Becoming a motorcycle dealer?

**TLDV8** · 25th October 2014, 15:14

What is wrong with entry level as a dealer.
Import Chinese motorcycles, no overheads being an online trader which keeps the RRP attractive.
Low financial start up cost, $20000 or less perhaps.
Lower cost for higher turn over.
Quiet period is no drama based on the above.

Once you get the practical experience and first million from that you can approach one of the big four for a franchise.

**F5 Dave** · 25th October 2014, 19:44

Originally Posted by Katman

Well now we know you're lying.

He doesn't have a mechanic.

You can be a real cunt sometimes.

But your grammar is impeccable so you have my support.

**Katman** · 25th October 2014, 21:30

Originally Posted by F5 Dave

You can be a real cunt sometimes.

But your grammar is impeccable so you have my support.

I was considering a comma after the 'well'.

I'm still not certain.

**Laava** · 26th October 2014, 09:03

There has been two new bike shops open in whangarei recently, one as a mechanical services and accessories outlet mainly catering for the hordes of people with motocross bikes up here and the other is selling new bikes such as, CF Moto, EBR, Benelli and Bimota I think. Pretty sure they will only have CF Moto in stock tho.
BUT you have to start somewhere. Be interesting to see how they go. Most of the bike shops in whangas make their bread and butter selling and servicing farm bikes and quads.

**pritch** · 26th October 2014, 10:27

Originally Posted by Katman

I was considering a comma after the 'well'.

I'm still not certain.

Well, it is permissible to let your readers decide for themselves when to take a breath.

**Big Dog** · 26th October 2014, 11:24

Originally Posted by DODO``

Thanks mom haha . Yes you are right, one word that kept popping up in my head was "bitter" reading some comments. Constructive & harsh advice is one thing and being bitters and plain dick another. I'm mature enough to know what to listen and what not to. I guess this sort of things will be one of the things I will need to learn / deal with.
Or it could've been my entire mistake asking this question here in KB! Haha
Oh and thanks for the inspiration.
I've got more than enough info / knowledge from this thread now thanks for those of you actually meant it.
Cheers all Ill update phase 2 in my journey soon.

As someone who has been a customer for 23 years and was a part time employee for 5, the biggest challenges facing bike shops are spiralling finances and consumer loyalty.

If you have a sound plan to deal with these factors pursue your whale.

If you don't, take time to learn more about the industry and make those plans.

Why spiralling finances? Because the customer expects you to be more flexible than 20 years ago, while laws and finance companies expect you to be stricter.

Why loyalty? Twenty years ago you picked a dealer based on value for money or some other perceived point of difference.
This was often not the cheapest shop or with the lowest posted workshop rates. I used the same dealer exclusively for 5-6 years. Because I trusted that even though some things cost more other things would cost less and the final analysis would be fair. Going elsewhere only when Neil could not get me something. Yes I was on first name basis with several bike shop owners by the end of that period. These days that is unlikely to be true at a shop where you hand over in excess of 10k a year. Sadly over the years dwindling consumer loyalty put Neil out of business.
Since I moved to Auckland most of my business has gone to Red Baron, Initially because they were able to sort me everything I needed in the timeframe I needed it.
Haldanes and MT Eden were both unwilling to spend time to sort that much out because they already had enough business without wasting valuable sales time on someone who only had $7k cash and the same again in finance to spend and needed a bigger than normal set of gear. Both are now out of business.
Coleman's, Holeshot and Cyclespot actively tried to stop me buying what I wanted and instead left me with a feeling I was being ripped off.
Henderson motorcycles and Botany Honda and a few others were willing enough but just were unable to provide for a larger rider or did not have a suitable bike in stock.

Cue 10 years o loyalty to Red Baron. An average of 10k a year in servicing, accessories and bikes. All with them as the first port of call for everything. Only going elsewhere when they were unable to provide what I needed.
They even sorted me out with work when I needed to supplement my income to cover my riding habit.
The last 3-4 years several staff have changed, management has changed and I no longer feel the same level of trust.

A workshop is the backbone of a dealership. It keeps cash flowing when times are tight.
When the economy is booming people upgrade their bikes more often and spend their discretionary money on bolt ons and shiny bits. When the economy is poor they service their bikes a little more and trade in less often. Things that would previously have seen their bike on trade me get fixed.

The type of work changes. Not the volumes.
Assuming you have good mechanics people seek out by name.

Accessories can be the make or break of a shop. If you have the right accessories you will have a steady flow of walk ins. If you buy the right stuff at the right times you will have good margins. Screw it up and you might have a $100k in helmets that just are not selling.

Bikes, a profit can be a real challenge. Often with more coming from the add ons. Several dealers have told me the bike sales are really only their to keep people coming back for the workshop and the parts and accessories. Others as in it is to keep finance contracts ticking over.

Staff are the difference between a living hell and a dream come true. The bane of the industry for decades has been it is mostly staffed by enthusiasts slowly losing their enthusiasm instead of sales professionals.
Even your mechanic needs to be a good sales person if he talks to the public.

Would I buy a bike shop? If it was a good shop in a good location with a good reputation.

Would I start a bike shop? Location, location, location.

In either case it would only be if I had the support of my spouse and one of us was going to keep working to keep the house afloat while we built the business.
Or as is my dream, that one day I will be financially independent and own a bike shop as a hobby. Staffed by professionals who know more than me who I am making rich through their abilities to make me more independently wealthy.

Stupid phone / Tapatalk, apologies in advance.

**yevjenko** · 26th October 2014, 18:06

Great answer big dog

**98tls** · 26th October 2014, 18:36

Way back i sold cars for around 7 years or so,worked for a Toyota franchise so money for jam.,back then there was a few guys wholesaling cars ie buying off one dealer selling to another/importing the odd car or simply scouring the papers for later model bargains and selling em to dealers,might only make $500 in the deal but didnt have to sell to many to make a decent weekly wage,back then you could get a car from Auckland to Wellington for fuck all.Out of interest anyone do the same with bikes?

**GDOBSSOR** · 26th October 2014, 20:06

Originally Posted by DODO``

Just as employee. But I have been working closely with newly established architecture company and seen their struggle.
I understand starting any business is challenging.

Does anyone know what actually is involved though? such as what sort of licence or cert do I need? Where do I buy the bikes from... etc etc.

I don't have million dollars to spare and am willing to start small and hopefully grow from there.

cheers guys.

Talk to Crasherfromwayback... His name is Pete and he's the sales manager at Wellington Motorcycles. He could point you in the right direction... Just don't drink the coffee.

**yevjenko** · 26th October 2014, 20:15

Originally Posted by 98tls

Way back i sold cars for around 7 years or so,worked for a Toyota franchise so money for jam.,back then there was a few guys wholesaling cars ie buying off one dealer selling to another/importing the odd car or simply scouring the papers for later model bargains and selling em to dealers,might only make $500 in the deal but didnt have to sell to many to make a decent weekly wage,back then you could get a car from Auckland to Wellington for fuck all.Out of interest anyone do the same with bikes?

I would be surprised. Cars are a lot easier to turn over and flick on than bikes

**Katman** · 26th October 2014, 21:11

Originally Posted by GDOBSSOR

Talk to Crasherfromwayback... His name is Pete and he's the sales manager at Wellington Motorcycles. He could point you in the right direction... Just don't drink the coffee.

I suspect you like looking at yourself in a mirror.

**DODO``** · 26th October 2014, 22:05

Originally Posted by Big Dog

As someone who has been a customer for 23 years and was a part time employee for 5, the biggest challenges facing bike shops are spiralling finances and consumer loyalty.

If you have a sound plan to deal with these factors pursue your whale.

If you don't, take time to learn more about the industry and make those plans.

Why spiralling finances? Because the customer expects you to be more flexible than 20 years ago, while laws and finance companies expect you to be stricter.

Why loyalty? Twenty years ago you picked a dealer based on value for money or some other perceived point of difference.
This was often not the cheapest shop or with the lowest posted workshop rates. I used the same dealer exclusively for 5-6 years. Because I trusted that even though some things cost more other things would cost less and the final analysis would be fair. Going elsewhere only when Neil could not get me something. Yes I was on first name basis with several bike shop owners by the end of that period. These days that is unlikely to be true at a shop where you hand over in excess of 10k a year. Sadly over the years dwindling consumer loyalty put Neil out of business.
Since I moved to Auckland most of my business has gone to Red Baron, Initially because they were able to sort me everything I needed in the timeframe I needed it.
Haldanes and MT Eden were both unwilling to spend time to sort that much out because they already had enough business without wasting valuable sales time on someone who only had $7k cash and the same again in finance to spend and needed a bigger than normal set of gear. Both are now out of business.
Coleman's, Holeshot and Cyclespot actively tried to stop me buying what I wanted and instead left me with a feeling I was being ripped off.
Henderson motorcycles and Botany Honda and a few others were willing enough but just were unable to provide for a larger rider or did not have a suitable bike in stock.

Cue 10 years o loyalty to Red Baron. An average of 10k a year in servicing, accessories and bikes. All with them as the first port of call for everything. Only going elsewhere when they were unable to provide what I needed.
They even sorted me out with work when I needed to supplement my income to cover my riding habit.
The last 3-4 years several staff have changed, management has changed and I no longer feel the same level of trust.

A workshop is the backbone of a dealership. It keeps cash flowing when times are tight.
When the economy is booming people upgrade their bikes more often and spend their discretionary money on bolt ons and shiny bits. When the economy is poor they service their bikes a little more and trade in less often. Things that would previously have seen their bike on trade me get fixed.

The type of work changes. Not the volumes.
Assuming you have good mechanics people seek out by name.

Accessories can be the make or break of a shop. If you have the right accessories you will have a steady flow of walk ins. If you buy the right stuff at the right times you will have good margins. Screw it up and you might have a $100k in helmets that just are not selling.

Bikes, a profit can be a real challenge. Often with more coming from the add ons. Several dealers have told me the bike sales are really only their to keep people coming back for the workshop and the parts and accessories. Others as in it is to keep finance contracts ticking over.

Staff are the difference between a living hell and a dream come true. The bane of the industry for decades has been it is mostly staffed by enthusiasts slowly losing their enthusiasm instead of sales professionals.
Even your mechanic needs to be a good sales person if he talks to the public.

Would I buy a bike shop? If it was a good shop in a good location with a good reputation.

Would I start a bike shop? Location, location, location.

In either case it would only be if I had the support of my spouse and one of us was going to keep working to keep the house afloat while we built the business.
Or as is my dream, that one day I will be financially independent and own a bike shop as a hobby. Staffed by professionals who know more than me who I am making rich through their abilities to make me more independently wealthy.

Stupid phone / Tapatalk, apologies in advance.

Wow. Thanks for this Big dog