Join Date: Jun 2004
Location: Denver and Chicago
Uhm, you are aware that gross profit and net profit are different things, right? If you run a business on gross profit, assuming that's what goes in the bank, you'll be broke before long. My bet is margins are much tighter than you think they are. Also, your math doesn't work.
1. Gross profit is the cleanest measure of revenue over production cost. I admit Honda isnít exactly fair - it includes everything. Cars, boats, whatever. I am sure it is close though. That tells me Harley earns 20% more than Honda does prior to administrative expenses. So for every dollar of revenue HD makes they get .20 more than Honda.
2. Letís take the 25k bike. If HD sold it for that amount than it cost 15k to make (40%gross margin). If Honda sold a 25k bike than it cost 20k to make (20% gross margin). Based on this the numbers very much make sense in that 8k off would still net HD a profit.
No matter how you slice it he is priced higher than the competition for nothing more than a name. The numbers and facts donít lie about this.
Is it worth it? Up to you. To me it wouldnít be worth it but I donít spend your money.
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