profit margin

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Aug 28, 2008 | 05:21 PM

#11

rickoshay45

Road Master

Joined: Mar 2007

Posts: 973

Likes: 0

From: Mt Dora Florida

Quote:

Originally Posted by swestbrook60

Its odd that while 18% is considered an ok profit by most here, when Exxon makes 9% profit they are gouging the consumer. Goes to show how easy it is to sway most peoples opinions.

I don't have a problem with either percentage, its a business and it's goal is to make money. The markey decides how much profit they can make.

Exon makes 9% on something we have to have, even grocery mark up is only about 3%. HD makes 18% on something we don't have to have, just like to have. There is a big difference.

The cost of the service plan is interesting. In 18 months I've had 3 10K services, 4 5K, 5 tires, and 10 days worth of free rentals and it I have another 18 months to go! I think they are losing money on me!!!

Aug 28, 2008 | 05:33 PM

#12

coloradosteve

Cruiser

Joined: Apr 2008

Posts: 154

Likes: 0

From: Colorado

Exxon 9% margin is Net Profit, not Gross Profit. Exxon's GP I am sure is much higher. Just as I'm sure HD's GP is high, although the NP isn't right now, although on the way to be.

Aug 28, 2008 | 06:09 PM

#13

xcelr8

Road Master

Joined: Nov 2004

Posts: 1,227

Likes: 2

From: Coral Springs, Florida

Profit is not a dirty word.

We all have the same opportunity to pony up the $12,000,000 or so that it takes to build, and open, a new Harley store.

Aug 28, 2008 | 06:30 PM

#14

jbob

Cruiser

Joined: Aug 2007

Posts: 174

Likes: 1

Wait till it gets cold, say about January. They are usually a little more interested in working with you, especially a commission salesman and if you have cash, thats what I have found. If you can get a couple dealers working against each other on trade in value, that helps too. I don't care what anyone says I don't think I need to line the pockets of some dude just because he put up the money for a motorcycle dealership. Our local dealer has homes and toys running out his you know what, and that's because folks just lay their money down. I also hear the repossessions of financed harley's is running real high. Is there a correlation?

Last edited by jbob; Aug 28, 2008 at 09:40 PM.

Aug 28, 2008 | 06:41 PM

#15

Weavr99FLHT

Outstanding HDF Member

Joined: Mar 2008

Posts: 2,306

Likes: 39

From: Everywhere

You calculated the profit wrong.

Not sure from your post if the 4143 is before or after the 2k gift card. so computing both ways

The profit is calculated as a percentage of their price, not yours. So - if the 4,143 profit is not including the gift card then -

22,400 - 4,143 = 18,257. the profit is calculated as a % of their price so 4,143/18,257 = 22.69% profit.

if you factor in the 2k gift card then 22,400 - 2,000 = 20,400 - 4,143 = 16,257. 4143/16257 = 25.48% profit.

Aug 28, 2008 | 06:50 PM

#16

meveratt

Tourer

Joined: Jun 2007

Posts: 394

Likes: 1

From: Kamloops, British Columbia

I've been in retail for 30 years, selling electronics, cameras, computers. Gross profit margin is Selling Price minus Cost Price, divided by SELLING PRICE. Sorry Weavr99FLHT. 18.5% GP is correct (not including the gift card).

Aug 28, 2008 | 07:00 PM

#17

JacktheBagger

Seasoned HDF Member

Joined: Jul 2008

Posts: 7,463

Likes: 22

From: Deep Inna Heart of Bama

That aint much , but like someone said the accessories are the money makers ..

As long as they're making a profit you have a dealer and we have a MoCo ..

If the owner told you what it costs when they unlock the front door for the day , you'd probly have a coronary ..

Aug 28, 2008 | 07:03 PM

#18