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Wrong answer padiwan , the moco is cutting corners on parts and cheaper made sub assemblies for the assembly line to increase their already high profit margin and to reduce inhouse manpower & subcontractors . Has nothing to do with competing with other brands cause they have a locked in market and know it .
Till new buyers say enough and walk away instead throwing down $20K plus on these things HD will continue business as usual . Bubble is already popping look at the number of dealerships closing around the country the last 3 years .
Harley's profit margin as of the quarter ending 9/30/2012 was 10.2%. You think that's high? You think getting 10 cents profit for every dollar income for the bikes they sell is too much?
Ford's was 12%, and that was after offering 3.5% incentives.
In the auto industry your right but Harley is beast on it's own pedestal , when they where trying to cut labor costs the quality control peeps is where it happened . The moco will keep shoveling them out the door with well known and documented problems because the public is still buying them as fast they can can . Till people are willing to say enough and spend they money elsewhere it will continue business as usual , why do you think the moco markets the lifestyle so hard ?
The bikes secondary to the game they are playing it's just the newb's ticket into fantasy land .......................
The MOCO has a captured bunch of sheep to slaughter slathering at the gates of the butcher. One can count on their hand the number of media commercials the MOCO uses. WE or MOST of us do it for them with the rainbowesc leather/patch/dew-rag/ fingerless glove/ HOG parade at "events"
And I ain't no saint either!!!!!!
Harley's profit margin as of the quarter ending 9/30/2012 was 10.2%. You think that's high? You think getting 10 cents profit for every dollar income for the bikes they sell is too much?
Ford's was 12%, and that was after offering 3.5% incentives.
Aw, come on now. Don't go spoiling the illusion with a fact. That takes all the fun out of the MOCO bashing a lot of guys seem to enjoy! HDs profit margin fluctuates in the same ball park as every other motorcycle manufacturer, but it's the MOCO that has a high margin, not everybody else. These guys seem to forget that just a couple of short years ago, Harley was fighting to survive. The bashers like to refer to it as strong arm tactics of the MOCO that had them streamlining their dealer network, consolidating their operations, and achieving greater efficiency to remain in business. Bashers say they weren't trying to remain in business. They were simply trying to greedily grab profit, not remain solvent!
I worked in a dealership in the early 90's. Don't know what the margin was but do know it wasn't much. What keeps a dealership afloat is parts and service.
At the time I was working there the salesman were told they needed to try and sell at least $2,000.00 of accessories with each new bike.
When I bought my current one, after the paperwork was finished the salesman said "OK, now we can go see the chrome consultant". I said "go see the what"? He said the chrome consultant so you can decide what you want for your new bike.
I told him I already knew what I wanted and asked where the parts counter was. He said "what are you going to get" and said "a service manual and a parts book".
The only reason they sell bikes is to generate business for the parts and service dept.
When I bought my current one, after the paperwork was finished the salesman said "OK, now we can go see the chrome consultant". I said "go see the what"? He said the chrome consultant so you can decide what you want for your new bike.
I told him I already knew what I wanted and asked where the parts counter was. He said "what are you going to get" and said "a service manual and a parts book".
His face must have been the very picture of disappointment. How could you have let the poor man down like that? And think of the Chrome Consultant for God's sake! You took food right off his table. If he gets more customers like you his job will be eliminated. He might have to take a demotion to Fingerless Glove Consultant.
On a serious note - obviously he was a salesman who was hoping for the pirate wannabe attention ***** buyer. Had he qualified you he probably would have been better off sending you to look at things that make the bike better for the long haul.
I think it's unfortunate that a number of folks here seem to be under the impression that a new Harley is only fit for naive posers who are simply buying in to a lifestyle. While I'm sure there are plenty of these buyers, who probably require the services of a Chrome Consultant, I can speak for at least one person who bought the bike because it was the best bike for the purpose. I looked at the touring competition. All nice bikes, but the Harley fit the bill. I can honestly say I bought it because I feel it's the best touring bike out there - for me. Perfect? No. But, I am happy with my purchase.
Harley's profit margin as of the quarter ending 9/30/2012 was 10.2%. You think that's high? You think getting 10 cents profit for every dollar income for the bikes they sell is too much?
Ford's was 12%, and that was after offering 3.5% incentives.
Not that I care but I am pretty sure that is higher than the average business
People like to bash the oil companies also and I believe the average margin for them is around 7%.
I think it's unfortunate that a number of folks here seem to be under the impression that a new Harley is only fit for naive posers who are simply buying in to a lifestyle. While I'm sure there are plenty of these buyers, who probably require the services of a Chrome Consultant, I can speak for at least one person who bought the bike because it was the best bike for the purpose. I looked at the touring competition. All nice bikes, but the Harley fit the bill. I can honestly say I bought it because I feel it's the best touring bike out there - for me. Perfect? No. But, I am happy with my purchase.
I don't know if it is still the case, but I read some years ago that Harley was the most successfully franchiser of it's brand, which is where it gets much of it's profit. All we have to do is keep buying shirts so the company can keep making bikes!
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...at least one person who bought the bike because it was the best bike for the purpose...I am happy with my purchase.
Good post! I just bought a '07 FLSTN from dealer. This is my second Deluxe, and I'm convinced it is the best all-round model for me. The salesman was a newby, but the finance manager and general manager know me well and there was no BS, just some honest negotiating to a fair deal.
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