Chunk Motorsports Done?

modmanmike

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theres tons of reasons why a shop might shut down.... There was a fella here in Hinton that didnt own a dealership he just worked on every make and model of machine. was into all kinds of neat innovative products! it was a great shop!!! He got cancer... now the shop is no longer, sad story but true.

JS money might not have anything to do with it folks
 

0neoldfart

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For anyone thinking a dealership is getting "rich" servicing powersports equipment @ $75.00 / hr, give your head a shake. The fact of the matter is that although it is easy to make money, it's way harder to keep it - Not only do you have building costs / power / taxes / gas, etc, you also have wages, accounting, dealer floor plan costs, etc, etc - the list is long and almost never ending. Most dealerships are a "labour of love" - they love the sport and are active in it. Can you make a living? Sure, if you manage it well. Are you going to be filthy rich? Not a chance. Manufacturers pay the dealership a "cut rate" to repair the product, and decide at will IF THEY WILL EVEN COVER THE REPAIR. There is minimal profit in new sleds / quads / bikes, and as a dealer, you are expected to keep a certain amount of stock. This may mean you have to order some machines that are not "hot sellers" in your area to stock the latest and greatest in season models. You are required to order a certain amount of parts and accessories, and buy floor displays and posters that are way overpriced, and keep current with the latest and greatest specialty tools, diagnostic equipment, and ensure your building is pleasing to the eye. Almost every charitable organization (and some that aren't) has their hand out, too.
So as a dealer, what do they get for all their efforts? Most times, a customer who will walk down the street or go to another town for a sled / quad that may be $50 cheaper, a bunch of crap from whomever the floor plan is under (I remember Deustch Financial all too well), and perhaps a slightly sour taste. Believe me, your dealer is in this business to make a living just like you do at your job, but I'm betting he or she started the dealership as a "labour of love" for the sport.
P.S. - Stuff imported from the U.S. (accessories) are higher in cost due to customs, taxes, and the distributor's cut. Move to the U.S. if you want to pay less.
 

DRD

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Uh oh, hell has frozen over. I sort of agree with Willy on this. If you can't make money fixing sleds at 75/hr somethings wrong. I know of several companies charging low 70's in gas compression who have significantly more tools and insurance costs than small engine mechanics would.
 

Trukker

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Willy left Chunk quite a while ago . Guess he was having issues with his business partner and bolted then the other guy was running it. Think it was a matter of time.
 

~Rowdy~

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Willy left Chunk quite a while ago . Guess he was having issues with his business partner and bolted then the other guy was running it. Think it was a matter of time.

.....
 
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ferniesnow

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Uh oh, hell has frozen over. I sort of agree with Willy on this. If you can't make money fixing sleds at 75/hr somethings wrong. I know of several companies charging low 70's in gas compression who have significantly more tools and insurance costs than small engine mechanics would.

Another one who doesn't understand the economics of business! Let's look at an hour and (not really thought out but I'll use this as an example) where that $75 might have to go:
Mechanic's wage $30
Shop Gopher's wage $15
Parts technician $20
then there is the cost of opening the door everyday; lights, heat, water/sewer, municipal taxes, insurance, advertising and promotion, book keeping, CPP, worker's comp, computers and internet charges, cleaning supplies and janitorial, phone bills, snow removal, security, and the list goes on and on!

So far, the owner hasn't made any money, has nothing in reserve for screw ups or improvements, bought no tools, and the $75 is long gone.

And you and Willy are trying to tell the world that you can run this kind of business on $75/hour? Please give your head a gentle shake.
 

DRD

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Another one who doesn't understand the economics of business! Let's look at an hour and (not really thought out but I'll use this as an example) where that $75 might have to go:
Mechanic's wage $30
Shop Gopher's wage $15
Parts technician $20
then there is the cost of opening the door everyday; lights, heat, water/sewer, municipal taxes, insurance, advertising and promotion, book keeping, CPP, worker's comp, computers and internet charges, cleaning supplies and janitorial, phone bills, snow removal, security, and the list goes on and on!

So far, the owner hasn't made any money, has nothing in reserve for screw ups or improvements, bought no tools, and the $75 is long gone.

And you and Willy are trying to tell the world that you can run this kind of business on $75/hour? Please give your head a gentle shake.

Sorry you are wrong. I've been a mechanic for a long time and there are places making money everyday at that kind of rate.
Parts technicians wage is covered by the markup on parts, if you can't make 15% on parts it's not worth doing.
Shop helpers (apprentices) also pay for themselves. Shops will charge 75/hr but pay the guy $15 to do jobs that you don't need your JM mechanic on. Tasks such as PDI's, accessory install etc.
What kills them is being forced to accept product they can't sell. Like being told they have to order 100 new units into an area that normally sells 45/yr. Being dependant on a seasonal product doesn't help either, that's why most succesful dealers have product they can move all year, be it quads/watercraft/power equipment in the summer to sleds/snowblowers in the winter.
 

ferniesnow

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Sorry you are wrong. I've been a mechanic for a long time and there are places making money everyday at that kind of rate.
Parts technicians wage is covered by the markup on parts, if you can't make 15% on parts it's not worth doing.
Shop helpers (apprentices) also pay for themselves. Shops will charge 75/hr but pay the guy $15 to do jobs that you don't need your JM mechanic on. Tasks such as PDI's, accessory install etc.
What kills them is being forced to accept product they can't sell. Like being told they have to order 100 new units into an area that normally sells 45/yr. Being dependant on a seasonal product doesn't help either, that's why most succesful dealers have product they can move all year, be it quads/watercraft/power equipment in the summer to sleds/snowblowers in the winter.

So we are going to have to agree to disagree?

And I take it you work for wages?
 

maxwell

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Another thing no one mentioned was specialty tools. Brp,cat,polaris,yamaha just send the tools and you are required to pay for them whether you want them or not and have been using a coat hanger that does the same thing.

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DRD

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So we are going to have to agree to disagree?

And I take it you work for wages?

Lol yep.

Yes, currently working for wages. Current company will charge 90-100/hr and JM rate is 45-50/hr (not including benefits).
I have one Pelican case that's worth 60K or an impact gun that's $1500 so special tools are not unique to small engine repair.
 

tukernater

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Sorry you are wrong. I've been a mechanic for a long time and there are places making money everyday at that kind of rate.
Parts technicians wage is covered by the markup on parts, if you can't make 15% on parts it's not worth doing.
Shop helpers (apprentices) also pay for themselves. Shops will charge 75/hr but pay the guy $15 to do jobs that you don't need your JM mechanic on. Tasks such as PDI's, accessory install etc.
What kills them is being forced to accept product they can't sell. Like being told they have to order 100 new units into an area that normally sells 45/yr. Being dependant on a seasonal product doesn't help either, that's why most succesful dealers have product they can move all year, be it quads/watercraft/power equipment in the summer to sleds/snowblowers in the winter.
So Do you fixs your screw up for free [Come backs] and FYI if your not making 30% it's not worth doing.
 

jbb

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another one who doesn't understand the economics of business! Let's look at an hour and (not really thought out but i'll use this as an example) where that $75 might have to go:
Mechanic's wage $30
shop gopher's wage $15
parts technician $20
then there is the cost of opening the door everyday; lights, heat, water/sewer, municipal taxes, insurance, advertising and promotion, book keeping, cpp, worker's comp, computers and internet charges, cleaning supplies and janitorial, phone bills, snow removal, security, and the list goes on and on!

So far, the owner hasn't made any money, has nothing in reserve for screw ups or improvements, bought no tools, and the $75 is long gone.

And you and willy are trying to tell the world that you can run this kind of business on $75/hour? Please give your head a gentle shake.

last time i looked the dealers here charged $100hr. And most parts have a 100-200% mark up. And dealers wonder why online shopping is getting so big. I just bought a slipon for my quad. Dealer wanted $495. Online was $279+$45 freight. His cost was $295. $200 one part? Fawk. I wish i could put that kind of mark up on the product in my store.
 

DRD

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So Do you fixs your screw up for free [Come backs] and FYI if your not making 30% it's not worth doing.

You are blending being an employee vs "the company". If the mechanic is recieving the $75/hr and paying his own way with regards to insurance, WCB etc, then yes he fixes his screwups for free. Since he is working for "wages" not so much. That's why you charge significantly more than you pay in wages, to pay for costs associated with the business of doing repairs, you know, overhead. And FYI 15% might be all the margin you make on some items, others you can make 40% plus. Making 15 points is better than not making anything.
You say it can't be done but it's being done everyday. There is different ends of the spectrum also, a small town dealer like Marvin in Olds vs Blackfoot in Calgary. Guess which one has more overhead and has to charge more??
 

snopro

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You are blending being an employee vs "the company". If the mechanic is recieving the $75/hr and paying his own way with regards to insurance, WCB etc, then yes he fixes his screwups for free. Since he is working for "wages" not so much. That's why you charge significantly more than you pay in wages, to pay for costs associated with the business of doing repairs, you know, overhead. And FYI 15% might be all the margin you make on some items, others you can make 40% plus. Making 15 points is better than not making anything.
You say it can't be done but it's being done everyday. There is different ends of the spectrum also, a small town dealer like Marvin in Olds vs Blackfoot in Calgary. Guess which one has more overhead and has to charge more??


With Marvin no longer selling SkiDoo and CanAm how much longer do you see him in business without his bread and butter lines? Might not be the best example.
 

snopro

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but fernie u forgot about clothing, parts, sleds/quads/dirtbikes/those stupid 4 wheel drive things / movies, hats, generators i could go on and on, $75 bucks an hour could bring in about $172800.00 a year oh and don,t forget taxxes lol


Are you saying dealers get to keep the taxes as profit as well Willie? You probably think that because dealers sell a sled for $13000 they get to keep the whole $13000 to. Your lack of a quality education is slowly removing you from this conversation. Remember what I said about the knife at a gunfight?
 
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