Manufacturer direct

[djroggen]

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.

[Ud_luz]

I've purchased 4 KTMs from a dealer that's 70 miles away. Excellent dealer, fair prices, very good service department. All of this actually means something to me. They have no problem pulling a part off a bike if they don't have it.

That being said I purchased my GasGas on line from one of the dealers here because there is no local support. If there was a local dealer with fair prices, good parts and service department I most assuredly would support them and our local economy.

I'm thinking about a '14 Gasser or Beta and I'll have to go back to buying from out of State. My only difference with no local dealers is to have a bit more extensive common parts kit.

[Fred1956]

I'll give this a shot, at least to my knowledge & experience-

Originally Posted by djroggen

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? No, at least that is the impression I get from visiting with them Do they break even selling units and parts make up for it? Again I would say this is a fair estimation of the situation.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? The dealer pays a fee to floorplan bikes, thus the concern over 'leftover' bikes, they've already spent several months in interest at that pointWho benefits from dealers floor planning bikes? (I would say the manufacturer and the customer)That would be correct 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? Service, on the sales & repair side drive success, all dealers sell the same bike, the only difference is in the level of service, knowledge, etc. Steve seems to have the recipe correct from what I have seen(downtown Indianapolis or Heckla SD)

Why wouldn't a direct unit sales relationship work with dealers only carrying the parts? Possibly, there is typically more margin on the parts sideDoes 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.

I skipped the rest of them because that is the limit to my general knowledge. I am a small parts/service/repair shop. I work with every body and every brand & model. I understand the line at the internet counter, I also have customers who drive to middle of nowhere (me), right past the big fancy dealers guys because they deal with the the guy who is doing the work not a representative of the company. I'm personally invested in the success/failure of my business. I've also learned over the years that people will get drawn in by the fancy building, signs & commercials but only good service & proper repair will keep them there. I've also learned that people are willing to pay a fair price for a fair product. We only have one GG dealer in Arkansas but there are many GG owners so I stock GG parts, the general stuff as I don't stock a rod, crank, cases etc. But if you need gaskets or a piston, wheel bearings, brake pads, or filter- I probably have it but the only dealer in the state probably doesn't This also applies to other brands as well, my customers are amazed at times because they come in and ask for something AND I HAVE IT....the dealers don't