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Harley Davidson sued over sales restrictions

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  #21  
Old 11-12-2011, 07:17 PM
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Originally Posted by checkers
Such as dealer 1 sells gas tank by the rules at retail, dealer 2 sells it at a wholesale to a customer. Dealer 1 makes $100 profit and dealer 2 makes $75 profit. Dealer 1 says "that's not right, dealer 1 sells his next tank for 50% off and makes $50 and so on. The dealers will cut their own throats competing with each other, whether it's parts, labor or new bikes. The dealers compete with each other til there is no profit left and have to close their doors. There are established business practices that good mfgr's require, demand, franchise contract, for with dealers to protect the product they are trying to sell and to protect dealers from themselves.
I would much rather have the free market decide the price of products and services.
 
  #22  
Old 11-12-2011, 07:25 PM
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My money is on HD winning without much effort. The HD dealer just bit the hand that feeds them.

It is not nice to mess with mother nature.

The suit is not based on any applicable federal statute and lacks case law to reference.

I wonder how long St Paul HD will last. When I when by there last year they had a huge banner stating that they will not be undersold on any bike. So they have already made enemies of other HD dealers in the region.

Do not miss the point that HD actions came from the dealers meeting and complaints that the DEALERS wanted HD to address.
 
  #23  
Old 11-12-2011, 07:35 PM
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Originally Posted by RockerSE
It's not just the indies this hurts. I have saved hundreds buying parts from dealers on ebay. The local moco's will not waiver from msrp when you walk up to the parts counter.
The local dealers here offer discounts, HOG members, long time customers, store events, and everyone who purchases a bike gets 10% throughout their warranty period.
 
  #24  
Old 11-12-2011, 08:03 PM
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ask yourself this: if you had a business and manufactured a product, would you be ok with someone selling your product on ebay for less money? especially someone that you have a contract with? i'd be pretty pissed.
 
  #25  
Old 11-12-2011, 08:27 PM
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Originally Posted by checkers
Such as dealer 1 sells gas tank by the rules at retail, dealer 2 sells it at a wholesale to a customer. Dealer 1 makes $100 profit and dealer 2 makes $75 profit. Dealer 1 says "that's not right, dealer 1 sells his next tank for 50% off and makes $50 and so on. The dealers will cut their own throats competing with each other, whether it's parts, labor or new bikes. The dealers compete with each other til there is no profit left and have to close their doors. There are established business practices that good mfgr's require, demand, franchise contract, for with dealers to protect the product they are trying to sell and to protect dealers from themselves.
You could make that same argument for any product. I suspect that in your Dealer "A" vs. Dealer "B" scenario, if one of them can not compete with the other on price that they might try competing in other ways, or to be perfectly blunt . . . they should exit that market. They can do it voluntarily or not! It's called the free market. The most efficient and the most effective seller will win in the end. To allow anything else is to subsidize the less efficient and less effective seller with the money that you and I pay for the product. That's taxation no matter how you look at it. In essence you are allowing and promoting a marketplace that is being manipulated by a company. Most folks don't like it when the government does this with legal regulations, much less a company that no one can vote for without purchasing the company's stock.
 
  #26  
Old 11-12-2011, 08:30 PM
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Originally Posted by jo_mama
ask yourself this: if you had a business and manufactured a product, would you be ok with someone selling your product on ebay for less money? especially someone that you have a contract with? i'd be pretty pissed.
Yes I would be ok because I already got my price and profit for the product I just sold to the dealer. Whatever the dealer sells it for is his business. If the dealership sold it for over MSRP would MoCo get a rebate from said dealership?

What's next, owners can't sell their used Harleys for less than MSRP.

Price fixing & collusion may be in play here. There's a new political climate out there today. If MoCo steps over the line there could be political pressure that fires MoCo leadership similar to GM.
 
  #27  
Old 11-12-2011, 08:37 PM
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MSRP stands for Manufacturers SUGGESTED Retail Price.

It's not MMRP, Manufacturers MANDATORY Retail Price.
 
  #28  
Old 11-12-2011, 08:37 PM
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Double post.
 
  #29  
Old 11-12-2011, 10:35 PM
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when I went into my local dealer to price out a tach, he wanted 20 bucks MORE than the Canadian msrp, even though he woulda still had to order it. and Harley tries to make it so I can't order it from any other dealer huh, which I guess might help my local guy, except for the fact that I was so mad that he wanted MORE than msrp that I never bought it.
We already get screwed enough on parts here in Canada. Good luck St pauls, its a new age in retail with the internet and some of these dealerships and parts stores should figure it out.
 
  #30  
Old 11-12-2011, 11:04 PM
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ask yourself this: if you had a business and manufactured a product, would you be ok with someone selling your product on ebay for less money?

For less money than what?

Assuming that all dealers pay the same price, it's the dealer's business what price he wants to re-sell a product for.

Are you suggesting that all Ford dealers should have to sell cars at the same price?

Every store that sells Sony TVs should have to sell TVs at the same price?

That makes no sense.

The manufacturer sells for whatever their market will bear. What the dealer sells that product for is their own damn business.

If one dealer is more aggressive and innovative, why shouldn't he be rewarded?
 


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