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Clerk at a multi dealership in Nashville said the MOCO wanted to bring back Brand Integrity.. Iguess hitting the dealers where it hurts will accomplish this..
This is no different than many other manufacturers who, "Suggest," the sales price for their products and do not allow retailers to promote anything beyond the MSRP.
There are discounts generally available on every item you desire but, you must ask. Best Buy, Lowe's, etc, will negotiate price if you ask to speak with a manager or decision-maker, no matter what the item. This is why we often see ads which promote a particular, "Sale," item without listing a, "Special Price." They encourage the consumer to call or visit for their unadvertised price.
MoCo is now attempting to encourage selling at the MSRP, something they could and should have done many years ago. But, during all of the profitable years, they thought it unnecessary.
I guess I don't understand how it all works. If the dealer pays a price for something how does what they sell it for affect the MOCO's profit?
Or do the dealers have to pay the MOCO a percentage of their gross sales also? If so I guess that would make sense.
Now I have to wonder if the dealers can advertise special events that they might have...Most special events are tied into special sales...I'll bet the dealers will find a loop hole to promote their dealership.
i thought the moco has always said that the dealers are independent business' and they (moco)didn't have control of how they (dealers) do business. the moco wants it both ways.
You beat me to it.
That was their standard answer when people complained about dealers charging thousands over MSRP.
Originally Posted by IronAss
I guess I don't understand how it all works. If the dealer pays a price for something how does what they sell it for affect the MOCO's profit? Or do the dealers have to pay the MOCO a percentage of their gross sales also? If so I guess that would make sense.
That is a good point. If the dealer buys a part from H-D for $20, what does it matter to H-D if they sell it for $21 or $25. H-D MoCo has already made their money on the part.
But if they also have to pay H-D a percentage of their gross sells(which would be a crock), you answered your own question.
Given that—comparing 2006 to 2009—Harley's motorcycle shipments have dropped by 47%, it's no wonder the giant brains at Harley HQ are scrambling. They've already tried layoffs, plant closures and consolidations, reduced production, etc. Now they are apparently going to make a try for exclusivity, maybe positioning themselves as a high-end boutique motorcycle manufacturer like Indian, only larger and more stable. No discounts, only MSRP, no deals, etc. The next step may be to focus on the American market (they don't really have the product to compete in the global market in any meaningful way), and scale the company back even further in an effort to go back to the good old days of waiting lists for new Harleys, high resale values, etc. It could work, but it will be a much smaller, less relevant company. Just my opinion.
Given thatcomparing 2006 to 2009Harley's motorcycle shipments have dropped by 47%, it's no wonder the giant brains at Harley HQ are scrambling. They've already tried layoffs, plant closures and consolidations, reduced production, etc. Now they are apparently going to make a try for exclusivity, maybe positioning themselves as a high-end boutique motorcycle manufacturer like Indian, only larger and more stable. No discounts, only MSRP, no deals, etc. The next step may be to focus on the American market (they don't really have the product to compete in the global market in any meaningful way), and scale the company back even further in an effort to go back to the good old days of waiting lists for new Harleys, high resale values, etc. It could work, but it will be a much smaller, less relevant company. Just my opinion.
If it means I don't have to wade through a jungle of pink tank tops and plush teddy bears wearin leather vest's and all that other crap you have to go past to get to the parts counter it works for me.
Look guys...there is no other option. The flocks of people lined up to buy 85.00 sweatshirts and 110.00 gloves An "HD Ink" apparel were just too overwhelming for the dealers, and the local fire marshals demanded they do something to stop these dealers from being so jam packed full of shoppers!
Moco is beginning to make GM look like good business!
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The way I got it was that the dealers can no longer advertise that they will sell parts and accesories at the 20% discount, as Zanotti's, Chicago, Surdyke's, and others have done. I'll wait and see if they no longer offer the discount without advertising it. I just ordered, and received, an item from Zanotti's at the discount price.
They can't advertise the sale's but can still sell at a discount if they choose if your in the store or online. This is the Moco's answer to cut throat dealers taking sales from dealers who choose not to discount. I'm sure they will find a way to get you in if they want to deal.
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