What is happening to BMW m/c dealerships?

[AZ_Tim]

This thread was started over on the Moto Guzzi website about the demise of BMW dealerships across the US. Is this for real? The BMW m/c dealer here in Tucson (a small city) seems to be thriving. Hell, BMW M/C seems to be thriving...

http://wildguzzi.com/forum/index.php?topic=2854.0

[Effervescent]

Here near NYC, in the last 2 years: Westchester's closed, Hicksville's closed, Manhattan on the West Side Highway closed, Valley Stream is getting a makeover...

-Eff

[AZ_Tim]

From the responses on the Guzzi thread, it seems that the BMW m/c dealerships are trying to go the Harley route - more boutique than m/c shop...

Well, the BMW dealer here in Tucson is nice but it comes nowhere near the glitz of the HD dealer here.

Personally, I prefer the hole-in the-wall type of m/c shop but I guess these are disappearing...

[markjenn]

The thing that is lost in these discussions is the general consolidation of m/c shops in general. I don't have any statistics, but my impression is that the number of dealerships is going down for all makes, BMW included, with more business going to the larger, more glitzy dealerships. The mechanism may be no different than the reason small grocery and drug stores are going under with their business gonig to CostCo and WalMart. And it may have zip to do with BMW.

- Mark

[emccarty]

BMW is going to have to trim the end price to attract more customers. This could be helped by eliminating BMW of North America and selling direct from the factory to the dealerships. BMW the factory is cash rich now and does not need a middleman ( BMW of North America) to distribute their products in the USA. The dealers have been forced to take models which had to be discounted down to cost just to get rid of, this ties up their operating capital or inflates their floor plan with a higher than desirable intrest rate. BMW of North America loads the bikes when they order them from the factory with ABS and other options in packages most buyers don't want to justify the high price. Each year the dollar is devalued more which makes it necessary to mark the list price higher to maintain the same profit margin. The dealer is cought in a jam trying to sell their line against the Japanese lines which are priced much lower and are of equal or better quality. We are going to see the number of ex-dealers continue to multiply if drastic steps are not taken to revamp their (BMW's) whole marketing program.

[Flatbutt1]

but BMW has always had fewer than most brands. My local shop folded last September. I now have 120 mile round trip for dealer service. And he does NOT work while you wait so I need to arrange transportation if i leave the bike. Therefore I do more and more work myself, enuf guys do this and he gets less and less money and goes out of business.

[ckcarr]

Originally posted by Flatbutt1
Therefore I do more and more work myself, enuf guys do this and he gets less and less money and goes out of business.

I doubt if the numbers are that significant as far as do-it-yourself types.

The Harley guys, and BMW keep raising service rates so there's probably plenty of people out there paying up.

On the other hand, I got super service yesterday from the Harley guys in GJ yesterday. I was whisked in, and it was all done in 20 minutes. That had never happened before.

[wswartzwel]

Dealer in central AR. is doing very well... He is a hard worker though... He does lots of events, parties, rides, ect.... He gives everyone who buys a bike a one year membership to our state club, and any members of the club get 10% disc. on parts & acc.

[on2wheels52]

I have to confess never being in a BMW dealership (unless it was 30 years ago). All the used bikes I buy are out of warranty. My parts come through the mail.
Bill, is that AR dealer in Benton?
Jim

[Milar]

Dealerships close for alot of reasons. Many having nothing to do with BMWNA. Poor management, death, changing demographics etc.

The number of BMW dealerships has stayed pretty steady at 150 for the past few years.

BMW only dealers are a good idea for some markets. Tucson is both a great dealer AND is in a market where people ride year round. Ft Myers is similar. In colder climates, you have to either have very low overhead or sell snowmobiles and 4x4's in the off season.

M

[wswartzwel]

Originally posted by on2wheels52
I have to confess never being in a BMW dealership (unless it was 30 years ago). All the used bikes I buy are out of warranty. My parts come through the mail.
Bill, is that AR dealer in Benton?
Jim

Little Rock
http://www.bmwmclr.com/