profit margin
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6th Gear
Joined: Jul 2008
Posts: 12
Likes: 0
profit margin
I bought a 08 Ultra with security, wire wheels, and ABS about a month ago (after the 09's came out). I got it for $22,400. They also gave me 2k in a gift card. I wasn't sure if they did the math right on the gift card stuff so I went back today and asked to look at the orginal wirte-up between the sales gal and myself. Well, the numbers worked out ok but they had also attached to my paperwork the "profit analysis" for lack of a better word to it. On the $22,400 they made $4,143 profit which is 18.5%. I also bought a service contract (I know everyone has an opinion about this) and I paid $1,200 and their cost was like $655 so about a 50% profit on that. The Sales Manager came scurrying back where I was sitting and grabbed the paperwork and handed me back just the write up sheet...maybe some helpful information for you people out shopping.
Road Master
Joined: Sep 2007
Posts: 899
Likes: 2
From:
18% isn't huge and they gave you half of that back in the "gift card." By the time they pay the salesman, their overhead and costs of premisis, there probably isn't a lot left over to the owner as a return on his investment. Extended warranties, accessories and clothing typically have a huge markup.
Cruiser
Joined: Apr 2008
Posts: 154
Likes: 0
From: Colorado
18% is ok GP, not great, but ok. I'm hoping there are some back end MOCO funds that they are getting for accepting the '08s when they did, esp. with the '09s coming out.
I'm glad they are making money, and not really gouging on the bike purchase.
I'm glad they are making money, and not really gouging on the bike purchase.
Tourer
Joined: Oct 2007
Posts: 400
Likes: 0
From: S.E. Michigan
That sounds right,, you got a good deal, I saw the same paperwork on mine too, They made just over 5K ... I paid MSRP.. Enjoy the ride ..Tim
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Outstanding HDF Member
Joined: Jul 2006
Posts: 2,380
Likes: 9
From: Texas
18% isn't huge and they gave you half of that back in the "gift card." By the time they pay the salesman, their overhead and costs of premisis, there probably isn't a lot left over to the owner as a return on his investment. Extended warranties, accessories and clothing typically have a huge markup.
Its the same as the car dealership world. Odly enough even most car salespeople are not aware of holdback charges.
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Outstanding HDF Member
Joined: Jul 2006
Posts: 2,380
Likes: 9
From: Texas
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.
Intermediate
Joined: Jul 2008
Posts: 43
Likes: 0
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.