2 More dealers gone !!!

[Bmwgsrider94]

Wow 2 more dealers gone    I can understand one of them but not the other . Ft Wayne Indiana dealer ( Woodsons lost their dealership and I am kind of glad they did. They did NOTHING for me and screwed up 2 of my bikes . The other is Crossroads Bmw out of Virgina    What the hell is going on ? Any one know why ? Woodsons I heard was their sales were  way off and the mechanic's sucked !!! I called Crossroads to order parts and Jason the parts guru told me they were closed , done . I hope BMWMOTORAD knows what the hell they are doing . They want to sell Bmw motorcycles but closing shops makes it so no one wants to buy one because of the fear of not finding some one to repair it if they have problems. Hope someone can help me out here with info of why this is happening

[motoguy128]

What makes you think BMW is closing the shops?  Its' my understanding that these are franchise agreements, but ultimately are privately owned and operated.  So if shops are closing, it's likely due too many shops in one area, poor customer service, or declining sales casuing a cash flow strain.
I've seen some dealers and businesses that took on too mcuh debt opening big new fancy showrooms during the "boom" years and that debt has become a straing on their finances during lean times like right now.  

During good times a good small business builds up some cash reserves and make sure to have osme good lines of credit available as well so they can ride out lean times like now.

Sucessful dealers have good repair shops, are staffed minimally, the owner actually works in the store, they have excellent inventory turnover while maintaining good selection (motorcycles are often impulse buys) and again, carry minimal debt.  Ideally, they are buying inventory with cash, which sometimes allows them better payment terms or pricing with BMW.  Net 0 terms might allow you a substantial discount.  Keep your volumes up or use a warehouse, and you can leverage order volume discounts.  

I know Gina's BMW in Iowa City has a warehouse off-site where they store crates of motorcycles that they order early in the year.  I think they prep them off site so they aren't typing up space in their service bay, then just have them transported to the store to replenish inventory.

[BobW]

We lost our long time local BMW shop a couple years ago due to the poor $ choices much like motorguy128 described, but there are also external factors that can't be overlooked. BMW and some other "high end" OEM's have in general a clientele with deeper pockets, but motorcycles (and planes, boats, etc.) are still a luxury that are easily done without in a tough economy. BMW, HD and Ducati, et al, also started making ridiculous (IMO) demands to build the Taj Mahal Boutique stores with huge non productive overhead being placed on the dealerships. Add a ton of other variables and it just comes down to the fact that a % of any business ventures will fail. I read somewhere that BMW was trying to expand the number of franchises and had backed off on some of the more $$ store design mandates. Time will tell as the economy (hopefully) gains traction and discretionary income is realized.

[Major 662]

My local dealer has gone the opposite direction, expanding around BMW and dropping Aprilia and Moto Guzzi.  They could probably drop the entire BMW line-up except for the GS bikes and still stay in business.  

[Bmwgsrider94]

I remember the one here in Indiana that closed due to the owner not sell the amount of bikes they told him to !!!  Is there an arguement with that ??

[UberXY]

I called Crossroads to order parts and Jason the parts guru told me they were closed , done . I hope BMWMOTORAD knows what the hell they are doing . They want to sell Bmw motorcycles but closing shops makes it so no one wants to buy one because of the fear of not finding some one to repair it if they have problems. Hope someone can help me out here with info of why this is happening

Crossroads is kind of a special case.  It was a BMW motorcycle dealership in the back of a BMW/Mercedes car dealership - kind of a very small sideline at a much bigger business, very unlike a standalone shop like BMW of Marin, which also lost its franchise this week.  The bike side of Crossroads had very few employees, and the bike showroom had the feel of waiting room right across from the drive up car service desk.  The entire car/bike dealership was formerly known as Hammersleys, but it was bought by the new owners just before the economic meltdown.  I was given the impression that the new owners were never all that sure about keeping the bike franchise.  

Apparently, a decision has been made.  I wouldn't take this particular closing as evidence of management apocalypse at BMWNA.


Ub

[SprintRSrider]

I remember the one here in Indiana that closed due to the owner not sell the amount of bikes they told him to !!!  Is there an arguement with that ??

Who told you that?  BMW?  Or the dealer that couldn't sell enough product to stay in business?  And couldn't/wouldn't admit it...  Funny thing about franchising, there is a sales/service standard that you're expected to be able to maintain.

[tfonner]

Woodson's is still a dealer, just no bikes on the floor.  I just left there this morning.  I am having idle issues with my K1200GT and I'm having them work with BMW to get it right.  Their BMW mechanic, Tom is gone so I don't know if they'll even be able to do service....

It really sux cause I need a dealer that can service my bike.  If they can't get it right then I'll make them send it to Indy or Grand Rapids.  If it's still off then I'll trade it for a Connie.