I'm out dealing for a new FLHRCI, in the Midwest region.

I find that all of the dealers are hovering at or slightly above the MSRP of $17695 + $335 (freight) + ~$275 (setup) = ~$18,305 before taxes.

So, I purchased a dealer invoice from http://www.cyclebuy.com/harley_touring.htm that I would like to share with you. It's $20 cost seemed relatively risk free compared to the MSRP.

The report states that the dealer paid, what is referred to as, a "ready to sell price" of $14,616; which is the "no profit to the seller" sitting off the floor.

Cyclebuy recommends that one should add the freight and setup charges to this number and then subtract the total from the dealers asking price to see how much profit the dealer making on the deal.

So, in my case, the best deal so far:

$17695 (msrp for Vivid Black)
$ 335 (freight)
+$ 275 (setup)
--------
$18305 (before tax and doc fee BS)
- $14616 (dealer invoice / "ready to sell cost")
--------
$ 3689 (dealer profit not counting the documentation fee which is BS thus can be negotiated out.)

This equates to approximately a 20.1% dealer profit.
(F.Y.I.: cyclebuy.com qoute: "We feel that most machines can be purchased for 5% to 10% over the ready to sell cost." This would mean a $730 to $1461 dealer profit instead of the $3689.)

Then there are the other, some intangable, factors involved in setting the price like supply and demand; which encompasses the reasons for the demand, from the buyers viewpoint; like 'wow that's a sharp looking bike' or 'love the new technology...', 'Everyone pays MSRP, a Harley is worth it.' etc... (These are my viewpoints by the way. )

Just wanted to hear what others have to say regarding the subject.

Oak

btw:
Cyclebuy states in their f.a.q.'s (http://www.cyclebuy.com/faq.htm ) the following:

"Where does the dealer cost information come from?
CycleBuy.com's owners have worked in the motorcycle industry for most of the past 20 years as either General Manager or Sales Manager of multi-brand dealerships. During that time, we established a number of contacts who provide us with current copies of the manufacturer to dealer price lists. All of our pricing information is taken directly from the manufacturer’s most current dealer price list and includes dealer holdback information and all available dealer sales incentive or rebate program information. How accurate is the information?
Very! We review all prices with dealers at least every 2 weeks to ensure accuracy. If you have any doubts about the accuracy of the information you purchased, please contact us immediately and we will re-verify the information on your report within 48 hours. If we are ever wrong, we will refund the report cost AND provide you with the latest cost information."

Of course I tend to add a few grains of salt to what I read and hear. - Oak



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In your scenario even if we went with the higher end of the equation, the 10% over cost amount, it would mean that RoadKingclassics would be available for like $15,800 or so. What F**ckin planet are those figures commin from...Harleys are the one genetic,mutant,freak-o-nature commodities that defy all rules of buying/selling vehicles. This is finally starting to ever so slightly change due to supply/demand, but what other vehicle type can you imagine walkin into a dealer and payin sticker price on. No way-no how unless it was some kinda super hot limited edition somethin/.or other. But on any regular vehicle we would never. But HD's almost always get list. So I don't know where your source comes up with that idea....[sm=dontgetit.gif]

 

 

It's a business. And to be perfectly honest, a 20% gross margin (NOT PROFIT) is not that substantial. That 20% then has to pay salaries, salesrep commission, leases, taxes, etc, etc, etc.

Please, don't ever bog yourself down trying to figure out the margin on that next $4.50 bottle of beer you buy at the bar! Or that $30 t-shirt. Or those $75 grips.

I am not trying to be rude, but lets face it...this is a hobby for just about all of us. A rather expensive hobby at that.

 

Good points and wise words jdag. Thanks - Oak

 

this should also work the other way as well but it doesnt, as soon as you drive off the lot you loose that 20%. try driving it around the block then asking the dealer to buy it back for the same price. YA RIGHT.....
the whole thing sucks, but i have a harley cause i wanted one. But ya, the price still sucks.
they dont call them stealerships for nothing

 

Sooo, the dealer goes out and buys his stock for X amount of dollars. Of which he pays cash forof course (he would always have an exorbitant amount of cashola hanging around cause dealers are independantly wealthy, anyhoo) so he can bring in a large quantity for customers to choose from; All this stock is now delivered to his showroom (wouldn't want those customers to be standing in cold/heat andin the dark, now would we) so we have to heat or aircondition that showroom that he probably had to build (whichhe also paid cash for, out of that exorbitant amount ofcash he has);then off course the owner is off of a tropical holiday so he actually has a friend there (that works for nothing) so those customers can ask their questions and get their answers; then of course he has to also fork out some more of that exorbitant cash for the gear, the accessories, the bling bling that those same customers are accustomed to have at the ready in that aforementioned showroom.

Anyone in the retail business knows whattheir cash flow pays for...They pay not only for stock, but expenses. Wages and associated expenses, Utilities, Taxes, Interest on their mortgage or loans, maintenance...the list is endless....after all issaid and done ...then you calculatethe so called profit. Not a minute before.

 

What also figures into the equation is financing these bikes. Most dealers don't write a check for a truckload of bikes, rent or mortgage on the building to show and store these beauties, and the general cost of doing business. Think about it, if you would put up the $$$ to buy bikes, parts, accessories, staff, building, Oh yea and feed your family,etc you might want to show a profit on the items you sell. If it bothers you too much, open a dealership. Then you will be rich and we can bitch about you. Don't get me wrong, I agree they are expensive which is why I buy used but if you want a really cool inexpensive bike, buy a Schwinn

 

fair market value is BS most of the time - just remember - we are buying water in a plastic bottle out of a machine for over a $1 = go figure

Harley will continue to charge what ever they can as long as the bikes sell - when we (the buying public) stop buying then maybe, they will lower the OTD price - I keep expecting each year for the MSRP tobe a starting point > down - each year HD somehow creates a frenzey and we keep paying the high cost -

Think about it - you have a product that people have lined up to buy - the line goes out the door... Right in the middle of a sale - you get a page that says you are charging above MSRP - are you going to lower the price to this line - Hell no - when the line STOPS - then you will be forced to lower but not until then...

 

I hear ya,,, but if you were to total up his monthly bills,,, heat ,lights,wages, Ins,work comp,
heck their computer program through Harley alone is like $600+ a month,, the garage,bathroom,offices,essentials,,, he is not pocketing all that cash!!
my dealer is not poor,, but he cries up a storm at some of his bills,,
every time they send him promotional posters etc,,, cost him big $