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[Fired00d]

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.

Kudos for you. I'm lucky to have a dealer like that local to me too.

 
Ride Safe,
Fired00d
 

[hard10]

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.

Where is it? I'd like to put it on my 'must see' dealer list.

[Texas 103]

As soon as I opened this thread, earlier.....I had a fire to put out, here at work.  Looks like it got posted, anyway.  Just an FYI.....at times I'll have this site open....maybe three or four threads at a time and still have multiple windows of work related stuff that I'm working on and this is buried in the back.

On to the topic........not making a judgement but I do find it interesting that Mike mentions his employees working on customers bikes, delivering special order parts, etc. on their time and at their expense.  Aside from that being in violation of labor laws, this dealership was known for marking their bikes way up (until very recently) and getting it.  Yet we have other dealerships here in Nor Cal that have sold at MSRP for years and they're holding their own.  

We'll never get the opportunity, but it would be very interesting to hear the other side of this story.  

 Aside from that being in violation of labor laws, this dealership was known for marking their bikes way up (until very recently) and getting it.  Yet we have other dealerships here in Nor Cal that have sold at MSRP for years and they're holding their own. 

Exactly my sentiments in my post, ATTITUDE.....And like Hub said, passion for HD's...That will win every time>>>>>Greg 

[FLSTFI Dave]

Where is it? I'd like to put it on my 'must see' dealer list.

It is in Marryville TN.  Smoky Mountain is it's name.  The have a T-shirt store in Gatlinburg and a smaller store with bikes in Seivierville.  But the one to see is the big one in Marryville.  Use to be a Lowes.

[Cigarmike]

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

"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"

Well we can rule out Bob Drons obviously.

[harley56]

"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"

Well we can rule out Bob Drons obviously.

Thanks for the best laugh of my day - I don't think Bob spends much time on here.

[MUFFMAN]

Up here where I live in Ontario up until 5 years ago the local HD was owned by the same people for 20 years. They had an old , out of date building but did well. HD forced them into building the fancy dealership in typical Harley fashion.  After two years in the new building the MoCo told them it wasn't big enough and wanted them to construct a new building right on the main hyway. They said no & decided to sell to a trucking firm. Did very well in the sale. Said trucking company lasted one year. It has since been taken over by a large dealer ship who plans to follow through with HD's plans for a mega store. THE MUFFMAN

[hard10]

Up here where I live in Ontario up until 5 years ago the local HD was owned by the same people for 20 years. They had an old , out of date building but did well. HD forced them into building the fancy dealership in typical Harley fashion.  After two years in the new building the MoCo told them it wasn't big enough and wanted them to construct a new building right on the main hyway. They said no & decided to sell to a trucking firm. Did very well in the sale. Said trucking company lasted one year. It has since been taken over by a large dealer ship who plans to follow through with HD's plans for a mega store. THE MUFFMAN

This once again sounds like a case of ego making sound business decisions. One of the things I have learned in business is that bigger glitz and glamor are not always the most profitable.

[HUBBARD]

This once again sounds like a case of ego making sound business decisions. One of the things I have learned in business is that bigger glitz and glamor are not always the most profitable.

I agree.  Image pays, but some buyers are funny about how far you go with that.  Most folks like to deal with successful people, but one can flaunt too much, and turn some buyers off.  I'm not talking about Doctors and Lawyers, I'm talking about Ol' Redneck Country Boys.  I've seen it happen time and time again.  Once they see that, they're gone, and they're gone forever.  Most of those folks buy from my Dealership, and hook their Wagon to a "Star."  Western Star, that is.  Many people have asked me why I don't drive an Escalade or a Navigator, as opposed to my Denali.  In my view, that would send the message I'm making too much money.  Some may argue that, but it's true in the business I'm in.  Truckers, and people in the Trucking Business in my area, are very clannish people.  A large portion of my Customer base ride Harleys.  They're always asking me why I don't buy a New SEUC, or SERG.  I tell 'em I can't afford it.  You can't tell me that a person that has bought $2,000,000.00 worth of Trucks from me, and rides an '04SEEG, and sees me ride up on a Brand New '09 SERG, doesn't wonder how much of that 2 Million went for my New Motorsickle.  That's the way I have operated for years, and ain't done too bad, all things considered, and that's the way I will continue to operate.  There endeth the lesson.  Later--HUBBARD       

[MUFFMAN]

This once again sounds like a case of ego making sound business decisions. One of the things I have learned in business is that bigger glitz and glamor are not always the most profitable.

Another little tidbit regarding glitz and glamour. I have been in business many years and through a lot of hard work and timely investments have done reasonably well.  We used to have our company Christmas party at a hall every year. ONE year I had it at my newly constructed house, not to show off but basically to thank some of my men who helped work on it after hours, weekends and such. Not a week went by after the party that at least 10 people came into my office and asked for a Very substancial raise citing if I can afford that house you can afford to pay me more. It's funny that all the guys that asked for the raise were not the ones who helped on the house.  THE MUFFMAN

[Keats]

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!

I have done some research regarding HD dealerships and What Harley56 is saying is completely consistant with what I have learned.
 HD dealerships do not follow the business models that most auto dealerships subscribe to. (the back end makes the money, not the front)
Their money is earned through Motorcycle sales. (the front end makes the money)
Clothes accessories and parts go along way to making profit, but the real issue is that Motorcycle sales pays the rent, overhead and payroll.
A drop in cycle sales impacts the dealer severely. Think about it 1 bike can bring in $4000.00 profit dollars and it would take over $11000.00 in acc (and more like $20000.00) to make the same profit dollars. look at the labor cost difference in the 2.

[Fatboy]

I agree.  Image pays, but some buyers are funny about how far you go with that.  Most folks like to deal with successful people, but one can flaunt too much, and turn some buyers off.  I'm not talking about Doctors and Lawyers, I'm talking about Ol' Redneck Country Boys.  I've seen it happen time and time again.  Once they see that, they're gone, and they're gone forever.  Most of those folks buy from my Dealership, and hook their Wagon to a "Star."  Western Star, that is.  Many people have asked me why I don't drive an Escalade or a Navigator, as opposed to my Denali.  In my view, that would send the message I'm making too much money.  Some may argue that, but it's true in the business I'm in.  Truckers, and people in the Trucking Business in my area, are very clannish people.  A large portion of my Customer base ride Harleys.  They're always asking me why I don't buy a New SEUC, or SERG.  I tell 'em I can't afford it.  You can't tell me that a person that has bought $2,000,000.00 worth of Trucks from me, and rides an '04SEEG, and sees me ride up on a Brand New '09 SERG, doesn't wonder how much of that 2 Million went for my New Motorsickle.  That's the way I have operated for years, and ain't done too bad, all things considered, and that's the way I will continue to operate.  There endeth the lesson.  Later--HUBBARD       

Um 'er Carl,

  Some us may recall you have one passion imparticular outside of trucks and motorsikles then can run up a mighty hefty tab in the blink of an eye.   
 
  No not "women" silly    I'm refering to the "double duece". 

  Just checked the standing's.....congratulations looks like another year of growth and success. 

Fatboy

 

[CVOJOE]

Where is it? I'd like to put it on my 'must see' dealer list.

Try Faultline H-D in Fremont, CA...........unless it's coincidence that they have the same customer satisfaction ratings, etc. this is the one. If you want to study how to turn a dealership around, this is a classic case. They get it.

Joe

[DCFIREMANN]

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.

I was just there 2 months ago. GREAT DEALERSHIP!!!!!! One of the best I have ever visited.

Be Safe

THE DAWG

[Cigarmike]

Try Faultline H-D in Fremont, CA...........unless it's coincidence that they have the same customer satisfaction ratings, etc. this is the one. If you want to study how to turn a dealership around, this is a classic case. They get it.

Joe

Detective Joe, good job! lol