Stealership mark up
Road Master
Joined: Aug 2007
Posts: 886
Likes: 3
From: NC Mountains
RE: Stealership mark up
Very good CK! Would you talk to ricoman? I wish my store could net 10%...I'd be extremely happy. I am in a very competitive business in a shrinking market and as the man says: "It's a dog eat dog world and we're wearing milk bone underwear"
ORIGINAL: CKinAZ
It shouldn't be any surprise that on the vast majority of retail items, the MSRP is 200% of dealer cost. On the wholesale level there is another doubling, so that same item might be sold to a wholesaler by the manufacturer for $50. On a manufacturing basis, it's not uncommon to see that same $50 item actually cost the manufacturer about 1/4 to 1/3rd the selling price. High ticket itmes have less margin...
All that money is called Gross profit and has little to do with the actual profit (net) that the company makes. Once all costs are considered, net profits are pretty slim for most businesses. Typically in the 10% range. All the employees, the building, the electricity, water, insurance, expenses for buying operating equipment like computers and software and office supplies, desks... The list is pretty long. Bottom line is that looking at gross profit on the sale of an item is not a fair assessment of what you can buy the item for.
If it were not for that business carrying that item in inventory, you wouldn't have it to look at and buy. Inventory is yet another cost - especially when the inventory is financed, like at auto dealers - you don't think they OWN all those vehicles so you?
Hope that sheds some light on things.
It shouldn't be any surprise that on the vast majority of retail items, the MSRP is 200% of dealer cost. On the wholesale level there is another doubling, so that same item might be sold to a wholesaler by the manufacturer for $50. On a manufacturing basis, it's not uncommon to see that same $50 item actually cost the manufacturer about 1/4 to 1/3rd the selling price. High ticket itmes have less margin...
All that money is called Gross profit and has little to do with the actual profit (net) that the company makes. Once all costs are considered, net profits are pretty slim for most businesses. Typically in the 10% range. All the employees, the building, the electricity, water, insurance, expenses for buying operating equipment like computers and software and office supplies, desks... The list is pretty long. Bottom line is that looking at gross profit on the sale of an item is not a fair assessment of what you can buy the item for.
If it were not for that business carrying that item in inventory, you wouldn't have it to look at and buy. Inventory is yet another cost - especially when the inventory is financed, like at auto dealers - you don't think they OWN all those vehicles so you?
Hope that sheds some light on things.
Road Warrior
Joined: Apr 2007
Posts: 1,952
Likes: 15
From: Senoia, Ga., by way of Miami, Fl..
RE: Stealership mark up
ORIGINAL: Kolni
Yeah? So?
If you don't like the price for their shirts then why are you going to a dealership to buy a shirt?
Shouldn't you try a clothing store?
Cause otherwise, you WILL pay for that HD emblem on it. And if you want that HD emblem then it is gonna cost you.
Personnally, I get my T-shirts at Ross, $10 for a pack of 3
ORIGINAL: HGM
They are in the bussiness to make money, but $35 for a "T" shirt?? Its about $30 profit... $25-30 for a hat, again, cant cost more than $5.....
They are in the bussiness to make money, but $35 for a "T" shirt?? Its about $30 profit... $25-30 for a hat, again, cant cost more than $5.....
If you don't like the price for their shirts then why are you going to a dealership to buy a shirt?
Shouldn't you try a clothing store?
Cause otherwise, you WILL pay for that HD emblem on it. And if you want that HD emblem then it is gonna cost you.
Personnally, I get my T-shirts at Ross, $10 for a pack of 3
I was answering a question with my own observations of what the average rag costs vs what people pay... Truth be told, I have few HD shirts and none of their hats. I felt raped every time I have ever bought clothing at the dealer and make it a point, though I like to stop in each one, not to buy clothes.. I get my stuff at the bars (Iron Horse, Boothill, Jackson Hole, Etc).. They always have last years stuff on sale.. You can get long sleve shirts for $10....
Bottom line, I understand they are a "for" proffit company and have every right to make money. As long as they continue to sell stuff, they will continue to charge what they do.. No poblem here, but I wont be stocking my wardrobe with their stuff.. I'd rather spend the money on parts..
Road Master
Joined: Oct 2005
Posts: 768
Likes: 1
From: sarasota, fl
RE: Stealership mark up
ORIGINAL: Rapid One
You have to be kidding me.
Listen carefully.
All businesses mark up prices. All of them.
ORIGINAL: ricoman
I think it's wrong to mark up products.
The moco dealers should follow the examples of department stores, jewelry stores, car dealer parts departments, fishing shops (Bass Pro for ex.), shoe stores, appliance stores, mattress and other furniture stores, home supply stores, drug stores, etc. After all they are in business and don't mark anything up too much.
Give it a rest - buy the chit you want where you get your price or don't freaking buy it.
I think it's wrong to mark up products.
The moco dealers should follow the examples of department stores, jewelry stores, car dealer parts departments, fishing shops (Bass Pro for ex.), shoe stores, appliance stores, mattress and other furniture stores, home supply stores, drug stores, etc. After all they are in business and don't mark anything up too much.
Give it a rest - buy the chit you want where you get your price or don't freaking buy it.
Listen carefully.
All businesses mark up prices. All of them.
Road Master
Joined: Nov 2006
Posts: 1,227
Likes: 3
From: Central Illinois
RE: Stealership mark up
ORIGINAL: 57springer57
one of my friends works in motorclothes , she told me the stuff is marked up on average 100% thay doesn"t go on the bikes though , not as much
one of my friends works in motorclothes , she told me the stuff is marked up on average 100% thay doesn"t go on the bikes though , not as much
Road Warrior
Joined: Jun 2006
Posts: 1,602
Likes: 0
From: Maryland
RE: Stealership mark up
I used to work up at a grocery store and food was generally marked up 100% over cost. 50 cents to buy 1 dollar to sell. But it was probably marked up a lot at the Warehouse before we got it.
At the Ducati dealership the owner usually gives me 20% off anything I buy if I say something is too expensive. The Harley Dealers usually have 3 times a year they sell things at 20% off.
I don't mind paying retail. But what gets me is when the dealers add stuff to MSRP for a bike. Set-up and documentation. Pure BS and then they act like they are doing you a favor for letting youbuy the bike. I thought about buying my wife a new sporster low but I really didn't want to go through all that BS again when buying a bike from a Harley dealership so she is going to get a Yamaha.
At the Ducati dealership the owner usually gives me 20% off anything I buy if I say something is too expensive. The Harley Dealers usually have 3 times a year they sell things at 20% off.
I don't mind paying retail. But what gets me is when the dealers add stuff to MSRP for a bike. Set-up and documentation. Pure BS and then they act like they are doing you a favor for letting youbuy the bike. I thought about buying my wife a new sporster low but I really didn't want to go through all that BS again when buying a bike from a Harley dealership so she is going to get a Yamaha.
Intermediate
Joined: Oct 2006
Posts: 44
Likes: 0
From: Clermont, Indiana
RE: Stealership mark up
ORIGINAL: ricoman
it's called sarcasm, sorry you missed it
ORIGINAL: Rapid One
You have to be kidding me.
Listen carefully.
All businesses mark up prices. All of them.
ORIGINAL: ricoman
I think it's wrong to mark up products.
The moco dealers should follow the examples of department stores, jewelry stores, car dealer parts departments, fishing shops (Bass Pro for ex.), shoe stores, appliance stores, mattress and other furniture stores, home supply stores, drug stores, etc. After all they are in business and don't mark anything up too much.
Give it a rest - buy the chit you want where you get your price or don't freaking buy it.
I think it's wrong to mark up products.
The moco dealers should follow the examples of department stores, jewelry stores, car dealer parts departments, fishing shops (Bass Pro for ex.), shoe stores, appliance stores, mattress and other furniture stores, home supply stores, drug stores, etc. After all they are in business and don't mark anything up too much.
Give it a rest - buy the chit you want where you get your price or don't freaking buy it.
Listen carefully.
All businesses mark up prices. All of them.
I have to admit I am a little sensitive about this topic.
I run a smallish motorsports (4 wheeled not 2) service and supply business and often hear something to the effect of "Fifty Dollars? I'll bet you didn't pay that for it."
No $hit Sherlock, and I had to buy 50 of them so I could sell them to you at that price.
Just seems like a strange attitude from lots of people. Most would be amazed at the cost of doing business.
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Elite HDF Member
Joined: Apr 2006
Posts: 3,823
Likes: 2
From: THE MARITIMES Canada
RE: Stealership mark up
We've talked about this before and after selling bikes for 21 yrs, I can honestly (and respectfully) saythat most of you are way off on the mark up.Other than a handful of large dealers in Florida, Califorina, etc., owning a harley dealership is far from a gold mine.
Road Master
Joined: Nov 2006
Posts: 1,227
Likes: 3
From: Central Illinois
RE: Stealership mark up
ORIGINAL: Sam
We've talked about this before and after selling bikes for 21 yrs, I can honestly (and respectfully) saythat most of you are way off on the mark up.Other than a handful of large dealers in Florida, Califorina, etc., owning a harley dealership is far from a gold mine.
We've talked about this before and after selling bikes for 21 yrs, I can honestly (and respectfully) saythat most of you are way off on the mark up.Other than a handful of large dealers in Florida, Califorina, etc., owning a harley dealership is far from a gold mine.
Being part of a family owned Harley dealer my Grandpa started in 1936, you Sam are correct. Not saying all HD dealers are the same, I am a small dealer. I give my employees 25% discount on everything and sometimes I pay for some of it.