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RE: New ST Options
- Subject: RE: New ST Options
- From: Eric Sheley <eric@xxxxxxxxxx>
- Date: Tue, 21 Sep 1999 19:05:49 -0400
At 01:53 PM 09/21/1999 -0700, Retherford, Martin wrote:
> They make there money in parts and service. I was looking to buy a
I would agree with you on parts only (see below for service) - that's why
parts managers in Harley dealerships are typically the highest paid in the
industry (ever see what the average Harley owner spends on accessories?) .
The point that I was trying to make (and didn't) was that if the dealer
cuts their bike price and sell at little or no margin and the customer then
goes mail order (or internet) for parts and accessories, there is no way
for the dealer to recoup his profits. Bottom line is that it is a business
and if you want them to stay in business, you should support them within
reason.
> The 60 dollars an hour for repairs and service. Service industry
>world wide makes a killing. Why shouldn't the dealers?
Sounds good if you say it fast..... but in the real world of motorcycle
repair this is not always the case. First, pay the employees a reasonable
rate. Then pay the service manager on top of that. Add in the cost of rent
and utilities and the differential on warranty work (what it costs the
dealer to do warranty work vs what he actually gets back from the company).
Then factor in the seasonal nature that most dealers face (or how much work
is that tech doing in the middle of December ?) and I think you'll find
that the highly profitable service industry averages don't apply anymore.
I don't want to give the impression that they are going to the poor house,
because most are not. But they are not getting rich either....
- - Eric
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