Good question.
You have to be careful here. Gathering information on Harley-Davidson corporate is very different than researching HD dealerships. Corporate, a public company, has to publish financial reports. From those, and from Wall Street analysts, information on margins and company value can be gleaned.
HD dealerships, on the other hand, are private businesses who do not have to report to stockholders--at least not publicly. Too, dealerships for Harleys are rather unique in that they are not franchises. Thus, they can operate however they want to, financially speaking, as long as they adhere to the branding and product requirements set out by corporate.
Dealerships can, then, charge add-on fees as they see fit. It is competition between dealerships--not across motorcycle brands--that most influence dealer sales tactics. Keep in mind that excellent marketing and branding by corporate provides dealers an excellent playing field not only for new sales but for follow-on sales (parts, clothing, etc.) that is wildly profitable. And the brilliant tactic of encouraging bike customization actually protects new bike sales in a low-depreciation used bike market.
I know of two dealerships that have gone under in the past months. Both suffered from enjoying the wave of success in recent years but failed to manage costs and sales margins on services, accessories, parts and clothing. Curiously, both dealers had a reputation for selling bikes at MSRP and the new owners blame that for the demise of the previous owners. That conveniently excuses them for adding on their extra fees. Hogwash. (Pun intended.)
But selling at MSRP was not the cause. In both cases it was poor customer service and bad product mix. They both concentrated so much on new bike sales they failed to meet demand for after-purchase goodies the customers shopped elsewhere.
This is a very compelling market to study. HD corporate has teed up a great business for dealers. Sometimes, dealers "behave" and do very well. Sometimes they get greedy or lazy and fail. That's business.
My bottom line is that we, as buyers, need to think with our heads--not our hearts. Ken Schmidt, former corporate communications director for HD during the turnaround, is very clear when he preaches that HD's strategy was to bypass the brain and go straight for the heart. We as bikers need to keep our brains clearly engaged while satisfying our heart's desire.
I plan to keep my brain and not check it at the dealership door. The more who do so will result is better prices and, actually, a better business relationship with the dealer for all.
