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Of all of the regions all over the world, only Canadian sales were down (over 10%) in 2014. Some of that decrease would have to be attributed to the mark-up Deeley puts on bikes before selling them to the Canadian dealers, thus making Canadian bikes more expensive.
While that sales decrease may not have been the reason for not renewing the Deeley contract, I'm sure it added fuel to the decision.
I'm in the wait and see camp. We pay a lot more for everything up here. My gut tells me not much is going to change in the short term. The federal gov't recently passed legislation to "investigate" the discrepancy between prices and whether or not that bears any fruit in the future remains to be seen. Hopefully we will be able to access online parts now without the necessity of a US address.
Not mentioned by anyone is whether or not there is some sort of import duty involved. If there is, the price difference is directly attributable to "government interference" and having Deeley as the middle man added relatively little. If there is no duty involved, then getting Deeley out of it may be a big help. I just ask the question as no one has mentioned it.
US/Canadian Free Trade Agreement. No import duty involved.
Not mentioned by anyone is whether or not there is something is sort of import duty involved. If there is, the price difference is directly attributable to "government interference" and having Deeley as the middle man added relatively little. If there is no duty involved, then getting Deeley out of it may be a big help. I just ask the question as no one has mentioned it.
This is very true, import tariffs in Canada can be substantuly higher due to Government import fees depending on the product catagory & country of origin. The Retail trade has been fighting this for years, it became very evident when the dollar was at par. Deely is an importer and has to charge a markup to cover their operational costs. With no importer HD can set their own suggested retails based on what the market can sustain. Prices should come down somewhat however there is the opportunity for HD to make increased margins. They will likely set up a distribution centre in central Canada to drop ship products made off shore(clothing) this too will have a cost. Hopefully this will be a win win for HD & the Consumer however HD will make a little extra on this deal.
even when the dollar is at par we were paying 2000-3000 more for a bike depending on the model, parts marked up about 20 % then add the exchange, this is why i have bought just about every single part on the usa side which has 4 dealers 30 minutes away.
the down side look at cars all chrysler 300, charger, challenger,, gm impalas, camaros made here i still pay about 4 grand or more than usa would, explaination smaller market they say, bs i look at it as all 1 market north america
Last edited by 2009blackpearle; Feb 27, 2015 at 07:29 PM.
Don't worry guys. Harley will keep their high prices in Canada as they do here in good old Europe.
We almost pay double price compared to the US market. HD announced to raise the price for new motorcycles stating 1st of March for the high US Dollar. I'm sure this will happen to P&A also. When the dollar dropped in the past, they never lowered their prices.
Ride safe
Werner
I get what you're saying, but the difference is I can drive to 3 or 4 different US dealers inside of an hour and nobody in the European market can. So there is at least some incentive to lower prices somewhat once Deeley is gone. And US dealers will sell you all the parts you want if you are there in person.
Would this mean more franchise opportunities & increased competition? One dealer for all of Vancouver, Northshore, Burnaby & surrounding area's. We need more choices.
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