Why don't HD Dealers compete on price?
#12
10-06-2011, 01:20 PM
Elite HDF Member
Having worked for a major manufacturer that had "suggested list prices" and sold to independent dealers I can tell you the manufacturer has little to no say in what price the distributor sells products for. As a manufacturer you also cannot have one price for customers who sell for what you suggest and another price for those who don't. Now that doesn't mean a manufacturer doesn't have ways to motivate the distributor to what the manufacturer wants.
Let's say I have 2 distributors, one who does things the way we like and one who doesn't. We introduce a hot new product and know we will not be able to meet demand in the short term. Which of the above distributors do you think will get the limited supply of the hot new product? This is how Harley and other manufacturers get independent retailers/distributors to do what they want.
Let's say I have 2 distributors, one who does things the way we like and one who doesn't. We introduce a hot new product and know we will not be able to meet demand in the short term. Which of the above distributors do you think will get the limited supply of the hot new product? This is how Harley and other manufacturers get independent retailers/distributors to do what they want.
Go tell Campbell Soup or Kelloggs to not ship their products to Walmart and instead, ship them to Mom and Pop convenience stores. Watch what happens.
We're in an open market economy where demand rules, not supply. It's true for food and also for vehicles and accessories.
#13
10-06-2011, 03:25 PM
your absolutely correct who ever moves product fast and alot of it gets the goods period.thats why amazon is so rich
#14
10-06-2011, 03:34 PM
Road Captain
Join Date: Dec 2010
Location: Windsor Ont. Can.
Posts: 561
Likes: 0
Received 0 Likes
on
0 Posts
Yea we have Deely who sets the prices in stone vary from that and you risk losing your dealership. Now on your side your right laws restrict that, BUT there are many different ways to get the idea across. They don't advertise but thats why so many of your dealerships hand out "discount" cards to good customers keeps em happy, we don't even have them up here even if you drop 30k on a new bike. Teflon
#15
10-06-2011, 04:20 PM
Elite HDF Member
If some of you guys are friends with employees in a HD dealership, ask them what % of discount they get when they buy accessories from the dealer.
I can tell you that it's much higher than what you'll ever get (I know it for a fact) and the dealer still makes money in the process.
Tight margins my @ss! LOL
I can tell you that it's much higher than what you'll ever get (I know it for a fact) and the dealer still makes money in the process.
Tight margins my @ss! LOL
#16
10-06-2011, 05:02 PM
Road Captain
Wow, you mean you actually get the opportunity to buy at MSRP? I live in the KC area, I went to a local dealership for a part, they did not have it in stock but I did get the part number and price to make life easier at the next dealership down the road.
Next dealership wanted 38 bucks for the part that was 31 bucks at the other dealership and they did not even have it. I told him that if I had to order it, I would just do so from the other dealership as I was not interested in paying an incredible % markup for something that I could get somewhere else. After I gave him a ration of crap he went ahead and discounted the item to "list price" and looked at me like he was doing something special for me. For some reason, i did not feel so special.
This was an actual OEM HD part,..
Next dealership wanted 38 bucks for the part that was 31 bucks at the other dealership and they did not even have it. I told him that if I had to order it, I would just do so from the other dealership as I was not interested in paying an incredible % markup for something that I could get somewhere else. After I gave him a ration of crap he went ahead and discounted the item to "list price" and looked at me like he was doing something special for me. For some reason, i did not feel so special.
This was an actual OEM HD part,..
#18
10-06-2011, 05:15 PM
Club Member
Wow, you mean you actually get the opportunity to buy at MSRP? I live in the KC area, I went to a local dealership for a part, they did not have it in stock but I did get the part number and price to make life easier at the next dealership down the road.
Next dealership wanted 38 bucks for the part that was 31 bucks at the other dealership and they did not even have it. I told him that if I had to order it, I would just do so from the other dealership as I was not interested in paying an incredible % markup for something that I could get somewhere else. After I gave him a ration of crap he went ahead and discounted the item to "list price" and looked at me like he was doing something special for me. For some reason, i did not feel so special.
This was an actual OEM HD part,..
Next dealership wanted 38 bucks for the part that was 31 bucks at the other dealership and they did not even have it. I told him that if I had to order it, I would just do so from the other dealership as I was not interested in paying an incredible % markup for something that I could get somewhere else. After I gave him a ration of crap he went ahead and discounted the item to "list price" and looked at me like he was doing something special for me. For some reason, i did not feel so special.
This was an actual OEM HD part,..
#19
10-06-2011, 06:29 PM
Extreme HDF Member
I have never found a bike that I wanted that I couldn't make a deal somewhere that was good for me and good for the dealer. I have gotten $750 to 1,500 of off MSRP depending on the bike and time of year. You gotta love Jan to Feb in the snow belt for buying a bike and getting a dealer to loosen up some. Mid West is better than either coast. I don't know how the southern dealers deal as I never tried. I tried cash offers in Vegas with two different dealers. No deal. Their loss not mine. Have enclosed trailer and can buy anywhere.
If you have a trade then it is much harder. Some dealers will go lower than MSRP if no trade in. Their profit is tied up in the trade so they are not making any money and in fact loosing some the longer the trade sits.
If you have a trade then it is much harder. Some dealers will go lower than MSRP if no trade in. Their profit is tied up in the trade so they are not making any money and in fact loosing some the longer the trade sits.
