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[harley56]

I would beg to differ there, Sir.  One of my close friends happens to be Harley Dealer, and we have shared information about the nature of our businesses, as I am a Western Star Truck Dealer.  It is every Dealers dream to have 100% absorption rate from parts and service, leaving sales as gravy.  I know for a fact HD has more mark-up on parts than I do.  I also know HD MSRP holds an attractive profit margin for the Dealer.  While nothing happens in the beginning until a Motorsickle or Truck is sold in our businesses, we now both enjoy the rewards of years of hard work and treating people right, and have our Parts and Service Departments paying the bills.  While anybody can sell a Motorsickle or Truck, or anything for that matter, one time, it's the repeat and referral business that makes one strong.  When a person finds out his a$$ been set to fire, he usually doesn't come back for more.  In any Dealership, the money is made in the Shop.  When you tilt the beam, and try to make it all on sales, one is doomed for failure.  It just won't last.  Not where I'm from, anyway.  There  endeth the lesson.  Later--HUBBARD             

Thanks for the response Hubbard - I respect your beg to differ and I'm not a sir, but I appreciate the formality   First off, I am in complete agreement with your words and the lesson that can be learned from what happened to Santa Cruz.  I'm not sure if you're calling me out, or not, but I too happen to be a harley dealer also and have some knowledge of what is takes to be profitable these days, at least here in California.  I do not know your mark-up on parts.  Harley's margin on accessories and motorclothes is more along the lines of 35%.  When you're turning items twice a year, that will not substantially cover the overhead.  I agree, harley msrp allows for a fair profit margin and I believe premium pricing has no place at a harley dealership.  The reality is motorcycle sales accounts for approximately 65%+ of a dealer's revenues.  There are not many, if any, dealers in California who can quite selling motorcycles for a profit and remain profitable regardless of what your friend is able to do with his dealership.  I invite you to lose one-half of 65% of your revenues and see how well your bottom line looks. We happen to be in the top 10% in customer satisfaction per Harley-Davidson and take great pride in customer relationships, so please don't lecture me on service and the shop - again I agree!  That is primary to doing things the right way, but service, parts, accessories and motorclothes revenues cannot support the business in our wonderful area - period!

[sadunbar]

Thanks for the response Hubbard - I respect your beg to differ and I'm not a sir, but I appreciate the formality   First off, I am in complete agreement with your words and the lesson that can be learned from what happened to Santa Cruz.  I'm not sure if you're calling me out, or not, but I too happen to be a harley dealer also and have some knowledge of what is takes to be profitable these days, at least here in California.  I do not know your mark-up on parts.  Harley's margin on accessories and motorclothes is more along the lines of 35%.  When you're turning items twice a year, that will not substantially cover the overhead.  I agree, harley msrp allows for a fair profit margin and I believe premium pricing has no place at a harley dealership.  The reality is motorcycle sales accounts for approximately 65%+ of a dealer's revenues.  There are not many, if any, dealers in California who can quite selling motorcycles for a profit and remain profitable regardless of what your friend is able to do with his dealership.  I invite you to lose one-half of 65% of your revenues and see how well your bottom line looks. We happen to be in the top 10% in customer satisfaction per Harley-Davidson and take great pride in customer relationships, so please don't lecture me on service and the shop - again I agree!  That is primary to doing things the right way, but service, parts, accessories and motorclothes revenues cannot support the business in our wonderful area - period!

Just because I am curious, what MOCO dealership is yours?   

[hard10]

...

The other side to that, of course, is that perhaps the geographic area was too congested for its market.  So something may need to die and everyone and everything else is better in the long run for it...  As painful as it might be some businesses are going to fail though.

As the word of the automobile industry collapsing restructuring becomes apparent, many auto dealers are going to close. As of last week, 600 dealerships nationwide have closed. Rjobs & I have discussed this in another thread. Harley now has ~700+ dealerships in the US. It makes one wonder what the saturation point is? How many dealers are too many? Miker has purchased 4 motorcycles in the last 8 years and had only gone back to one. Why? In his market there are at least eight dealers within a 75 mile radius. I on the other hand have to travel 55 miles to the closest one.  Whit the credit "crunch" being as tight as it is, I foresee more consolidation.

[harley56]

Just because I am curious, what MOCO dealership is yours?   

Sadunbar, thanks for the question, but I would really rather just be known as a fellow enthusiast as I've been that alot longer than I've been a Harley dealer.  I only mentioned it to try and bring a measure of credibility to my rambling.

[sadunbar]

Sadunbar, thanks for the question, but I would really rather just be known as a fellow enthusiast as I've been that alot longer than I've been a Harley dealer.  I only mentioned it to try and bring a measure of credibility to my rambling.

No problem...like I said....just curious...   

[Fired00d]

As the word of the automobile industry collapsing restructuring becomes apparent, many auto dealers are going to close. As of last week, 600 dealerships nationwide have closed. Rjobs & I have discussed this in another thread. Harley now has ~700+ dealerships in the US. It makes one wonder what the saturation point is? How many dealers are too many? Miker has purchased 4 motorcycles in the last 8 years and had only gone back to one. Why? In his market there are at least eight dealers within a 75 mile radius. I on the other hand have to travel 55 miles to the closest one.  Whit the credit "crunch" being as tight as it is, I foresee more consolidation.

I thought my 30/45 miles to get to the two closest dealers to me was bad, and I live in the largest (in population) of both the city's where the dealers are located.

 
Ride Safe,
Fired00d
 

[sadunbar]

I thought my 30/45 miles to get to the two closest dealers to me was bad, and I live in the largest (in population) of both the city's where the dealers are located.

 
Ride Safe,
Fired00d
 

There are six dealerships with 50 miles of me.... and probably 20 more (Madison, Milwaukee, Chicago area dealers) within 100 miles...  No lack of choices....

[SBB]

First let me say,

Harley56 I appreciate your response!
***************************************

As far as location, mine is 3 miles away.
If it was 103 miles I would pass the other 10 that would be closer, to get to "mine".
I am loyal to them because they are loyal to me, even when the economy sucks.

 

[AZSSE]

What I'm afraid of is that with the economy going the way it is, our bikes are going to lose about half their value over the next 6 month - year. What do you all think??

[sadunbar]

What I'm afraid of is that with the economy going the way it is, our bikes are going to lose about half their value over the next 6 month - year. What do you all think??

Naw....not likely... 

Myself, I bought mine to ride and never really consider its value vs. the economy...  Just really doesn't matter.  It won't with the next one  - or the one after that either...

[AZSSE]

I was mainly concerned about the people that have financed a 30-40 thousand dollar bike that won't sell for 25000. But you're right I bought mine to ride also, not for what it's worth. Thanks for setting my priorities back straight.

[ak]

What I'm afraid of is that with the economy going the way it is, our bikes are going to lose about half their value over the next 6 month - year. What do you all think??

  I purchased all my bikes to ride could care less about value as i don,t plan on selling--AK  Get your value out of the product on the road, solo or with friends, stress relief, and life time experences..what ever you get after that in selling is a bonus--AK

[sadunbar]

  I purchased all my bikes to ride could care less about value as i don,t plan on selling--AK  Get your value out of the product on the road, solo or with friends, stress relief, and life time experences..what ever you get after that in selling is a bonus--AK

exactly right....

[ak]

Harley56--Try to make some of are nor-cal ride... We can keep your biz private those who have been on the site for along time remember  the nor-cal folk didn,t give up V-Girl------AK

[FLSTFI Dave]

We have 6 dealers in my area.  I am sure two of them will have a hard time.  They have poor service depts, and un friendly staffs, and owners are never around.  We have two that will struggle but should make it.

Our newest dealer opend in late 2004.  I bet they make it.  Owner is very active in the dealership, there most the time.  He is also a rider, and an avid one at that.  He moves more bikes than any one in the state now.  He sells at or below MSRP.  All the the staff is very friendly.  Service dept is very good.

He also has a huge out door pavilon on site, with concerts, food and beer on week ends.  Beer is 2 a can.  Food is good an reasonable.  Concerts are free unless it is a big name band.  He keeps a small t-shirt, hat and such stand open on all friday and saturday night concerts until mid night.  These events get big with 2000 or more the norm for a Saturday night concert.