I'm not trying to start a war here....but if you believe that dealers are staying in business by selling new bikes at 3% profit you are mistaken. There are numerous other avenues by which profit is added to new bikes, every dealer is slightly different depending on their individual sales volume and their agreement with their manufacturers. Try this....find the bike you want, tell the salesman that you want to make an offer based on what you perceive to be a fair price, and work from there. Don't play games, be honest, be respectful, and if he doesn't treat you in a respectful, honest manner....walk out.
I manage a few stores that sell a similar item (boats), and can honestly say that when guys come in here thinking they know the entire aspect of the business and start running their yap about finance and doc fees and prep fees....well, they don't always get the best deal. If I need to move a particular unit, and it's the one they want...they may get everything they ask for. If they want a high demand/low availability unit, all the bluffing and posturing in the world isn't gonna change my price. If they are nice folks and seem to be sincere in their offer, I will determine the minimum amount of profit I need to maintain and give them the best deal I can. Yes...we make money on finance, but it also entails more paperwork and generates a lag time effecting how soon we get paid by the bank. Warranty sales also generate considerable profit for us, yet also offer protection for the customer that doesn't want to do his own repairs down the road, should they be needed.
If you are dealing with a local dealer, ask yourself if having him close by you is worth a few extra dollars when you need service and or advice. You can always find someone out of your area willing to do the deal cheap, because they know they will never have to see you again, and if you have a problem you won't be tying up their shop in the future. Warranty work pays OK, but retail service is where the shop makes it's real money.
The bottom line is: if you feel good about the deal, buy. If you think you can do better elsewhere, walk. But don't let the process be so stressful it takes away the joy of having a shiny new toy!
TBone