www.CVOHARLEY.com
CVO Social => In The News => Topic started by: 2smoke on May 08, 2020, 08:07:36 AM
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This dealer in Kansas isn't shutting the doors, he's dropping his Harley-Davidson franchise.
https://www.salina.com/news/20200506/salina-dealership-cutting-ties-with-harley-davidson-franchise
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Expecting to see more of the same, unless HD changes it's dealership requirements.
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You’d think HD would rather work with a small market dealer & let them sell other brands from the same store, rather than lose the dealership altogether. But, we now have a German tennis shoe salesman at the helm, so things should turn around quickly.
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Just the beginning..
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Pretty sad really. Glad he is staying open but hate it for the Harley riding locals. Parts/Repairs are now more difficult to obtain. Probably more to follow.
Have a relative who owns a Honda dealership. They sell more Harley's than Honda's but don't have to satisfy HD to do it so he's happy And HD's are easy to buy cheap on the open market and then resell, he has financing and service which most individuals need.
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Reading the story its easy to see why he is dropping HD Franchise. He is right, HD is flooding the market, it hurts the little dealers and all the customers. Resale value has tanked.
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Sad situation. I saw this coming for many years. Harley started flooding the market when the Evo motor came out and they haven't slowed down. Old school technology while charging outrageous price increases every year knocked the common working class guy trying to raise a family right out of the HD market.
Couple that with this pandemic I afraid we're going to see many struggling businesses go by the way side. It will no longer be as we knew it before this pandemic. Harley needed to adjust their thinking and their marketing strategy awhile back.
While dealerships start closing their doors, it also affects and hurts Harley's current dedicated customers. Those owners that live in rural areas like Salina, Ks. (the people from that HOG Chapter) will have to travel much further to the closest dealership. And those of us that do long distance touring will no longer have as many dealerships across the nation in the even of a mechanical issue while on the road. It's not going to bode well for us or for Harley and I don't see their strategy changing significantly in the near future. At 69 yrs. old I'm at a point in my life where I've bought my last Harley.
In my opinion Harley screwed up when they started replacing motorcycle people at the top with corporate people solely dedicated to the return for the stockholders. A novel idea would be for employees and owners to come together and buy the company (much like they did when they bought the MoCo back from AMF). Then and only then do I see the trajectory of this MoCo turning around. JMHO
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I’m confused by his exit strategy. At first it’s just about unburdening the business from Harley-Davidson, then he starts talking about retirement. Seems like he would have been better off selling the H-D franchise, then opening an appropriately sized showroom for the Honda dealership. The way he did it, he just devalued the entire business. Not a great retirement strategy!
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this hurt the little guy,today!! it will also hurt the bigger guys tomorrow. hard to maintain the status Harley requires of its dealers and building. HD is no longer a money tree. but,what do I know??!!
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I’m confused by his exit strategy. At first it’s just about unburdening the business from Harley-Davidson, then he starts talking about retirement. Seems like he would have been better off selling the H-D franchise, then opening an appropriately sized showroom for the Honda dealership. The way he did it, he just devalued the entire business. Not a great retirement strategy!
In order to sell his franchise, he needs a buyer....that may be the issue.
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There is a Harley dealership by me in St. Charles, IL that sells triumph and Ducati. So if he can do it, why can’t this guy?
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There is a Harley dealership by me in St. Charles, IL that sells triumph and Ducati. So if he can do it, why can’t this guy?
Really comparing the St.Charles/Geneva/Batavia area and its proximity to the Chicago metropolitan area and its socio-economic footprint to a rural Kansas town with no significant larger metropolitan area adjacent?
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this hurt the little guy,today!! it will also hurt the bigger guys tomorrow. hard to maintain the status Harley requires of its dealers and building. HD is no longer a money tree. but,what do I know??!!
Correct. Its really hard to be a successful Harley dealer now days with the Mega stores you must open. Those that do succeed are very involved in the store, and put lots of time and effort into it. 90% or more Mega dealers the owners have never even been in the store. Big store need more money to stay open. HD keeps raising prices and removing stuff from the bike, so bike is now harder to sell.
In order to sell his franchise, he needs a buyer....that may be the issue.
It takes about 4 million to buy a Harley Franchise. Just because say I have 6 million available to buy a Franchise, does not mean Harley Davidson will approve me to buy it. They disapprove lots more than they approve. I know one the owner tried for ten plus years to get a Harley Dealer. They kept say no. He finally got a dealership years ago, and it has be the Number 1 dealer in the country, a Platinum dealer.
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There is a Harley dealership by me in St. Charles, IL that sells triumph and Ducati. So if he can do it, why can’t this guy?
My dealer has been selling Harley exclusively for over 30 years. About 8 years ago, he added Honda, and now has BMW coming in a couple months. Delayed because of Covid-19. You would think the Kansas dealer could add another brand. But he probably wants to drop Harley. They are not the money maker they used to be a decade ago.