Check this site out: https://seedealercost.com/

 

When I walk into a HD dealer (which isn't very often) I see a huge, modern, very well equipped building, usually located on prime (and expensive) real estate. Then I see lots of brand new expensive bikes on the floor and, depending on the dealer, sometimes a large number of used bikes. Walking through the shop area I see the newest equipment manned by (usually) experienced Techs who don't work for peanuts. Shelving in the parts department has at least a small fortune tied up in parts. The motoclothes inventory is also extensive. Walking around the place I see quite a few staff--some are in sales, some take care of other office functions and, honestly, I also see some who I don't have a clue as to what they are there for. Just about all of the personnel I see look like they are doing at least OK financially. I probably can't even imagine what the dealership's monthly costs are for utilities, insurance, upkeep and cleaning, etc. And I wonder...., what does it cost each and every day just to unlock the damn doors?

Having said all that, apparently the owner thought he could pay all the expenses and work hard all day and still make much better money on his tremendous investment in a HD dealership than he could make otherwise. Otherwise he wouldn't be a HD dealer. So, I expect him to make some money. I just don't want him making too much off of me LOL.

And dealers don't lose money on bike sales. But they also make a lot, and I suspect very often they make more on the other things than on the actual bike sale. You know they make money on financing. And on selling a ESP, and a services agreement, and regular servicing, and clothing and other accessories, and likely in other ways also that I'm not even thinking about. All I can do is shop, shop, shop some more, ask for free or reduced add ons, free or reduced cost services, etc., etc., etc. There are so many HD dealers I suspect most of us have quite a number of dealers within a couple of hundred or so miles from our homes. Knowing all the dealerships will be the same in some respects but also will have their differences from the others. It will pay you, sometimes handsomely, to do your due diligence and check numerous dealers and find the best, all things considered, overall combination of goods and services for the least amount of money.

If I had lots of money I still wouldn't invest in any type of vehicle dealership. Too risky for my blood even though there could (maybe, might, possibly, etc.) be potential for sizeable gains.

 

what does it cost each and every day just to unlock the damn doors?

I knew a guy who bought a grocery store back in the 70s. Before he signed the papers he knew exactly what that number was...

 

At the local dealer today and one of the owners told me uniforms, toilet paper, hand towels, hand soap, and clean rugs run $600.00 a week.

 

Just wondering if anyone knows who owns that site and where do they get their info?

 

Know 3 owners of decent sized Bicycle shops in Michigan.
One quoted 10k per month for rent and insurance. No payroll, inventory etc. Included utilities.

When I had frame and trim crews, payroll was over 10k per month. I thought that was stressful .

Ready to pull the trigger on a 2020. Going through the whole "song n dance, Dog and Pony show.

Decided I HAVE to have the Performance Orange. Not letting them know that.
My local guy that "kind of knows me. Gave me what I think is good pricing.
Brandon Harley in FL is almost a grand less OTD in writing (very tempted to purchase there)

Some of these clowns (usually a BIG dealer) hit you with outrageous numbers.
(didn't think I was wearing a Dunce cap or have F$%K me written on my forehead.

One guy went on and on about their 2019 with only 4000 miles on it for 17,500.00 plus, plus, plus.
Couldn't get him to shut up and he acted like that was a "great price"! I suggested he look at Cycle Trader prices (14-15k) for the same used bike and just hung up.

Now the Orange is finally showing up on the trucks. Not even looking forward to going to the "Big dealer" that is getting one first.
Already walking out in my head after I check out the shade and make sure I like it.
Highly doubt he will agree to "my " number.. Price quoted from local guy with a smaller building. No car lot tactics.

JM

Pricing is different for large groups that own multiple dealers.

 

Yes they do when you been with a dealer half a life time. hardest part of the deal is picking a color. .

 

lets not forget about the incentives HD give dealers at the end of the year to push the bikes out, ive personally seen incentives offered to a dealer i used to work with in exporting HD's to greece, 2010-2015

the end of 2014 for the 2015 models they offered a 15% ADDITIONAL discount off selected units if they were able to push out the ones they had to put in the new ones.. my eye caught the discount for the CVOs

so do the numbers

35k CVO SGS, dealer invoice was 26.5k ( i saw it) , he was just offered an additional 15% to push it out.. thats another 4k plus off the original paid invoice of the 2014 CVO SGS thats credited towards the 2015 CVO SGS if the original invoice was paid

do the math
4-5 CVO', can equal 20k-25k plus in dealer credits

if he is able to push end of year deals out the door, they can get dealer credits that in the long run equate to free bikes or gear, and PURE PROFIT, he just didnt have the option on how to use the credit.. it was applied to the next model year of the same model, but it didnt matter.. if he sold 5 CVO's of any kind.. it equated to 25k of wiggle room, he couldve given a bike away for free if he sold the next 5 new CVO SGS the credits were applied to at MSRP

thats how its done gents

 

My guess is that they get about 10% net profit...why do it otherwise?....the owners could have money in the market right now earning 10 points, they are fools if they aren't pulling in at least that much profit

This is not to say that a 50k CVO Ultra gives the dealership 5k net profit. Overall sales (new, used, parts, apparel, etc...) should yield net profit of 10% or better. Some products are loss leaders. They may make less on bikes, but make a killing on t-shirts.

 

I was tempted to buy a new bike from the local dealer, but price ruled that out fast. I searched every dealer in a two state area and still felt their prices were just to high on new and used bikes. Then I found a non franchised dealer that had a few other brands, but mainly low mileage late model Harley as their bread and butter. I drove 4 hours and picked up a two year old bike with 194 miles on the clock and saved thousands compared to what HD franchised dealers were asking for the same bike, 2 years older, with 10k-15k miles. No idea how much profit they make on average, but all their bikes were priced below the HD dealers, and they tossed in a couple of shirts and a hat as I was leaving.