Dealerships for sale
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There's no doubt that times are getting tough. All the dealers in the Bay ARea are talking about how bad things have been since last summer. The new Lathrop, Calif., store, which is owned by the guy who used to have the little store in Stockton, is reporting record sales, according to one of the people there I talked to a few weeks ago. But that store, which is state of the art and HUGE, has got to have some major overhead built into it so they will have to set records in order to keep the doors open.
Let's face it, home equity financed a lot of bikes. And when you see your equity shrinking, you're less likely to spring for a new bike. For some of us a Harley is a necessity, but for most, it's a luxury.
Let's face it, home equity financed a lot of bikes. And when you see your equity shrinking, you're less likely to spring for a new bike. For some of us a Harley is a necessity, but for most, it's a luxury.
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No one twisted the arms
of the dealers to build the buildings they did. All they had to do is say "no thanks" and move on to another business.
Harley will have to renegotiate with the Unions to bring their costs down. I think you'll the Automakers having to do the same thing. We could easily be in a deflationary period. Made in America...is expensive.
of the dealers to build the buildings they did. All they had to do is say "no thanks" and move on to another business.
Harley will have to renegotiate with the Unions to bring their costs down. I think you'll the Automakers having to do the same thing. We could easily be in a deflationary period. Made in America...is expensive.
I bet it's no coincidence that this is happening in California right at the same time the EPA and CARB are cracking down in that state. When the owners bought into those dealerships, just about every new bike purchase also included at least a set of pipes, a stage I kit and tune. Not to mention all the other engine mods that are so popular. Not now... No more... They can no longer count on that for extra profit.
From what I've read, some shops are even afraid to work on bikes that were modified elsewhere, and prior to, the CARB crackdown. Think about that for a minute... you own a shop that can't touch a bike that isnt stock, without fear of a massive fine. Not even an oil change. How much money would that service dept pull in? Not many stock bikes out there.
No wonder the dealerships in California are for sale. I'd bet this is only the tip of the iceberg out there. And I dont blame the owners for wanting out. Custom Chrome has been ready to go under for quite a while. Poor marketing choices did them in.
From what I've read, some shops are even afraid to work on bikes that were modified elsewhere, and prior to, the CARB crackdown. Think about that for a minute... you own a shop that can't touch a bike that isnt stock, without fear of a massive fine. Not even an oil change. How much money would that service dept pull in? Not many stock bikes out there.
No wonder the dealerships in California are for sale. I'd bet this is only the tip of the iceberg out there. And I dont blame the owners for wanting out. Custom Chrome has been ready to go under for quite a while. Poor marketing choices did them in.
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Jamie...the dealers I spoke to around the Sacto. area are back doin' the kits etc...business as usual...go figure? I think it has more to do with the housing situation...folks were mortgaging the house for a bike.:woohoo:
Yeah... the home loan situation could be playing a big part in it too. I read where we aren't even 1/3 of the way through the mortgage crisis yet. The are still a bunch of home loans out there with huge rate increases coming up.. and little chance to refinance.
Glad to hear that things are getting back to normal with CARB and the dealers.
Glad to hear that things are getting back to normal with CARB and the dealers.
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I think this is a real problem for the real riders. I could care less about the rock bands and free food as one poster mentioned. I want a shop that knows my bike inside out and can steer me towards products or ideas that will increase my happiness with my purchase and the longevity of my ride.
I ride dirt bikes too and the level of support and knowledge of my dealer far surpasses anything I experience in the new yuppie Harley stores. Frankly I'm a lot happier in a dealer with parts strewn all about where the guy wrenching your bike is also the guy selling you your bike. Anybody ever have your salesman tell you that your new potential ride has this and that problem so let's fix it before it happens? I'd fall over in shock if a Harley salesperson ever told me that. :yikes:
Money's tight and the motorcycle fad is officially over. One excellent indicator is the flooded used bike market. At the peak of the fad a couple of years ago, many folks dipped into their home equity or took out ridiculous loans to finance a fantasy. Now with that fantasy fulfilled, a great number of these people have put their bikes on the market and moved on.
Another good indicator is attendance at the big bike meets. Attendance at Daytona Bike Week is down significantly from the past several years, and will probably be down at all of the large meets this year. Those dedicated riders who enjoy these events will keep going (if they can afford it), but the others are gone.
None of this is good news for motorcycle manufacturers and dealers. Manufacturers with large international markets will weather this dip in the US economy just fine, while those with little or no overseas sales will have to seriously tighten their belts. As to the dealers, those who caught the wave and profited nicely should be able to weather the storm, while those who caught on late and built new superstores expecting the fad to last forever are going to have serious problems, as we are beginning to see.
In the end, it's just business, no more, no less.
Another good indicator is attendance at the big bike meets. Attendance at Daytona Bike Week is down significantly from the past several years, and will probably be down at all of the large meets this year. Those dedicated riders who enjoy these events will keep going (if they can afford it), but the others are gone.
None of this is good news for motorcycle manufacturers and dealers. Manufacturers with large international markets will weather this dip in the US economy just fine, while those with little or no overseas sales will have to seriously tighten their belts. As to the dealers, those who caught the wave and profited nicely should be able to weather the storm, while those who caught on late and built new superstores expecting the fad to last forever are going to have serious problems, as we are beginning to see.
In the end, it's just business, no more, no less.
From E-Biker "BMW went to oil head cooling in the early '90's and 6sp transmission five years ago."
This is what my BMW salesman told me 5 years ago when I bought my last LT. I have been looking for 6th gear for 76000 miles. I guess based on your statement I should go and check it one last time
This is what my BMW salesman told me 5 years ago when I bought my last LT. I have been looking for 6th gear for 76000 miles. I guess based on your statement I should go and check it one last time
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No. What you should do is read my post again -- no wait, just read your owners manual and you won't look so confused. :laugh: The BMW K1200LT doesn't have an oil cooled motor and does not have a 6sp transmission. Nearly all Oil head BMW bikes have a 6sp gear box, but then you should know that.From E-Biker "BMW went to oil head cooling in the early '90's and 6sp transmission five years ago."
This is what my BMW salesman told me 5 years ago when I bought my last LT. I have been looking for 6th gear for 76000 miles. I guess based on your statement I should go and check it one last time
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Many owners of the BMW Oil heads R1200RT and BMW R1200GS would disagree with your statement. The R1200RT and prior model R1150RT are very much in the same league with my Gold Wing, your new HD Ultra and your formerly owned water cooled BMW K1200LT. BMW R1200RT comes equipped with full fairing, detachable saddle bags, radio, heated hand grips and heated seat. Options include GPS, trunk and intercom system. Plus the R1200RT is about 250lbs lighter than the K12LT.
There's quite a few great motorcycles to go long distance touring with from Honda, Yamaha, Moto Guzzi, the BMW line up and of course Harley's several baggers. It ain't like the 1960's anymore, when most motorcycles were junk!
Enjoy your new Ultra.
FYI, I am in FL now. Attendance was down last week mostly due to the weather, here and in the north. People wanting to come cancelled and people who did left early.
The dealer owners who have remained hands-on even when they got big and rich over the last few years will be the ones who'll survive. As someone said, this is business, and just like restaurants, those where the owner is engaged every day are the ones that make it through the tough times.
Dudley Perkins in San Fran will probably make it. The third and fourth generation, Tom and Chris, are there every time I walk in. And they walk out and say hi and wave at you. They lead every Dudley Perkins rally ride and you see them cooking tri-tip and hot dogs at their events and walking around and talking to people. I feel like that if I have a problem I can walk into their office any time and tell them about it and they'll listen.
Too many dealers, including car and other motorcycle dealers, become absentees once they get rich. They spend their time in the Bahamas or lounging around their pools. They never get their hands dirty by visiting the service department to make sure everybody working there is not only dong a good job, but enjoying their job. And you never can get them on the phone when you have a problem.
Dudley Perkins in San Fran will probably make it. The third and fourth generation, Tom and Chris, are there every time I walk in. And they walk out and say hi and wave at you. They lead every Dudley Perkins rally ride and you see them cooking tri-tip and hot dogs at their events and walking around and talking to people. I feel like that if I have a problem I can walk into their office any time and tell them about it and they'll listen.
Too many dealers, including car and other motorcycle dealers, become absentees once they get rich. They spend their time in the Bahamas or lounging around their pools. They never get their hands dirty by visiting the service department to make sure everybody working there is not only dong a good job, but enjoying their job. And you never can get them on the phone when you have a problem.
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Good point..shop here in sacto area where I have purchased a few bikes, I know the owner personally and called him once about a problem...he never returned my call.....went in the other day and he was working the sales floor.
I was going to have and Indy replace the spring on my front forks, but their service department knocked off an hour and half from the rate..
So if HD tells a dealer that they must have a building with a certain amount of square footage, carry a specific amount of inventory or the dealer will lose his franchise, you don't consider that "arm twisting"?
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