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Last September the 08's were coming in and the dealer had \\;a few \\;07's left. Road king in black cherry. They went 1000 off msrp didn't charge for the paint, threw in security and did my first service. Look good to me so I went for it. Never even \\;looked around. Once I bought it there was only two other bikes on the floor. Just the other day I was kicking around the idea of trading and they were willing to deal. This is northwest Ohio and there is plenty of dealers. Its funny how one dealer will deal and the next marks them up.
Are you dealing with Hale's Harley-Davidson/Buell in Mansfield, OH. Just curious as I live in WA and order all my accessories from them. They give me 20% almost all accessories and have been very responsive when I needed to make a return or exchange.
So, does anyone know how much margin a dealer makes at MSRP? I'm not trying to beat them down to the point where they make nothing, just a fair price.
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I know they make a good amount of margin on the bikes, but \\; I know a guy that was interested in opening a HD \\;dealership. \\; He said HD corp wanted a \\;$13,000,000 fee \\;from him to become a dealer. \\; He would have to pay the fee, buy the land, build the dealership, finance the inventory and so on... \\; Many dealers really need to sell at MSRP to cover the cost of running the dealership. \\; If they \\; give bikes away under sticker all the time, they will be out of business.
Looking at HD finical report, they do have a line item for FY 07 of $1.4B - income from operations. I guess that could come from $13M dealership fees. Never would have guessed.
Do you really mean 13 million dollars to Harley? or was that a typo?
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Dennis
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Yes, I mean $13 million dollar royalty fee to open a new offical \\;Harley dealership. \\; I am guessing the \\;owner finances the fee over a long time but \\;my point was you have to sell a bunch of bikes at msrp and service every month just to break even.
Im guessing the 13M is what a prospective owners net worth must equal to "qualify for ownership". \\; No one would put up 13M for the "privelidge" and then have to buy primo land, build a shiny new facility, floor plan 100 new bikes, parts, accessories, clothing, labor, overhead.....etc etc. \\; You could charge 30% over msrp and never make it like that!! \\;
Im guessing the 13M is what a prospective owners net worth must equal to "qualify for ownership". \\;\\\\\\; No one would put up 13M for the "privelidge" and then have to buy primo land, build a shiny new facility, floor plan 100 new bikes, parts, accessories, clothing, labor, overhead.....etc etc. \\;\\\\\\; You could charge 30% over msrp and never make it like that!! \\;\\\\\\;
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Sorry about that, I think you are correct. \\;I misunderstood what he was saying.
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