was in the car business and one day on a whim, a friend of mine and I put together an entire car out of the parts department at retail for the part. That little (at the time) $9k Corolla totaled $210k in retail parts.

Later, when I was in business school, my team did our business analysis on a local car dealership and found that the vehicle sales were nearly a break even game. The biggest revenue stream at this particular dealership was warranty covered repairs.

It probably isn't too far off base to assume that most harley dealerships are making most of their money on parts and service. Selling us the bikes is just the invitation to the 'family' where we will continue to open our wallets on retail parts and services for years to come.