Originally Posted by Empty Sea
- Pricing in the US for all bikes should be come more uniform acros the country. The goal is to have customers shopping between Honda dealers because of the dealers' available stock, rather than the price of a particular bike. This will be an evolving process, which will tend to lower dealer margins and, hopefully, offer better pricing to consumers.
Isn't pricing consistent now? MSRP is the same for a given model, whether you buy it in Chicago, IL or Durango, Co or Los Angeles, CA. It has always been up to the dealer what they may, or may not charge for Freight, Set Up, & Documentation Fees. I don't see that changing... Honda dealers are not franchises, but wholly independent businesses that operate under a Dealer Agreement
with Honda. Same is true for the other motorcycle manufacturers.
American Honda cannot
set firm selling prices, as that would be price fixing and is illegal under U.S. Anti Trust laws. Hence the term, Manufacturers Suggested
Contrary to urban myth, motorcycle dealers do not have large Gross Profit Margins on major units... a dealer who has an average GPM of 8 - 10% (not including F&I profits) on major unit sales is doing well in that respect, but that won't keep the doors open and the lights on... the majority of the typical dealership profit is generated in the Service Department, and the Parts/Accessories Department
. A large dealership, with busy high volume Service and Parts Departments, can afford to operate with smaller major unit margins than the typical small mom & pop dealership. In todays Powersports Industry, the name of the game is volume... to the dealer, the motorcycle is the vehicle
to sell future Service and Parts & Accessories. Same is true for the manufacturer with regards to the sale of replacement parts... For a company like Honda, a very large percentage of their yearly profits come from OEM replacement parts sales, across all product divisions
. Can you imagine how many dollars worth of Honda OEM replacement parts they sell just through their Automobile Division every year, at very healthy profit margins?... It's staggering.