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[HogBreath]

Sounds better'n mine - -  wanna trade ? 

B B

I wouldn't take a million bucks for her.

Wouldn't give a dime for another one just like her neither

[hdbrad03]

I often thought if I struck it rich I would like to buy a dealership. Not so sure if I still feel this way??? I see my principle dealer that has been in business for 30 plus year forced into building a Super Walmart Store.

I feel they have lost some of the personal touch. We have purchased 7 bikes over the last 8 years from them. My wife has had some warranty claims denied by the MOCO that we felt should have been put to rest by our dealer. The Super Walmart Mentality has fogged their ability to keep their high level of customer attention. We flat out told the principle owner that we would not buy any new bike from them do to lack of customer focus.

Well today they saw the light and the dealer demanded that the MOCO purchase a new fender (clearly a defective paint job) and the Dealer is footing the cost of a new seat. Maybe tough times will bring back the customer focus to our dealerships.

 
Brad

[cuthbertss]

I often thought if I struck it rich I would like to buy a dealership. Not so sure if I still fell this way??? I see my principle dealer that has been in business for 30 plus year forced into building a Super Walmart Store.

I feel they have lost some of the personal touch. We have purchased 7 bikes over the last 8 years from them. My wife has had some warranty claims denied by the MOCO that we felt should have been put to rest by our dealer. The Super Walmart Mentality has fogged their ability to keep their high level of customer attention. We flat out told the principle owner that we would not buy any new bike from them do to lack of customer focus.

Well today they saw the light and the dealer demanded that the MOCO purchase a new fender (clearly a defective paint job) and the Dealer is footing the cost of a new seat. Maybe tough times will bring back the customer focus to our dealerships.

 
Brad

hey man ..there is some good news there  congrats on your persistance

[porthole]

BB made some good points, the problem is the 9+ for the franchise and the additional 9+ needed to start up.

I missed a golden opportunity years ago for a dealer, without the 1.5 investment ......................... so if I could I would probably like to own one. Although I would have it in an area where the super stores are not common.

I would only do it though if I was able to do it without partners - sink or swim on my own 

I'm sure the motorcycle business can be just as cut throat as the automotive side, so that has to be a consideration

[MJZ]

Don't you think with the world wide web, price has become everything? A few years ago I had friends that would still buy local thinking that would get them better service but those days are gone, especially with a down market. How many people are buying parts from a local dealership that offers no discount? I order everything on-line from dealerships that give a 20% discount, plus save the 10% sales tax and my local dealer gives me the same bad service as the fools that pay full price from them. The sheep (HOG members) that feel some need of loyalty that continue to buy locally are getting fewer and fewer as the economy falls. Dealerships have to understand it is all about price since shopping is now done on the couch with a keyboard. How many fat bastards are out there that can sell above MSRP when price is now so easily checked on-line? Quality and reliability have never been important to Harley Davidson, HOG was a stroke of marketing genius, had Indian done it first, they would still be around and AMF Harley Davidson would be a memory. Generations X and later are not falling for the same old BS we are.
Short answer, I don't see the small dealerships future too bright, I'd pass. Of course I also passed on Fed X when I had a chance to buy a large position for peanuts in it's second year. I think my exact words were, there ain't no way they can compete with UPS charging more just to gain a day or two. But I did jump on Pets.com. Chit, do the opposite of what I say and you'll do great.

[Keats]

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

That will never happen...MOCO will never tip it's hat to anyone and certainly not a Dealer

second   where have you been....The MOCO has never been about selling competitive products.....it is about selling unique products

and what is "actual value"?   

[Keats]

I wouldn't take a million bucks for her.

Wouldn't give a dime for another one just like her neither

because of that "cup on the head" thing?

[Banana man]

I would love to own a dealership. I worked in sales, parts, and acc at a
Suzuki dealership and we almost never got MSRP for any bike. If you had
good customer RELATIONSHIPS and did your best to help people with there
concerns and had a good service dept, how many customers could you
aquire and take away from other dealers with bad attitudes? We all get
mad at the dealer because we feel they are working for HD and don't care
about the customers. They just don't get it. The dealer needs to realize
that the customers are the ones that make his living, not the manufacturer!!!

To get MSRP for all your bikes and add 2 to 3 thousand in acc. plus the
install labor time in the service dept to me is a license to steal. I dont
know any other business that can do this every sale.

Plus the hold back checks from the manufacturer to the dealer quarterly
or bi-annually can be many thousands of dollars.

Yes I want a dealership and I will make it GROW!!!!!!!


                                             Mark

[Keats]

My 2 cents worth is that buying a dealership is not unlike any other retail type business.


if you need a job, buying a dealership is like buying a job.....some see it as a great job and your hobbies will not be as fun if it is your job.

the closest retail business I would compare it to .would be the auto business. That has become hard for most of the actual profit are derived from the "backend" of the operation.  The Harley business (motorcycle) is backwards right now for most of its profits are tied to motorcycle sales.
I think that is changing slowly and the dealerships that will survive will be the ones that can run the backend profitable and keep customers happy......that is no small feat. Harley is not the easiest franchise to have since they determine how much product you will get, what you must purchase, how your store must look like and the constant investment required to provide these services.  Sure you can make a lot of money at it , but how many of you would like to pay taxes on money you seem to never get?  What I mean by that is you make money and pay taxes on that money,but the money doesn't get to you because of the enormous investment constantly needed. 
Cashflow management is the key and way more important than many would think. Business's can be very profitable but have no cash and that is a killer


The bottom line is if you are good at managing people and a good motivator I think you will be successful, but if you want to be left alone and do not like problems or confrontation it will be a hard row to hoe

[lilbear]

I can speak to that - I was an AVID diver, beyond that - it was my obsession.  So when I got out of the USMC back in 94, I sold my Sportster, cashed in my bonds, borrowed money from family and built and ran a dive shop (Franchise) in south Florida.

Did that for 5 years, 7 days a week, 12-18 hour days.  Closed it Dec 31 of 99 - dove a bit after but it had lost its meaning...I was burnt out and had grown to dislike it from being forced to dive/teach/eat/drink SCUBA for 5+ years. 

Have not been in the water (to dive, yes I shower) since Jul of 01.  Part of this was getting back in the USMC since 02 - but I had the opportunity and do not have the desire to dive.

my .02

Sean

Say it isn't so!  I can't imagine losing the desire to dive.  Have spent thousands of hours beneath the surface and always (almost always) look forward to the next time.

[naitram]

since noone else has asked. is bellingham HD up for sale?

[iski]

Reading this thread with interest - lots of good opinions on dealer ownership.

Location, location, location - would depend on where the dealer was located & the surrounding zip code income levels in the marketing areas.  Would also do a 5-10 year ROI to see what the annual projected payback would be vs the investment required.  Success largely depends on employees - assembling a highly skilled, competent, dedicated team is the biggest challenge IMHO. 

[BIGDOG]

My 2 cents worth is that buying a dealership is not unlike any other retail type business.


if you need a job, buying a dealership is like buying a job.....some see it as a great job and your hobbies will not be as fun if it is your job.

the closest retail business I would compare it to .would be the auto business. That has become hard for most of the actual profit are derived from the "backend" of the operation.  The Harley business (motorcycle) is backwards right now for most of its profits are tied to motorcycle sales.
I think that is changing slowly and the dealerships that will survive will be the ones that can run the backend profitable and keep customers happy......that is no small feat. Harley is not the easiest franchise to have since they determine how much product you will get, what you must purchase, how your store must look like and the constant investment required to provide these services.  Sure you can make a lot of money at it , but how many of you would like to pay taxes on money you seem to never get?  What I mean by that is you make money and pay taxes on that money,but the money doesn't get to you because of the enormous investment constantly needed. 
Cashflow management is the key and way more important than many would think. Business's can be very profitable but have no cash and that is a killer


The bottom line is if you are good at managing people and a good motivator I think you will be successful, but if you want to be left alone and do not like problems or confrontation it will be a hard row to hoe

Congratulations very well put , most don't get it. It is a cash hog that the MOCO controls right down to the volume the back ground music is played at and how bright te lites are in each area. You pay all the bills and MOCO leads you around  BUT I would still do it if I could afford to.

[miker]

What about a nice Indy shop?....

Welcome to the ManMall...Indy HD service and used sales, table lift and special tool rental, rent a tech, tire machine, bike rental...Barber shop, pool hall, shooting range with gunsmith and machine gun rental (our ammo only), bbq stand and tittie bar....All in one location...Whaddya think?   

[FLYNDYNA]

I am following Miker's plan. Very well thought out, no interference from "big bro MOCO". Indy shop with all the above!