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Yeah, owning a dealership is extremely challenging, just like any business. Good dealers earn what they get.

We try to get our bikes and stuff as cheap as we can, and b. & moan about shop rates, and then cry because there aren't enough dealers.
 

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My issue is not dealers making a profit or shop rates over $150/hr... I just want to get what I pay for...not a bike that will not run and has scratches on the tank and bags when I go to pick it up, which was not the case when I dropped it off... it seems to be a lack of accountability at some dealerships.
 

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Discussion Starter · #6 · (Edited)
My issue is not dealers making a profit or shop rates over $150/hr... I just want to get what I pay for...not a bike that will not run and has scratches on the tank and bags when I go to pick it up, which was not the case when I dropped it off... it seems to be a lack of accountability at some dealerships.
A lack of accountability is a huge problem in general in our country.

Also proves what a great thing capitalism and free enterprise is. The more dealerships, or any businesses/companies of any kind, means competition which means more to choose from. If you find a dealer that treats the customers better then take your money to them.

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My dealership in VA opened a year or so before I went there. I was talking to the owner one day, after watching a potential customer try to make a "deal", i.e. "screw over the dealership", and I asked him what his profit margin was on bike sales. I don't recall the ballpark number that he gave me, but it wasn't a lot...maybe $500 on a Scout, and a little more on the bigger bikes. I also found out that they ran in the red for the first three years that the dealership was open.
 

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Discussion Starter · #8 ·
My dealership in VA opened a year or so before I went there. I was talking to the owner one day, after watching a potential customer try to make a "deal", i.e. "screw over the dealership", and I asked him what his profit margin was on bike sales. I don't recall the ballpark number that he gave me, but it wasn't a lot...maybe $500 on a Scout, and a little more on the bigger bikes. I also found out that they ran in the red for the first three years that the dealership was open.
It’s very typical for a new business to not turn a profit for the first 3 years. My wife is a small business owner and actually had an “expert” do an evaluation for her a couple of years ago so she can prepare to sell within a few years to retire. He told her that an average new business takes 3-5 years to make a profit.
I know we tend to complain about dealerships but I do try to spend my money only at the better ones.


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