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[RJ749]

Thought I would throw this out for discussion.

There have been many sales over the past year and things aren't what they were a few years back.

So, regardless of price (assume it's not an unreasonable one for the market) would you think it is a viable business given what you know about the product and what we all are feeling in the economy right now?

I'm leaning toward....................well, you tell me your thoughts and then I'll tell you mine.

[MUFFMAN]

I don't know what its like in the States but I was very close to purchase a few years back. My Lawyer eventually talked me out of it & I'm glad he did. The group that purchased the dealership I was pursuing were tossed out by Harley after 2 years for non conforming. Harley wanted them to build larger premises even though sales didn't warrant it. Too bad was what they said. After Lawyers fees and the hit they took on the building sale due to the downturn in the economy they left 1.5 million on the table. By the way, rumour has it that the new owners want out. The next closest dealer is 60 miles away so location isn't the problem. I think Harley is. THE MUFFMAN

[REGGAB]

Roger,
I ain't no kinda businessman, but even a dumb ol' aviation wrench like me knows you don't really own these dealerships.  If you did, you could run 'em right.....instead of the way Mother Milwaukee tells you to.  Yer just frontin' the jing, the dirt, and the building in which Harley will move its "business" and end up at their mercy as to how it's run.  That ain't right.  Where I come from from, you buy it, you own it, you budget it, and you run it the best way you can to keep your employees and customers happy and make a reasonable profit..........................................

And then sell it before you die, spend all the profits, and enjoy the fruits of your labor so your children don't inherit the fruit of your hard work and never learn what it's like to start from the bottom eatin' PBJ, and ramen.  Make 'em make their own way.  They'll appreciate it more.

[courter]

It depends on what you would want the dealership to become and if that model would fit within HD's constraints on the franchise.  The time is ripe for a really good dealership to prosper, even though sales are soft, and they can do it with customer service and competetive pricing.  A lot of dealerships lack good leadership and business sense, so with the right person at the helm the real question is how far is up?

It all hinges on you and the constraints with HD, but again with the right person negotiating the deal and a good model the issues could be overcome.

[SBB]

Roger,
I ain't no kinda businessman, but even a dumb ol' aviation wrench like me knows you don't really own these dealerships.  If you did, you could run 'em right.....instead of the way Mother Milwaukee tells you to.  Yer just frontin' the jing, the dirt, and the building in which Harley will move its "business" and end up at their mercy as to how it's run.  That ain't right.  Where I come from from, you buy it, you own it, you budget it, and you run it the best way you can to keep your employees and customers happy and make a reasonable profit..........................................

And then sell it before you die, spend all the profits, and enjoy the fruits of your labor so your children don't inherit the fruit of your hard work and never learn what it's like to start from the bottom eatin' PBJ, and ramen.  Make 'em make their own way.  They'll appreciate it more.

Well Henry that's a very good assesment of owning a dealership.
You sell what they give you, the way they give it to you, how they give it to you.
And if you do a good job then you may have your allotment increased.
If you don't then they will cut back the number of bikes you get.
There are a lot of dealerships becoming available due to the economy, Roger are you going to step up?
(if you are then hire Jenni to run internet sales and you will have a good start)

At my dealership, I have a key to the door and know the alarm code. That's enough for me!

 

[Fired00d]

Roger,
I think of all people you would know about this type of business. I'm sure there are many things that are alike in running a motorcycle dealership and a car dealership. Yes there may be a few differences, but as you probably know customer service/satisfaction rates very high in the dealerships success (profit). There are some requirements that the MoCo puts on starting a new dealership (and probably on what is needed/done to buy a dealership), but I would bet that there are requirements in the auto industry to.

I think the bigger question you need to ask yourself is "Do I want to buy a dealership"? To do this, and do it right will require some extra hours on your part (until you get it to the point where it and it's employees can run it w/o you). Along w/the time commitment there will be some added stress involved. Whatever you decide I wish you much luck and success.

BTW - where do I send the application for "Chrome Consultant".

 
Ride Safe,
Fired00d
 

[cuthbertss]

Rog

These folks have hit the high points for you....  you would know more about this business than the majority of us...

if you can operate within the franchise guidelines, and stilll make customers happy.. ( and more importantly, look yourself in the mirror in the morning whilst you do it) id say go for it

and by all means, hire Jenni as Asst GM quick....she makes a killing of us!  ;-)

FWIW , i havent seen a dealer driving a Yugo lately...

oh, and for gods sake dont give Chip a key LOL

[grc]

I would have to know a lot more about H-D's long term product plans before I would consider that kind of investment.  No matter how good a dealer is at running his business, if the product itself isn't competitive then all bets are off.  And if the current owner's are looking for a lot of blue sky, they'd be out of luck.  I wouldn't consider paying more than current actual value.

Jerry

[Talon]

If I had that kind of bank roll, I'd open a good independent shop! 

[greglyon]

Roger,
Don't mix business and pleasure.  Pleasure will become business and this business is going in the wrong direction without indication of a break through product to bring in the next generation. 
 

[J-Carr]

Roger,
I ain't no kinda businessman, but even a dumb ol' aviation wrench like me knows you don't really own these dealerships.  If you did, you could run 'em right.....instead of the way Mother Milwaukee tells you to.  Yer just frontin' the jing, the dirt, and the building in which Harley will move its "business" and end up at their mercy as to how it's run.  That ain't right.  Where I come from from, you buy it, you own it, you budget it, and you run it the best way you can to keep your employees and customers happy and make a reasonable profit..........................................

And then sell it before you die, spend all the profits, and enjoy the fruits of your labor so your children don't inherit the fruit of your hard work and never learn what it's like to start from the bottom eatin' PBJ, and ramen.  Make 'em make their own way.  They'll appreciate it more.

It's actually common practice in all forms of franchise business.  Do you think all the McDonalds guys get together and say "Hey, let's spend a quarter million and renovate to look the same?"  That's just the way these franchise type deals work, fair or not.  The MoCo is no better or worse then most of the other franchise types out there.  Back in the Mid 90s owning one of these franchises would be like printing money.  And as is typical with all exploding growth businesses, they over saturated, got so big that they couldn't maintain the quality and now it's like any other vehicle dealer.  You have to set yourself apart in order to make money.

Personally, I agree that mixing business and pleasure is a BIG mistake.  I did it with computers which was my hobby as a teenager and now it's my job and I HATE THESE BLOODY THINGS!!!!  I don't have issues with computers.  I have a whole subscription!

I'd look for the next upcoming market explosion and try to get in on that.  Solar powered waterless toilets or something else to make the greenies get all moist.   

As the new guy in a saturated Harley market you'd have no where to go but down.

Ride Safe,
J-Carr

[sportygordy]

I dont think i would touch a Harley Stealersship to own now days. Problems is, anyone that owns one thinks their still sitten on a pot of gold, so your luck on getting a dealership on a good deal wont happen. And the MoCo still thinks they are the prima donna of two wheels so trying to work with them wont get you far too. I know of one dealership in calif that is for sale but not advertised as such. The owner wants three pots of gold and contracts for his kids to be part of the team.. Under my breath I tell him, good luck on that one..

[VAZHOG]

Run away as fast as you can  Really if I had enough money to buy a HD dealership, I would take it and go to the beach and stay drunk for a very long time 

The only way to run it would be to run it by yourself, Hire anyone else and you will be bankrupt before you know it. Then you will find yourself sleeping on the beach and begging for drinks anyway 

[ccr]

I Think I am hearing a lot of wise thoughts here.  Like don't poop where you sleep. 

As much fun as I think it would be at first, a job is that - a job.

[LabRat]

In a heartbeat. My brother and his buddy bought a dealership a little over a year ago, he's having the time of his life and I've noticed a big change in him as well. He's much happier with life. Can't complain about that. He just signed a deal to bring on Vespa and expects continued sales growth.