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The Motorcycle Industry?

Discussion in 'General' started by Chip, Jun 26, 2008.

  1. DavieStone

    DavieStone Well-Known Member

    I've actually refused to put a deal together for a guy because of your first statement. He didnt take my advice, went to another Broker, bought the house and lost the house because he was spread to thin.

    I had another deal that a realitor was selling to her father. The house was wrote up under a purchase contract for 830k and when I had my appraiser give me a value on the house he said that it was only worth 700k:wow: I called both realitors/client and told them that the house wasnt worth the value by a long shot. They got pissed at me and told me that I didnt know what I was doing and referred me to a appraiser that would give the value necessary:rolleyes: I passed on that deal...and sure enough it was done by another broker.

    A year later the client of the above house calls me and wants to refi out of a Neg-Amortization loan stating that he should have listen to me:wow: By then the house had dropped another 100k...he was fuked.
     
  2. Spyderchick

    Spyderchick Leather Goddess


    They'll sit if they are getting their hourly. Hey, that could pay for their Hawaiian vacation!
     
  3. STT-Rider

    STT-Rider Well-Known Member

    Are you refering to a Lawyer? We don't use lawyers in OH or UT to close loans. They have to find other blood to suck.
     
  4. G 97

    G 97 Garth


    And then? What now?
     
  5. RubberChicken

    RubberChicken PimpMasterT

    The situation is obviously changed a lot due to the uncertainty that everybody is feeling. Every person is an instant economist.

    All I got to say is wait until the corporations who use a calendar fiscal year begin dropping their quarterly and annual reports on the table in the next couple weeks. When Wall Street gets a load of how many companies are WAY off their projections, and stockholders feel the real screwing, there will be some destabilization. That will cause over-reaction in a lot of business, that will cause layoffs, reduced ordering and other traumas that will reduce profitability.

    The motorcycle companies are getting out of racing because that is a financial committment that they can dump quickly without any severe negative public reaction or affect on sales.

    If I were a squirrel, I would be gathering and burying a lot of nuts right now. Lucky for me I found the WERA bbs which is chock full of nuts.
     
  6. Lizard 1

    Lizard 1 Well-Known Member

    Another reason motorcycle dealers are dropping around here, at least is because they have been bleeding for a few years. This economy isn't as doom and gloom as they say, but if your business has been in the shitter for a few years, this slow down weeds out the bad apples. Shops that understand and get it, are still kicking ass. I have examples of dealers on both sides of the fence and trust me when I say - if they were fine before the economy issues revealed itself, they are fine now...

    Those that also went out and bought a pile of other shops are hurting a bit now, too. They have too much overhead and are cutting some slow moving places to heal.

    Overall, sales are down because motorcycles are not a necessity. Accessory sales are not doing bad at all. It isn't flourishing, but it isn't dead, either... No need to sell the farm. I wouldn't say go out and buy like you won the lottery, but tightening the belt doesn't mean you need to cut off everything in total...
     
  7. Booger Van der Jackass

    Booger Van der Jackass Well-Known Member

    I agree with you totally. Central Ohio is/was rife with dealers that fail to even recognize the revenue streams they already have built into their business. Things as simple as turning in warranty claims and taking advantage of elegible parts return credits through their OEMs. Business has been stout enough here, for long enough that they could piss away money and still turn a profit.
    Then there's the mismanagement or lack of oversite with the day to day operations that leads to absurd monthly flooring bills and rooms full of stale inventory. It seems to me that the only bright side for the end user is that the "evolutionary pressures" confronting the motorsports market will leave only the very few shops that know what it takes to run a successful shop for the long haul. Hopefully, the next round of shops that emerge after this bottleneck will learn from those models.
     
  8. RubberChicken

    RubberChicken PimpMasterT

    Mismanagement flourishes in a bull market. Then it dies off in a bear market. That is just the nature of business.

    I was a BMW motorcycle dealer rep about 30 years ago (holy crap, that is a long time!) and I had to fight and cajole with my dealers to get them to file warranty claims in a timely manner, to take advantage of free flooring programs, to file their advertising co-op claims, etc. They were making money and leaving a lot on the table. The analogy that I used with them was that they were fishng with a hole in their net. Works great as long as there is a river full of fish, but when the run is over, you wish you had mended that hole a long time ago.
     
  9. Jamesm925

    Jamesm925 Well-Known Member

    i dunno what world you're living in when you say 'accessory sales are not doing bad'

    i've worked for two large parts distributors/manufacturers over the past year, and i can without a doubt state that the MC parts industry is screwed. I managed accounts nationwide in nearly every state/climate. it sucks everywhere, just a little less in some places.
     
  10. Brian Van

    Brian Van Track Gear Retailer

    Sales for us have been excellent. Here we have seen no signs of a slow down at all and hope we do not. I also believe the economy is better than most portray it to be. I am sure there are many others in this industry just like us who are doing well also.

    We are a nation dependent on consumption. As long as those who are still employed (last fiqure I saw was 6.8% unemployed) continue to live their life the big wheel will keep spinnning. If everyone decides to stop the wheel stops and we are all screwed.

    Some could argue the answer to this problem is much more complicated than that. They are entitled to their opinions. I believe the best answer or solution to any problem is typically the most simple.

    Consumer spending is where it should be according a a report I saw yesterday. It is down a bit until you remove the cars from the equation. Remove the cars and it is actually up a little.
     
  11. Chip

    Chip Registered

    We are also doing quite well.

    I just got back from the PRI show this week and it was as busy as I have ever seen it.
     
  12. Lizard 1

    Lizard 1 Well-Known Member

    Well the company you work for might be down, but a LOT of the major players in the US selling parts and accessories may not be having stellar numbers, but they aren't crying the blues and ready to fold shop.

    The company I work for is having a decent year and our region (SE US) is actually up. So, selling parts in your area may very well not be the best point of reference for the overall US market...
     
  13. racer212

    racer212 Well-Known Member

    We're getting by. We are still a new kid around here so downturns hurt us more than others. A lot of small shops in the regions have folded, but we scrapping by. Parts and service sales have been up more and more all year. Bike sales were good all summer, but have slowed dramatically in the last 3 months.
     
  14. thefastlife1

    thefastlife1 thefastlifemotorsports

    with the gas prices....this has been our best year.....cruiser business is huge
     
  15. Suburbanrancher

    Suburbanrancher Chillzilla

    A dealer friend told me today he has it on good authority HSBC is seriously considering dropping all future powersports financing in part because of the record defaults they're experiencing. His opinion was that he could see certain factories offering their own financing schemes down the road in order to maintain sales.
     
  16. Bob Shy

    Bob Shy Banned

    [​IMG]


    I still spend all of my money on race stuff, does that count?
     
  17. Jamesm925

    Jamesm925 Well-Known Member

    that's what I forgot to leave out:
    all of you guys that got smart and went online are still doing good.
    it's the dealerships. they're dying.
    you online guys are the ones keeping the industry afloat.
    so props to you for getting w/ the times :beer:
     
  18. Jamesm925

    Jamesm925 Well-Known Member

    i sold parts for the ENTIRE U.S. market and called 75+ shops on a daily basis.
    it wasn't so bad until july/laguna seca. then it went downhill. and november rolled around and was just utter crap.
     
  19. Rico888

    Rico888 Well-Known Member

    The thing that separates one dealer/supplier from another is quite simple. It's called customer service. I personally do not know Brian but I will say purchasing product from his company, the transaction has always been smooth, easy, and educational as well. They know their product line and can guide you to what is best for your needs. This is the piece of the business model that a lot of dealers/suppliers are missing, helping the customer. Give 110% to your customer and they will come back. When things tighten economically, your customer will remember the experience and you will be the one they give their business to.

    As an aside, if you have a 6.8% unemployment rate, that means that 93.2% of the population are still employed....
     
  20. Rico888

    Rico888 Well-Known Member

    We haven't met Chip, but after watching your guest shots on "On The Throttle",
    you're due to come out to L.A. and pitch your new reality show "As the Wheel Turns"! :D
     

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