Tell me about owning an M/C dealership (Business advice needed.)

My dad had a few dealerships (Honda, Suzuki, Kawasaki) when I was a kid. Not that that qualifies my opinion, but I did see a lot over the years.

First - Passion is good but, well directed and informed passion is better. Make sure you balance that love of two wheels with a well grounded business plan and approach. Ask yourself if you want to make this passion your work life. In the end being in the business could kill the passion!

I may be off base here (No one's shy here I'm sure they'll chime in) but - the real key at this point in the game has nothing to do with new bike sales, it hasn't been for years. Cost of capital, floorplanning, slim margins, your showroom isn't going to keep the lights on although I'm not negating the money to be made. The real money is in "Relationships". Customer development, cultivation, relationships are the real key. If you can pull together a team who live for the product and exude that passion, building an incredible reputation for honest high quality service will fuel not only service business but parts and accessories as well. Of course that will also fuel new bike sales. Build a reputation for tuning, support local racing teams with in-kind service and support, get involved in the community etc.

I've seen the service / parts side change so dramatically. There was a point in time where dealers actually stocked the most esoteric bits and pieces (in quantity at that!) - all OEM from the factory. Just in time inventory delivery, alternate sources, after market etc. has really changed the game.

It almost doesn't matter if you're an M/C dealer or selling cleaning supplies - it's about your people and how you treat your customers. Of course I'm assuming steel trap business sense into the mix too.

No brain surgery here but, since you asked I figured I would chime in. I think my dad was at his happiest in those days even with all the usual customer service headaches. So if you think you can pull it off - go for it. Those were some pretty amazing days, especially for a kid hanging out in the service department or on the off occasion that they let me tag along on a ride.

Talk to the reps, manufacturer and after-market suppliers. They are a source of key information regarding market, competition, pro's and con's of local competitors, strengths and weaknesses of existing business, un-tapped opportunities, etc.

Prepare to work a lot of hours and micro manage dollars. MSRP vs. net cost on the dealers showroom floor results in about a 14% GPM, which means you're not going to make it on bike sales alone, especially if your dealer allotments are small on hot selling models.

The typical dirt bike rider is thrifty to say the least and they expect discounts and have little loyalty. Rocky Mountain, MotoSport Outlet, and other internet accessory vendors are your competition on products that offer reasonable margins.

Recreational, farm, and commercial ATV sales and accessories may be your bread and butter depending on the market. Outdoor power equipment, watercraft, and snowmobiles are other opportunities that may not be tapped in an existing business. But access to lines/brands in the market is determined by the manufacturer. Done right, a service department can provide a reasonable return on investment. Finding and keeping good mechanics is an industry wide challenge though.

Do a business plan and determine building/insurance/employee compensation/equipment/advertising/merchandising/vehicle and parts inventory expenses to give you an idea of sales volume and margin requirements.

Perform a thorough investigation of the local competitions strength and weaknesses and determine if there's a niche to capitalize on.

Good luck.