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[SPIDERMAN]

As many of you are aware, I am being forced into retirement far earlier than I'd planned and hoped due to serious health issues. As such, I've been casting about for something to do. In talking about this with the owners of Uptown Cycle here in San Diego, they proposed that I set up an internet sales division of their business. I would get paid on a commission basis and we are discussing what discount to offer as a means of getting this off the ground. I know that Chicago H-D , Jenni and others offer 20% on genuine H-D parts and we're not out to capture that business. What we're looking at is all of the after-market sales items. Since I believe in being above board in all of my dealings with my friends (which many of you are) I felt it'd be worth some discussion on what you feel you'd want for a discount to do business with us. I appreciate all feedback.

B B

    PS
      d00d, if this gets off the ground, I will duly make all posts regarding this in the vendor section.

[VaEagle]

I would say you would need to at least match the discounts from other dealers considering the internet shopping mentality of many folks. I don't know if the aftermarket has the same markup as the official HD parts but I do know it varies. When I bought my S&S SPO mufflers my HD dealer checked several of the big aftermarket catalogs and found the exhaust for $100 less with one catalog and ordered from the cheaper one and honored that price.
Maybe some things like free shipping, speedy shipping or price matching might help with your sales?

[SPIDERMAN]

Appreciate the feedback so far, hopefully more to come. One thing I have going for me is 40 years of owning and riding motorcycles. We have a thread going elsewhere on why the dealers hire dummies. Whatever I may be, dummy I'm not. My intent is to able to offer solid advice as to fitment and installation as well has being candid about what works and what doesn't. I'm getting into this more as a way of keeping my sanity than I am hoping to make a bunch of money. Also, it should be noted that Tony at Uptown Cycle is one the premier custom painters around. He's had more bikes than I can count on the covers of the bike rags. I will be more than happy to work with folks on getting that one off look they have in their head brought to reality. At some point down the road I also hope find a upholsterer to work with for re-working seats with folks design ideas. All in all, doing what I love best (anything motorcycle related) full time and hopefully making a few bucks along the way.

B B

[Unbalanced]

Brian,

I think you are going to have to consider at least a 15 percent discount and possibly include shipping dependent on order size to be competitive.   The reason I think this way is any joe blow who joins their local hog group will get 10 percent off at their local dealer at least in my neck of the woods.  That also includes the after market parts like drag etc.   At least this way with candid solid knowledge, equal to or better service, and a fair price you should be able to win over those guys that are looking for a deal and someone who will shoot straight with them.   You may never win over the lakeshore, Jenny, Chicago Harley crowd due to just the pure discount and following they have.  You may also consider on sizable orders to take the volume over the margin as it may at times help you with buying power.

[SPIDERMAN]

FYI
     Uptown Cycle has been around for many years starting out as a strictly custom paint business and evolving over the years into a full service shop. Bubba_T's recent steroidally enhanced version of his 03 SERK had the heavy duty engine wrenching done by Uptown. The chief wrench is a displaced Maniac like me and the former service manager of San Diego H-D. His head was the first one on the dumbass SIL's "business plan" Anyway, just want to emphasize that this is not a start-up effort. Accounts have been in place for years with all of the major parts suppliers as well as solid relationships with some of the big names in the industry due to Tony's incredible talent as a painter. So far the comments made on this thread mirror my own ideas with the exception that as mentioned previously, we are not going to compete in the genuine H-D parts market place. Of course the shop has H-D parts sourcing, simply that since the I-Net venture will be my baby, I don't wish to compete with the names mentioned in Harry's post.

B B

[Keats]

Brian,
as you may have already learned, the discount parts business is not about margin......it is all about volume.....found business and dollars...
typical margin at list is about 35%- 40% with some exceptions on either extreme.
Dealers must excuse the overhead that otc part sales must pay.
a 40% margin part with 20% off becomes a 25% margin piece. Normal overhead accounts for 6% - 27% depends on how you do the accounting, closer to 25%  rent alone is 6% - 10%
it just depends on what you call overhead.
internet sales needs no fancy store or warehouse and personal is easier to manage (meaning no one is standing in front of you waiting)
of course you take it tuff on short margin parts 30% - 35%
but it is all about volume and dollars. and it is treated as extra money.
this is not an easy business, but what business really is?
Good luck

just remember it starts very slow.......most successful programs took a couple of years to get it going.

[SPIDERMAN]

Brian,
as you may have already learned, the discount parts business is not about margin......it is all about volume.....found business and dollars...
typical margin at list is about 35%- 40% with some exceptions on either extreme.
Dealers must excuse the overhead that otc part sales must pay.
a 40% margin part with 20% off becomes a 25% margin piece. Normal overhead accounts for 6% - 27% depends on how you do the accounting, closer to 25%  rent alone is 6% - 10%
it just depends on what you call overhead.
internet sales needs no fancy store or warehouse and personal is easier to manage (meaning no one is standing in front of you waiting)
of course you take it tuff on short margin parts 30% - 35%
but it is all about volume and dollars. and it is treated as extra money.
this is not an easy business, but what business really is?
Good luck

just remember it starts very slow.......most successful programs took a couple of years to get it going.

wise words and much appreciated

And since I've got nothing but time on my hands slow beats nothing every day

B B

[RedDevil]

wise words and much appreciated

And since I've got nothing but time on my hands slow beats nothing every day

B B

Brian,
Quality parts at a reasonable price with either free or postage only shipping, would be a big plus.  Some 20% off places lure you in with the discount but then tack on $20 shipping and handling to send you a $100 part, so you could buy it locally for retail and get it for the same price.  That's the biggest thing that irks me about "discount houses".  (Ebay is notorious for that, You get a case of Mobil 1 V-Twin for $45 then pay $25 for shipping and handling).  I'll shop at a place with a 10-15% discount and free shipping before I'll shop at a place that gives 20% and charges that infamous shipping and handling fee.  JM$0.02.

   

[sadunbar]

As others have said, anyone can get at least 10% discount from some local dealer.  For me to get interested in online or internet deals - the bottom line needs to be greater then 10% (bottom line including shipping costs).  If it is not more cost effective - why bother, right? 

[Ride n Shine]

I often buy my stuff from the States and what I want is good service. Most of the people I have dealt with have been fantastic but have been burnt by a couple and that sucks when you're on the other side of the world. So just good service will do it for me.

[murphy]

10% is a good start.

[ox666]

I often buy my stuff from the States and what I want is good service. Most of the people I have dealt with have been fantastic but have been burnt by a couple and that sucks when you're on the other side of the world. So just good service will do it for me.

What he said.  Service and reliabilty but discounts help.

[cowboy7123]

As being a member of my local Hog chapter, our dealership gives us 20% off on HD parts and then 15% off on after market parts

[DCFIREMANN]

BB count me in on your venture. I would much rather buy aftermarket from someone I know and will treat you right. I think if you are in the 1range of 15% off and free shipping your locked in. Also something to remember. If you have or set an account with UPS or FedEx you will get big discounts on shipping over time with volume. But look at it like this YOU HAVE NOTHING BUT TIME!!!!

GOOD LUCK and keep us posted.

Be Safe

THE DAWG

[HogBreath]

I get 20% off at my dealer on everything.