More Harley Dealers Marking Up New Bikes Over MSRP
With new bikes in high demand, some dealers are looking to make a little extra profit.
Supply and Demand
As the semiconductor chip shortage has wrecked the automotive industry over the past few months, it's clear that the supply and demand curve is still alive and well in the world of economics. Unfortunately, the same is true of new Harley-Davidson motorcycles, which have been in high demand recently as more people are looking to get outdoors and in the wind. According to a recent study, that's also prompting more and more Harley dealers to price their inventory over its original MSRP, according to the Milwaukee Business Journal.
Photos: Harley-Davidson
Big Jump
The survey, conducted by Robert W. Baird & Co., found that 64 percent of the dealers surveyed say they are selling new motorcycles at or above MSRP. This is a big jump from last year, when just 45 percent were doing so, but not a massive surprise given the fact that consumer spending overall has increased significantly.
Photos: Harley-Davidson
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Trimming Inventory
Some of this is a byproduct of Harley's current strategy, which focuses on trimming back inventory at dealers so they don't have to heavily discount leftover models as the years change over. However, the recent increase in demand has led to some pretty lean inventory levels across the board.
Photos: Harley-Davidson
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Perfect Storm
Couple this strategy with the fact that Harley is facing supply chain struggles like all other manufacturers, and the recipe is perfect for rising prices. This is precisely what's also happening in the automotive industry, where many dealers are already adding markups to the slim inventory they have on hand.
Photos: Harley-Davidson
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Competitive Market
In spite of this alarming trend, MBJ interviewed a number of Milwaukee-area dealers, and each of them said they were not currently marking up bikes over their sticker price, citing the fact that Harley's home market is a very competitive one. "Eventually, the markets change, and customers remember (higher pricing)," said Todd Berlin, general manager of Suburban Motors Harley-Davidson in Thiensville.
Photos: Harley-Davidson
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Customer Experience
"The new bike market is very slim right now, but we have not sold any new bikes above MSRP plus freight and set up," said Jeff Binkert of House of Harley-Davidson in Greenfield. "Our shop is all about the customer experience, and we want our customers to be here after the market craze ends."
Photos: Harley-Davidson
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Saving Money
Regardless, for those in the market for a new ride, it's certainly worth paying close attention to that sticker when shopping for a Harley. Paying over MSRP for a depreciating asset is never a wise financial decision, and a little shopping around could easily save you thousands in the current market.
Photos: Harley-Davidson
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