INTERESTING POLARIS NEWS
#31
INTERESTING POLARIS NEWS
I've been watching this thread for a while now and I think that some are looking at this the from the wrong angle.
If you lose you smaller dealers you lose your choice for service and parts.
Most dealers make more money on parts and service than selling the atv.
If lets say there is 3-4 large dealers (selling for cheap) in your state how far would you have to drive to get service?
If there are 10-20 smaller dealers that sell at regular price(normal price's) how far would you have to drive?
Let's say you have a problem with the dealer(for what ever reason) and needed to go to another dealer, witch network would you rather have?
There are two basic bussiness models to go by, sell alot for little profit...or sell a little for a lot of profit.
Most dealers try to stay somewhere in the middle for several reasons.
1. It's easier to drop the price to get a sale than raise the price to make more money.
2. They pride them self's on there service of the custumer NOT how many sales they have.
3. If you sell hundreds of units, you can't service them all (in a timely fasion) and the custumer is unhappy.
Imagine 100 units a year for 5 years now think how many tune-ups,break downs,tire swaps,warr-work and can you make this thing any faster service visits that add's up to!!!!
Then you figure in, other brands they might work on,motorcycles,watercraft(witch has a short season so you have to fix those real fast) and anything else they might be into.
4. If you have a lot of product you can sell cheaper and get rid of it for a profit better than a high volume dealer can.
(one thing you have to realize is, the dealer has to pay interest on the machines thay haven't sold)
(18% when I worked for a dealer)
If you add up 18% on 10 units vrs. 18% on 30 units then look at how many you would have to sell to "break even"
The volume dealer lose's money faster when he has a slow month and take's longer to make that money back.
If they have an atv for a long time they might even lose money selling at there regular price.
Like one of the other posters said your not going to make a fortune at this and most of the dealers started as riders themself's.
just my 2 cents
If you lose you smaller dealers you lose your choice for service and parts.
Most dealers make more money on parts and service than selling the atv.
If lets say there is 3-4 large dealers (selling for cheap) in your state how far would you have to drive to get service?
If there are 10-20 smaller dealers that sell at regular price(normal price's) how far would you have to drive?
Let's say you have a problem with the dealer(for what ever reason) and needed to go to another dealer, witch network would you rather have?
There are two basic bussiness models to go by, sell alot for little profit...or sell a little for a lot of profit.
Most dealers try to stay somewhere in the middle for several reasons.
1. It's easier to drop the price to get a sale than raise the price to make more money.
2. They pride them self's on there service of the custumer NOT how many sales they have.
3. If you sell hundreds of units, you can't service them all (in a timely fasion) and the custumer is unhappy.
Imagine 100 units a year for 5 years now think how many tune-ups,break downs,tire swaps,warr-work and can you make this thing any faster service visits that add's up to!!!!
Then you figure in, other brands they might work on,motorcycles,watercraft(witch has a short season so you have to fix those real fast) and anything else they might be into.
4. If you have a lot of product you can sell cheaper and get rid of it for a profit better than a high volume dealer can.
(one thing you have to realize is, the dealer has to pay interest on the machines thay haven't sold)
(18% when I worked for a dealer)
If you add up 18% on 10 units vrs. 18% on 30 units then look at how many you would have to sell to "break even"
The volume dealer lose's money faster when he has a slow month and take's longer to make that money back.
If they have an atv for a long time they might even lose money selling at there regular price.
Like one of the other posters said your not going to make a fortune at this and most of the dealers started as riders themself's.
just my 2 cents
#32
INTERESTING POLARIS NEWS
I've been following the developments of the #1 Volume Polaris Dealer in the US, Polaris of Chattanooga (aka Southern Powersports). They are not advertising any 2007 models, and as predicted their main competitors have now raised their advertised prices by $500 or more on most models. The Verdict is in.... The consumer gets screwed again! Still don't know why they are seemingly closing up shop, especially as the #1 volume dealer, but the rumors vary from 1) They are being sold 2) Other local dealers are pressuring Polaris to force Southern Powersports to adhere to some sort of minimum advertised pricing guidelines, and they refuse 3) They are dropping Polaris and looking to sell something else. 4) Aliens have crash-landed on the building and their website hasn't been updated. #2 is the one I have heard the most of.
This is just disappointing to me because I wanted to spend $6500 on an ATV in the spring. At their OTD prices, I could have got a new SP800. Now, I have to either settle for a lesser Polaris Quad, come up with more $$$$, or buy something else. [img]i/expressions/face-icon-small-sad.gif[/img]
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