Tuf Powersports closed

Shenzi
Profile picture for user Shenzi
Posts
2695
Joined
8/15/2006
Location
SWFL, FL, USA
Fantasy
827th
Shenzi 4/14/2009 3:21pm
4/14/2009 3:21pm
williamsmotowerx wrote:
I've heard rumors... and won't talk about them... but I will say that a good chunk of those dealerships that have closed in Chicago area closed...
I've heard rumors... and won't talk about them... but I will say that a good chunk of those dealerships that have closed in Chicago area closed not entirely because of economy reasons.
Like you say, those 3 or 4 that were actually connected business-wise (Tuf, Pro Source, Las Vegas Charlie and Wildside Yamaha) didn't go down because of the economy but maybe thanks to the economy some stuff came out and things went very wrong. Someone pointed out at the beginning of this thread back in January that there were police cars at the dealership and I have heard that there were feds too.

Tuf Racing team and Waterman Indoor track are not related/connected to Tuf Powersports since Dave Antolak sold the dealership. Dave owns/runs Tuf Racing team and co-owns the Indoor track.

davis224
Profile picture for user davis224
Posts
7507
Joined
8/15/2006
Location
Cornland, IL, USA
Fantasy
161st
davis224 4/14/2009 5:35pm
4/14/2009 5:35pm
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to go under. Not gonna say which ones, but a current dealer's manager, owner, whatever, has been pocketing the moeny from cash sales, then re-building the crates and covering them back up acting as if they still have the bike to fool the banks. That was the hot topic a while back 'round here.
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/14/2009 5:47pm
4/14/2009 5:47pm
davis224 wrote:
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to...
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to go under. Not gonna say which ones, but a current dealer's manager, owner, whatever, has been pocketing the moeny from cash sales, then re-building the crates and covering them back up acting as if they still have the bike to fool the banks. That was the hot topic a while back 'round here.
Many years ago....

I worked at a Honda/Suzuki dealership in Ft Lauderdale (on Sunrise Blvd) and one day this big white truck with "Yamaha" on the side show up exactly at opening, 9am, and these guys in suits walked in with clip boards and started putting labels on each bike. We were then informed we had 10 mins to clear out our things, anything left behind would never be seen again.

Come to find out not long after, the owners had a long range plan of running the business and eventually tanking it by filling the store on credit, massive credit, selling everything....part, accessories, bikes, everything and just not paying the bills.
They sold bikes, reassembled the box/crates, and restacked them so that when the floorplan inventory guy came by, "there's the bikes, unsold"
Eventually the house of cards collapsed....along with a ton of jobs and I lost two weeks pay and a month's commission.

Worst part for me was that I got a job as a security guard for the entire complex the shop was and I remember this one woman standing at the window crying because the scooter she'd bought her son, in cash she saved for, was right in the window and had her name on it, but she couldn't have it and could not give it to her son for Christmas that was coming up in a couple weeks....that sucked seeing that and I felt so bad for her
pitbike502
Profile picture for user pitbike502
Posts
4509
Joined
12/26/2007
Location
Syracuse, NY, USA
pitbike502 4/14/2009 7:08pm
4/14/2009 7:08pm
davis224 wrote:
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to...
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to go under. Not gonna say which ones, but a current dealer's manager, owner, whatever, has been pocketing the moeny from cash sales, then re-building the crates and covering them back up acting as if they still have the bike to fool the banks. That was the hot topic a while back 'round here.
flarider wrote:
Many years ago.... I worked at a Honda/Suzuki dealership in Ft Lauderdale (on Sunrise Blvd) and one day this big white truck with "Yamaha" on the...
Many years ago....

I worked at a Honda/Suzuki dealership in Ft Lauderdale (on Sunrise Blvd) and one day this big white truck with "Yamaha" on the side show up exactly at opening, 9am, and these guys in suits walked in with clip boards and started putting labels on each bike. We were then informed we had 10 mins to clear out our things, anything left behind would never be seen again.

Come to find out not long after, the owners had a long range plan of running the business and eventually tanking it by filling the store on credit, massive credit, selling everything....part, accessories, bikes, everything and just not paying the bills.
They sold bikes, reassembled the box/crates, and restacked them so that when the floorplan inventory guy came by, "there's the bikes, unsold"
Eventually the house of cards collapsed....along with a ton of jobs and I lost two weeks pay and a month's commission.

Worst part for me was that I got a job as a security guard for the entire complex the shop was and I remember this one woman standing at the window crying because the scooter she'd bought her son, in cash she saved for, was right in the window and had her name on it, but she couldn't have it and could not give it to her son for Christmas that was coming up in a couple weeks....that sucked seeing that and I felt so bad for her
THAT REALLY REALLY SUCKS. I know a story like that here in NY, but I wont get in to it..

The Shop

See All »
xnationalwrench 4/14/2009 7:13pm
4/14/2009 7:13pm
Some of the flooring companies have got out of the powersport business which means the dealer has to buy the units up front and it makes it hard to have those shiny models filling the showroom and if they spent their capitol on that they can't afford to have a full line of parts and accesories.
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/14/2009 7:28pm
4/14/2009 7:28pm Edited Date/Time 4/14/2009 7:28pm
From what I am seeing and in talking to other companies and my distributors, shops that depended on bike sales, primarily new bike sales, are in deep shit due to the lack of available credit and belt tightening of the public.

Shops that built their business around and depend on parts and accessory sales are doing fine, some doing very well, because people are putting money into their existing bikes to prolong their life and people are buying more affordable used and putting money into those.
TomZ
Profile picture for user TomZ
Posts
708
Joined
7/24/2008
Location
West Bloomfield, MI, USA
TomZ 4/15/2009 6:13am
4/15/2009 6:13am
Sledneck wrote:
Dealers sell machines to make a killing on all the accessories like clothes, gear, and lubes, chemicals, octane boosters and BS like that.


Describe "a killing" please.

Thanks Tom Z
TomZ
Profile picture for user TomZ
Posts
708
Joined
7/24/2008
Location
West Bloomfield, MI, USA
TomZ 4/15/2009 6:24am
4/15/2009 6:24am
flarider wrote:
The average dealership makes no where near the money people think they do
So true.......

Although i was just out at the counter as someone set a jug of Engine Ice on the counter........that helps.
jndmx
Profile picture for user jndmx
Posts
9691
Joined
1/20/2008
Location
South Kingston, RI, USA
jndmx 4/15/2009 6:38am
4/15/2009 6:38am
Sledneck wrote:
Dealers sell machines to make a killing on all the accessories like clothes, gear, and lubes, chemicals, octane boosters and BS like that.


TomZ wrote:
Describe "a killing" please.

Thanks Tom Z
Come on Tom....you know you are loaded from all the chain lube that you sell.

Heck I bought my sons Leatt from you a couple years ago I bet you are still drinking champange from that mountain of cash.


(sarcasm alert!!!!)
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/15/2009 6:44am
4/15/2009 6:44am
flarider wrote:
The average dealership makes no where near the money people think they do
TomZ wrote:
So true.......

Although i was just out at the counter as someone set a jug of Engine Ice on the counter........that helps.
My wife and kids thank you

(me too)
yzvet426
Profile picture for user yzvet426
Posts
864
Joined
5/12/2008
Location
Lake Zurich, IL, USA
yzvet426 4/15/2009 7:13am
4/15/2009 7:13am
Word on Tuff is Andy bought a second dealership at the wrong time. Just as the bottom dropped on the economy and it took him down. . There are rumors about some financing issues with the stuff on the floor. Andy is a great guy though and I hope it all works out for him. Tuff sponsord allot of stuff here and they will be missed. It'll be interesting to see how the sport does this year.
slomoto
Profile picture for user slomoto
Posts
380
Joined
4/1/2008
Location
San Luis Obispo, CA, USA
slomoto 4/15/2009 7:26am
4/15/2009 7:26am
5 of 7 shops in our county have closed in less than a year
bogdan912
Profile picture for user bogdan912
Posts
2722
Joined
8/15/2006
Location
Estell Manor, NJ, USA
bogdan912 4/15/2009 8:21am
4/15/2009 8:21am
flarider wrote:
The average dealership makes no where near the money people think they do
TomZ wrote:
So true.......

Although i was just out at the counter as someone set a jug of Engine Ice on the counter........that helps.
flarider wrote:
My wife and kids thank you

(me too)
I refuse to fix a blown head gasket in my practice bike and instead just feed it bottle after bottle of engine ice. You're welcome.
tcannon521 4/15/2009 8:21am
4/15/2009 8:21am
slomoto wrote:
5 of 7 shops in our county have closed in less than a year
How big is your county or metro area?
jeffro756
Profile picture for user jeffro756
Posts
751
Joined
4/20/2008
Location
Sycamore, IL, USA
jeffro756 4/15/2009 8:27am
4/15/2009 8:27am Edited Date/Time 4/16/2016 11:24pm
I live in Sycamore, but haven't been by tuf in several weeks so I didn't notice. It is a bummer, certainly the best dealership in this area for moto. Those guys did work on several of my bikes and were always good people to deal with even though I probably didn't spend enough there to warrant any special treatment. Bummer for all I guess, especially the moto guys in the area.

The problem around here is that a lot of the shops are so focused on street that the techs don't know anything about working on moto, makes it a little scary when you drop the bike off!
NB304
Profile picture for user NB304
Posts
166
Joined
4/1/2008
Location
Jackson, MI, USA
NB304 4/15/2009 8:34am
4/15/2009 8:34am
parts has been doing pretty good at the shop i work at. Sales have been picking up a little from over the winter but we are not making any money. Like you guys said if we didn't have parts and service we would be done. the sales department has not been profitable for months as we try to get rid of old inventory. Snowmobile and Jet ski sales are horrible from all the new tech pushing the prices beyond what people can afford to spend on a toy! Motocross sales have been bad for us since the 4-stroke switch for some reason. We used to not be able to keep yz-250/125s in stock. I think cruiser sales will be good this summer. Used bikes have been hot so far. We have bought more clean used bikes at repo auctions than we ordered new 09 stuff. We can sell them at a good price and make good money. Which is good for us and our customers.
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/15/2009 8:50am
4/15/2009 8:50am
NB304 wrote:
parts has been doing pretty good at the shop i work at. Sales have been picking up a little from over the winter but we are...
parts has been doing pretty good at the shop i work at. Sales have been picking up a little from over the winter but we are not making any money. Like you guys said if we didn't have parts and service we would be done. the sales department has not been profitable for months as we try to get rid of old inventory. Snowmobile and Jet ski sales are horrible from all the new tech pushing the prices beyond what people can afford to spend on a toy! Motocross sales have been bad for us since the 4-stroke switch for some reason. We used to not be able to keep yz-250/125s in stock. I think cruiser sales will be good this summer. Used bikes have been hot so far. We have bought more clean used bikes at repo auctions than we ordered new 09 stuff. We can sell them at a good price and make good money. Which is good for us and our customers.
You seem to be pretty much the norm for right now.
Congrats
lumpy790
Profile picture for user lumpy790
Posts
11618
Joined
9/18/2007
Location
York, SC, USA
lumpy790 4/15/2009 9:03am
4/15/2009 9:03am Edited Date/Time 4/16/2016 11:24pm
Hey Tom....... thanks for guiding Nick at US 27 Motorsports my way. They are now stocking our Muffler Sliders for the MI road racers.

My product sales are up since the prez took office.....normal trend on election years........and I have increased advertising in MXA & RX.

I worked at a dealership many years ago that was doing the same thing with the bike crates. This must be a last ditch effort to stash cash as they too went under just after they were caught by the flooring company. I was in service and the warranty claims started bouncing as the unit was showing in the manufacturers system as not being sold. The owner also did huge spring dating orders and had a blow out sale on all the products and screwed TR & PU.

Pit Row

See All »
Trinitite
Profile picture for user Trinitite
Posts
1253
Joined
12/31/2007
Location
Pittsburgh, PA, USA
Trinitite 4/15/2009 9:11am
4/15/2009 9:11am
What's a "flooring company"?
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/15/2009 9:37am
4/15/2009 9:37am
Trinitite wrote:
What's a "flooring company"?
Dealers don't pay cash to inventory new bikes, they finance them with what's called a "floor plan"

They floor plan (finance) the bikes to the dealer until sold, then dealer pays flooring company as well as a small finance fee for the service
lumpy790
Profile picture for user lumpy790
Posts
11618
Joined
9/18/2007
Location
York, SC, USA
lumpy790 4/15/2009 9:38am
4/15/2009 9:38am
A flooring co is who owns the bikes you see in most dealerships car or motorcycle. They hold the note and the dealerships pay them interest every month.
xnationalwrench 4/15/2009 9:40am
4/15/2009 9:40am
A flooring company actually owns the bikes the dealer buys and then charges a fee to the dealer till its sold, when its sold they want it to be paid off in full. They send out people to check each dealers inventory to confirm the unit hasn't been sold by vin number of each unit. Flooring is done on most large dollar items, cars, rv's motorcycles, snowmobile, jet skis.
williamsmotowerx 4/15/2009 9:41am
4/15/2009 9:41am
Trinitite wrote:
What's a "flooring company"?
The "bean counters"

A financial group that the dealer uses to finance his bike inventory. They have guys that come around once a month and have to check every serial number and account for every bike on their list that is financed through them.

If that bike is missing they have a short amount of time to either pay for it or get it back in the shop and prove that it's still owned by dealer.
williamsmotowerx 4/15/2009 9:44am
4/15/2009 9:44am
Lol, we all must have been typing at the same time... I guess I'm the slowest typer!
flarider
Profile picture for user flarider
Posts
25496
Joined
4/1/2008
Location
Daytona Beach, FL, USA
flarider 4/15/2009 9:51am
4/15/2009 9:51am
They put inventory "on the floor"
lumpy790
Profile picture for user lumpy790
Posts
11618
Joined
9/18/2007
Location
York, SC, USA
lumpy790 4/15/2009 9:51am
4/15/2009 9:51am
Grinning At least we all said the same thing in our own way.
Trinitite
Profile picture for user Trinitite
Posts
1253
Joined
12/31/2007
Location
Pittsburgh, PA, USA
Trinitite 4/15/2009 10:14am
4/15/2009 10:14am
Thanks all. I didn't know that's how it worked.
oldx
Profile picture for user oldx
Posts
3046
Joined
8/16/2006
Location
Camano Island, WA, USA
oldx 4/15/2009 10:28am
4/15/2009 10:28am
Most all business owners are suffering right now. Its time to support those you want to see stay in business.
rmgsxr
Profile picture for user rmgsxr
Posts
544
Joined
4/1/2008
Location
Oak Grove, MO, USA
rmgsxr 4/15/2009 10:48am
4/15/2009 10:48am
About 15 years ago our floor plan "checkers" started pushing on crates and cutting some of them open just to see if there was something in there. They also check MSOs to make sure they are not double floored. They even move some of the checkers around alittle more than they used to so they didn't become to good of buddies with the people at the dealerships. It is amazing what a place can get rid of in one month(in between floor plan checks) if they want to.

Dave we have had a huge parts inventory and very good techs for years. Anymore parts and service don't cover it as nice as it used to. I look at what we spend each month that we didn't use to 15 years ago and its scary. Lightspeed(computer software support and updates), health insurance(that we did to keep good employees), and even something as simple as a web site. There are just way more expenses than what we used to have. It would be nice to have the major unit sales also. And what has already been mentioned is that we are really working the used bikes. They fit alot more budgets lately.
BobbyM
Profile picture for user BobbyM
Posts
21437
Joined
8/15/2006
Location
USA
BobbyM 4/15/2009 10:53am
4/15/2009 10:53am
davis224 wrote:
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to...
Corrupttion at its finest... I heard some reasons why they got shut down, and more as to why a few more around here are about to go under. Not gonna say which ones, but a current dealer's manager, owner, whatever, has been pocketing the moeny from cash sales, then re-building the crates and covering them back up acting as if they still have the bike to fool the banks. That was the hot topic a while back 'round here.
another bush influenced economic casualty....what a great prez that bush boy was.

afuckingmazin

Post a reply to: Tuf Powersports closed