I'm shopping for a new Harley. I am also a businessman and hold a degree in economics. (Yeah, I know, that and a dollar will get you a cup of java...). But hear me out on this...
The Harley market is fascinating and frustrating. Dealer add-ons (fees) are treated as gospel we should all expect and gladly pay. I think not. Here are some actual quotes that shed some interesting insight:
"We are required by Harley to charge shipping and set-up. The state requires us to charge the documentation fee to assure all the paperwork is correct." -- Saleswoman at a HD dealership
"Harley actually overshot its market in recent years, you know, overpricing their bikes. We're told they're capping MSRP's to try to fix that and shrink the gap between Harley and metric prices." -- Parts manager at a HD dealership who was helping me shop
"We have to charge shipping because shipping a bike is different from shipping any other inventory." -- Salesmen at two different HD dealerships in response to my question, "If I have to pay shipping for the bike, do I also have to pay shipping as an additional charge if I buy, say, a seat?"
"The set-up fee covers the cost of the guys in the shop uncrating and assembling the bike." -- Numerous HD salesmen
"Documentation fees cover the cost of the ladies who process your paperwork. We're required to charge that fee." -- Numerous HD salesman after my complaints regarding $150+ fees for entering my name and address into a computer, pushing a button and spitting out all the necessary documents.
"Frankly, we've pretty much got buyers trained to pay whatever we list on the price tag. Hardly anyone questions it. And if they do, salesman are trained to handle it. All that money falls into our account; well, my lake house, really! A Harley dealership is like a jewelry store for men; they check their brains at the door." -- Former HD dealership owner who is a fellow business school alumnus
Fellow HD lovers, PLEASE! Stop the madness!
Look, I want HD to make a profit and do very well. I want dealerships to do well and make a profit. Otherwise, we can't get the machines we enjoy so much.
BUT......
PLEASE stop paying these absurd add-on fees. Just don't buy the darn bike. It'll be there next week. Or the week after. And you'll save about $800. Believe me: Harley will build and delivery a bike to everyone who wants to buy one.
Here's the last dealer pricing trick: Asking a particular HD dealer for an out-the-door price, she added up the MSRP with the dealer fees...and then added tax. Jeez. In my state (at least) you cannot tax "services" like shipping, assembly or documentation fees. But the dealer tries to slip in a little home-cookin' 'rithmatic to pad his wallet with a few more bucks.
I was born at night -- but not last night.