What happens when a dealership dies?
#31
01-01-2008, 12:30 PM
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RE: What happens when a dealership dies?
Very true. Without customers, a dealership is done for. And without dealers, a manufacturer is kaputs ka unless they market their products direct by mail order or internet .
It would greatly help the MoCo dealers if they were allowed to add additionalproducts to their retail line-up they offer for sale. Additional products would bring in additional customers resulting in new sales and revenue. The arcaic, old fashioned one sided one productdealer contract the MoCousesprevents a dealer from picking up a related leisure product line to sell under the same roof. If it ain't Harley Davidson, they can't sell it. How many Jap dealerships handle several m/c lines, and ATV's, snowmobiles, ski-do's, and other recreational products? THEY ALL DO IT! Also the MoCo leans on it's dealers to spend money on fascilities, building multi million dollar showcasemoseleums to show off their product line. It works fine when sales of HD items are hot, and stuff moves out the door for MSRP as fast or faster than it comes in from the MoCo. But, take a downturn like we are facing now, take away a significant portion of that Harley Davidson customer base, and you will have tuff times ahead for the dealers.
Changes and additionsin product linesmust take place along with consolidation of the dealer network to enable them to survive. I think the days of a sole "Harley Davidson only" dealership are about to end. They will have to follow the Japs and allow their HD dealers to handle severalreacreational vehiclelines to survive.
It would greatly help the MoCo dealers if they were allowed to add additionalproducts to their retail line-up they offer for sale. Additional products would bring in additional customers resulting in new sales and revenue. The arcaic, old fashioned one sided one productdealer contract the MoCousesprevents a dealer from picking up a related leisure product line to sell under the same roof. If it ain't Harley Davidson, they can't sell it. How many Jap dealerships handle several m/c lines, and ATV's, snowmobiles, ski-do's, and other recreational products? THEY ALL DO IT! Also the MoCo leans on it's dealers to spend money on fascilities, building multi million dollar showcasemoseleums to show off their product line. It works fine when sales of HD items are hot, and stuff moves out the door for MSRP as fast or faster than it comes in from the MoCo. But, take a downturn like we are facing now, take away a significant portion of that Harley Davidson customer base, and you will have tuff times ahead for the dealers.
Changes and additionsin product linesmust take place along with consolidation of the dealer network to enable them to survive. I think the days of a sole "Harley Davidson only" dealership are about to end. They will have to follow the Japs and allow their HD dealers to handle severalreacreational vehiclelines to survive.
#32
01-01-2008, 01:32 PM
Outstanding HDF Member
RE: What happens when a dealership dies?
They have a dealership in Cement City here in MI that sells Honda's , Yamaha's, scooters and quads on the same showroom floor as the Harleys. The HD dealer in Lansing built a new dealership in Diamondale and and the lansing Import bike shop built a new dealership right across the street from them. Sure is going to be an interesting year.
#33
01-01-2008, 02:17 PM
RE: What happens when a dealership dies?
ORIGINAL: George C
I'm sure you are right about the final numbers Wally. 400K was just sticking in my head, but like you said, 352K or a few less won't really impact the what's been going on.
Fact is that it will be a rough and bumpy ride over the next few years for those who aren't liquid, or for those who have given their customers enough reason "during the good times" to go elsewhere.
Ipredict that we'll start seeing ahugely competitive marketplace, which may lead into a total dog fight in the next few years. Tons of dealers like mine have built multi-million dollar facilities, with equally huge facilities just 40 miles away in either direction, along with the responsibility ofa huge weekly payroll to run them.
It ain't gonna be pretty......
I'm sure you are right about the final numbers Wally. 400K was just sticking in my head, but like you said, 352K or a few less won't really impact the what's been going on.
Fact is that it will be a rough and bumpy ride over the next few years for those who aren't liquid, or for those who have given their customers enough reason "during the good times" to go elsewhere.
Ipredict that we'll start seeing ahugely competitive marketplace, which may lead into a total dog fight in the next few years. Tons of dealers like mine have built multi-million dollar facilities, with equally huge facilities just 40 miles away in either direction, along with the responsibility ofa huge weekly payroll to run them.
It ain't gonna be pretty......
I know this sounds cruel, but I could gleefully watch onearea dealer fold.Been kinda expecting it in the next couple of years. My Buds and I will party it up...
#34
01-01-2008, 02:20 PM
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RE: What happens when a dealership dies?
ORIGINAL: MCSarge
They have a dealership in Cement City here in MI that sells Honda's , Yamaha's, scooters and quads on the same showroom floor as the Harleys. The HD dealer in Lansing built a new dealership in Diamondale and and the lansing Import bike shop built a new dealership right across the street from them. Sure is going to be an interesting year.
They have a dealership in Cement City here in MI that sells Honda's , Yamaha's, scooters and quads on the same showroom floor as the Harleys. The HD dealer in Lansing built a new dealership in Diamondale and and the lansing Import bike shop built a new dealership right across the street from them. Sure is going to be an interesting year.
#35
01-01-2008, 02:45 PM
RE: What happens when a dealership dies?
ORIGINAL: jakedog
Yep, my dealer in Indianapolis is also a Honda dealer in the same showroom....
ORIGINAL: MCSarge
They have a dealership in Cement City here in MI that sells Honda's , Yamaha's, scooters and quads on the same showroom floor as the Harleys. The HD dealer in Lansing built a new dealership in Diamondale and and the lansing Import bike shop built a new dealership right across the street from them. Sure is going to be an interesting year.
They have a dealership in Cement City here in MI that sells Honda's , Yamaha's, scooters and quads on the same showroom floor as the Harleys. The HD dealer in Lansing built a new dealership in Diamondale and and the lansing Import bike shop built a new dealership right across the street from them. Sure is going to be an interesting year.
#36
01-01-2008, 02:47 PM
Ultimate HDF Member
RE: What happens when a dealership dies?
ORIGINAL: EG Ultra Classic
Very true. Without customers, a dealership is done for. And without dealers, a manufacturer is kaputs ka unless they market their products direct by mail order or internet .
It would greatly help the MoCo dealers if they were allowed to add additionalproducts to their retail line-up they offer for sale. Additional products would bring in additional customers resulting in new sales and revenue. The arcaic, old fashioned one sided one productdealer contract the MoCousesprevents a dealer from picking up a related leisure product line to sell under the same roof. If it ain't Harley Davidson, they can't sell it. How many Jap dealerships handle several m/c lines, and ATV's, snowmobiles, ski-do's, and other recreational products? THEY ALL DO IT! Also the MoCo leans on it's dealers to spend money on fascilities, building multi million dollar showcasemoseleums to show off their product line. It works fine when sales of HD items are hot, and stuff moves out the door for MSRP as fast or faster than it comes in from the MoCo. But, take a downturn like we are facing now, take away a significant portion of that Harley Davidson customer base, and you will have tuff times ahead for the dealers.
Changes and additionsin product linesmust take place along with consolidation of the dealer network to enable them to survive. I think the days of a sole "Harley Davidson only" dealership are about to end. They will have to follow the Japs and allow their HD dealers to handle severalreacreational vehiclelines to survive.
Very true. Without customers, a dealership is done for. And without dealers, a manufacturer is kaputs ka unless they market their products direct by mail order or internet .
It would greatly help the MoCo dealers if they were allowed to add additionalproducts to their retail line-up they offer for sale. Additional products would bring in additional customers resulting in new sales and revenue. The arcaic, old fashioned one sided one productdealer contract the MoCousesprevents a dealer from picking up a related leisure product line to sell under the same roof. If it ain't Harley Davidson, they can't sell it. How many Jap dealerships handle several m/c lines, and ATV's, snowmobiles, ski-do's, and other recreational products? THEY ALL DO IT! Also the MoCo leans on it's dealers to spend money on fascilities, building multi million dollar showcasemoseleums to show off their product line. It works fine when sales of HD items are hot, and stuff moves out the door for MSRP as fast or faster than it comes in from the MoCo. But, take a downturn like we are facing now, take away a significant portion of that Harley Davidson customer base, and you will have tuff times ahead for the dealers.
Changes and additionsin product linesmust take place along with consolidation of the dealer network to enable them to survive. I think the days of a sole "Harley Davidson only" dealership are about to end. They will have to follow the Japs and allow their HD dealers to handle severalreacreational vehiclelines to survive.
#37
01-01-2008, 03:28 PM
RE: What happens when a dealership dies?
One of the big HDdealers in Mn also has other lines, including Kawasaki, ATV's, snowmobiles,Polaris (Victory) allat the same location, in a couple buildings. They also sold Excelsior Henderson until they went under. I believe, however, that they just sold off the Harley part of the business.
#38
01-01-2008, 05:12 PM
Road Warrior
RE: What happens when a dealership dies?
I thinkacross-the-board gloomy predictions for HD dealersare premature. They may not have ATVs, jet skis, or snowmobiles as a cushion, but they've got the highly profitable clothing and accessories market. Some dealerships that are truly "stealerships" may go under, but most will do OK. As for the company, don't forget the international trade.
#39
01-01-2008, 05:14 PM
RE: What happens when a dealership dies?
Some areas have several dealers very near one another and I doubt all will survive if the economy stays in the slumps very long.The strongest will either buy them out or watch them die off.You are going to see this with auto dealers as well,one auto company is seriously considering killing off the same brand dealerships near each other in slower sale areas.Lets hope for the best.
#40
01-01-2008, 05:17 PM
RE: What happens when a dealership dies?
Harley does not hold any dealership to carrying just their brand. I sell Harley, Yamaha and Honda. We couldn't survive on just one brand and most dealerships can't anymore. Each manufacturer wants their own space,accessories section, etc., but you deal with itand work within the floor space you have. Harley's only concern (and rightfully so) is to sell bikes and they realize that the days of being an exclusive HD dealership are long gone, except for a handful of large dealerships in major cities.