Dealerships in trouble?

[thefullmonte]

Guys not to rob a thread, but As of right now Harley has had several dealerships go away, Not sold, gone, they are expecting up to 30 more ,Harley has dropped Buel also now this a warning to all of us, Pick your dealer and regardless of the price stick with em, spend as much as you can at that place, pick your favorite products and stick with them. just a few months ago a Harley dealership was a retirement package now it's an anchor.Sled dealerships are the same only way more fragile, and oh yea buy the d-8 and life will be great

RMK727 had posted this in the IQ section and it seemed like it deserves some discussion. The current economic times can prove to be very tough on sports such as ours. Less expendable money equals less being spent on entertainment. In our area I know dealerships that didn't snowcheck a single sled for this season. Most are sitting on enough leftover stock from last year to get through the whole season. Yet, some of the manufactures burden the dealerships even further with purchase requirements. How many of you have lost your local dealer? Do you see more in trouble?

Are we going to loose brands themselves? People are flocking to quality and value for your dollar. Will the companies that aren't at the top of their game suffer?

Some argue that these times will weed out the week, but this can leave smaller areas with no dealer at all! How can you support them when you yourself cannot afford to buy? Can we lay blame on the management? Will the dealerships giving the best customer service survive and thrive? Or, for some will all the years of having poor mechanics and parts employees that don't care finally catch up to them? Will we be happy to see some go away and be left with the best? Or will we be left with the guys who have enough money to weather the storm although they aren't necessarily the dealer most want to go to.

Is there some good coming out of this though? If you have money, dealerships are selling units at unbelievable prices. They are even hurting the used market. I've seen brand new dirt bikes selling within a few hundred dollars of the used stuff. Which would you buy? And I think you will continue to see dealers selling at all cost, but when their margin is gone what is left to keep the doors open?

 

[Funoutfitters.com]

Very true, and thank you for the post!

Josh Zieske

 

[Beels]

My local Yamaha guy decided to drop the line the other day. He's not in trouble one bit either. He had some issues with the territory rep, and got sick and tired of not being able to make 500 bucks on a 10,000 dollar machine. He does very well with travel trailers, so he's sticking with that.

 

[mad1818]

I would support a local dealer even if the price was a few hundred more on a new sled. BUT my local dealer is always at least that much higher and has some issues with not giving a rats a$$ about his customers. I drive right past it and go an additional 60 miles to do my business elswhere. It's too bad I'm loyal to my brand cause the other 3 brands all have good dealers nice and close.

 

[Jkinzer]

we've been pretty lucky out here, a few dealerships have dropped AC for the fact they force orders down your throat or else, but none of the local shops are in any danger of closing down. most are actually ahead of last year in sales

 

[EricW]

My dealer knows he's got me, I'm hooked, as long as I'm making money he knows he will be getting it. I think he's a great dealer because he's willing to help me bid jobs and fine tuning my job costing so there is more profit at the end of the day for me to carry into his store. Now thats customer service.

Toy dealers can take a lesson from drug dealers on this one. Choose your most addicted customers and counsel them on how to get more money. lol.

Seriously, I hope all dealers are keeping their heads above water in these tough times. God knows with 2 boys and an extended riding family that does crash frequently I'm doing my part to help.

Great post Monte. EW

 

[TNTCOPP]

This won't be a popular opinion , but I'd be ok with factory direct if it will bring the price of the sleds back down in check. $10,000 - 12,000 for a sled is rediculous. My brother builds them for 1/2 that every season.They could put in a few distribution warehouses across the states for customer pick-up. Or just ship them to us , we're paying the freight anyways. I personally haven't taken a sled in for service for many years - and I , like a lot of people I'm sure , order parts online , or get them thru peeps here on SnoWest. The only time I walk in a dealer really anymore is to get oil. Again , this is my opinion and I'm entitled to it.

 

[Long Gone]

Good Thread.

As a salesman for an Agriculture Equipment Dealership, I can feel for these dealers in the sled world. We see customers who float around with the lowest price, but we take care of our loyal customers alot better. I drive a distance to my sled dealer not because of price, but because of set up and quality of service. I have full confidence in thier work and do not wory about double checking it. When I bought my sled, I did not price shop because of the reputation that this dealer has.

Lets support our dealers!!!

 

[POLZIN]

My local dealer is one of those that has enough cash to weather the storm even though I wish they would go away. They are the kind of dealer that doesnt give a rats azz unless your ready to buy a new machine at their high price. They still had an 06 900 on the floor for 8900.00 bucks last spring .I was there because I needed some plugs and a belt they had neither by contrast the next week I was in ALB. NM at Rosedale Motorsports Mike was out of plugs in the back so he pulled a set out of a sled on his showroom floor. Now thats how its supposed to be.

I was there again about 6 weeks ago to deliver some billet parts I make. He was so busy selling rangers, RZRs,and victory bikes he never had time to talk. Doesnt seem like the the good dealers are hurting as bad . He will get my business!

 

[snowhawkaddict]

Only if their worth supporting.

Lets support our dealers!!!

It's funny how hard times humble salesman, most of them still don't know a whole lot about their products or their competition though.

Watch for the vertical ad banner to the right, does your parts counter person sound/look similar, the local ones closing or about to here do! >>>

Anybody ever seen the Bill Porter story, he could have sold snow machines to Afghans.

 

[EricW]

TNT, Show me a distribution warehouse that will take me riding to try the newest stuff on my schedule, take parts off show room units to make my weekend happen, pull parts after hours or leave them in the hidy spot for me to pick up later, notify me quickly of any updates and even do the reflashes in my trailer while I wait, or exchange warranty parts no questions asked and worry about dealer ramifications later and I will be singin the "gimme a distribution warehouse" tunes right along side of ya.

Not needing a dealer for service in years might be becoming a thing of the past with CFI's on our decks and OEM turbo's (the performance ones) just around the corner. I really think as sleds become more sophisticated that well trained service techs will become more and more invaluable.

For me, my riding time is precious, and depending on a distribution warehouse for all my needs just doesn't seem like it would lend itself to improving my chances of being on the snow this weekend or next.

I also appreciate the fact that my local dealer supports my local community from the sales/service, to the donations and charity stuff to being an active member of local land use struggles. I wonder if the warehouse manager would show up and speak up at the next proposed wilderness meeting? I wonder if he would pop for the beers and pizza at the next shared motorized use gathering?

For me, a good local dealer goes well beyond point of sale or mail order parts. Just something to think about until the snow. EW

 

[TNTCOPP]

Agreed that you must have that special dealer. However , there are countless stories on here how people drive past their local dealers
( sometimes hundreds of miles ) to get to a decent one. You do not see a lot of dealers bending over backwards to go the extra mile for the customer anymore. Probably due in part to not making much on sleds to warrant it. I have found that my local ones have an attitude as soon as I walk in the door , or their parts departments have absolutely no clue. I was just throwing an idea out there - it works in other industries.

TNT, Show me a distribution warehouse that will take me riding to try the newest stuff on my schedule, take parts off show room units to make my weekend happen, pull parts after hours or leave them in the hidy spot for me to pick up later, notify me quickly of any updates and even do the reflashes in my trailer while I wait, or exchange warranty parts no questions asked and worry about dealer ramifications later and I will be singin the "gimme a distribution warehouse" tunes right along side of ya.

Not needing a dealer for service in years might be becoming a thing of the past with CFI's on our decks and OEM turbo's (the performance ones) just around the corner. I really think as sleds become more sophisticated that well trained service techs will become more and more invaluable.

For me, my riding time is precious, and depending on a distribution warehouse for all my needs just doesn't seem like it would lend itself to improving my chances of being on the snow this weekend or next.

I also appreciate the fact that my local dealer supports my local community from the sales/service, to the donations and charity stuff to being an active member of local land use struggles. I wonder if the warehouse manager would show up and speak up at the next proposed wilderness meeting? I wonder if he would pop for the beers and pizza at the next shared motorized use gathering?

For me, a good local dealer goes well beyond point of sale or mail order parts. Just something to think about until the snow. EW

 

[BigJake]

Good Post EricW,

Good Customer Service goes a long way.

 

[Xrider]

I'm not sure I'd want to be selling expensive toys right now either for a living. I've always supported local dealerships and given them what they asked, no questions. However after buying 3 dirt bikes and 5 quads and countless accessories dealer asked for a bid on some const. work and went with some cheapo. Little does he know that he's already lost anything he saved on his project, probably got a $hit job too. Drove right by and bought stuff from another dealer, and will continue to do so.

 

[Gainster]

Good Post EricW,

Good Customer Service goes a long way.

It's everything in my book!

 

[MCIVER]

So here is my stand on this. I was in the market for a NEW sled and I checked prices with local dealers, checked with dealers that were far away. I have no problem price shopping and if your local dealer wants your money they should try for it. I don't have lots of money to be spending what could be thousands extra because I didn't look around. I will ALWAYS give me local dealer the chance to make the sale to me, bring him the prices other places are giving me and let him try and get the sale. It is nothing personal, but I have just as much problem with my economic state as they do and need to save money where I can.

that said I ended up buying a almost new (40 miles) sled from a guy that needed to sell and I saved about $2500 over the cost of buying new. I paid him his full asking price cause I knew it was a great deal. I still buy my parts from the local guy and will continue as long as it's afforable.

the point of this is, dealers need to be alittle bit more willing to make that deal rite now cause for a lot of people its that or they can't afford to buy from them.

I've always thought a sale that makes money no matter the amount was better than no sale at all.

kinda like if I'm unemployed and have no money, a job that doesn't pay much is better than no job at all.

this is just IMO

 

[S2S_sledder]

Survival of the fittest... the good dealers will find a way to make things work and gain market share... and there is more to being a successful dealership than just customer service. I worked in the powersports industry for several years at a few different dealerships and one of the things I picked up on was that many of the more established dealerships become complacent in their attitude towards conducting business and are often unwilling to change with the times. Locally I have seen some large dealerships going bust while at the same time several new shops have opened or formerly small shops have expanded greatly. The ones that are doing well have kept up with times and are in tune with what the guys who do have money to spend want.... they invest in good mechanics and arent' afraid to do aftermarket modifications (turbo's, suspensions, etc).
I can't speak to other areas of the country but locally here in BC it definitely seems that high performance mountain sledding is definitely on the rise. I know more people that bought or are buying sleds this year than ever before. We also just had a new arctic cat dealership open in Pemberton.

Change is healthy, often the new shops are hungry and run by real enthusiasts who will go the extra mile to earn your business.

 

[Ollie]

We lost both our local polaris dealers in northern colorado, one to the bank and one to demands from the polaris company.
They demanded he buy "X" amount of product, he said he couldn't move that much so he dropped polaris from his offering.

Times are tougher, people will fix what they have and ride it longer vs buying new.
Hopefully this will force the makers to produce lower cost units.
I know I won't be spending 10-12k for a new sled anytime in the future.

 

[rmk727]

All these posts are great and all have some truth even the warehouse guy. i actually think the only snow dealers left are sledders themselves or sell mass clothing numbers. Here's a situation that rags me , just think a little after you read it. You are a good dealer, sell at low markup on new units, keep up w/ well trained good tecks, keep up and stock the good acc, and after market stuff, go the extra to leave stuff out and take what's needed from your own or showroom models to keep guys going even get up early to open up to sell the windsheild and plugs for the trip that was planned two weeks ago but the guy forgot and was leaving in a couple hours. Business is good but margins are going down cuz of warehouse dealers still having carry over.
Now HayDays comes along and a couple of your frequent customers buy new 09 d8's at prices so low the things don't have titles cuz they don't have EPA stickers so these guys need to have a Polaris rep meet them at your shop (closest to customer but 200 miles from where bought) and use your shop for the testing and stuff , this kind of stuff happens more than you think plus other stuff like it. to be competive with carry over you need to sell for dealer cost less any factory rebate less your hold back that you only get two times a year, I can't believe anyone could not go to any good dealer and say . I'm buying a new d8 will you take dealer cost and keep the rebate for the dealership? thats a fare deal but anything else is not, just saying if they want your business and are willing to prove it stand by em or else they will be gone.

 

[Pedersen]

My nearest dealer is about 200 miles away, but I pay over twice as much there then what I do when online shopping from the US and thats including airfreight and taxes. In Norway a 2010 M1000 SP costs 28956$ but then again we only pay about 8,63$ a gallon for gas...