They should be taken aback. Why? Because the put it this way, twenty to twenty five percent of that per unit profit is the "supply chain surcharge". Harley already demonstrated back in Q3 2022 that they were past that problem but they cannot give it up because the executive committee needs a number to distract from the dropping sales number. The Sport and Pan America category have $500 per unit surcharges and they accounted for forty four thousand units; kind of odd their charge is lower when they have the most technology. Softails which have $750 surcharges did fifty nine thousand units, and the tour models with their $1000 dollar surcharges shipped just under ninety thousand units.

Based on how Harley is applying surcharges they are simply milking their base while cutting riders of their Revolution Max bikes a break. It certainly isn't because some models have GPS or stereros as all tour models pay the same surcharge. This is just flat out padding the profit margin at the expense of their customers

 

"Some people might be taken back by the $3500 profit. I was surprised to hear that's all the higher it was (assuming their info is correct), why complain about the price of a motorcycle when automobile prices have well surpassed them"

Reread the article carefully. The $3.500 is stated on profits from shipments to dealerships only. It doesn't start any further profits from dealership sales, holdback, etc. There is allot more profit in a 30k or 50k bike for the motor company that $3.500.

Hope Harleys new business model works out for them. I'm a share holder. I have a couple more new bikes in my future hopefully. Next one might be a BMW. I never owned one but like the new RT. Had three Harleys amongst other brands over the years.

 

I think some people just live in a bubble, and really don't consider the context.

For example, an Indian Chieftan Elite starts at $33K, no lowers or tour pak. Oh, by the way, $800 logistics fee.

https://www.indianmotorcycle.com/en-us/chieftain-elite/

Compare to Streetglide ST at $30K. I guess Elon Musk runs Indian too. Conclusion: Motorcycles are an expensive, elitist hobby. Carry on.

 

The Limited and Dark Horse models are comparable to the Specials and ST, face it the ST is nothing but a part bins special. The Indian Elite line is supposedly their top tier like how CVO are for Harley, the come in limited numbers and have some special paint and trim elements. Besides all Indian Dark Horse, Limited models, and Elites, have remote locking of the bike and luggage, better stock suspensions, TPMS, weather radar on navigation, better blue tooth support, and adjustable windscreen. The elite adds on saddle bag speakers, adaptive headlamp, and lit saddlebag interiors.

So you need to compare properly. Not that I want an Indian but price wise for their feature set they are better equipped than Harley offerings. They just need to update the finish.

 

"Puma Boy" as he is known in the world, is going to do what he does and no one is willing to stand up to him. He has his golden parachute deal all locked in place now so anything from here on out isn't going to hurt him. He believes that he is making HD in to the the name and quality, that Rolex has in the watch and timing world. Problem is, he is so far out of touch to the quality of product he produces it's not funny. He honestly believes he can build few units and increase prices to save the company.

 

I read somewhere that car companies are going this way to. Why have 300 cars sitting on your lot, paying people to wash them, move them, paying interest on them? Someone comes in and wants a car... order what you want and how you want it and they'll assemble it for you. For a premium of course.

 

The "Bread & Butter" faithful that has been with H-D during AMF, the "Evolution" of the buy-out period and beyond feels kicked in the nuts - perhaps appropriately so. Then again, that group, of which I am one, is getting older not so much in the market as we once were.

I do not own an Indian but have given them a passing glance now and again. If Polaris, an American company that makes motorcycles (and other things, like H-D did for years) here in America decided to really target lower priced, base model bikes with limited features and limited paint choices - at attractive prices, who knows if there would not be an opportunity seized? Maybe they could come up with a blend of dark blue and black denim paint and call it the "Blue Collar" line. I do believe there is a potential void - and opportunity in the American made heavy touring marketspace.

 

I found myself the other day seriously looking through Indians' lineup for the first time. Got to admit, they have some pretty cool looking bikes.

 

That's per unit for the mother ship. Bump that up for dealer profits on top of that.

 

If Elon Musk was in charge HD would be getting millions in taxpayer dollars to prop it up and we would be getting huge tax rebates for buying a gas saving vehicle. Musk has made hundreds of millions of dollars from taxpayers propping up a car company that sold a very expensive product that few wanted to buy.