Harley pricing
#12
I would say that a printed t-shirt is between 8-10 dollars today. About 10 years ago I was in a position to get them for cost + 20% and they typically cost me about 8 bucks. So at that time their cost was about 6.67
Parts are about 40-50% for most items.
Parts are about 40-50% for most items.
Last edited by TickTock; 07-08-2011 at 10:13 AM.
#13
The reality in the apparel retail industry is indeed around 200% mark up (sell price is 3 times the cost) so the cost of the shirt is $10. When they sell this $30 shirt to an employee at 40% off, the dealer still makes a $8 profit.
#14
#15
I know in my business cost plus 35% markup was necessary just to break even after wages, building, phones etc, and their inventory levels or overhead are considerably larger, so yes I could see a 100% markup on most if not all parts in stock.
Take us poor Cdn buggers. I can buy HD parts from Zanotti's, ship them air freight to me in BC, and STILL save almost 30% over what my dealership wants.
Now one should expect one dealer will buy nearly the same as another. I know higher volume stores get a little better deal as they move more product. But that is bordering on ridiculous.
Needless to say I have made a list of goodies I will be shipping soon.
And yes before I get flamed for not supporting my local dealer, I've bought bikes, many many accessories, shop labour etc. He's done just fine off the business I've taken to him, now it's time to save me some $$ along the way.
G.
Take us poor Cdn buggers. I can buy HD parts from Zanotti's, ship them air freight to me in BC, and STILL save almost 30% over what my dealership wants.
Now one should expect one dealer will buy nearly the same as another. I know higher volume stores get a little better deal as they move more product. But that is bordering on ridiculous.
Needless to say I have made a list of goodies I will be shipping soon.
And yes before I get flamed for not supporting my local dealer, I've bought bikes, many many accessories, shop labour etc. He's done just fine off the business I've taken to him, now it's time to save me some $$ along the way.
G.
#16
Just to keep things fair, and in perspective.
This "mark-up" is not exclusive to Harley.
Anything you buy associated with a major name brand is priced way above the actual cost of producing the product.
They call in "Value Based Pricing".
NFL, MLB, NBA, NASCAR, Chevrolet, Ford, etc.
They all do this.
Been to see a movie in a theater lately?
Popcorn and 2 soft drinks will set you back approx. $20 (depending on location).
There is about $3.00 worth of product there.
This "mark-up" is not exclusive to Harley.
Anything you buy associated with a major name brand is priced way above the actual cost of producing the product.
They call in "Value Based Pricing".
NFL, MLB, NBA, NASCAR, Chevrolet, Ford, etc.
They all do this.
Been to see a movie in a theater lately?
Popcorn and 2 soft drinks will set you back approx. $20 (depending on location).
There is about $3.00 worth of product there.
#17
I'd just as soon not pay high prices anywhere.
But the reality is that there are people, fellow citizens, working at the dealerships. They all want to earn enough to have a certain standard of living, as we all do.
If we all want to earn as much as possible, while paying as little as possible... well, that's a recipe for outsourcing every job that can be outsourced.
I'm OK with paying more if it means that my friends and neighbors are employed.
But the reality is that there are people, fellow citizens, working at the dealerships. They all want to earn enough to have a certain standard of living, as we all do.
If we all want to earn as much as possible, while paying as little as possible... well, that's a recipe for outsourcing every job that can be outsourced.
I'm OK with paying more if it means that my friends and neighbors are employed.
#18
I'd just as soon not pay high prices anywhere.
But the reality is that there are people, fellow citizens, working at the dealerships. They all want to earn enough to have a certain standard of living, as we all do.
If we all want to earn as much as possible, while paying as little as possible... well, that's a recipe for outsourcing every job that can be outsourced.
I'm OK with paying more if it means that my friends and neighbors are employed.
But the reality is that there are people, fellow citizens, working at the dealerships. They all want to earn enough to have a certain standard of living, as we all do.
If we all want to earn as much as possible, while paying as little as possible... well, that's a recipe for outsourcing every job that can be outsourced.
I'm OK with paying more if it means that my friends and neighbors are employed.
Me, I prefer the 2nd model. The risk of losing a high % of your customer base when times are tough is much lower.
Some dealers haven't realized that they're not in the 90s anymore when they could sell at MSRP+.
"Fool me once, shame on you, fool me twice, shame on me."
#19