profit margin
Cruiser
Joined: Apr 2008
Posts: 230
Likes: 0
From: Florida
You know I have to laugh at the replies to this thread. If most of you paid that kind of profit to a car dealer you would have a fit. You negotiate the heck out of a car you buy but on a HD you are willing to pay through the nose. Do the math. You buy a $45K HD Ford PU and pay 18.5%??? Do the math. Would you be so complacent on that amount?
Road Warrior
Joined: Dec 2007
Posts: 1,750
Likes: 2
From: Bucks County PA
This is America and capitalism is the best financial system in the world. If they can make it on 18% I'd be shocked... Their cost of $ has to be at least 6%(how much do you think it cost to build a dealership) and their overhead is probably 25-30% at the least. At any rate, the info you gave is good to know, so thanks... I always wondered.... And, thanks to the dealers who shell out big bucks to make attractive and great places to stop and shop and simply say hello... And, thanks to the stockholders who invest, and thanks be to God Who allowed us to be Americans!!!
Tourer
Joined: Mar 2007
Posts: 358
Likes: 0
From: Hammonton, NJ
One part of the equation that I think is missing is the "actual" value of the $2,000 gift card. Obviously you have to use it in the dealership and since you just purchased a bike I doubt you will be using the card on another bike. Therefore it's value is much lower than $2K. My guess is if you spend it on parts it is really worth $1200, if the dealer is installing the parts and charging you labor it is worth $1000 and if you are buying clothes then it is worth $700.
Are you happy with the bike? If so who cares at this point. It is done and you are happy than don't sweat it. (That takes a lot coming out of me because I am really frugal but screw it you have the bike) Personally on my last new HD purchase I shopped for 3 months to get the best deal. In the end the last dealer beat the next closest dealer by $2K.
Are you happy with the bike? If so who cares at this point. It is done and you are happy than don't sweat it. (That takes a lot coming out of me because I am really frugal but screw it you have the bike) Personally on my last new HD purchase I shopped for 3 months to get the best deal. In the end the last dealer beat the next closest dealer by $2K.
Tourer
Joined: Mar 2007
Posts: 352
Likes: 0
From: Newport News, VA
18% really isn't that bad on a luxury item. Out of that profit, the dealer has to pay employees, employee benefits and rent. Try looking at the jewelry business....markup is typically 100%. You spend $5000 on an item the jeweler paid $2500 to buy!
Andy
Andy
6th Gear
Joined: Jul 2008
Posts: 13
Likes: 0
From: Kansas City, MO
I do not think the dealers make that much on bikes. 18.5% is not that much. I think they only stay in business on the sale of HD logo merchandise and accessories. For examle HD leather coat made in China is $400-500.00 you can buy an American made one with better qualty for that, but no HD logo. Most the of the HD logo merchandise and acceessories are made overseas and HD still charge the made in USA price.
Very true! I'm UAW and hate seeing this Harley stuff/parts/etc with China and crap on it. For as much as they are charging it needs to be made here for our "american" bikes!
Yeah you're correct on the "actual" value of the gift card ..
My dealer gave us a $500 certificate and we purchased at a 10% discount , so it was actually $550 , and we got a 10% discount on the TourPak and all the hardware that went with it , but , yeah , I know I paid for it , but I look at it like this , regardless , he didnt have to do it , that was money he could have put in his pocket ..
My dealer gave us a $500 certificate and we purchased at a 10% discount , so it was actually $550 , and we got a 10% discount on the TourPak and all the hardware that went with it , but , yeah , I know I paid for it , but I look at it like this , regardless , he didnt have to do it , that was money he could have put in his pocket ..
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Road Master
Joined: Jul 2008
Posts: 840
Likes: 0
From: Gilbert, AZ.
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.
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.
Last edited by Glyde; Aug 29, 2008 at 12:29 AM.