DTC sales

[Igofar]

Harley Davidson, and Indian motorcycles just announced that they are going to a DTC (direct to consumers) sales distribution etc.
Seems they have been loosing a lot of money do to greedy dealers.
You will now be able to order directly from the manufacturer, and have your bike built to your wants and needs.
Last ditch effort to keep from going bankrupt.

 

[Tedbrogden]

Still don't want one from either company.

 

[red one]

I don't think it will make much diffrence. When I went to buy oil at the local Honda dealership it was like the place was closing down. A few new Indian bikes and 2 handfulls of used bikes. No new Honda or Yamaha motorcycles despite being a dealer for those brands

 

[Obo]

DTC for a DCT.

They were never really destined for the demands of the delivery chain, thus they've had to tighten their drive belts.....


Honda and BMW sort of do this sell direct now. You go to the corporate website and you can buy it there shipped to the dealer. It includes the fees paid to the dealer for selling.

As with just about any MC / automotive dealership, they make their money on the back end doing warranty work and repairs.... either legit or somewhat shady. Selling new vehicles was always a necessary evil to get that back end work. Buying direct also ultimately saves the dealership from paying out for bikes they may or may not sell promptly and still have to make payments on to corporate until they can pass it to the end buyer.

 

[Gus1300]

You go to the corporate website and you can buy it there shipped to the dealer. It includes the fees paid to the dealer for selling.

Hard to understand the dealer getting a cut for pretending to be the middle man after the consumer does all the work to set up the sale. Times have certainly changed!

There are prob few people that could take delivery of the crates and do the assembly / set-up themselves, so maybe that's what it's for? If they even offered such a thing.

 

[Sadlsor]

As online purchases go mainstream, combined with declining motorcycle sales (some will say there's no decline overall, but I disagree), it makes sense for retailers to find ways to pivot and increase, or maintain, profitability. Especially brick and mortar stores.
When I speak with some business owners, they are simply too overwhelmed to set aside time for planning, much less developing a vision for their company.
Innovate or die, I guess. Few things remain the same forever.
As an example, look at major department stores. When I was a teenager, I never would have imagined Sears actually going out of business. I'm sure y'all can think of other businesses you thought would always be around.

 

[ToddC]

Where Monkey Wards?

 

[Obo]

Hard to understand the dealer getting a cut for pretending to be the middle man after the consumer does all the work to set up the sale. Times have certainly changed!

There are prob few people that could take delivery of the crates and do the assembly / set-up themselves, so maybe that's what it's for? If they even offered such a thing.

I was referring to PDI etc, however you do have me thinking. If BMW & Honda sell online for the same price as the dealer, then assuming the local sales folks / dealer get something out of the sale, then they are likely still getting it.

Going direct just does a few things - let's the parent company know what's being sold, at what price (since they dictate it), when / where etc (data mining & info metrics) as well as let's them keep stock central and move it as required. It also removes any dealer shadiness in selling that sullies the corporate name. Plus you can't dicker on the price.

 

[Sadlsor]

In the case of selling, a degree of transparency - or at least clarity and consistency - is a desirable quality, at least in this consumer's opinion.
Our business charges money for our services, and we don't apologize for it... but we also provide value FIRST. And we are very clear about what they will receive in exchange for their payment.
If a prospect doesn't see the value, or doesn't like the price, they are free to find other service providers.
Capitalism ROCKS, and if your product or service doesn't incorporate value, then you should not be in business, and in time you won't be.

 

[Obo]

In the case of selling, a degree of transparency - or at least clarity and consistency - is a desirable quality, at least in this consumer's opinion.
Our business charges money for our services, and we don't apologize for it... but we also provide value FIRST. And we are very clear about what they will receive in exchange for their payment.
If a prospect doesn't see the value, or doesn't like the price, they are free to find other service providers.
Capitalism ROCKS, and if your product or service doesn't incorporate value, then you should not be in business, and in time you won't be.

You hit a key word there - service.

Buying a motorcycle is a commodity, not a service.

 

[Sadlsor]

You hit a key word there - service.

Buying a motorcycle is a commodity, not a service.

It's up to the dealer network to provide that -- and THAT is why so many are failing.
Good catch, @Obo !!

 

[Andrew Shadow]

Strangely enough Tesla seems to going in the opposite direction. They started out as online only, at least in this market, with a delivery mechanism direct to the consumer.
Now Tesla is opening a gigantic dealership here in Montreal.

 

[STFlips]

Here is a local dealer that seems to be bucking the trend too. Enlarged now to 50,000 square feet over the years and presently carrying 9 major brands. Can't imagine how the service department copes with all that variety . They are very good getting me Honda parts that are still listed as available for the ST. Very few dealerships left in the GTA now.

GP Bikes | LinkedIn

GP Bikes | 232 followers on LinkedIn. Thank you for making GP Bikes your Powersports Authority. | GP Bikes’ journey began in the year 2000 with 5 used motorcycles, a 1200 square foot facility in Ajax, one employee and a dream. Along the way we have been eager to serve you with excellence...

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[Mikedo]

Here is a local dealer that seems to be bucking the trend too. Enlarged now to 50,000 square feet over the years and presently carrying 9 major brands. Can't imagine how the service department copes with all that variety . They are very good getting me Honda parts that are still listed as available for the ST. Very few dealerships left in the GTA now.

GP Bikes | LinkedIn

GP Bikes | 232 followers on LinkedIn. Thank you for making GP Bikes your Powersports Authority. | GP Bikes’ journey began in the year 2000 with 5 used motorcycles, a 1200 square foot facility in Ajax, one employee and a dream. Along the way we have been eager to serve you with excellence...

ca.linkedin.com

They do good work too. I had them swap out some tires for me on the way to ONSTOC one year, for my ST1300. They did a great job, took all the hop out of the front tire too (must've been poorly balanced before). I managed to take a Ducati Multistrada out for a test ride as they worked on my bike, my that was a powerful bike. Lots of trouble to be made with that kind of acceleration.

 

[Andrew Shadow]

Enlarged now to 50,000 square feet over the years and presently carrying 9 major brands.

Consolidation of ownership in the automobile dealership market seems to be the norm now. More and more automobile dealerships are now owned by fewer and fewer ownership groups. The same seems to be happening with the motorcycle/power-sports dealerships now, often owned by these same automobile dealership owner groups.

 

[SMSW]

There is a large Honda/Harley dealership not to far from me (Western Reserve Harley Davidson and Honda in Mentor, OH) with two huge showrooms, one for each brand. If the Harley showroom stops selling bikes, what will they do with the space? Put in even more ATV's for hunters? Does not sound good to me for either brand for this dealership.

 

[Larry Fine]

There is a large Honda/Harley dealership not to far from me . . .

Holy Civil War, Batman!