Crikey Mate. Harley price gouging exposed!

4/16
  • robcig
    robcig
    13 years ago
    Supply and demand man!! Whilst there is a huge demand for Sportsters, they can, and will raise their prices. The demand for big twins, which are by far more attractive in terms of overall refinement and inclusions, (to me anyway), don't sell as well, but they probably offer the best profit margins for HD. I mean no disrespect to anyone who forked out $32K for a Roadking, and another $2K to get the thing running right, but I would never spend that kind of cash. They simply are not worth $34K. If they sold them for $25K, I'd be the first to put a deposit on one! BTW, Trivett in Sydney had a 09 red and black Roadking advertised for $25K with all the goodies and low k's. I went in yesterday to have a look, and low and behold, just sold. The demand is there, just the pricing sucks.
  • robcig
    robcig
    13 years ago
    Davo, you are right. It no ones business what they spend their hard earned cash on. Cars are a HUGE waste if you consider what you lose the minute you leave the showroom. I paid $25K for my Deluxe, yes I also spent about $2K, but I can still sell it private for about $22K. Not bad really for a man's toy. Done many K's on many trips, had a blast, loved every minute of it.
  • the_mongrel
    the_mongrel
    13 years ago
    For me, it is not just the retail value of the bike, it is the fact that it is a Harley that is made in the USA. If they setup a factory in Sydney and started pumping out FatBoys, they would just not have the same attraction. That is what you are paying for.

    It is the same reason you will pay a shit load for say Italian Slate. Not because it is slate - shit, you can get slate anywhere - but go and buy imported Italian Slate and see what you pay.

    That is the attraction - for me anyway. It has nothing to do with what they pay for them in the USA. Hell, they are like arseholes over there - everybody has one.

    What I would never like to see is these fantastic motorcycles, that not everyone can afford, come down to the point where they are worth shit because everyone has one.

    Just my 0.2
  • Greygo
    Greygo
    13 years ago
    I don't know when I last heard such a load of shit!

    Highpriced because it is imported, high priced because it is rare...a unique product that only the devotee's of style and sophistication can and should be able to ride.

    Fuck me sidewise!! Who are you guys????
  • Deadwood
    Deadwood
    13 years ago
    Must be all that hard ass riding, they just can't keep up. Greygo, you should do the freedom ride.
  • beagle
    beagle
    13 years ago
    I think this topic is close to expired. It's obvious the promoter has a passion about the issue, as is his right, however it's obviously not shared by most on this forum. I would suggest it be preached elsewhere.
  • Greygo
    Greygo
    13 years ago

    VirtualT, interesting article though the really interesting thing is that the comments cover all the same perverse rationalisations we've seen here.

    Only one commentor got to the core of the problem. He states,

    "The Market should determine the price... but unfortunately the imported car market in Australia is not a free market and is protected by government legilslation which makes it virtually impossible to import any car that is sold here by an official importer. If the government was to drop this legislation the official importers would have to drop their prices to compete with the un-official importers that would very quickly open for business. The government would still collect their LCT, GST and Import Duty, infact they would probably collect alot more of it.

    This article does not address this fact but it is at the heart of why we pay so much for imported cars here.
    Jack - June 04, 2011, 6:36PM
    "

    It is the same legislation for motorcycles. It's called, "The Motor Vehicle Standards Act 1989" and it is the core of the auto and motorcycle price gouging issue.

    The ACT is a travesty that puts millions of dollars in excess profits gouged from Australians into the hands of foreign automobile and motorcycle manufacturers.

    If someone can tell me how making foreign companies excessively rich enhances Australia or Australians I would be interested to hear. In the mean time I have been chasing the Government on this for over 3 weeks, with minor success but no breakthrough.

    Stay tuned, but don't hold your breath!

  • brettoes
    brettoes
    13 years ago

    Finally someone has made a descent point about overpriced Australian Harley dealers.

    After going to America last year for the Daytona bike week and trying every harley I could get my hands on i was very impressed with them, as was my mate who i went with.Both of us were not real big harley fans but after the great service from the reps and the harley tents ease of taking out a bike,just swipe your barcode and go,we both became big fans.
    Seeing the prices over there was great as i was thinking of getting fat boy lo when i returned to Australia,which was selling for around 17000 US dollars new and never really knowing how much they cost in Australia,I thought it would roughly be the same,maybe a few grand more.
    Boy did i get a shock when i went into trivetts to have a look.
    The sales men thought his shit didnt stink,was not very helpful and when he told me the price i laughed.$33000 with new pipes and remapping.
    My dreams of a fat boy in Australia were short lived.
    Seeing that the dollar has been above the US for some time now I thought I would check again a few weeks back,still $33000...
    Harley Australia are just rip off merchants and i will not give them a cent of my money ever.
    Check out Victory motorcycle as well, their prices have come down around $5000 in the last six months due to dollar,why not harleys? Both made in America,both imported into Australia and both pay  government tax.

    My mate has since bought a HD frame and motor from the states and im looking to do the same.if only it was easier to do own a harley at a resonable price we would all have one.
    Anyway keep up the good work and if there is a petition ill sign it.

  • boxa
    boxa
    13 years ago

     I think we all have a breaking point , on what we will pay , and have our own reasons on why we will stop at 30-31  or $33,099.50 .

     

    Each to there own , but a very good point is WHY are Harley being protected , our govt will not protect most of our own industries but yet they do protect the profits which are going  overseas .

    Has to wether or not most have reached the enough is enough point ,well thats always going to be a subjective choice , . I know not long ago i looked at a victory  crossroads i think ,there RK equivelent and my answer was NO , i did'nt think it was worth the similar money has a RK when i was'nt getting the aftermarket accessories , or the dealer backup , not to mention the resale value, because there so new,  we just don't know yet .

     Got to admit after riding a mates for a hour or so  a few weeks ago I'm glad i did'nt .  it was comfortable . seemed to have a bit of power at the top end , but  there was something i just did'nt like , closest i can put my finger on was i found it noisy and got on my nerves after a while

    Overall i think in this present day its hard to  buy a bad bike its all personal preference , I just wish i had the money Jay Lenno has got , cos when i look back . i think i would'nt mind  owning my old honda 750 vf sabre ,  a real comfortable bike from the early 80's  or my old k7 police bike .

     or  my old vulcan 1500 classic , which is the bike that really turned me into a fan of cruisers. Then again i used to have fun on my old gpz 250 . and my old  yamaha fj 1100 could fly  the list goes on

    Every one to there own . for me the Harley i really want has gone over my cut of point  thats the RK , i   would like one but  while i own 2 bikes i just refuse to pay  over 30 grand for ANY bike , but on the other hand the street bob has come down in price and having owned one before ,  i could be temted to buy one again because they are value for money especially if you can get a good deal on accessories.

     But at the end of the day Harleys are ALWAYS going to be expensive and why its simple because they are a fucking good bike . . I remember someone asking me what i liked about the street bob and my answer was  because Harley managed to put a 1600 engine in a 650 frame . some may disagree with that but for me   bit sorry  i sold mine

    Regardless off anything perfect for me would be street bob for town and bar hopping . RK for touring . just got to win the lottery.. then who gives a fuck what the prices are

     

     

     

     

     

     

  • Peter
    Peter
    13 years ago
    Not really, because your bike will only be worth 2/3rd's of the trade price that you can get now. I would'nt enjoy finding out that my bike is suddenly worth a lot less than i paid for it.
  • Greygo
    Greygo
    13 years ago

    Philonrsi, thanks for the pre-release. Someone at Haystac will have their ass in a sling for this. I love it.

    It's just a start though. As bb92mm said, "IMO, 2-3k price drop towards financial year does not justify the price difference btw oz and overseas".

    Also, it seems the price has gone up on the very popular Sporty range with 48's now $2,000 than a month ago! They're still bastards, don't be fooled by this price drop on limited models.

    Below posted by Philonrsi on "Good News on Harley Pricing" thread.
    ===================================================================================================
    Bar & Shield - Colour

    Embargoed until 12:01am on 01.07.11

    Press Release

    HARLEY-DAVIDSON AUSTRALIA REDUCES PRICES ON KEY MODELS

    Friday, 1 July 2011 – Harley-Davidson Australia is reducing the manufacturer’s suggested retail price on a range of 2011 model year motorcycles and on all branded parts, accessories, riding gear, apparel and other merchandise from 1 July 2011, reflecting the continued strength of the Australian dollar.

    Prices on ten models of motorcycles are being reduced, including the Harley-Davidson Fat Boy® which was $32,250 and is now $29,250 rideaway; and the Harley-Davidson Dyna Wide Glide® which was $28,895 and is now $25,750 rideaway. In addition, prices on Harley-Davidson branded products, including MotorClothes®, apparel, and merchandise will be reduced by more than 17%.

    Peter Nochar, Managing Director of Harley-Davidson Australia, says: “We strongly believe in delivering great value so that more people can have the unparalleled, often life-changing opportunity to experience riding a Harley-Davidson motorcycle. Now we’ve also made it easier for more Harley owners to fully customise their own dream bike.”

    To celebrate the exciting news, a special “Independence Day” event will be held on Saturday, 9 July at participating Harley-Davidson dealers nationwide. For more information, customers are encouraged to visit their local, authorised dealer.

    Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. For more information, visit Harley-Davidson's website at www.harley-davidson.com.

    ###END###

    For further information, images or interview requests please contact:

    Marie-Claire Ducharme Sayers
    P: +61 2 8094 7593
    M: +61 449 889 099
    E: marie-claire.sayers@haystac.com.au

    Amanda Kuhn
    P: + 61 2 8094 7769
    M: + 61 410 570 993
    E: amanda.kuhn@haystac.com.au



    Suzanne Mulholland
    Account Manager

    Haystac logo.jpg

    Level 18
    456 Kent Street
    Sydney NSW 2000

    Direct: 02 8094 7781
    Mobile: 0406 050 381
    Fax: 02 9267 9926

    Find out more about Haystac at www.haystac.com.au

  • Greygo
    Greygo
    13 years ago

    Yup, rapists rarely change their stripes. The fuckers think they have us and while they might pretend to relent they are incapable of developing ethics. Minor discounts do not a rational pricing strategy make!

    The political machine is in motion, met with the member today!

    We'll see if The Minister can condone rape. He's in a tuff spot. How do you justify sending $200M overseas so foreign Fatcats can buy large yachts? Unless of course as Minister you are a guest and enjoying the luxuries of these Fatcat yachts?

    I hope to see a Parliamentary Question in the next few months?

    TODAY THIS PRICE GOUGING BECAME A POLITICAL ISSUE!

    HOW CAN AN AUSTRALIAN GOVERNMENT JUSTIFY FOREIGN COPORATIONS RIPPING $200M PER ANNUM OUT OF AUSSIES WITHOUT DELIVERING SOME BENEFIT?

  • the_mongrel
    the_mongrel
    13 years ago

     Call me silly, but I still don't get why you blokes are so keen to see your beloved HDs priced like a Hyundai??

     
    Why do you think a BMW keeps its value more than a Hyundai??
     
    Lets look at the situation...
     
    HDs are expensive, and for that reason, they are not in every garage.
     
    IF you drop the price of Harley's so that the FatBoy sells for $15,000, they will be no more attractive than a Honda Shadow.  It is the same reason that Hyundais and Kias, and the new Great Wall are looked at as pieces of shit!  Not because they are pieces of shit, but because they are priced like peices of shit.
     
    I have family and friends in the car business, and I can tell you that there is not a lot of manufatcuring price difference between a Audi and a Nissan, but you pay a lot more for the Audi, and in doing so, they are more valued.
     
    I would like to ask the question.... Why do some call them Jappa Crap?  OR Rice Burner Rubbish??  It is not because of the build, because in fact, some of the Jap bikes have the best engineering on the planet.  I will tell you why... it is because they are cheap, and the price tag lends itself directly to the value.  Its sales 101!!
     
    Yes yes... I hear you now... they are much cheaper in the USA... well there are push factors there too.  The fact that they are built there is one, and secondly there are 200 million plus people in the USA.  That is supply and demand, and basic economics.  Put into the mix, cost of living etc etc - well you get the picture.
     
    There are 22 Million people here.  How many of them ride bikes.  How many of those bike riders want to ride a cruiser.  How many of them cruiser riders want to own a HD. Now compare that to the base poulation of 220 Million in the USA!!
     
    They would sell more HDs in the state of NY than we would sell in the entire country.
     
    Anyways... My personal opinion (and I will probably cop a gob full for it) is... if you lower the price of a HD and bring into the market with every other bike out there, then you will not only lower its price, you will lower its value... its enigma, and its appeal.  You might as well remove the HD badge and put Hyudnai badge on it.
     
    Just my 0.2
     
     
  • the_mongrel
    the_mongrel
    13 years ago
    Yeah I hear. My fear is though that it will turn into "oh, it's just a Harley, you can pick them up for 15 grand new."

    I don't want to see that. It took me 4 years to be able to buy my HD. If I wanted to spend 15 grand I would have bought a yammi.

    It's not about investment for me, its the fact that not everyone can afford it.

    I know that sounds stupid, but it's the same reason some choose to buy a clubsport and not just a stock commodore. Not for the investment. More for the ego.

    If the HDs cone right down I know mobs like triumph will be happy.

  • Greygo
    Greygo
    13 years ago

    The objective is to create a free market and let competition decide.

    When the faulty legislation is corrected ALL motorcycle prices for ALL makes will adjust through market forces, as they have in NZ.

    A Triumph Rocket III Roadster is 1/3 more expensive in Aus than in NZ. When Harleys drop in price in Aus, Triumphs will also have to drop in price or they won't sell. I mean, who would pay as much for a Triumph Rocket III Roadster as for a Harley Fatboy or Road King? So when Fatboys drop from $32,000 to $25,000 a Rocket III Roadster will have to drop from $25,000 to $19,000. The same will happen for Hondas, Kwakas, Yamis and the rest. Competition will decide.

    Harleys will still be a more popular and valuable product, just the current rip-off will be rectified.

    So the whole market will adjust.

    To have Legislation in place that allows ALL foreign motorcycle manufacturers to inflate prices, screw Aussies and take the excess profits overseas is beyond ridiculous. It is close to criminal in my mind and the Government is at fault.

  • the_mongrel
    the_mongrel
    13 years ago
    You honestly think the others will come down in price? Your kidding yourself. Just have a look at all the expensive shit around that does not cost more to make, but still priced higher, and I am not just talking bikes and cars. Go see what you will pay for an Armani suit, or a Dewalt power drill. They don't cost any more to make, AND, they have not dropped their prices because Target sells suits for $99, and GMC sell power drills for $69.

    I have been in the sales game for 20 years. It has nothing to do with the cost of manufacture. It is all in the value of the brand, and what people are willing to pay to own the brand. You drop the the price to bring them closer to the other models, you will cheapen the brand to the point where something else will take over, and HDs will be looked at as just another bike - and that will be a sad day!!

    The government should not have ANY say in what price a company wants to put on its products. (besides the staples) THAT is restrictive trade practices and should be outlawed. If a company puts a price on a product, and people are willing to pay it, then that is the companies good fortune. The day the government legislates the prices I can charge for my products and services - will be another sad say.

    Like you say... let the market decide.

    Obviously the market has decided that a FatBoy should sell for $32,000 BECAUSE... if they were not selling, believe me, the price would drop. But they are selling and why... because that is the value of the brand. HD will never drop the prices to the point of ridiculous unless the bikes stop selling, and that won't happen - again.. because of the value of the brand.


  • the_mongrel
    the_mongrel
    13 years ago
    Mate - You are exactly right!! It's a brand name! You hit it in the head!! The brand has built itself to be basically a legend, and that's why they are valued. It has nothing to do with the cost to manufacture.

    To answer your question as to why it is not happening in the USA... because in the USA, as far as Americans are concerned, they are expensive!!

    Just go to the Yammi, Honda, and Kwaka forums and ask - you will get the same answer... I know I did.

    Anyways... its just opinions I guess, and I am quite sure we will never see them drop too much in price. A good thing I think - but that is just me.

    Cheers
    Mongrel
  • Greygo
    Greygo
    13 years ago

    Mongrel, the Government has not set price but they have made it impossible for anyone to force foreign motorcycle manufacturers to offer a competitive price - they have given them a monopoly for their brand.

    How? Because an individual CANNOT import a bike unless they have owned and ridden it overseas for 12 months and then can only do this once every five years. Only the foreign manufacturer can bring in new bikes and as a result can charge whatever they like. Harley could charge $75,000 for a Fatboy and there is SFA you can do about it. The Government has given them a monopoly!

    See the "Approval to import a vehicle under the Personal Imports Scheme" or "Application for Approval to Import a Vehicle" section here . They both require 12 months of ownership and continuous overseas use.

    This is not the case in NZ and that is why the foreign motorcycle manufactures have to compete with what an individual could import a bike for and that is why bikes are competitively priced in NZ and not in Australia.

    The Government has not set price but they have given foreign manufacturers the ability to set any fucking price they want and NO ONE can compete or force them to be competitive.

    I'd be interested if you'd still be supportive of this situation if ALL foreign motorcycle manufacturers decided to double their prices? There would be nothing you could do!

    Do you see the problem, we are captive to these bastards and it is our Government that has given them the shackles to bind us with!

     

  • Magilla
    Magilla
    13 years ago

    Surely the way the US economy is going...about 3 cents from being bankrupt, they might change they're mind on not selling spare parts OS

  • the_mongrel
    the_mongrel
    13 years ago

    I agree with you Steve. He bought it for the name - and THAT RIGHT THERE is why they will never drop the price.

    DICKOBIGFISH...
    I never said they were elite.
    I never said they were value for money.
    If you think you got ripped off, why did you buy it in the first place? I will tell you why... Because its a Harley, and you always wanted a Harley. Otherwise you would have bought Kwaka and blinged the crap out of it!!

    Most of you that have argued that they are overpriced - Why did you buy one? What was the reason you bought a HD?? I am not being a dick... I actually want to know why you bought it?

    Unless you bought it because you wanted an overpriced, ripp off, then I will stand corrected. If you bought it because "it is a Harley" - then there you have it!

    Cheers
    Mongrel

4/16