Posts
1283
Joined
11/7/2006
Location
Shreveport, LA
US
Edited Date/Time
5/16/2012 5:23am
My city has about 500,000 people. There is two Kawasaki, Suzuki, Yamaha dealerships , one Honda and zero KTM dealerships. I am seriously thinking about opening some kind of dealership but don't know where to start or what I can do. Any suggestions?
I work at a Suzuki marine shop and the sales are quite terrible, altough motocrossers/enduro riders are very passionate about their sport compared to people doing watersports. They are still willing to spend money on their passion.
It's not only bikes tough. There are things like gear, aftermarket stuff, maintenance products and the workshop income from repairs 'n stuff.
It's a gamble...
And i don't think KTM is very 'easy going' on dealerships. They have quotas to make and since they are investing allot in the US market atm i think those quotas are not something to laugh with.
If Dungey takes the outdoors you are golden tough, allot of ignorrant people believe a brand is the best because it made championships.
http://www.ktm.com/us/dealer-service/become-a-ktm-dealer.html
The Shop
Free shipping: VITALMX
Luxon 4-Post Bar Mounts
$189.95 - $239.95
if you're investing 250k +, a 1 year trade off for in world experience in the functions would be totally worthwhile.
seems like a very tough time to open one to me. it's driven by play money spending. play money is something most people do not have in abundance right now.
On top of that, i guarantee the other existing dealers have contemplated adding ktm, and they havent in your area for a reason
Rural you'll make your money in atv's and side by sides. Polaris would be a great addition for a rural dealer. Take care of your farmers and they'll keep your pockets lined.
I've worked at 3 different dealerships, 2 successful one not so much, and I made more money selling Polaris than anything else.
There's no money in dirt bikes. Everyone wants the newest bikes and a "deal." That's a whole 'bother thread though.
Most of all... You'll need a lot of luck, a little skill, and a never give up attitude to make it.
Best of luck to you though!
Seriously, in this economy a dealership doesn't sound like a good investment at all!
What Ride154 said is a good idea.. Farmers need to write off equipment on taxes and are willing to spend the cash.. John Deere would be good to give a thought if farmers are plentiful.
My boss spit out Yamaha marine because they wanted a big showroom and x-ammount of units in it, and he had to let go of Suzuki. Yamaha marine did not tolerate another brand in their showroom. All of that had to be financed by him....
He spit out Yamaha and went Suzuki only.
Big showrooms don't help sell units. Good and payable service wil. Financing a big showroom and all those units forces
us to ask more for repairs and maintenance. Basicly the costumer always pays for the big and shiny showroom, most of the time at a cost of good service.
Pit Row
Later bought/sold used bikes and did repairs, out of my home.
I built a Yamaha-Honda dealership from scratch in a low overhead area.
The local economy took a 5-year dump and I bailed.
Don't miss it at all.
Denn700 - Do you really love MX ? Are you really into dirt bikes ?? Do you have a LOT of extra money ??
If you answered yes to the first 2 questions........stop now.
If you answered yes to the 3rd question.........think long and hard about how you wish to invest it.
I have done it twice. Some on this forum know me from that. If you have an appetite for VERY long hours and a 5 year window it might be worth the effort. Others have thrown around $250k to start.......plan for more....much more and little or no income for 24-36 mos.
When it is rolling there is nothing better but during challenging times like these a stand alone KTM or KTM/Polaris dual won't be easy. If you really want to be in the industry there are other ways in that require less capital and might offer a more rewarding experience.
Maybe you should try being a race promoter....DC says that's a cake walk.
Sorry to say, but the concept of a motorcycle dealership as we know it has been dead and dying for some time. Everyone gets their stuff online.
Now with that said....all the responses ALSO point at you better take on what you really know to do.
This thing is in the shitter.You would make more out of a food truck...no joke.
And 250K is no way close to what you would have to invest in what you are dreaming.
Call the mfg that you're thinking about...however...
If you want Multi-line shop...forget about Honda unless u buy an existing shop & EVEN THEN... Make sure you have a Full & Complete Understanding of your Dealership Agreement.
Good Luck!
People think that there is huge $$ being made in the MC industry. They are 100% wrong. You can make a decent living but not live in a mansion money. All of the shop owners that I know live very modestly.
People who work and own shops do it because they LOVE MOTORCYCLES ..... not for the $$$
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