profit margin
Road Warrior
Joined: Nov 2005
Posts: 1,551
Likes: 2
From: Contributor to HDForums.com
Obviously, there is a difference between gross and net profits. Remember that dealerships pay for tons of things like utilities, wages, insurance, taxes, building maintenance, inventory, interest, training for staff, etc. etc. 18.5% kinda stinks in many ways.
Road Captain
Joined: Dec 2007
Posts: 501
Likes: 0
From: SW Iowa
If you think 18% profit in a new bike sale is a large profit mark-up, you are in la la land. HD Dealers also sell Used bikes, clothing, add on bike modifications, Parts, and service....All are profit centers within themselves. A dealership's bottom line takes all the little profit centers, and puts all the profits in a big gold pot, then all the expenses in another big red pot, then hopefully the gold pot is heavier than the red pot so they can continue and do it all again for another quarter, or year.
Pretty simple, really, being a HD dealer, as long as there is a demand for your bikes. The other sales (clothing, mods, parts, service) will follow the innitial bike sale. Along with walk-in customers. The whole problem begins when the demand for your bikes fall.
Pretty simple, really, being a HD dealer, as long as there is a demand for your bikes. The other sales (clothing, mods, parts, service) will follow the innitial bike sale. Along with walk-in customers. The whole problem begins when the demand for your bikes fall.
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6th Gear
Joined: Jul 2008
Posts: 12
Likes: 0
more info
Sorry guys I was out riding across the state over the holiday weekend. Re-reading my post, I wasn't as clear as I could have been. The $22,400 was the base price of the bike. Each accessory like security, wheels, and ABS had a seperate breakdown and profit but I did not get a good look at those numbers. I got a $1,000 off the total sale but freight and set-up ate that amount up. On the 2k gift cards, they charged the sales tax for those at about 8.5%. Thought I was getting double taxed on that because I pay sales tax again when I buy something but didn't win that arguement.
yeah I don't know what the profit margin is on a car but there are probably at least 20 different cars I would be willing to buy and drive but only one motorcycle so I expect to pay the premium...spending the weekend on it with the wife cruising along lake roosevelt up to coulee dam made it feel inexpensive.
yeah I don't know what the profit margin is on a car but there are probably at least 20 different cars I would be willing to buy and drive but only one motorcycle so I expect to pay the premium...spending the weekend on it with the wife cruising along lake roosevelt up to coulee dam made it feel inexpensive.
Outstanding HDF Member
Joined: Feb 2008
Posts: 2,706
Likes: 1
From: Sunland, CA
yep they make quite a profit on the clothing and the cheap oil products and the gear
and the list go on its ok to make a profit i just wish they sold more made in the usa
products-ride safe
and the list go on its ok to make a profit i just wish they sold more made in the usa
products-ride safe
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