The Stealership Trap- Video from FortNine

Matt Fisher
Edited Date/Time 3/30/2022 2:45pm
Another excellent video from FortNine

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MX Culture
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MX Culture 3/28/2022 7:32am
3/28/2022 7:32am
Idk about excellent, that guy is very hard to watch/listen to.
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Crossup
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Crossup 3/28/2022 8:20am
3/28/2022 8:20am
Interesting framework of the manufacturer-dealer relationship. I don't see any depth in the video about the real issues facing dealers and consumers, or any solutions. What are the actual landed costs of a particular motorcycle (landed at the countries distributor) in relation to their sale price to dealers and the MSRP? Without floor planning, how many dealers would be able to finance inventory?

I think there's also little bit of naivete in what he said near the end. "Bikes come in black and black"... "but if the manufacturers sold direct we can choose the color we want". Any idea how long it would take to get to a bike painted the way he wants from the manufacturer... in India, China, Japan, Austria?
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three9zero
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three9zero 3/28/2022 8:30am
3/28/2022 8:30am
Fort nine is the walmart of the Canadian motocycles accessories business.
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Juck
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Juck 3/28/2022 8:55am
3/28/2022 8:55am
three9zero wrote:
Fort nine is the walmart of the Canadian motocycles accessories business.
I can't speak on the accuracy of that statement but his/their content is probably the best motorcycle journalism (in video form) available
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The Shop

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BigBoreFan58
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BigBoreFan58 3/28/2022 10:15am
3/28/2022 10:15am
I can confirm a lot of that he said. I'm not an industry insider, but I've been a rider for 50 years. I've spent some time in MC shops, got to know and visit with a lot of owners.

The part about the dealer being the customer, the dealer getting models they cannot sell, the desire for the dealer to have a nice new shiny building, I've those arguments many times.

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Falcon
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Falcon 3/28/2022 1:18pm
3/28/2022 1:18pm
Crossup wrote:
Interesting framework of the manufacturer-dealer relationship. I don't see any depth in the video about the real issues facing dealers and consumers, or any solutions. What...
Interesting framework of the manufacturer-dealer relationship. I don't see any depth in the video about the real issues facing dealers and consumers, or any solutions. What are the actual landed costs of a particular motorcycle (landed at the countries distributor) in relation to their sale price to dealers and the MSRP? Without floor planning, how many dealers would be able to finance inventory?

I think there's also little bit of naivete in what he said near the end. "Bikes come in black and black"... "but if the manufacturers sold direct we can choose the color we want". Any idea how long it would take to get to a bike painted the way he wants from the manufacturer... in India, China, Japan, Austria?
If you know what the dealer cost is when compared to MSRP, then you have an idea what the landed cost is when compared to dealer cost. The gap, as a percentage, is similar. Landed may vary more than dealer net, however, as the parent company sometimes manipulates the profitability of the distributor for various reasons.
johnk408
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johnk408 3/28/2022 3:06pm
3/28/2022 3:06pm
Hard to watch as he looks like a junior high student but sounds like a grandpa.
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dcg141
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dcg141 3/28/2022 3:38pm
3/28/2022 3:38pm
I own a dealership and it’s very accurate. He is only covering the relationship with the manufacturer also. There is flooring company that calls for new sets of financials every couple months. The state vehicle commission and revenue dept. We had a sales tax audit that lasted 2 weeks with the auditor in every day. That part of the business is complicated and the numbers can keep you up at night. The parts and accessories end by comparison is brutally simple. It’s why I never abandoned that end.
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Fouled Plug 3/28/2022 3:45pm
3/28/2022 3:45pm
It drives me nuts when people take a little knowledge and run with it like they are experts. He is close but not quite. The numbers vary from manufacturer to manufacturer. Free floor plan for 30 days? All dealers would be sunk if that was the case. Just wrong on so many accounts. He has a general idea of how it works and that is it. Go work in a shop for a few years before you preach to the masses.
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Magoofan
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Magoofan 3/28/2022 4:40pm
3/28/2022 4:40pm
MX Culture wrote:
Idk about excellent, that guy is very hard to watch/listen to.
Man....I thought I was the only one. I can't stand the guys smarmy delivery.

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Matt Fisher 3/28/2022 8:38pm
3/28/2022 8:38pm
MX Culture wrote:
Idk about excellent, that guy is very hard to watch/listen to.
Magoofan wrote:
Man....I thought I was the only one. I can't stand the guys smarmy delivery.

Funny; his delivery and subtle humor keep me watching. I can't stand the usual over-hyped videos of today, the yelling and over the top nonsense is commonplace.
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Sawfish
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Sawfish 3/28/2022 8:50pm
3/28/2022 8:50pm
I think most of us have seen shops come and go. It’s a labor of love, unfortunately. Very few people are getting rich running a moto or bicycle shop.
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JG463
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JG463 3/28/2022 8:52pm
3/28/2022 8:52pm
Fouled Plug wrote:
It drives me nuts when people take a little knowledge and run with it like they are experts. He is close but not quite. The numbers...
It drives me nuts when people take a little knowledge and run with it like they are experts. He is close but not quite. The numbers vary from manufacturer to manufacturer. Free floor plan for 30 days? All dealers would be sunk if that was the case. Just wrong on so many accounts. He has a general idea of how it works and that is it. Go work in a shop for a few years before you preach to the masses.
HD doesn’t offer free flooring to any dealer.
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Bnagazina 3/28/2022 10:45pm
3/28/2022 10:45pm
I worked for BRP finance providing floor plan financing. On units that move, there wasn’t 30 days free floorplan, but if you were forced to take units that weren’t moving, the finance arm would incentivize the dealer by offering 0% floorplan on those units for a specific period.
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McG194
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McG194 3/29/2022 9:06am
3/29/2022 9:06am
To say he bugs me is an understatement.


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Hudd_421
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Hudd_421 3/29/2022 9:29am
3/29/2022 9:29am
McG194 wrote:
To say he bugs me is an understatement. [img]https://p.vitalmx.com/photos/forums/2022/03/29/541055/s1200_fortnine.jpg[/img]
To say he bugs me is an understatement.


Oh wow you told him. You totally owned him with "bugs me is an understatement"....
Your meme is unwarranted self-congratulatory

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Blackie59
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Blackie59 3/29/2022 10:21am
3/29/2022 10:21am
To all of us non-business owning readers, what exactly is free flooring?
Atkinson
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Atkinson 3/29/2022 10:25am
3/29/2022 10:25am
Blackie59 wrote:
To all of us non-business owning readers, what exactly is free flooring?
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
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Pit Row

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McG194
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McG194 3/29/2022 10:44am
3/29/2022 10:44am
Blackie59 wrote:
To all of us non-business owning readers, what exactly is free flooring?
Atkinson wrote:
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and...
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
Further to help consumers from a negotiating standpoint every month the dealer pays a portion of that note, it is known in the business as the vehicle's birthday. The more birthdays a vehicle has on the showroom the more likely you are to be able to negotiate a better deal. Obviously in these days of shortages everywhere the idea of a deal is out the window unless you are looking at a very unloved vehicle.
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gt80rider
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gt80rider 3/29/2022 11:37am
3/29/2022 11:37am
Atkinson wrote:
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and...
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
Why wouldn't a dealer just own his inventory....?
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McG194
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McG194 3/29/2022 12:01pm
3/29/2022 12:01pm
Atkinson wrote:
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and...
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
gt80rider wrote:
Why wouldn't a dealer just own his inventory....?
OPM
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scott_nz 3/29/2022 12:07pm
3/29/2022 12:07pm
gt80rider wrote:
Why wouldn't a dealer just own his inventory....?
Why would you pay up front for it when you could get 30-180 days interest free.

A lot of capital needed of stock a multi line dealership ,
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PracticeChamp141 3/29/2022 12:25pm
3/29/2022 12:25pm
This was actually great insight, even if it’s not 100% accurate. I hate dealerships, cars or motorcycles. At least now I can slightly understand the associated cost. I always wanted a bike in a crate, considering I’m tearing it down anyway. I know it’s liability, however the 100 other buried fee’s to cover the “free” oil change now makes sense. They won’t even give numbers over the phone. Come in and talk to me, lets make a deal. “I’m not making any money on this one”.
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Nate_Z
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Nate_Z 3/29/2022 12:27pm
3/29/2022 12:27pm
I usually like FortNine's content and there were a few themes that he is correct with, however, I thought the overall storytelling arc in this one was not very good. One example, given how these dealer networks have evolved over the years, the OEM's have established their production lines to align. Changing the selling model may be feasible at the dealer level, however, it requires much more change upstream in the supply chain.
Falcon
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Falcon 3/29/2022 1:31pm
3/29/2022 1:31pm
Atkinson wrote:
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and...
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
gt80rider wrote:
Why wouldn't a dealer just own his inventory....?
Because most dealers do not have $20 Million dollars to buy a fleet of vehicles with. And if they do, they're better off flooring the vehicles and investing the money somewhere better.
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7eleven
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7eleven 3/29/2022 2:28pm
3/29/2022 2:28pm
MX Culture wrote:
Idk about excellent, that guy is very hard to watch/listen to.
I used to watch him do tire reviews, I like the guy. He's probably Canadian, that's all.
7eleven
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7eleven 3/29/2022 2:45pm
3/29/2022 2:45pm
I was part of a Daimler (Mercedes Benz Owner) floor plan of 3 million. We would have to pay roughly $250 per month, per Sprinter to carry the inventory. At the end of 12 months, the balance was due in full for the vehicle.

I would blow Sprinters out for cost or sometimes take a loss, just to get the unit off the floor plan.

In other words, if you are into the last years model, you can negotiate a banger of a deal if you play the game right!
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JG463
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JG463 3/29/2022 7:50pm
3/29/2022 7:50pm
Alright… finally tried to watch the video. For someone who has operated multiple dealerships and most manufacturers, and currently operates a dealership, that was painful. Misleading.

Who is this guy anyways?
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three9zero
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three9zero 3/30/2022 5:35am
3/30/2022 5:35am
JG463 wrote:
Alright… finally tried to watch the video. For someone who has operated multiple dealerships and most manufacturers, and currently operates a dealership, that was painful. Misleading...
Alright… finally tried to watch the video. For someone who has operated multiple dealerships and most manufacturers, and currently operates a dealership, that was painful. Misleading.

Who is this guy anyways?
https://fortnine.ca/en/
mattyhamz2 3/30/2022 6:03am
3/30/2022 6:03am
Atkinson wrote:
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and...
The dealership is basically financing the machine from the manufacture until it sells, so hes saying you would have 30 days interest free to try and move a machine, and then after the 30 days the dealer starts paying interest.
gt80rider wrote:
Why wouldn't a dealer just own his inventory....?
Words is Chaparral does this. I’ve been told they are one of the only shops to own every motorcycle on their showroom floor.

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