way to find dealer cost
Outstanding HDF Member
Joined: Oct 2005
Posts: 2,002
Likes: 4
From: toontown
RE: way to find dealer cost
I sold Waterbeds when they were a hot item (70's early 80's) maybe 20% mark up you made it up om accessories or if itb was marked up 40% you had to discount it 20-25%Youcould male a little moneywith volume then your mark up grew a little. You need to lay out some serious $$$ for the volume you needed to catch a break.
I sold sailboats and the markup on those was pitiful 20% thats 10% profit if you get full price. In New England wheremany boats can be bought factory direct it gets whored. If you had a bad spring (weather) you were doomed. Again if you could do serious volume you could make alittle more but the money was in parts,accessories, and service.
I sold powerboats You madethe bulk of your money off financing, not product.
I could go on but mostof you will get the picture.
By the way it takes 25% to 35% of your profit to keep the doors open. No benefits.
I sold sailboats and the markup on those was pitiful 20% thats 10% profit if you get full price. In New England wheremany boats can be bought factory direct it gets whored. If you had a bad spring (weather) you were doomed. Again if you could do serious volume you could make alittle more but the money was in parts,accessories, and service.
I sold powerboats You madethe bulk of your money off financing, not product.
I could go on but mostof you will get the picture.
By the way it takes 25% to 35% of your profit to keep the doors open. No benefits.
Stellar HDF Member
Joined: Aug 2006
Posts: 2,151
Likes: 406
From: Hurdle Mills NC
Road Captain
Joined: Oct 2006
Posts: 661
Likes: 0
From: Indianapolis, IN
RE: way to find dealer cost
Agree with Ron. Based on dealer invoices that I sawon some 07 Ultras, there is anywhere from $3,000 to $3,500 difference between what dealer pays and MSRP. There is likely a similar % markup on all models.
Ultimate HDF Member
Joined: Jun 2006
Posts: 8,438
Likes: 6
From: Gulf Coast of Mississippi
RE: way to find dealer cost
The way I understand it... mark-upis a percentage over dealer cost... Use whatever number you want... 3, 5 10, 25 percent... but the bottom line is, that percent over cost on a Sportster is not the same as it would be on an ElectrGlide in dollar value...
One thing that was not mentioned here... is supply and demand... which throws all reasonable thinking out the window...
If you have the product that everyone wants, you, as a consumer, have no bargaining power at all... in the recent past; if you bought a Harley at MSRP... you got a steal... I've seen the times people were selling used bike for better than the original MSRP...
Be thankful you can get it for around MSRP...
I'm not... but then again... I did... lol
Charlie D.
One thing that was not mentioned here... is supply and demand... which throws all reasonable thinking out the window...
If you have the product that everyone wants, you, as a consumer, have no bargaining power at all... in the recent past; if you bought a Harley at MSRP... you got a steal... I've seen the times people were selling used bike for better than the original MSRP...
Be thankful you can get it for around MSRP...
I'm not... but then again... I did... lol
Charlie D.
Tourer
Joined: Apr 2007
Posts: 260
Likes: 0
From:
RE: way to find dealer cost
I have a close trusted friend that works at the local stealer, he dont even know the dealer cost they have to take a offer to the sales manager/owner and he has the final approval. I do know he has a modest house 2 newer cars and really nice road king so he aint doing to bad.
Tourer
Joined: Mar 2007
Posts: 263
Likes: 0
RE: way to find dealer cost
Harley Davidson is showing their wisdom by selling their products only through their franchised dealership network. It provides an incentive for enterpruners that are in tune with local markets, to establish a "protected territory" outlet for these products without fear of competition from a price-cutting manufacturer or mfg-favored discount outlets. If everyone that wanted an HD had to travel to the factory to purchase and/or get servicing, it would be far costlier for the buyer and result in far fewer sales. "Factory direct" might be all it would take to put HD dealers out of business.
I'll leave you with this thought:
A couple of years ago, Chinese mini-choppers were all over the internet and being sold on every street corner and at every swapmeet in the country for as little as $225 dollars. They were no-name, no-network, no-parts-available, mini machines that probably infringed on hundreds of patents. They didn't come with "origin certificates" or owners manuals. You could buy them cheap, but then you were on your own!
The drive for cheap pricing drives our whole way of life towards "factory direct cheap stuff with no after sale support". Much of this crap is made in China and sold in superstores like Wal-Mart. An indicator of where this has gone is in the updated return policies of these stores (it's not as easy to return the cheap newer stuff when it breaks prematurely as it once was)
Perhaps you' prefer to buy Chinese-made Harley copies at Wal-Mart?
I'll leave you with this thought:
A couple of years ago, Chinese mini-choppers were all over the internet and being sold on every street corner and at every swapmeet in the country for as little as $225 dollars. They were no-name, no-network, no-parts-available, mini machines that probably infringed on hundreds of patents. They didn't come with "origin certificates" or owners manuals. You could buy them cheap, but then you were on your own!
The drive for cheap pricing drives our whole way of life towards "factory direct cheap stuff with no after sale support". Much of this crap is made in China and sold in superstores like Wal-Mart. An indicator of where this has gone is in the updated return policies of these stores (it's not as easy to return the cheap newer stuff when it breaks prematurely as it once was)
Perhaps you' prefer to buy Chinese-made Harley copies at Wal-Mart?
Stellar HDF Member
Joined: Aug 2006
Posts: 2,151
Likes: 406
From: Hurdle Mills NC
RE: way to find dealer cost
Interesting point of view AzDon, although, not quite how I see it. Ill say this. The MSRP is a number that is supposed to be a fair price for a particular vehicle. The consumer doesnt get raped and the manufacturer, dealer and salesmen make money. A good to great deal to a consumer would be to get that particular vehicle at $500 below the MSRP.
Ive bought a few vehicles ... everything you can imagine that a regular guy with a family might want with the exception of a boat .... and there is always a great difference between the MSRP and bottom line. There is a reason for that. Its called profit. They are going to try to keep to closest to their bottom line. There is alot to consider obviously, time of month, time of year, vehicle demand, model demand, auto market in general ..
My aunt sold GM's for a long while then Hyundai's before retiring. She always mentioned that the clients who did their homework were the ones who walked away with the best deal. But she clearly favored the ones that came in pointed and said "Ill take that one." Hold backs are fact. Dealer purchase of exended warranties in bulk at a extremely low rate are fact. Sales manager required profit margins are a fact. Sales manager model type push are fact. Banks and dealers being in bed with one another are fact. Other unnecessary "add ons" are fact. $300 doc fees and advertising for instance ....
So why not go informed and prepared whether your buying fried rice or Texas prime ?
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Thread Starter
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Novice
Joined: Feb 2007
Posts: 15
Likes: 0
RE: way to find dealer cost
I understand why some would not want to know. buying a motorcycle for most is an emotional thing, we want what we want. I am having trouble being disaplined enough to do my homework and working the best deal possible.