RE: [ST] What do you do?

["STeve Duncan" <xhippy@xxxxxxxxxxx>]

>From: "Andrew F. Kay, Jr. " <captainquack@xxxxxxxxxx>
>
>Just a quick calculation:
>
>3 employees; a Mechanic, Parts Guy and Bookkeeper - $9,000 US a month
>(the bookkeeper is the most important, BTW)
>
>Rent- 1500 SqFt @ $20 SqFt - $2500 a month
>
>Electricity/other utilities - $500 a month
>
>Insurance - A WAG here, but say $400 a month
>
>OK, now we have the door opened.  $12,400 a month, every month and
>anything you don't pay for gets turned off or leaves.  There are no
>bikes on the floor, no parts in the bin, no advertising, no telephone to
>answer and no compensation for the owner(s) who is putting up all the
>capital and more hours than the other staff combined.
>
>Who wants to be first to open a new dealership?
>


Well, heck Andy let's just go ahead and ADD to that.

All dealerships are required to carry a minimum number of bikes and a 
minimum in spare parts inventory.  I think Triumph min inventory is $50,000. 
  Bikes, I'm not sure but I'll bet it is at least 10 bikes.  And don't 
forget all the trade in bikes that the dealer is carrying on his books on 
his dime until someone buys them, this could take months, many months.

And then there is winter.  Many parts of the country the shop is a virtually 
dead in terms of bike sales and repair work.  Even here in Dallas my shop is 
very slow in the winter months.

The guy that "owns" all this (really he's just the guy making all the 
payments) has to pay all his expenses whether he has any cash coming in or 
not.  He pays his mechanic the same whether that guy in sweeping the floor, 
polishing bikes or doing a total engine rebuild.

I ain't saying there are not bad shops, that rip off their customers.  But 
my experience those guys don't last long.  My shop just raised it's hourly 
rate to $80.00.  IF they booked every single hour in the month (impossible) 
they would bring in $25,600.00.  A lot of money to be sure.  But with the 
expenses listed above.  Ain't no one getting rich.

The owner of my shop, drives a 5 year old truck and lives in a modest home.
He does not play golf, or belong to a country club   :--))

In fact, I don't know ANY rich dealership owners.  Well maybe the Harley 
dealership  ;=}



eL Donut
jinete en la tormenta

STeve Duncan
'00-Sprint-ST
'03 Goochy



     *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *
      The ST/RS Mailing list is sponsored by Jack Lilley Ltd.
          http://www.TriumphNet.com/st/lilley for more info
   http://www.TriumphNet.com/st for ST, RS and Mailing List info

=-=-=-= Next Message =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=