Join Date: Sep 2006
Location: Lake Forest, Il, USA
The rant wasn't about leather clad Haley riders per se, rather it focused on the essential importance of a strong dealer network to the success of a vehicle brand.
From my consulting days, I can tell you that the profit made by a car dealers usually lies in #1 Used vehicle sales #2 Parts sales, inc sales to independent repair facilities #3 Service department and #4 new vehicle sales. I'll wager that the BMW dealership algebra is roughly the same.
Therefore, whatever the dealer can do to draw in more foot traffic will result in improved revenue. Lexus seemingly invented the modern dealer experience, with free car washes, coffee and bagels for the life of the purchased car.... new or used. On Saturdays the typical Lexus dealership is clogged with patrons waiting for their car and looking at new vehicles, and occasionally having the service manager remind them to have their XX,XXX mile service done (a 70% gross margin item) What's the true cost - $3.50 a person? Compare that to the impression cost for traditional newspaper advertising.
Back to BMW Motorrad dealers, if I were King, I'd look at copying some of the HD, Lexus and frankly BMW car dealer tactics. Build a great facility, build a great regional community and weekly ride destination - make it easy to buy impulse items and above all drive foot traffic into the high margin areas of your business, i.e. Used vehicles, parts and accessories and service.
I'm probably missing something, and my observations on the USA Moterrad dealer network are anechodotal, my automotive dealer observations are based in fact and years of experience.
Am I missing something? How does the rest of the country look?
"What follows is based on actual occurrences. Although much has been changed for rhetorical purposes, it must be regarded in its essence as fact. However, it should in no way be associated with that great body of factual information relating to orthodox Zen Buddhist practice. It's not very factual on motorcycles, either."
Robert Persig - Zen and the Art of Motorcycle Maintenance
1985 K100RS (Sold)
2000 323i (Sold)
2003 1150GS (Sold)