| Author | Message | ||
     Curve_carver |
What do you think was the original cost of the 1125. What do you believe Harley paid To assemble a 1125 to the dealer from the factory. My guess is 3800. | ||
| Jdugger |
It's way more than that. I'd guess around double your estimate. | ||
| Froggy |
Not even close. Its been documented that even the Blast cost way more than that. (Thank you HD politics) My personal guess, $7500-$8000 for one bike. Remember, it has a $12,999 MSRP, dealer cost was just under $10k if I remember right. | ||
| Milo851 |
msrp $13,000 dealer cost $8,666 manufacturing cost $4,333 | ||
| Curve_carver |
I'm with milo851 | ||
| Jdugger |
Milo, Where do you get your numbers? I'm not saying I can prove otherwise, but it's hard to believe BMC had 100% margin in each bike. | ||
| Usanigel |
By the time all the warranty claims are in, it could be plenty! | ||
| Hybridmomentspass |
milo, are you saying that you think HD/Buell build the bike for just under 4500, sold it to the dealers for twice that, and then the dealer marks them up another 4500? Doesnt sound right to me, but thats just my opinion | ||
| Hybridmomentspass |
jdugger - you posted while I was typing - AGREED I really doubt HD put 100% to the dealers and then the dealers 50% to the customer | ||
| Jdugger |
Some quick financial research shows HD with average gross margins around 35%. I wonder how much of that number included things like licensing, though. | ||
| Hybridmomentspass |
jd- when you say licensing, speaking of merch like shirts and stuff? Cause Im betting those sorts of things are what gets the margins up so much. Seriously, they probably can make the shirts (tees) for 5 bucks or so. Then selling them for 20. So yeah, the margins on that (400%) help out greatly in brining it up to the 35% overall | ||
| D_adams |
Sell for $20? Where? I don't remember seeing them under $25 most of the time. As far as the bike pricing goes, it's anybody's guess, but I'd bet their cost was over $6k anyway. (Message edited by d_adams on February 09, 2011) | ||
| Froggy |
Last time I looked at a Harley financial release, they were making more money on T-shirts and other junk than selling Buells. | ||
| Nuts4mc |
Maybe a better question to ask is what components are utilized on the Buell line and could a HD supplier make the parts for the new division (those parts cost could be leveraged with a lower purchased price as the supplier may see orders for both HD and Buell – the parts may not interchange between HD and Buell, but the supplier would be utilizing his manufacturing equipment with more orders from the “same” customer). The parts that are unique to Buell and a HD supplier would NOT want to get involved with are the new division’s (Buell’s) components that would quickly add cost to the top assembly. a) Frame b) Engine c) Tires (does HD use Pirelli as an OEM supplier?) I believe most of the other components would be “common” to the HD purchasing commodities (electrical, suspension, machined parts, and plastic parts) and would be built at a very “attractive” (low) price. Also consider Buell’s strategic location to the US automotive component supply chain to help manage transportation costs. So what’s you guess on A, B, & C??? Bottom Line we should be thankful to both HD and Buell for producing such a unique line of machines with fantastic performance for such a competitive price. | ||
| Milo851 |
pretty standard markup on manufactored product. harley mother company makes 4500 on bike dealer makes 4500 on bike cost to manufactor is 4500 usally 1/3 dont belive go to walmart or any store and buy a watch battery small ones 2 3 bucks right now go on e-bay same battery shipped from hong kong 5 for .99 shipped how do they do it no markup from middle man take your new truck car ect pretty close to 1/3 down the line | ||
| Curve_carver |
Keep in mind wheels, fairing stays,wiring, ecu, plastics are all Chinese imports mass produced. I'm thinking the motor cost 1200 a piece bulk price. | ||
| Jdugger |
Milo, There's a big different in typical margins for consumer packaged goods and durable goods. I'm not questioning your example, I'm question the application of it to Buell motorcycles which fall into the durable goods category. | ||
| Froggy |
Milo, using your example, the Chevy Volt should be $120,000 and the run of a mill Chevy Cobalt would be $40,000. Profit margins aren't as huge on vehicles as it is on consumables like batteries and ink cartridges.
Funny you say that, right after Buell was bought by Harley, they were forced to switch to things like Showa suspensions, because thats what Harley used. | ||
| Boogiman1981 |
curve man that's nuts 1200 a piece? i just can't see that | ||
| Curve_carver |
I bought a spare for 1600.00 brand new. | ||
| Hughlysses |
I'll bet it cost more than $1200, but I heard it from what I consider a reliable source that the Rotax 1125 cost Buell considerably less than the HD-built XB engines, and I believe it. | ||
| Curve_carver |
What makes you think an engine cost so much especially when 15000 are made. | ||
| Sprintst |
Amazing what people don't know about making and selling a product. All products vary, and margins vary greatly. I don't know what a motorcycle dealer makes, but I can speak with authority that a bicycle dealer makes very little money on the sale of a new bicycle. I know of US manufactured products that retail for $1200 and have a direct bom of about $200. But, add in G&A and overhead, profit, etc... and you get a much larger number than $200. Some products that are on commission pay 5 to 20% commission to the seller. Some products dealers sell offer a 30 to 40% discount off retail to the reseller. Some products get marked up 10X - check the inventory sheet at the local clothing store. Retail accessories in places like bicycle shops are typically sold for 2x the price they pay. But keep in mind all of the numbers I just threw out vary by product and market, and depend on the overhead of the sales and distribution model Grocery stores run on 3% margins. Most manufactuerers average 8% margins. | ||
| Stirz007 |
My local H-D dealer, from whom I bought both an XB and an 1125 told me that their margins were something like $1000 on the Buells. I had no reason to doubt him. He mentioned that most of the H-D models had a similar margin. His quote was "we barely break even on motorcycle sales". I'd bet cash money that someone on BW knows exactly what the numbers are.... | ||
| Boogiman1981 |
curve that's a really low production number. and $1600 for a crate motor is a whale of a deal. i have nothing to base my thoughts on that i could produce other than years of experience dealing with the automotive world. ie it;s just my opinion. i would be very interested in the actual numbers. both with and without the R&D cost factored in... | ||
| Jdugger |
1600 is a smokin' deal on a fresh mill. I'd be inclined to pick one up at that price just to sit in the corner of the garage until that day comes. $2500 is a more typical price for a new 1125r motor. | ||
| Froggy |
The retail price on a new 1125R motor at a dealer is $6200. $1600 is a steal. | ||
| Boogiman1981 |
thnx Froggy I couldn't recall what the msrp was and was to lazy to look it up | ||
| Curve_carver |
Mine was new. No bs. I unwrapped the box drained the shipping lube.By the way the box was really nice. I hated throwing it away. They made more money than what everyone thinks. Just not enough. And dealers are 200-300% markup. 6500.00 for a motor is ridiculous!! I can buy a new powertrain for my truck straight from chevy for that price. (Message edited by curve_carver on February 10, 2011) | ||
| Jdugger |
> And dealers are 200-300% markup On accessories, sure. On bikes? You are smoking crack. There's no way dealer cost on an 1125r is $4-6k. I'd bet my left nut on that one. |
