KTM have upset another dealer.

[Rasher]

Manufacturers can seem to encourage the boom and bust, they allow dealerships a lot of credit so they can sell large numbers of bikes, over time they make good money, even if the dealers may struggle, often dealers rely on targets to get end of year kickbacks - I believe this is what led to the demise of places like Carnell and Motorcycle City way back, they stacked bikes high, flogged em cheap and relede upon end of year kickbacks - one bad year / recession and they're fucked.

Over time a dealer will sell more, get extended further credit, eventually owing a LOT of money, at some point the sales may slow, the manufacturers refuse additonal credit, they may lose a large chunk when it all goes pop - but have made a lot of money on all the bikes sold prior to the company going pop.

I have seen Carnell, Motorcycle City, George White empires rise and fall, and then along pops a new big dealership chain and it all goes around again.

Cannot be easy to run a stable business long term, very few independants left with major franchise, and much as I like to moan about main dealer servicing rates, I would not be mad enough to try and run a bike shop these days, indies undercutting your service prices, manufacturers demanding the greatest premises on earth and huge national dealerships flogging bikes for less than you can buy them in for. Fuck That!

 

[JJH]

A little memory niggle is going off in my pea of a brain. Was there some controversy around that company before? Or the owner? JJH

 

[SBD]

Charlie Munger’s obituary - he died last week Warren Buffet’s right hand man.

While Berkshire’s leaders were feted by its shareholders for generating extraordinary profits, Munger played down the intelligence behind their success. “I think part of the popularity of Berkshire Hathaway is that we look like people who have found a trick,” he said in 2010.

“It’s not brilliance. It’s just avoiding stupidity.”

 

[GSite]

Manufacturers can seem to encourage the boom and bust, they allow dealerships a lot of credit so they can sell large numbers of bikes, over time they make good money, even if the dealers may struggle, often dealers rely on targets to get end of year kickbacks - I believe this is what led to the demise of places like Carnell and Motorcycle City way back, they stacked bikes high, flogged em cheap and relede upon end of year kickbacks - one bad year / recession and they're fucked.

Over time a dealer will sell more, get extended further credit, eventually owing a LOT of money, at some point the sales may slow, the manufacturers refuse additonal credit, they may lose a large chunk when it all goes pop - but have made a lot of money on all the bikes sold prior to the company going pop.

I have seen Carnell, Motorcycle City, George White empires rise and fall, and then along pops a new big dealership chain and it all goes around again.

Cannot be easy to run a stable business long term, very few independants left with major franchise, and much as I like to moan about main dealer servicing rates, I would not be mad enough to try and run a bike shop these days, indies undercutting your service prices, manufacturers demanding the greatest premises on earth and huge national dealerships flogging bikes for less than you can buy them in for. Fuck That!

Agreed 100% - wonder how the group buying power of a "collective" of smaller dealers would work and if bike manufacturers would agree to sell in such a way, where they do not have control of individual dealers who can afford to stick two fingers up if/when they want to dump the franchise.

 

[cookie]

My part of the world gained a new KTM/Husky/etc. dealer at Christchurch last month, but word is that Gosport KTM bike and especially parts dealers are losing the franchise

Usual declined "you need to move to expensive swanky premises" edict from above is said to be behind it.

 

[Santa-2512]

My part of the world gained a new KTM/Husky/etc. dealer at Christchurch last month, but word is that Gosport KTM bike and especially parts dealers are losing the franchise

Usual declined "you need to move to expensive swanky premises" edict from above is said to be behind it.

Gosport KTM used to be a very small place just off Mumby road if i recall , and they had to move from there due to the premises being too small

Ive just seen that the premises they occupy now, was the original Motorcycle city franchise premises,

That was a huge chunk or real estate , comparable to the nearby Honda dealership (which also went bust many years ago)

Just shows the gulf between expectation & reality

 

[RedRick Esq.]

My part of the world gained a new KTM/Husky/etc. dealer at Christchurch last month, but word is that Gosport KTM bike and especially parts dealers are losing the franchise

Usual declined "you need to move to expensive swanky premises" edict from above is said to be behind it.

Redline in Loughborough have resisted that and are located in the middle of an industrial estate in just a big unit
no posh waiting rooms or coffee machines just bikes

I have often wondered how they have kept the franchise all these years without the glass frontage etc but they have and they continue to do well

 

[GSite]

Big fan of Redline, hopefully customer feedback has helped..

 

[PitaNaanRoti]

My part of the world gained a new KTM/Husky/etc. dealer at Christchurch last month, but word is that Gosport KTM bike and especially parts dealers are losing the franchise

Usual declined "you need to move to expensive swanky premises" edict from above is said to be behind it.

If you mean Trevor Pope the. I doubt that very much.
They turn over a massive amount of spares for race teams, more than many others combined.

 

[PitaNaanRoti]

Gosport KTM used to be a very small place just off Mumby road if i recall , and they had to move from there due to the premises being too small

Ive just seen that the premises they occupy now, was the original Motorcycle city franchise premises,

That was a huge chunk or real estate , comparable to the nearby Honda dealership (which also went bust many years ago)

Just shows the gulf between expectation & reality

They’re on Forton Road. Been there since at least 2003.

 

[RedRick Esq.]

Big fan of Redline, hopefully customer feedback has helped..

My mate has been using them for 20 years or so but this is my first bike from them and so far they have impressed me no end

Of course as I understand it Tim the original owner has sold it on now and the new guy ( I forget his name) seems to be upping the sales side - they are keener to do deals these days and more of the road bikes in bigger numbers where they used to be more focussed on the off road stuff I think so maybe they will head the glass frontage route sooner or later but I hope not as it feels like a proper bike shop as it is now

 

[Santa-2512]

They’re on Forton Road. Been there since at least 2003.

Yes the old motorcycle city place, they used to be on mumby road opposite campers

 

[cookie]

If you mean Trevor Pope the. I doubt that very much.
They turn over a massive amount of spares for race teams, more than many others combined.

I hope you're right.

Dunno how, but somehow I missed the words Trevor and Pope out of my original post

 

[timeandtide]

Redline in Loughborough have resisted that and are located in the middle of an industrial estate in just a big unit
no posh waiting rooms or coffee machines just bikes

I have often wondered how they have kept the franchise all these years without the glass frontage etc but they have and they continue to do well

Redline were my go to after the demise of Leisure Trail - both very good.
Nowadays I guess it’s Jim Aim?