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fourty three and seven...
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Overhead

Sure it seems we pay a lot to have the bike fixed. But remember this:

A good shop will bill for productive labor only. The mechanics that work there need their 40 hours, each

The Lights, Insurance, Workman's comp, health insurance, sick days vacation days, the learning curve, Taxes all add up to a very big nut.

The big baby customer that is never happy with the work, theft, damage Employee mistakes all cost big bucks.

They guy running the place needs to carry an inventory of parts, tools shop supplies.....

The cost of doing business is costly
 

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P 0 P E Y E said:
Overhead

Sure it seems we pay a lot to have the bike fixed. But remember this:

A good shop will bill for productive labor only. The mechanics that work there need their 40 hours, each

The Lights, Insurance, Workman's comp, health insurance, sick days vacation days, the learning curve, Taxes all add up to a very big nut.

The big baby customer that is never happy with the work, theft, damage Employee mistakes all cost big bucks.

They guy running the place needs to carry an inventory of parts, tools shop supplies.....

The cost of doing business is costly
Doesn't the same thing apply to aftermarket shops too?
 

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Premium Member
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The ones here in Austin want every penny they can get from you-greed -thats why I order my things from Zanotti.
 

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i don't care what these dealers problems are,cause i'm sure they don't care what mine are.i'll buy the parts i need from hd dealers but i won't let them touch my bike.
 

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springer- said:
Doesn't the same thing apply to aftermarket shops too?
Actually, aftermarket shops aren't being forced to buy new bikes every year from the MoCo which it a huge chunk of change.

They also keep a very limited supply of parts - mainly the best sellers or most used and will order the parts when needed.

There is far less employees which makes for lower labor costs.

Their building are not located in "prime locations" and oversized making the overhead cost lower.
 

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EASY DOES IT
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P 0 P E Y E said:
Overhead

Sure it seems we pay a lot to have the bike fixed. But remember this:

A good shop will bill for productive labor only. The mechanics that work there need their 40 hours, each

The Lights, Insurance, Workman's comp, health insurance, sick days vacation days, the learning curve, Taxes all add up to a very big nut.

The big baby customer that is never happy with the work, theft, damage Employee mistakes all cost big bucks.

They guy running the place needs to carry an inventory of parts, tools shop supplies.....

The cost of doing business is costly
Lets not forget the 180k sports car one of the local dealers owns...gotta cover that! I'm not against anyone making a reasonable profit but considering the service in our area ya don't get much for your dollar...
 

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FLSTFI-2005 said:
Actually, aftermarket shops aren't being forced to buy new bikes every year from the MoCo which it a huge chunk of change.

They also keep a very limited supply of parts - mainly the best sellers or most used and will order the parts when needed.

There is far less employees which makes for lower labor costs.

Their building are not located in "prime locations" and oversized making the overhead cost lower.
Until the last couple years all the dealers wanted more and more bikes, in the last few years the market has softened. My understanding is the dealers are allotted a certain number of bikes and if they take less the allottment next year is reduced so the dealers still take as many as they can. But I am not positive since I have never worked for a dealer.

I'm not sure about the dealers in your area but the dealer up here doesn't stock much at all. Almost everything you go in looking for is "4 days to a week" away. The dealer 45 minutes from here stocks more but is a longer drive.

Doesn't having more employees allow you to make more money? Say for example you make 20/hr on one employee, wouldn't you make 40/hr on two?

I guess in big cities the dealers prime locations can cost more, up here they are 5 miles out of town on not so prime land.


Now the comment you quoted me on was pertaining to what popeye posted.
What part of what Popeye posted DOESN'T pertain to aftermarket shops also?
Maybe health insurance, I guess it would depend on the size of the shop.
P O P E Y E said:
Overhead

Sure it seems we pay a lot to have the bike fixed. But remember this:

A good shop will bill for productive labor only. The mechanics that work there need their 40 hours, each

The Lights, Insurance, Workman's comp, health insurance, sick days vacation days, the learning curve, Taxes all add up to a very big nut.

The big baby customer that is never happy with the work, theft, damage Employee mistakes all cost big bucks.

They guy running the place needs to carry an inventory of parts, tools shop supplies.....

The cost of doing business is costly

I am not saying Popeye isn't right, he is.
And you brought up some good points also. Additional stuff that certainly can cost more. An aftermarket shop I worked for had all of the same things, Prime location, 2 buildings, insurance, lot of parts in stock, Bikes to sell etc.. We built several custom bikes every year for sale in our showroom.

Anyone that runs a shop, large or small, has significant costs involved. Dealers may have larger shops to support but they also have larger sales and profit potential.

Whether you use a dealer or aftermarket shop, they all have to make money to stay in business and I see less dealers going out than I have aftermarket shops.
 

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Knower of Stuff
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I think you see more indy shops go under for two reasons.
1. Poor business management.
2. Poor mechanics
An indy relys on reputation alone to bring in business. A dealer has all the new bike sales and the people who will never do there own work to support them. I know a lot of people have a bad experience with a dealer and go elsewhere, but most just want their service done and their chrome bolted on and do not care or do not know any difference.
An Indy relies on his reputation and repeat business to make it, plus the customers that seek out an indy usually know a little more about their bike and want more done than just change the oil and bolt some more chrome on.
Everybody has overhead, H-D has a name to bring in and keep business, an indy only has his reputation.
 

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springer- said:
Until the last couple years all the dealers wanted more and more bikes, in the last few years the market has softened. My understanding is the dealers are allotted a certain number of bikes and if they take less the allottment next year is reduced so the dealers still take as many as they can. But I am not positive since I have never worked for a dealer.

I'm not sure about the dealers in your area but the dealer up here doesn't stock much at all. Almost everything you go in looking for is "4 days to a week" away. The dealer 45 minutes from here stocks more but is a longer drive.

Doesn't having more employees allow you to make more money? Say for example you make 20/hr on one employee, wouldn't you make 40/hr on two?

I guess in big cities the dealers prime locations can cost more, up here they are 5 miles out of town on not so prime land.


Now the comment you quoted me on was pertaining to what popeye posted.
What part of what Popeye posted DOESN'T pertain to aftermarket shops also?
Maybe health insurance, I guess it would depend on the size of the shop.

I am not saying Popeye isn't right, he is.
And you brought up some good points also. Additional stuff that certainly can cost more. An aftermarket shop I worked for had all of the same things, Prime location, 2 buildings, insurance, lot of parts in stock, Bikes to sell etc.. We built several custom bikes every year for sale in our showroom.

Anyone that runs a shop, large or small, has significant costs involved. Dealers may have larger shops to support but they also have larger sales and profit potential.

Whether you use a dealer or aftermarket shop, they all have to make money to stay in business and I see less dealers going out than I have aftermarket shops.
Up until a couple years ago, before the market took a nose dive due to too much supply - the demand was so high that dealers were able to sell new bikes up to 2 years in advance.

I've been reading that there have been dealers still thinking it is 1995 when it comes to their sales thinking and pricing only to have a show room full of new bikes when the next model year is about to be announced.

The employee thing is only good if it was just strictly mechanics turning a wrench. In a HD dealer, they also have people standing around at the parts counter, clothing island, sales staff sitting in their offices, the snack bar person. That would be a good thing if they were busy from open to close, but 9 out of 10 times the place is almost empty.

Prime location has to do with where they are located in any city/town. It cost way more money to be located in the shopping area (or right outside of it) than buried in an industrial part of the town.

When people go to in indy, they are willing to look for the place because they know what they want. Most times the only way to find a dealer is by passing one especially if you don't know the city/town you are in. I haven't even touched on the advertisement costs involved either.

The indy shops I have been in will only build a custom bike AFTER it has been bought by someone. This is smart business because inventory equals deal money and additional taxes.

The one thing about HD Dealers is that they will never "go out of business", just change owners because the last one couldn't keep it afloat. When an indy goes under, it means the same thing except that nobody else wanted to buy "John Doe's Cycle Shop" from John Doe.

On a side note, I think this was very refreshing having an adult conversation and showing others in the process that there is more to motorcycle shops than a bunch of over priced everything.
 
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