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Buell Motorcycle Forum » Big, Bad & Dirty (Buell XB12X Ulysses Adventure Board) » BB&D Archives » Archive through April 27, 2008 » Dealer kicked me out!!!!!! » Archive through April 20, 2008 « Previous Next »

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Bad_karma
Posted on Friday, April 18, 2008 - 02:16 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

The worst damage you can do to a business is know of a problem but not report it or correct it. It will continue to cost the company money until their management takes action to correct it, if they chose to? Vote with your Dollar buy your parts from somebody else.
It's the quality of your life forget this guy and his business and ride somewhere else. It's a shame he doesn't value the freedom he takes for granted, I however I do thank you for your service.
Joe
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Court
Posted on Friday, April 18, 2008 - 06:44 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Life's short.

Take your bike to be serviced where you are welcome.

Riding in the USA is recreation, not utility.

Have fun.

Enjoy the Buell.

Ride it alot.

Ride it some more.

Meet as many nice Buell people as you can.

Enjoy the Buell and your life.

If you ever decide you have enough spare time while you stir dust here on the Mothership to spend time with snarly, unhappy people, let me know . . . I know where there are spares.

Court
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Chadhargis
Posted on Friday, April 18, 2008 - 11:21 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I understand those who are saying that you should go back and meet with the dealer or write letters.

But that sounds an awful lot like "begging" to do business with them to me.

You should not, EVER, have to beg someone to do business with you if you are the customer. Now, I know some professions such as doctors eventually reach an maximum customer (patient) load and can't accept new ones, but this is typically not the case in sales.

I really don't understand the dealers behavior. If I owned the shop, I'd feel like I failed you because you had to go buy someplace else. If I couldn't match the deal you got, I'd make it up to you in some other way. Maybe discount service. Maybe include the first few services in the price. Something.

If the customer's expectations aren't reasonable, then you have to agree to disagree and don't get angry with them if they find the deal they are looking for somewhere else. But never miss the opportunity to service their needs no matter where they bought their bike.
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Neurorider
Posted on Friday, April 18, 2008 - 12:48 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I think the dealer took out his frustrations on you. Even if he was so disappointed, that's just wrong. I own a business too, and I can tell you it takes a lot of marketing to get a customer in-the-door. Bad PR never goes away it seems. It always pays to not piss off a customer, even if it cost you a little. I have one bike dealer in my town, a Yamaha dealer. I looked and looked at their bikes, and tried to talk myself into an FJR or a mega-cruiser. Still ended up with a Buell! and you know what? they still like it when I walk in the door. I just bought a new rear tire from them and had them install it, because...they were here, and they're nice to me. It cost more, but the next nearest town is an hour away! And they didn't mind doing service on a Buell. It's called customer service, and is the basis of repeat sales. Now I'm thinking of buying a TW200 from the Yamaha dealer for my wife. Go where you are welcome, it's healthier for you!
doc
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Chris_socal
Posted on Friday, April 18, 2008 - 02:03 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

When I was in the Army we had a car dealership that was treating some soldiers like crap. Eventually the base commander caught wind of the matter and put out a directive that no military personnel were to do business with this place. Within an couple days the commander's order made it into the local paper and the entire town stopped going to this place. Needless to say he closed up shop and left town.

I am glad that you maintained your composure, because you are in the right and need to stay there. Keep that up if you end up running into this guy again. You should absolutely report this guy to the BBB and HD / Buell.

When my brother was coming back from the desert he called around to several dealerships to find the one that would honor the overseas program and give him the best price on his Uly. I started dealing with Glendale HD / Buell, who was trying their best to get a good price for him. Unfortunately, they couldn't come close because he didn't need a CA model. Thunderbird HD / Buell in NM got him the bike at great price and treated him like a part of the family.

At no point did any of the dealers get upset that he wasn't buying the bike from them. As a matter of fact, I bought mine from Glendale HD / Buell because of how far they went out of their way to help. I am fairly certain that a huge percentage of the people on HD's and Buell's are vets. Every time I am at the dealership Ernie intros me to another vet.

So I have to ask, How many of us are current or prior military?

Chris - Veteran, US Army
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Tipsymcstagger
Posted on Friday, April 18, 2008 - 03:34 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Well, not that I've ever used my marketing degree professionally (thankfully!) but I do remember learning in Public Relations class that 100 satisfied customers retelling of their positive experience with a business or company can be a very good thing.

But a much more powerful effect is the one pissed off customer spouting about their dissatisfaction and that one persons ability to inflict much more damage than any benefit the 100 satisfied customers could have offered.

That said, I'm sure a bunch of emails sent to the owner of this dealership indicating that his words have been heard (the Internet is a powerful force, ain't it?) and since he doesn't need the business, we'd all be happy to take it elsewhere.

Maybe he'll rethink the old "the customer is always right" and "you never know who's listening" adages.

Tipsy

(Message edited by tipsymcstagger on April 18, 2008)

(Message edited by tipsymcstagger on April 18, 2008)
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Chris_socal
Posted on Friday, April 18, 2008 - 03:43 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I don't think the customer is always right, but there are ways of dealing with problem customers that don't involve bad mouthing them and calling other businesses to bitch them out.

I am on board with the nasty-gram idea.

-Chris
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Tipsymcstagger
Posted on Friday, April 18, 2008 - 03:50 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I don't think the customer is always right,

No...not literally, but as a business owner, you have to be more tactful in how you deal with your customers.

Tipsy
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Naustin
Posted on Friday, April 18, 2008 - 04:03 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Only HD Dealership within 20mi of Willits, CA is Harley-Davidson-Buell of Ukiah‎.

http://www.harleydavidsonofukiah.com/

I for one will remember not to stop there. ;)
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Nevrenuf
Posted on Friday, April 18, 2008 - 04:18 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

when i was out there a few years ago and took the cyclone in to be serviced, i got treated alright. i think one of the mechanics even had a buell. but once again, that was a few years back and who knows how things have changed. those are some nice roads to ride if you have a buell.
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Sleez
Posted on Friday, April 18, 2008 - 04:45 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

hey Naustin,

overall they have been ok. this is the only time i have had or have heard of a negative about them, that is why i held off naming the dealer, but as you state, there is no secret as to who they are if you know where i live!

the most surprising thing is that it was the owner, not just some pissed off salesman who didn't get their commission.

i much appreciate everyones support and thoughts, i am still having mixed feelings...i feel he was way over the line in his treatment of a customer, and said some things that don't quite jive. i would like to keep the relationship as professional as possible and continue purchasing service parts and supplies as needed, and be able to rely on them for warranty service if needed. i will not kiss anyones butt however, and feel he owes me an apology at the very least!! i guess i have mellowed a bit these last few years. if we can't keep a professional relationship, then he can go.......(fill in your own favorite!) and i won't darken their doorway ever again.


i don't want to cloud my life with any more negativity than is absolutely necessary!!!


their mission statement;

"We are committed to keeping motorcycling Fun, Exciting, and Safe.
We believe by giving our customers a fair and honest price along with the highest quality of service possible will keep them coming back time and time again.

This is why you are not just a customer, you are part of our family"

(Message edited by sleez on April 18, 2008)
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Naustin
Posted on Friday, April 18, 2008 - 05:56 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Yeah, don't worry Sleez, I'm not going to fire off an email to the dealer and start a fire or anything...

But I got a kick out of their website and that whole "part of our family" thing too...

I'm planning a trip to the Redwoods from Minnesota someday. We're doing the catskills this summer, so maybe next summer.

Like I said, unless this guy makes it up to you somehow, I'll simply make sure not to stop in there or break down nearby.

Why take a crap shoot when there are plenty of other dealers in CA? I mean if this is how they treat someone they KNOW, how might they treat a guy from 1,500 miles away who might be at their mercy?

I hear you on mixed feelings too, though. I was mad as hell at my dealer's service department for a long time. The owner is a hellova guy however and the sales guys are too. So, with time (and the firing of the old Service manager : D ), I've gotten over it.

In your situation though, the rotten spot is right at the core...

Ah well. Have a great weekend, man.
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Gtmg
Posted on Friday, April 18, 2008 - 07:08 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I have owned a franchised motorcycle dealership that is still in business. doing quite well. Started up and sold to my partner for various reasons. Just a couple of things.

1. Many dealers do lose money on service. It is not the money maker many think it is. Mechanics generally get 50% of the hourly rate and then there is the overhead involved with it. Service management, special tools and alot of power energy and space is tied up with it. Only a very well run service department will be a money generator and generally only in very small dealerships or very large ones.

2. Your dealer forgot the rule that most HD dealers don't know yet. This tough economy and the end of the baby boomers will make this a harsh lesson for many HD and other dealers. You can always get another bike but you can't always get another customer. Good customers refer others, buy accessories and use your service department more than paying back a low profit bike sale. You gave your guy a chance to match he blew it.

3. The profit margin on bikes is not as high as many think. We keep local dealers in business by using them for service and buying from them. They keep themselves in service by treating customers well.
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Nevrenuf
Posted on Friday, April 18, 2008 - 09:07 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

i think you can tell a good dealer when even if you don't decide to buy a bike from them and you tell them that you found one somewhere else and they turn around and just say if there is anything we can do for you in the future let them know. i'll go try them out just for that reason alone.
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Bearly
Posted on Saturday, April 19, 2008 - 08:53 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Boycott! Man I wish that Dealer was near me.

TAKE HIS BRAIN!" (Hitch Hikers Guide)
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Court
Posted on Saturday, April 19, 2008 - 08:05 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Gosh . . . probably no surprise that I have my very own saying . . .


quote:

Customer Service, standing alone, is WORTHLESS. Customer Loyalty is PRICELESS. The ONLY goal of CUSTOMER SERVICE is to create and foster Customer Loyalty."
- Court - Boston, MA - 1997




: )

Court
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Chellem
Posted on Saturday, April 19, 2008 - 09:32 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

First of all, let me start out by saying that he had no right to treat you that way. Even if he was upset that you went elsewhere, he should have held it in, in the interest of the long run. And personal insults are never appropriate.

But on the subject of price shopping, can I just say a few things? You're not going to like it, but I think it needs to be said. I've said most of it before anyway. :P

Let's say there are two dealers, about 30 minutes from each other. Hypothetically.

Now let's say, Dealer A has a fairly large facility, nothing crazy, but decent. Clean. Large service area, 10-12 bays, 5-6 techs, a few porters, the latest equiptment, full-training, in-ground dyno, machine shop, etc. And let's say that at any given time, this dealership must employ between 30-35 employees, and maintains an inventory level of between $350,000 to $500,000 in parts and accessories. Plus of course, clothing, collectibles, and what-not. Hypothetically.

Dealer B has none of this. A few employees, a few basic service and bolt-on parts and accessories, 1 or 2 techs almost entirely dedicated to PDIing new bikes, no real service to speak of, and very little overhead as a result.

I know, you've heard all this before. Now, I'm not one to scoff at $1,000. That's a hell of a lot of money, and I understand why someone would want to save it. So someone who is usually a fairly loyal customer of Dealer A says, man, I got this great deal at Dealer B - $1,000 less than yours - what can you do?

Well, Dealer A isn't running some line when he says he can't match it. He probably can't - or at least can't while maintaining his 30+ employees, clean, nice facility, huge service department and blah blah blah.

So this customer says, well, $1,000, what can I do? And goes to Dealer B.

Of course, everyone knows that Dealer B's service area sucks. And they know that they'll never get parts there, because they never have anything anyway, but hey - we'll just go to Dealer A for all that. No prob, right? He should be HAPPY to have a customer like me who comes to him for all his warranty work, right?

How SHOULD Dealer A feel about that? If they start price-matching, and try to maintain all that groovy inventory and service, they'll fail. It almost can't be done. But if they can't sell the bikes for a fair value (which I feel MSRP is) because hey, $1,000 is $1,000 - I mean, I might take that personally. Maybe not the first time, maybe not the second time, but by the 100th or so time it happens, it hurts.

And it probably makes Dealer A think, man, who's the sucker here, me or Dealer B? He's probably making almost as much money, but working less, and with almost no expenses (relatively speaking) he's doing probably pretty well.

Someone said that the consumer always wins. I don't agree. I think the ultimate ending in this story hurts the consumer. With no one to service the bikes, no one who cares enough about parts to bother stocking anything - where are people going to go when something goes wrong with this new bike they got a great deal on?

So how long should Dealer A watch his otherwise loyal customers spend the large money (bikes) with Dealer B, and come back to Dealer A for warranty (CERTAINLY not a money-maker) and maybe some service work (can be profitable, not not as much as bikes)?

Like I said, no one should treat anyone that way. And I know, $1,000 is a LOT of money - and no amount of "values-selling" is going to count for $1,000 savings. But, I mean, what should Dealer A do?

This is all just hypothetical though. In the real world, there's Dealer A through Dealer I, all within maybe an hour and a half of each other, on various levels of the spectrum described above.

Just my $.02. Well, actually, that was more like a quarter. Sorry.

OK, I'm braced. Hit me.

->ChelleM
(Trying to be a Dealer A)
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Blake
Posted on Saturday, April 19, 2008 - 09:37 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Which dealership Lee?
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Old_mil
Posted on Saturday, April 19, 2008 - 09:48 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

$15,350 vs $13,000. That's a pretty big price difference. Too big a price difference for dealer loyalty issues to come into play.

If it's under $1000, then I'll consider factors like that.
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Busykat
Posted on Saturday, April 19, 2008 - 09:58 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

ChelleM,
No flames from me. You bring up some very valid points; your post definitely was educational for me. I do try to support my local dealership. I could've bought a new Buell Uly through the Army-Air Force Exchange Service while deployed. I got the quote from them, and then e-mailed my local dealership. Their price was $400 more than the AAFES price. The sales manager explained that they charge MSRP for all new bikes. I decided that I'd rather spend the $400 extra in good faith to go towards establishing a good customer/client relationship. So far, it has been very much so.
I have another friend who bought a bike from the same dealership and whines about having spent $200 more than what a dealership up-state would've charged. He'd pinch a penny until Lincoln screams! Funny thing is that he blows mega money on chrome for his Ultra-Classic anyhow.
Well, I just wanted to say thanks for the insightful post. I too agree that the dealer was WAY out of line in his behavior.
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Ft_bstrd
Posted on Saturday, April 19, 2008 - 10:00 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Michelle,

I completely understand your position. I guess the difference between Dealer A and Dealer B should be volume.

Dealer A should have a larger selection and should be moving more bikes more often.

In my wife's business, we work to manage both margin and volume. Margin can't be the only criteria for sales. Otherwise you end up having to reduce the price to move the bikes. That happened to a local dealer here. They didn't have many Buells. Didn't really care if they sold them. Service sucked. When the Ulys came out, they took NOTHING off MSRP and they sat. And sat. And sat. They eventually had to drop the price to near cost just to move them off the floor.

They got the worst of both worlds. Not only did they not make the margin, but they tied up floorplan assets for over a year and made nothing or nearly nothing. Had they been willing to deal, they would have turned the bike over sooner and more often. Could they have turned the floorplan assets over twice or even three times in the same time period? Absolutely! They would have made less on each transaction, but they would have made more than they did in the long run keeping the margin high and having to dump to move the bike.

Plus they created three new owners who would potentially be buying parts, service, T-Shirts (if they had any : |), and repeat business.

The part that makes this story tragic is in not being willing to deal with someone who was already shopping your store regularly. You've already got a customer. So you don't make the margin on THAT particular bike. You've got someone who already shops at your store, is already a fan, or could become a fan of your dealership.

How many people could he have sent to that dealer vs. how many he is now sending away?
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Chellem
Posted on Saturday, April 19, 2008 - 10:17 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Dealer A should have a larger selection and should be moving more bikes more often

Unfortunately, that's not how it necessarily is in the H-D world. On allocation, volume isn't really as much of an option.

Since dealers are still on allocation (which I mentioned in a post on the Quick Board) most dealers do kinda have to make a minimum margin on bikes, because they CAN'T make it up in volume - H-D doesn't just ship more bikes because you ask. There are hoops presented for jumping through, and they are numerous and complex. (Sorry, that sounded a bit more snarky out loud than in my head.)

(Of course, in the case of Buell, it is a little easier to come by more bikes if you need them. Much harder with new H-Ds).

The same way that customers are willing to pay a little more for service (in some cases), Dealers are usually willing to take a small hit on the margin, or "deal" as it were, with a good customer. But $1,000 is a hard pill to swallow for either the customer or the dealer. So it leads to kinda an impasse, ya know?

There's no grass growing through the spokes of any of our Buells - we were out of '07s just about when the '08s were coming out - but it begs the question - how much longer can dealers go on working hard to be Dealer As with the Dealer Bs tempting them to that side?

And what is the consumer going to do if EVERYONE becomes a Dealer B and there's no A to fall back on for service or warranty work or parts?

( I fear some Buellers are already experiencing that with the Buell brand, unfortunately.)

T-Shirts (if they had any )...

Need a T-Shirt? I know a little place. . . :P

thanks for taking the time to read my long-a$$ post, BTW.

->ChelleM
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Ft_bstrd
Posted on Saturday, April 19, 2008 - 10:45 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Michelle,

You are one of the good guys for sure. I'd like to see the dealers who are serious about representing the brand get more and the ones that aren't get less. Fixed allocations are fine for initial runs, but reorders should be sent to those working to represent the brand and move bikes.

I understand the A vs. B issue on service. I don't really have an answer for that. The place where I bought mine isn't where I have mine serviced. I picked up one of those "we don't deal" price dump bikes. Their service is horrendous.

The place where I have my bike serviced didn't have one in stock when I bought. They are soon to be sponsors, and I wouldn't think about going anywhere else to buy....

Unless they were not willing to "deal" at all.

I have performed EVERY service with this dealer. I have done EVERY warranty piece with this dealer.

They have made at least three times more than the dealer who sold me the bike on service and goods. I make it a point to NEVER leave that dealer empty handed. I buy something every time I'm there. T-Shirt, hat, cleaning product, etc.

For my loyalty, I expect a volume "discount". I expect that they look at my patronage in total and price the sale of the bike accordingly. Could they make more selling it to someone else? Sure, but is that person going to be as loyal with every other dealer dollar spent?

Probably not.

Then again, there's the additional component of word of mouth. I know for a fact that I have sold three bikes by being there when someone was looking at a Uly and answering questions for them that only an owner could. I didn't make anything for it. Wouldn't expect to. I just want my dealer of choice to move as many as often as I possibly can.

It's pretty cool to see the guy you are talking to turn to the sales person and say let's talk numbers. : D
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Chellem
Posted on Saturday, April 19, 2008 - 11:01 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Ft_Bstrd - Looks like you are one of the good guys too.

I hope your dealer knows and appreciates your loyalty. I hope we can engender that sort of loyalty with our customers too.

->ChelleM
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Ft_bstrd
Posted on Saturday, April 19, 2008 - 11:15 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

I hope we can engender that sort of loyalty with our customers too.

It don't take much. Most folks WANT to be that loyal and to help someone else be successful.

Ever read the book "Raving Fans"?

Here's a link to the entire book online:

M1,http://books.google.com/books?id=h4_axFpCi0AC&d q=raving+fans+book&pg=PP1&ots=TdM-LnRnE8&sig=wQeLC yeRoE_mF02epuChyBXqzU0&hl=en&prev=http://www.googl e.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4GF RC_enUS208US208&q=raving+fans+book&sa=X&oi=print&c t=title&cad=one-book-with-thumbnail#PPA25,M1

Fantastic read. Books a little "goofy" (you'll understand what I am talking about once you've read it) but you'll really like it.
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Nevrenuf
Posted on Saturday, April 19, 2008 - 11:33 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

although i could have saved a few hundred bucks in the long run by going out of stated, by the time i went back to tampa with the truck and picked the nightster up to go traded it in, it would have cost me more and if it wasn't for price shopping, the dealer that i have bought 6 other bikes from, wouldn't have given me a better deal that easy.

as far as passing on the word, i'm no different from fat. i see someone looking at a buell and i'm all over them. hoping to make their decision a little easier and of course letting them know about badweb if they have any questions.
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Gtmg
Posted on Sunday, April 20, 2008 - 12:02 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Michelle,

You mentioned this allocation in the other board. I see HD cutting back production so something does not add up. My experience tells me that a dealer commits to selling a certain amount of units at the dealership meeting. Usually a number is worked by the franchisor in this case HD based on previous unit sales and potential for growth based on typical market share of the product and motorcycle units being bought. A dealer at this time can elect to get(order) more bikes or lower his order based on his local experience. This also flies in the face of HD ramping up production for the past several years so there would be bikes on the dealership floors.

Maybe it is different but I have a hard time believing that HD "allocates" bikes because it can be an anticompetitive issue by favoring one franchisee over another. That is a big time no no and opens the company up for lawsuits. There may be certain HOT bikes that are allocated equally across the dealerships.

Dealers that are sitting on inventory and are not willing to trade or share bikes are poor business people. As you know the floor plan after a certain point starts eating up any profit potential that you have.

I am not so sure I agree with your models especially for HD. I am fairly sure that all HD dealers are required to carry certain amount of accessories and chrome and maintain a working shop in their dealership agreement.

There are really two models of dealerships and one usually wins out. There is one that uses high volume low profit sales. This dealer looks to make up the profit on accessory, service etc. They have to have more employees to service the large volume. Typically you will not see them pass up on a customer and alot of times actually have better customer care. A great example of this in the HD world is Ocala.

The other dealer model right now is embraced by most BMW shops. Low volume high margin. They typically have fewer employees and smaller shops. Prices are high in all areas sales, service and accessories. They cannot afford to have low prices because the overhead is spread over such a small number of unit sales. BMW riders are very much a community like HD and Buell riders. How many BMW riders do you hear talking about how they love their shop.

Many HD shops have a good run for the past 15 years being able to have high margin with high volume. I think this is changing for HD and if they don't address it soon will find themselves wondering where the golden goose went. It is time for HD to pursue market share in a big time way but they probably won't. I have seen this happen in facilities in my business that were not willing to change. They were the top money makers for years. Why should I change what I am doing? And then overnight they are losing tremendous amounts of money as the competition caught up to them and passed them. The answer then is plant closures with alot of people losing their jobs. HD has some very smart marketing people what I wonder is do they have some very smart strategic people who realizes that the competition ALWAYS catches up??
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Court
Posted on Sunday, April 20, 2008 - 07:55 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Several parallel topics in play.

The FIRST is simple, civil manners. There is no point where a dealer offers an attractive enough price to enjoy license to act like a heel.

Ditto . . . customers.

The SECOND is the commercial component. Many folks, when making a major purchase, are consumed with the myopia of the moment, the see no further than the goods they are purchasing. I view the purchase of a vehicle . . . be in car, truck or motorcycle . . . as a bit of a relationship and act accordingly.

In the next 12 months I'll likely buy one truck, one car and one or two motorcycles. I'm far too busy to do my own manintance and will be making purchased based on how I perceive the relationship over the life of the purchase.

Absent any really weird realignment of the plants. . . the truck will come from Gentilini, the car from Ray Catena and the motorcycles from Liberty.

The truck is the interesting one. I drive 3 hours, each way, from NYC to buy and have my truck serviced. These guys are THAT good. When I want a new one, I call them , tell them I do not negotiate and simply want their best fair price. They have the advantage of knowing what it is, I don't until they tell me. I may pay a bit more than I would right here but when I have to get it serviced I TRUST the folks in Woodbine. Their shop is immacualte and their technicians are skilled and honest. If they call me and say "if needs "X"" I know it does. I, just last year, stopped in Staten Island to simple get a mirror replaced. It was a frickin' fiasco that ended with me and the owner having a spirited conversation.

It's the same thing with Ray Catena. . . . try telling a high volume Porsche dealer, that sells half a dozen GT3's a year and a SLR McLaren a month, that you are going to drive a hard bargain. But . . the interesting thing is that a neighbor in the Porsche Club went to every dealer in a 200 mile range before he bought and found the best deal at Catena. This is the place I've written about before . . but you really can't appreciate how good they are until you go in for service. A couple hundred square feet of something that looks like a surgical suite.

And finally . . . the motorcycles. I see many Harley-Davidson and Buell dealerships. Although it's been a couple years since I was hitting several a week, I've probably been to more than the average rider. HD used to pay me to attend their dealers meetings (really pissed some of the lesser dealers off) to listen, learn and provide input and during that time I met and became friends with many dealers.

Things are changing. You now have "chain" HD dealers where investment groups, thinly disguised as a single oral surgeon, have bought multiple HD stores. These are the folks who'd most likely meet or beat anyone's price.

The refreshing part, to me, is that there continue be folks like Tom, who owns Liberty, who come from the "old school" of folks who were avid, nearly maniacal motorcycle riders, long before they picked up the pieces of struggling HD dealerships in a time they were far less attractive.

With Tom. . . . any deal is going to be honest and fair. Try to bullshit him and shop his price he'll tell you where to park. Be honest and polite and my bet is you'll get not only your motorcycle at a good price but you'll be here telling stories of amazing service.

I confess that one of the funnest times of the year to me is watching Erik Buell and Tom together. They share common stories of working in motorcycle shops in the days before slot wall displays and glitz were the order of the day . . . .

Volume, to me as a customer, doesn't mean much. I'm generally buying a quantity of one and that's THE ONE I care about. The race is long and I'm much more concerned with how I'll be treated in the long run than I am the initial sales price. Don't get me wrong, a great deal always is . .. but many times the great deal is the relationship.

Court
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Chellem
Posted on Sunday, April 20, 2008 - 10:12 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

Maybe it is different but I have a hard time believing that HD "allocates" bikes because it can be an anticompetitive issue by favoring one franchisee over another. That is a big time no no and opens the company up for lawsuits. There may be certain HOT bikes that are allocated equally across the dealerships.

A dealer at this time can elect to get(order) more bikes or lower his order based on his local experience.

Here's where I lose you in the H-D world.

Believe what you want. Dealers are still on allocation. H-D tells us how many bikes we can get in a year. It's based on a very complicated formula, and the formula changes often, and if they have extras at the end of the model year dealers may get more. Sometimes, dealers get less.


But that's the facts. You don't have to like it, you don't have to think it's fair, but it's the facts.

I am fairly sure that all HD dealers are required to carry certain amount of accessories and chrome and maintain a working shop in their dealership agreement.

I don't believe there is any minimum amount of parts, accessories or anything that is required, although I'm not 100% sure on that one. Take a tour through the shops in Jersey, and see if you can calculate the minimum amount. They're all over the map. And BECAUSE of the laws you mention, H-D corporate would have a hard time threatening a dealer into spending his own money on parts if he didn't want to. What would they threaten him with? Closing the point? What manufacturer wants to do that?

The subject of the other thread where I mention allocation was about the H-D cuts. They cut production. Do you think that means we get MORE bikes? Uh, no. So if dealers WERE reducing their GP margins in favor of expected volume, they are going to be SADLY disappointed this year, no?

Without going any further into subjects that H-D might not like me discussing on a public forum, this current allocation system (or one like it) has been in place since the time of the "order-taking" sales process. Since there ARE still dealers out there selling through their inventory, it's not likely to change.

And, hypothetically, if the allocation were based on unit sales on prior years, and, hypothetically, if you give your bike to another dealer, it doesn't REALLY count as a sale, and hypothecitally, that unit wouldn't COUNT toward your next year allocation, when the market may change, would YOU just give your units to another dealer? Hypothetically, of course.

The entire system is really much more complicated than a usual straight-up dealer arrangement. I know people on this board theorize about how it all works, and some get pretty close, but it's really an unusual situation, even in the motorcycle world.

IF dealers are going to be expected to change the structure of their entire business model, that has to start with the Motor Company.

Although, I do agree with the thing at the end - H-D needs to consider a new system (lots of new systems, really) in this market that is not based on demand exceeding production.

->ChelleM
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Court
Posted on Sunday, April 20, 2008 - 10:56 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only)

>>>>H-D corporate would have a hard time threatening a dealer into spending his own money on parts if he didn't want to.

That had been tried. Dealer banded together, sued and won.

>>>>that has to start with the Motor Company.

HD is at the threshold of the greatest opportunity in their history. Buell sees it, I wonder if HD does.

True leadership has never held more potential.
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