How many are enough???
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Joined: May 2009
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How many are enough???
I'm looking for some opinions on Harley-Davidson going forward.
1.) Everybody's dealer agreement is up this October. Harley's new big guy (Waddell) has said that he believes that the dealer network is about 10% overpopulated. That means we could see 60-80 less dealers by the end of the year.
2. The statement that caught my eye was this. A Harley dealer does not worry about customers cross shopping. (looking at Hondas, Victories, and such) The biggest cross shopping for the dealer network is itself. Waddell believes that the dealers themselves are devaluing the brand through this sales competition. Some areas have dealers that are too close to each other and create an artificial pricing depression.
The question is this. How far is too far? For your local Harley Dealer??
1.) Everybody's dealer agreement is up this October. Harley's new big guy (Waddell) has said that he believes that the dealer network is about 10% overpopulated. That means we could see 60-80 less dealers by the end of the year.
2. The statement that caught my eye was this. A Harley dealer does not worry about customers cross shopping. (looking at Hondas, Victories, and such) The biggest cross shopping for the dealer network is itself. Waddell believes that the dealers themselves are devaluing the brand through this sales competition. Some areas have dealers that are too close to each other and create an artificial pricing depression.
The question is this. How far is too far? For your local Harley Dealer??
Road Master
Joined: Sep 2007
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Since company sales are down 35% or so, it's easy to see how it will be tougher for weak dealers to survive. As those guys struggle to keep their head above water, they make it more difficult for the strong to do a good job. Also, since the dealers don't pay for bikes until they are sold, that is just another cost for Moco to fill all those showrooms with iron. Makes a lot of sense.
Road Warrior
Joined: Jul 2007
Posts: 1,460
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From: pasco county FL
Just like the car dealers becoming unemployed via Barack , Just what IS the cost to a manufactuer of a dealership? Just the visual of it being present is another "brand advertisement" at no cost to the factory , the product costs the same to produce and get out the factory door.So long as a current dealer is paying the company for thier products and is not the source of alot of complaints ....... LEAVE THEM ALONE! Consumers can weed out the bad one's by not spending money at them & they will wither away on thier own.Besides there is obviously plenty of service work for even more dealers ..... IF they were worthy! As evidenced by the number of Indy's making the grade.
Road Warrior
Joined: Jul 2007
Posts: 1,460
Likes: 1
From: pasco county FL
Since company sales are down 35% or so, it's easy to see how it will be tougher for weak dealers to survive. As those guys struggle to keep their head above water, they make it more difficult for the strong to do a good job. Also, since the dealers don't pay for bikes until they are sold, that is just another cost for Moco to fill all those showrooms with iron. Makes a lot of sense.
Dealer's don't pay until it's sold? I seriously doubt that , They are probably paying the financing under a "floor plan" just as auto dealers do.
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Joined: Oct 2007
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From: 50 Miles North N.Y.C.
Since company sales are down 35% or so, it's easy to see how it will be tougher for weak dealers to survive. As those guys struggle to keep their head above water, they make it more difficult for the strong to do a good job. Also, since the dealers don't pay for bikes until they are sold, that is just another cost for Moco to fill all those showrooms with iron. Makes a lot of sense.
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Joined: Jul 2007
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From: South of Dallas Area, Texas
Just like the car dealers becoming unemployed via Barack , Just what IS the cost to a manufactuer of a dealership? Just the visual of it being present is another "brand advertisement" at no cost to the factory , the product costs the same to produce and get out the factory door.So long as a current dealer is paying the company for thier products and is not the source of alot of complaints ....... LEAVE THEM ALONE! Consumers can weed out the bad one's by not spending money at them & they will wither away on thier own.Besides there is obviously plenty of service work for even more dealers ..... IF they were worthy! As evidenced by the number of Indy's making the grade.
MikeM
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Joined: Jun 2009
Posts: 3,785
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From: Eastern Washington State
I wish they would populate my town with at least one dealer. I've gotta ride 60+ miles either north or south to get to a dealer. That's not necessarily bad if the weather is good and the bike is running good but throw in some crappy weather and it would not be much fun going for a service appointment.