My experience, FWIW. I am going to post some questions. I don't know the answers, if I did I would start a dirt scooter business.
Do dealers get rich selling units? Do they break even selling units and parts make up for it? How much does a dealer have to profit to be profitable from the sales of the unit? ( I can tell you businesses in some industries can operate well on 2-3% margin and some out there can be closer to 75% and not make it (Try selling nuts and bolts))
Do dealers benefit having to floorplan bikes? Who benefits from dealers floor planning bikes? (I would say the manufacturer and the customer) Does the caliber of dealership matter in the answer to that? Does "If you build it, they will come" apply to a dealership that is built anywhere? (downtown Indianapolis or
Heckla SD)
Why wouldn't a direct unit sales relationship work with dealers only carrying the parts? Does this answer depend on the size or the cash flow of the dealer? (I would say certainly) How do you choose what company to purchase from when choosing an internet site to purchase products from?
How many of you would buy everything you buy from a local dealer if they were in your town? 20 miles away? 50 miles away? Does it really bother you to purchase from an online source? Do they have to be knowledgeable in the bike you are buying parts?
Does buying a bike make you loyal to that dealer? Is it the customer service they follow up with that makes you loyal? Would you feel the same loyalty if you purchased only parts as you would if you purchased a bike from a direct source, bike shipped to dealer and assembled (for a price) or to your home?
These are the questions I think are interesting.
Sometimes I have a warped sense of reality.
