Dupe.....

 

30% markup is minimum in my business, but I'm dealing with $30 items not $25000 ones. Generally the higher priced the item the lower the markup percentage would be, but I know that Harley is pushing the boundary so we shall see how that works in the next year or so after the Rushmore newness has worn off.

 

I don't disagree.

But Harley isn't marking them up 30% either. 5k at 28... 17.8%

 

I'm betting you're pretty much on the money. The website shows about a 20% profit off of MSRP, which is reasonable in that type of business. Doesn't mean you have to pay it though. It is a "Suggested" Retail Price. Plus, I'm betting the dealer gets some kind of holdback (3%? that's based on the retail price), like car dealers do. The smart dealers make even more of a return on used bikes. And the dealers who sell more used bikes are in a better position to deal on a new bike.

 

Im with ya on this. Lotta overhead. People who think thats a huge mark up have no clue what it takes to run a business. The owner of the company/dealership is suppose to make money and not give stuff away for nothing. Kinda like moaning about your boss not paying you enough money. go work some place else. Freedom.

 

I still dont see how it helps knowing their cost. What do you expect "oh, you know the cost? Well, thats different! I'll sell it for $2K less than the price I just quoted you!".?

I doubt it.

 

HD Dealers have a lot more overhead than a lot of other manufacturers. My local is a small volume, private owned dealership - not one of the mega superstores we see so much of today. Anyway, I walk in on a slow day, and there are 4 salesmen, 1 sales mgr, 2 to 3 motor clothes girls, 3 parts guys, service mgr, 5 technicians, gopher, etc. He also owns a Honda/CanAm dealership and when I visit there, there is a guy who is doing sales, parts, accessories, and 3 technicians and one of them is also service manager.

 

I have no problem with the dealership making a big profit and earning a comfortable living.

 

The sad thing is the service dept. probably makes a bigger profit annually.

 

The markup goes 2 ways. The dealer can say no, I'll wait for the guy to come in and pay full sticker. The customer can say no, and move on to a dealer that will deal a bit.

It's just like buying cars, do your homework and try get the best deal you can, or at least a deal you can live with. I have no problem with them making some money either. But, they aren't going to bend me over a barrel either.