Stealership mark up
Road Master
Joined: Oct 2005
Posts: 768
Likes: 1
From: sarasota, fl
RE: Stealership mark up
ORIGINAL: Rapid One
You are right I did miss it and I apologize.
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.
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.
Then they don't grasp that a three hour field job takes close to six by the time you load up,get ready, go there, get back and unload. Not to mention the time to price and order materials.Neither my crew nor I need to work for the practice. Sometimes "paper or plastic" has a nice ring to it!
Outstanding HDF Member
Joined: Dec 2006
Posts: 2,376
Likes: 3
From: SE Ohio
RE: Stealership mark up
ORIGINAL: Kolni
It's called "marketing".
When you are the "Top Dog" you act like it.
And that "fancy dealership" is an expense, not an asset
ORIGINAL: atomic
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
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.
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
It's called "marketing".
When you are the "Top Dog" you act like it.
And that "fancy dealership" is an expense, not an asset
You are right on target and that's what I was trying to say in my previous post.
Mike
Elite HDF Member
Joined: Apr 2006
Posts: 3,823
Likes: 2
From: THE MARITIMES Canada
RE: Stealership mark up
ORIGINAL: atomic
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
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.
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
Again, like I said, other than ahandful oflarge dealers, no HD dealer is rich. If they are successful, they make a good salary and some profit at the end of the year.
Road Warrior
Joined: Jun 2006
Posts: 1,602
Likes: 0
From: Maryland
RE: Stealership mark up
ORIGINAL: Sam
Wow Atomic, how could I have been so wrong....21 yrs of selling Harley's, how could I possibly know what I am talking about. You are so right, all those small dealers are making millions, they throw up those overpriced buildings just as tax write-offs, because they have so much money to burn. Let me put it this way, the average dealer sells approx 150/250 bikes a year, with the largest profit on a bike being $3,000. Of those 150/250 bikes aprox 70are Sportsters or Buells, which have a profit of at least $1,000 less than that. Now add that up, then subtract the fees to Harley, Advertising, the approx staff of 15 to 20 (mandated by Harley, even for a small dealership), the mortgage, State and Federal taxes, insurance (which is huge), upkeep, loses, etc, etc. Now, you're already in the hole, so you have to make the rest of it from Parts, Accessories, Clothing and Labor. The bikes, labor and accessories should (but not always) pay for everything, which leaves the profit for the owner to come from clothing. Then there is that HUGE profit that everyone thinks they make on clothing, which would be true, if they weren't buying it through Harley or a licensed Harley wholesaler. In the clothing business, the mark-up can be as high as200 to 400%, ie; if you're talking about buying a tie at Sears, they buy ties in bulk in the off season for as low as .75 cents a tie and then turn around and put a price of $40 on it. At a Harley dealership,the highestmark-up would be 50%, which they sell approx. 70% of at retail. Then they have to carry the rest of thestock until itgoes outdated, then turn around and mark it down 30%.
Again, like I said, other than ahandful oflarge dealers, no HD dealer is rich. If they are successful, they make a good salary and some profit at the end of the year.
ORIGINAL: atomic
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
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.
I think it is. Look at all the fancy multi-million dollar buildings the Harley dealships build. While the Metric dealers usually carry at least 4 different brands and they are crammed into old ugly small buildings. You have to be nuts to think Harley dealers aren't making a ton of cash. But I doubt the good times are going to last forever.
Again, like I said, other than ahandful oflarge dealers, no HD dealer is rich. If they are successful, they make a good salary and some profit at the end of the year.
Compare that to the Yamaha/Suzuki/Kawasaki/Honda/Triumph dealer who also sells seadoos. All jammed into a tiny little building bikes usually sold significantly below MSRP and I highly doubt they make a 1/5 of what the Harley dealer does.
Like I said I don't mind paying money for quality stuff. But I don't want to be ripped off on set-up fees and being treated like they are doing me a favor by selling me a bike.
Elite HDF Member
Joined: Apr 2006
Posts: 3,823
Likes: 2
From: THE MARITIMES Canada
RE: Stealership mark up
The 150/250 is an average for all small to medium sized dealers, not just Eastern Canada, we all have access to the National and International sales figures.Look at it this way, just do the math, roughly 340,000 bike sales on average between 1300 + dealerships.....there are very few that are hitting even the 300 mark in sales. The number of dealerships and total sales are a matter of public record. Like I said, these guys, except for a handful, are not getting rich. If your dealer is selling 500 bikes, then he would be considered a high volume dealer. They also don't put up new buildings because they want to...they are told to. The mark up on a Yamaha or Honda is almost the same as a Harley and metric salestake a big chunk out of the pie(they are down this year, the same as HD, but still a large shareof the market)........but hey, what do I know
Elite HDF Member
Joined: May 2005
Posts: 4,929
Likes: 8
RE: Stealership mark up
I have to say I don't give a rat's patoutie how much a dealership makes on their merchandise. It depends on perspective. To ordinary Joe customer ... thier prices are always high (Pfffttt ... $50 - $70 for a flippen T-shirt!... I mean really!) If the perspective is from the retailer ... then it's probably never enough to cover the costs of doing business and making a comfortable profit.) I know all about how the retail industry works, and let's face it .... they're not in the business to make friends.
If I see something I like that they have offered me for sale... and I think I can afford it ... I buy it. I also keep my eyes open for good deals ... there are a lot of places now selling genuine HD merchandise at much lower prices than dealerships. I simply spend my money where I feel comfortable.
If I see something I like that they have offered me for sale... and I think I can afford it ... I buy it. I also keep my eyes open for good deals ... there are a lot of places now selling genuine HD merchandise at much lower prices than dealerships. I simply spend my money where I feel comfortable.
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Banned
Joined: Jun 2007
Posts: 7,292
Likes: 13
From: Sacramento California!!!
RE: Stealership mark up
ORIGINAL: atomic
Like I said I don't mind paying money for quality stuff. But I don't want to be ripped off on set-up fees and being treated like they are doing me a favor by selling me a bike.
Like I said I don't mind paying money for quality stuff. But I don't want to be ripped off on set-up fees and being treated like they are doing me a favor by selling me a bike.
So why are you picking on HD for doing it? And it is not a BS charge, the bikes do need some set up when they arrive from the factory. This cost labor.
Elite HDF Member
Joined: Aug 2006
Posts: 3,871
Likes: 4
RE: Stealership mark up
i was talking with a saleseman who had quite a local dealership, and it all depends on the model, my wideglide had a markup of 5300 bucks i know because i saw the paperwork in my folder when i went to sign papers, he shoulden`t of offered me coffee, its also funny those barebones bikes are not selling around here, they still have o7 dynas on floor