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Maybe Someone Can Explain This To Me, I Don't Get It...

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  #11  
Old 12-22-2010, 06:34 AM
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Originally Posted by BadPiggy
I disagree.
I think the key to a good business plan is VOLUME.
I'd much rather have 10% profit from $10 million in sales than 20% profit from $1 million in sales.
If you're offering better discounts, naturally, you're going to get more traffic.
Traffic creates sales.
Exactly what I was thinking. Also, those dealers discounting online aren't just online dealers, they have a brick and mortar operation too with all the same overhead.

The only possible explanation I can think of is that the local dealer feels they won't increase their volume or expand their customer base significantly if they offer a discount, at least not enough to make up for a 20% revenue loss, and that those of us doing business with them locally will buy anyway. I will grant you that the online discounters are bringing in business they wouldnt normally get by expanding their market nationally. I wonder if you walked in to a Zanottis or Surdyke if you would get the same pricing over the counter as you would online.
 
  #12  
Old 12-22-2010, 06:37 AM
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The standard markup for the dealers is 40% (t-shirts are a LOT more). Who knows what it is for the MOCO itself.

I called Chicago Harley last week to ask why they dropped their 20% to 10% and was told that it was because they needed to increase their profits and they would likely take it back up in the spring. I figured it was the old Christmas markup gimmick.

I understand you have to keep the doors open but I think they can afford to drop the price a bit, especially for good customers. Most places give military, police and firefighters 15% without batting an eye.
 
  #13  
Old 12-22-2010, 07:03 AM
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Originally Posted by NickD
The dealer is counting on the fact you can't re-work a part to make it work. And face facts, almost nothing in the aftermarket custom parts world fits right without fiddling with it. If you can bend, drill, grind, and think like a mechanic, then go for the discount parts. If not then you'll have to pay to play!

I think the OP is talking about HD parts online verses HD parts locally. Not talking about aftermarket parts.
 
  #14  
Old 12-22-2010, 07:10 AM
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Originally Posted by VTGlideRider
Seems like they would rather lose the sale than take the discount.
This is my local dealers business plan!
 
  #15  
Old 12-22-2010, 07:12 AM
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Originally Posted by rkoivisto
I think the OP is talking about HD parts online verses HD parts locally. Not talking about aftermarket parts.
Yup that's it exactly.
 
  #16  
Old 12-22-2010, 07:30 AM
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I buy a lot of just in time parts from my dealer. Battery, gaskets, screws etc. I buy most of my accessories and big stuff from Lakeshore or other online aftermarket stores. 20% and free shipping if I spend enough. I have to plan ahead though. It takes a couple of weeks for the parts to get to me. I have saved hundreds of dollars this way. I haven't ever had to modify aftermarket parts to make them fit or work. I would love to give the business to my local dealer. They won't even match the tire deal from the dealer 15 miles away. A buddy tried to get them to match an online deal on a chrome front end and they would get the install labor and the just went on and on how he would get ripped off by those ebay guys.
 
  #17  
Old 12-22-2010, 07:50 AM
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Our local dealership offers 2 years HD parts at 20% and one year aftermarket at 10% on all new bike purchases... IF HE INSTALLS THEM.

Of course minimum shop fees apply...
 
  #18  
Old 12-22-2010, 07:53 AM
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My dealer explained to me a while back that he feels dealers should all be loyal to what HD lists as the msrp. Now at the time we were talking bike prices. He explained that he wont drop below msrp, although he quite often does drop freight and prep. On the other hand, he said on a rare or limited bike, he will never jack up the msrp. Like Bruce Rossmeyer in Fla. Saw my same bike on the floor with a price tag 11,000 bucks above msrp.
 
  #19  
Old 12-22-2010, 07:56 AM
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I have to agree with the original post.
It is unbelievable what difference there is between the "local" prices and what one pays for the part on line. Even with paying the exorbitant shipping fees - it's still 30% cheaper.
Why? For some reason; which I don't understand, our local Stealership believes LOYALTY is a "one way street". Because we are "Harley owners" we are to support the local Stealership - regardless of what "his" price is. I know business, business plans and what a shop needs to make to stay afloat. I also know price gouging and excessive profit margins.
When asked about a 10% discount on a major purchase (for me) $600; I'm told the price you see is the price you pay. So much for loyalty......

Ride In Peace
 
  #20  
Old 12-22-2010, 08:00 AM
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Originally Posted by djaudette
I find that once you pay for shipping you are not saving much, if anything at all. Support the local guy. I do get 10% off for being Military.
I just bought parts that listed for $301 (and that was what the local dealer was charging msrp) and paid $205 thru Zanotti's. Might not seem like much to you but $96 is a lot to me.
I guess I do support the local guy....me.
 


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