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Ironbutt
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Dave1200C said:
What is the profit margin on a new Harley selling it at MSRP.
Would be interesting to find out. Haven't seen invoice prices posted anywhere for bikes. You can easily find the invoice on autos now days.
 

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Retired
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Dave1200C said:
What is the profit margin on a new Harley selling it at MSRP.
Dealer would say "Almost enough".:sofa:
 

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Infidel
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Take a wild guess.

I'll guess 80% of MSRP.
 

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From Kelly Blue Book web site faq.

Where can I find dealer invoice pricing for motorcycles?

In the printed edition of the Kelley Blue Book Official Motorcycle Guide there is a section in the back called "loan codes". The dealer invoice cost can be found there for most Manufacturers. To subscribe to the printed edition of the Kelley Blue Book Official Motorcycle Guide, call 1-800-BLUE-BOOK, extension 22. If you do not want to subscribe, this publication can often be found at libraries or credit unions.
 

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A$$HOLE!
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I used to hang with a dealership owner and he said around $4000 for a bike like a Fatboy/Heritage.
 

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0043--Licensed to Doof!
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I had heard in the range of $1500.00 average across the fleet.
 

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I have a freind that used to hang out with a dealer owner and he told me years ago, around 10, that the profit on a big twin was $6,000.
 

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DHARMA Initiative
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I would agree with Wyo. 80% of MSRP. MSRP usually has a 20% markup.
 

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Longtime Asphalt Cowboy
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Rode with a dealer out in the Pacific Northwest a few years back and one afternoon we were discussing dealer markup and selling at MSRP. He made a comment that he made approx $4000.00 per bike on average. So he might make $6000.00 on an Ultra and $2000.00 on a Sportster...thus a $4000.00 average.

I do know with the internet and the elimination of the 50 mile dealer sale restriction from a few years ago, a lot of dealerships, including Chicago HD, have been selling some bike less than MSRP.

But hey, who really knows...... WyoDude is probably right on with his numbers.

o~\o
 

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The 80% makes sense.

I asked a friend of mine last week something about that (he's the sales or finance manager now). I was asking him how sales were (even in Arizona things slow down in the winter), that sort of thing. I asked him how many bikes a salesperson had to sell, and he said that, from a sales associate side, to be comfortable (able to afford your mortgage, bike, car, etc.), they would have to sell at least 10 bikes a month.

Of course, that brings up what really he would consider comfortable, and how much money the salesperson gets from each bike sold (especially since this dealership doesn't sell at MSRP). If comfortable is making $50k, then the salesperson would only average $400/bike at that rate though.
 

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EASY DOES IT
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Here's a little info I dug up:
Sales by Brand

Buell: 4%
Harley-Davidson: 95%
Other: 1%

Note: Table made from pie chart.

% of Income by Department

Parts & Accessories: 14%
F & I: 2%
New Units: 60%
Service: 8%
Apparel: 16%

Note: Table made from pie chart.

Advertising Expenditures

Yellow Pages: 2%
Magazines: 1%
Direct Mail: 60%
Radio: 27%
Newspapers: 8%

Note: Table made from pie chart.

2006 Harley-Davidson® Models MSRP Table

This was from a doctorate thesis on HD pricing...also explaned was factory to floor percentage markup: 20 - 22.31 percent markup range across the models, this piece also went on to post the average cost of "handling, prep, shipping and average additional parts purchase but it was all way to lengthy to post here...I can't vouch for the accuracy of the information.
 

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The Anti-RUB
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You can get the actual dealer invoice from www.cyclebuy.com for about $20/report. They have a section for HD's, http://www.cyclebuy.com/harley.htm. When I was shopping for my FXSTBI, I checked them out. The report said the invoice was around 13k, MSRP was around 16k. The other cool thing is it lists the invoice price of all the different factory options (like alarm and wheel packages) and gives some tips on what to do when dealing with the sales guy. Pretty handy. When I went to buy my bike I showed the invoice to the sales manager and he said that it was a accurate report. Worth every penny...
 

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Discussion Starter · #14 ·
What did you end up paying for the bike? My understanding is you will very rarely get one for under MSRP
 

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FNG
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the only sales under MSRP I've ever seen / herd of are on last years models.

When I picked up my 06 I decided that getting it AT msrp w/ 20% discount on parts and free service untill 10k was the best deal I was going to get...

your milage may very...

d.
 

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Texan said:
Rode with a dealer out in the Pacific Northwest a few years back and one afternoon we were discussing dealer markup and selling at MSRP. He made a comment that he made approx $4000.00 per bike on average. So he might make $6000.00 on an Ultra and $2000.00 on a Sportster...thus a $4000.00 average.

I do know with the internet and the elimination of the 50 mile dealer sale restriction from a few years ago, a lot of dealerships, including Chicago HD, have been selling some bike less than MSRP.

But hey, who really knows...... WyoDude is probably right on with his numbers.

o~\o
I just bought my 06 Dyna Low Rider below MSRP last month. My dealer had a 3 hour sale on a Sunday
 

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my dealer had a 3 hour sale under MSRP for all 2006 TC bikes on a Sunday in January. I bought my Low Rider at the sale.......unbelievable!
 

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05 Deuce
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Their invoice isn't their true cost and will not reflect their actual net proft margin. Some of the numbers seen here in previous posts are actually what is known as 'tribal knowledge' so to speak. Or in other words, not officially confirmed, but widely assumed, and publicly accepted. Depending on the model (bike or car) you would be astounded on the final returned profit number. Any owners of dealerships please chime in here and feel free to confirm this. This is not in reference to only Harley Davidson motorcycles. You can imagine the correlation at the manufacturing level as well. Of course, one has to convince themselves, their Harley is everything they dreamed and is worth every sorry nickel they paid, at least I truely do.
 

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Bartlesvile Cycle Sports (Bartlesville, Oklahoma) quoted me $19,199 for a black 2006 Ultra Classic & 20% off parts/accessories. Price for options: Single color $450, two-tone color $850, secuity system $275. These prices included freight (normally $320) & dealer prep/set-up, plus $12 for document fees.
I had been shopping for quite awhile & the best I found was MSRP plus $325 for dealer prep & document fees from another dealer in Oklahoma,they offer 15% off any parts/accessories. Which I thought was good, much better than any other dealer. All the other dealers were $1,000-$2,000 over MSRP.

I ordered the 2006 Ultra Classic, Brandywine sunglo with the security system from BCS on September 25 for third phase production. Total cost $19,924 plus $12 for document fees. The same bike at MSRP = $20,860 plus the $325 fees. I took delivery Jan 17 from BCS. I saved enoug money to almost pay for the 95" big bore with 204 cams, Vance & Hines true dual headers, Vance & Hines oval slipon mufflers. I should have the bike back this weel with the engine mods. ?prty:
 
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