Please support local dealers, it trickles down to you...

MxAddic
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11/4/2024 10:53am
soggy wrote:

around here sponsoring local race series.  running mini/kids night racing series, sponsoring tracks.  Helping racers get to loretta's/qualifiers.  Not sure what they do around you.

Maybe you should read what I post before bitching about it. After years of commitment they do zero.

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3strokemx
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11/4/2024 11:02am
Spooner wrote:

Service departments.

That's what I was getting at.........if I was a powersports dealer instead of trying to compete with the online parts sellers I'd focus on having a strong service department.

LungButter
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11/4/2024 11:06am
MxAddic wrote:

Maybe you should read what I post before bitching about it. After years of commitment they do zero.

You're probably the guy who thinks he deserves huge discounts and a bunch of free stuff because "I race bro."

Newsflash, you idling around and getting 2nd out 4 dudes in the over 50 C Class ain't bringing your local shop any customers.

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3strokemx
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11/4/2024 11:07am
Rickyisms wrote:

Quantity of sales is a huge factor. You can’t really be that dense can you?

The point was low margins are not the death of powersports dealerships. Their margins might not be great but there are similar businesses with lower margins. 

If local dealerships can't compete in Parts, they don't make anything in Sales, then they need to have strong Service and Finance depts. 
To the original poster, developing dealerships to adapt to the present is more sustainable than asking core customers to pay 10% more.

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The Shop

APLMAN99
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11/4/2024 11:12am
lumpy790 wrote:

Because MC industry margins are low to begin with and everyone walking through the door wants a 10-30% discount on everything. 

3strokemx wrote:

If that's an issue, how do Ford dealerships stay in business with their ~2% profit margin on most new vehicles?

Used cars, service, and financing.  

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3strokemx
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11/4/2024 11:13am
JazzyJJ wrote:

Do you really think that comparing a moto dealer to a Ford store that sells thousands of cars a year is the same?

No, not the same but similar. A powersports dealer would have less overhead to match their reduced sales volume. The point being, how does a place like a car dealership make money and could that be applied to the powersports business?  Finance dept and service dept come to mind.  

I'm sure there are other creative ways a powersport dealer could build their business that doesn't rely on donations  from the motocross community. 

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LungButter
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11/4/2024 11:14am
3strokemx wrote:
No, not the same but similar. A powersports dealer would have less overhead to match their reduced sales volume. The point being, how does a place...

No, not the same but similar. A powersports dealer would have less overhead to match their reduced sales volume. The point being, how does a place like a car dealership make money and could that be applied to the powersports business?  Finance dept and service dept come to mind.  

I'm sure there are other creative ways a powersport dealer could build their business that doesn't rely on donations  from the motocross community. 

Who asked the moto community to make donations?

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3strokemx
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11/4/2024 11:17am
lumpy790 wrote:
Automotive operates very differently that the MC industry does and so far they have not been good for the MC industry’s operation. Dealerships taken over by...

Automotive operates very differently that the MC industry does and so far they have not been good for the MC industry’s operation. Dealerships taken over by automotive have a very different feel to them. Just like walking into a car dealership.

As far as I know PU is the last family owned distributor not taken over by a automotive group.

I agree, it's like they borrowed all the worst aspects from auto and brought them to powersports 😁.

IMO That's a symptom of someone "managing" with a spreadsheet instead of running a business from the inside.

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APLMAN99
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11/4/2024 11:19am
JazzyJJ wrote:

Do you really think that comparing a moto dealer to a Ford store that sells thousands of cars a year is the same?

3strokemx wrote:
No, not the same but similar. A powersports dealer would have less overhead to match their reduced sales volume. The point being, how does a place...

No, not the same but similar. A powersports dealer would have less overhead to match their reduced sales volume. The point being, how does a place like a car dealership make money and could that be applied to the powersports business?  Finance dept and service dept come to mind.  

I'm sure there are other creative ways a powersport dealer could build their business that doesn't rely on donations  from the motocross community. 

I don't think that you have any idea on the profitability of used cars and subprime financing of items that are higher priced than motorcycles.   Motorcycle dealerships don't really have the same number of profit centers as a car dealership at all.  They may seem to be the same businesses, but they are definitely not.  

I would guess that most motorcycle dealerships sell at least 60-70% of their units new.  A lot of car dealerships are closer to 15-20% new, and the rest used.  Any salesman worth their salt would most likely sell a used car over a new car any day of the week.  At least if they are on commission......!

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3strokemx
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11/4/2024 11:21am
LungButter wrote:

Who asked the moto community to make donations?

It was in the original post
"For those dealers that have the local kids racing behind the counter, please pay that extra 10%, please create the relationship to those good kids working to pay entry fees, if it's there. Those are the dealers that want to help you, and deserve your business. "

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3strokemx
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11/4/2024 11:25am
APLMAN99 wrote:
I don't think that you have any idea on the profitability of used cars and subprime financing of items that are higher priced than motorcycles.  ...

I don't think that you have any idea on the profitability of used cars and subprime financing of items that are higher priced than motorcycles.   Motorcycle dealerships don't really have the same number of profit centers as a car dealership at all.  They may seem to be the same businesses, but they are definitely not.  

I would guess that most motorcycle dealerships sell at least 60-70% of their units new.  A lot of car dealerships are closer to 15-20% new, and the rest used.  Any salesman worth their salt would most likely sell a used car over a new car any day of the week.  At least if they are on commission......!

That's what I'm talking about, the powersports industry could be making more money with financing, especially used SxS and street bikes.  I haven't seen the books but I expect that's how the Automotive group owned dealerships are able to continue while they are subpar in all other areas.

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LungButter
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11/4/2024 11:25am
3strokemx wrote:
It was in the original post"For those dealers that have the local kids racing behind the counter, please pay that extra 10%, please create the relationship...

It was in the original post
"For those dealers that have the local kids racing behind the counter, please pay that extra 10%, please create the relationship to those good kids working to pay entry fees, if it's there. Those are the dealers that want to help you, and deserve your business. "

That's not asking for a donation, that's just saying to be willing to pay a little extra to support your dealer rather than saving $3 by going to RockyMountain or MotoSport.

But hey, this is moto and it's the biggest group of cheapskates who think they deserve free shit that ever assembled so I'm not surprised to see push back.

 

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3strokemx
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11/4/2024 11:37am
LungButter wrote:
That's not asking for a donation, that's just saying to be willing to pay a little extra to support your dealer rather than saving $3 by...

That's not asking for a donation, that's just saying to be willing to pay a little extra to support your dealer rather than saving $3 by going to RockyMountain or MotoSport.

But hey, this is moto and it's the biggest group of cheapskates who think they deserve free shit that ever assembled so I'm not surprised to see push back.

 

Oh you're right, doesn't sound anything like a donation 🤣

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APLMAN99
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11/4/2024 11:43am
APLMAN99 wrote:
I don't think that you have any idea on the profitability of used cars and subprime financing of items that are higher priced than motorcycles.  ...

I don't think that you have any idea on the profitability of used cars and subprime financing of items that are higher priced than motorcycles.   Motorcycle dealerships don't really have the same number of profit centers as a car dealership at all.  They may seem to be the same businesses, but they are definitely not.  

I would guess that most motorcycle dealerships sell at least 60-70% of their units new.  A lot of car dealerships are closer to 15-20% new, and the rest used.  Any salesman worth their salt would most likely sell a used car over a new car any day of the week.  At least if they are on commission......!

3strokemx wrote:
That's what I'm talking about, the powersports industry could be making more money with financing, especially used SxS and street bikes.  I haven't seen the books...

That's what I'm talking about, the powersports industry could be making more money with financing, especially used SxS and street bikes.  I haven't seen the books but I expect that's how the Automotive group owned dealerships are able to continue while they are subpar in all other areas.

I know you think it sounds good in your head, but again these things are not close to the same.  The average unit price for a car dealership is quite a bit higher, the number of units sold is quite a bit higher, etc.  I think (don't know for sure but have a strong suspicion) that less people trade in their motorcycles overall than do car owners, so the pool of used bikes to sell is not as great.  Very few people that I know go to a dealer to buy a used motorcycle outside of a few Harley stores, etc.  

The motorcycle and auto dealership models are not as similar as you might think.  

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Falcon
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11/4/2024 12:03pm

I'm far enough removed from my sponsorship days that I don't enjoy a discount on too many things anymore. The stuff I can't get directly from an old sponsor, I'll go buy at Langston Motorsports. It's literally Grant's mom & pop who run that place (Grant's involved, too,) and they are cool AF. Small shop feel, but well-stocked and very moto-centric. 

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3strokemx
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11/4/2024 12:04pm
APLMAN99 wrote:
I know you think it sounds good in your head, but again these things are not close to the same.  The average unit price for a...

I know you think it sounds good in your head, but again these things are not close to the same.  The average unit price for a car dealership is quite a bit higher, the number of units sold is quite a bit higher, etc.  I think (don't know for sure but have a strong suspicion) that less people trade in their motorcycles overall than do car owners, so the pool of used bikes to sell is not as great.  Very few people that I know go to a dealer to buy a used motorcycle outside of a few Harley stores, etc.  

The motorcycle and auto dealership models are not as similar as you might think.  

Yes there are differences and I wasn't trying to prescribe a playbook for all powersports dealerships. 

I was trying to highlight that there are ways they can make money in the current era, which is counter to the OP insinuating that all locally owned powersports dealers are struggling and can only be saved by core riders paying more for less.

I know of a few dealers thriving thanks to financing (and add-ons) as well as an active service dept.

There are quite a few trade ins and don't forget repo's, Especially sport bikes in the urban areas.
 

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mb60
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11/4/2024 12:18pm

Most dealerships are owned and ran by non moto people. If I could but a bike from a online distribution company I would do it in a heartbeat. Very few motocross dealers left that are true racing shops. 

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LungButter
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11/4/2024 12:41pm
3strokemx wrote:

Oh you're right, doesn't sound anything like a donation 🤣

So if a hammer costs $5 at Lowes and $7 at Home Depot.  If you purchase the hammer at Home Depot is that extra $2 a donation in your eyes?

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11/4/2024 12:42pm
Rickyisms wrote:

Quantity of sales is a huge factor. You can’t really be that dense can you?

3strokemx wrote:
The point was low margins are not the death of powersports dealerships. Their margins might not be great but there are similar businesses with lower margins. If...

The point was low margins are not the death of powersports dealerships. Their margins might not be great but there are similar businesses with lower margins. 

If local dealerships can't compete in Parts, they don't make anything in Sales, then they need to have strong Service and Finance depts. 
To the original poster, developing dealerships to adapt to the present is more sustainable than asking core customers to pay 10% more.

You should work at a Moto dealer for a year so you can understand the sales numbers that are going on there annually. You’ll quickly understand why the automotive approach would quickly kill every dealer you tried it in. 

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Team403
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11/4/2024 12:46pm

Guess I’m lucky we have a real good local KTM group dealer here in Austin.   They are racers , support racers, support local series’,  and best of all the only sell 2 wheels and mainly dirt bikes - TJs Cycles does it right…

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3strokemx
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11/4/2024 12:54pm
LungButter wrote:
So if a hammer costs $5 at Lowes and $7 at Home Depot.  If you purchase the hammer at Home Depot is that extra $2 a...

So if a hammer costs $5 at Lowes and $7 at Home Depot.  If you purchase the hammer at Home Depot is that extra $2 a donation in your eyes?

Voluntarily paying more for the same product and service because of an ideology you hold,........... yes, also could be called Gratuity or a tip.  

Go for it, I'm not telling you not to do it. I do it all the time.

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3strokemx
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11/4/2024 1:19pm
Rickyisms wrote:
You should work at a Moto dealer for a year so you can understand the sales numbers that are going on there annually. You’ll quickly understand...

You should work at a Moto dealer for a year so you can understand the sales numbers that are going on there annually. You’ll quickly understand why the automotive approach would quickly kill every dealer you tried it in. 

I've worked in dealerships..........

What specifically are you saying I endorsed as the automotive approach? 

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MxAddic
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11/4/2024 1:20pm
sandman768 wrote:
I spread it around to my local dealers….1 shop I bought my new bikes from, while another I bought the majority of my aftermarket parts from...

I spread it around to my local dealers….1 shop I bought my new bikes from, while another I bought the majority of my aftermarket parts from because he has a very good stock of parts…tires, chain & sprockets, oils, goggles….and that shop operates a great practice track right on his property…. So I definitely want him to be successful….. Hard to beat RMC for oem parts…

I agree. Mike Parker is a solid dude. I buy what I can from him but it is too far to be practical every day. He has always treated me great and he don't care if I am fast or slow. I have never asked him for a discount on anything. He guarantees the lowest prices on Dunlops on the planet.

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fourfourone
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11/4/2024 1:22pm
MxAddic wrote:

Maybe you should read what I post before bitching about it. After years of commitment they do zero.

LungButter wrote:
You're probably the guy who thinks he deserves huge discounts and a bunch of free stuff because "I race bro."Newsflash, you idling around and getting 2nd...

You're probably the guy who thinks he deserves huge discounts and a bunch of free stuff because "I race bro."

Newsflash, you idling around and getting 2nd out 4 dudes in the over 50 C Class ain't bringing your local shop any customers.

But he's a podium guy! 😂

MxAddic
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11/4/2024 1:29pm

But he's a podium guy! 😂

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sandman768
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11/4/2024 1:43pm
MxAddic wrote:
I agree. Mike Parker is a solid dude. I buy what I can from him but it is too far to be practical every day. He...

I agree. Mike Parker is a solid dude. I buy what I can from him but it is too far to be practical every day. He has always treated me great and he don't care if I am fast or slow. I have never asked him for a discount on anything. He guarantees the lowest prices on Dunlops on the planet.

… I live 20 mins away from Parker….he is great to deal with, nothing like picking up your parts the same place you are going riding at…. Not to mention he puts 100% effort into his track. 

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Dave v3.0
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11/4/2024 2:59pm

I'm lucky to have 4 family owned shops within an hour of me, 3 of which I have had at least a 50 year relationship with.  All of them are on their 2nd or 3rd generation owners having been passed down thru their families since the 1960's.  I have no doubt that without Quads and SXS they would have ceased to exist 20 years ago. Motorcycle sales haven't been good around here for a LONG time.

They are all hanging on by a thread and the thread is frayed.  If the economy doesn't improve and disposable income doesn't rebound I hate to think of the inevitable outcome for them.  The deck is stacked against small business these days.

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jmo443
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11/4/2024 3:56pm

New out to this area in az. Wanted to buy a 110 for fun. Called up a bunch of dealers within a hour. The price went from $3,500 over msrp to most places being around $1,000 over. Called the place a mile from me they wanted $750 over. Called this place after all the other shops to buy at this price. Guy gave me the price and it was $150 under msrp somehow…. That was out the door. Both times I spoke to that dealer was with the same salesman also. So yeah I will avoid dealers like the plague. 

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FGR01
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11/4/2024 7:27pm
jmo443 wrote:
New out to this area in az. Wanted to buy a 110 for fun. Called up a bunch of dealers within a hour. The price went...

New out to this area in az. Wanted to buy a 110 for fun. Called up a bunch of dealers within a hour. The price went from $3,500 over msrp to most places being around $1,000 over. Called the place a mile from me they wanted $750 over. Called this place after all the other shops to buy at this price. Guy gave me the price and it was $150 under msrp somehow…. That was out the door. Both times I spoke to that dealer was with the same salesman also. So yeah I will avoid dealers like the plague. 

Yeah, but isn't it cool paying $300 "Doc fee" so they can have the local notary do $20 of paperwork and paying the $600 setup feel so they can pay some minimum wage kid $20 to put on the handlebars and front wheel and then you can go home and strip the entire bike and do it correctly yourself?

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MotoDad32
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11/5/2024 5:28am
MxAddic wrote:
My local mega brand dealer stocks zero bike specific parts. That means 2 trips for the most mundane part. They didn’t even have a tube for...

My local mega brand dealer stocks zero bike specific parts. That means 2 trips for the most mundane part. They didn’t even have a tube for an 80cc bike. Combine that with the fact of pulling discounts from muti-year/bike customs they can swing as there is zero in it for me.

That's my biggest issue as well with my local dealer.  Do you have brake pads for my 2025 KTM 230 SX-F?  Nope, but I can get them tomorrow for you.  WTF.   

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