What It Cost Me...
How much does a dealership make on a new bike?
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From: Bothell, WA
At MSRP, the dealer is not making $4,500 on the sale of a $25,000 motorcycle. With my BMW example, that number was closer to $500. With fees and markups, that would change.
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From: Virginia
It would be gross margin to HD corporate, and just margin to the dealer.. the dealers profit would be the HD gross margin number minus the dealers overhead expenses (dealer COGS).
At MSRP, the dealer is not making $4,500 on the sale of a $25,000 motorcycle. With my BMW example, that number was closer to $500. With fees and markups, that would change.
At MSRP, the dealer is not making $4,500 on the sale of a $25,000 motorcycle. With my BMW example, that number was closer to $500. With fees and markups, that would change.
I was referring to the dealer profit equation as far as bikes go only.
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From: Bothell, WA
Getting a little wonky here, you are in my wheel house unfortunately. i've been managing PnL's my wholle life. Sales minus COGS equals Gross Margin. Gross Margin less Operating Expenses equals EBITDA (earnings before interest expense, depreciation etc). EBITDA minus those non operating expenses equals net income.
I was referring to the dealer profit equation as far as bikes go only.
I was referring to the dealer profit equation as far as bikes go only.
No argument with your math. That is repeating what we both seem to know.
If you want to open the scope to include all of the high margin add on stuff, then the dealer is making quite a bit. In my direct experience, a 25% profit margin was in their first offer numbers. Strictly speaking about MSRP, I will still posit that there is not a significant amount of margin there for the dealer. The link I posted earlier suggested how HD increased their own cut when they decreased the dealer margin from 20% to 18%. HD is aware the dealers are doing really well with markups, warranty add one, financing, etc.
Last edited by willcasp; Dec 13, 2022 at 05:17 PM.
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From: Oxford, Nc
Not disputing any of the above, but if I read the OP's title of the thread (intent,) back in 2002/2003 I sold my shop to the local Harley dealer in Akron, OH and became the GM of their two stores for about a year.
As a general rule of thumb, the base 883 Sportster had about a $500 mark up, the 1200's (particularly the 1200 Customs, grossed about a grand.
Dynas from FXD up to the WG and Low Riders, $1,000 to $2000, Softails $1500 for the Standard to maybe $2500/$3,000 on a Heritage.
FL's of course brought the most, $3,000 and up and the Ultra getting $4,000 ish. FL CVO's were close to $6,000 (all these at straight MSRP vs invoice, disregarding holdback.)
That's 20 y.o. info but the margins today probably aren't dissimilar proportionately (and allowing for inflation.)
Hope that helped a little.
As a general rule of thumb, the base 883 Sportster had about a $500 mark up, the 1200's (particularly the 1200 Customs, grossed about a grand.
Dynas from FXD up to the WG and Low Riders, $1,000 to $2000, Softails $1500 for the Standard to maybe $2500/$3,000 on a Heritage.
FL's of course brought the most, $3,000 and up and the Ultra getting $4,000 ish. FL CVO's were close to $6,000 (all these at straight MSRP vs invoice, disregarding holdback.)
That's 20 y.o. info but the margins today probably aren't dissimilar proportionately (and allowing for inflation.)
Hope that helped a little.
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