Chunk Motorsports Done?

DRD

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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.

I hope he survives with the power equipment and Suzuki lines. The squeeze put on him by BRP and Honda is a bit of a different issue. I think his repair/service side will be fine. Not everyone is going to want to drive to RD or beyond and deal with 'tards like Turple.
You should be able to answer this, why is BRP pulling the smaller dealerships? Limit competition?
 

ferniesnow

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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

So let's look at this big dollar figure Willy; $172,800!

Pay the JM $50,000/yr.
Pay the Parts Teck, $30,000/yr.
Pay the Gopher $20,000/yr.

That's $72,800 left over for all the expenses of running the business that were mentioned above. I'm just guessing here but municipal taxes and insurance $20,000+; heat, lighting, water/sewer another $10,000; and just keep adding it up. Are you starting to see the picture Willy.

There will be nothing left for the owner let alone putting something away for renovations and building up keep.

DRD you had better get your head out of the sand also.
 

DRD

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[DRD you had better get your head out of the sand also.[/QUOTE]

I'm not going to type it again. I showed you how the other staff pay for themselves.
Head's not in the sand, proof is in the many mechanic shops making a decent living at your "impossible" 75/hr rate.
Factors like dealers losing their franchise is a different problem.
 

tukernater

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[DRD you had better get your head out of the sand also.

I'm not going to type it again. I showed you how the other staff pay for themselves.
Head's not in the sand, proof is in the many mechanic shops making a decent living at your "impossible" 75/hr rate.
Factors like dealers losing their franchise is a different problem.[/QUOTE]Have you ran a bussiness?
 

snopro

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I hope he survives with the power equipment and Suzuki lines. The squeeze put on him by BRP and Honda is a bit of a different issue. I think his repair/service side will be fine. Not everyone is going to want to drive to RD or beyond and deal with 'tards like Turple.
You should be able to answer this, why is BRP pulling the smaller dealerships? Limit competition?


For us it was a lifestyle decision although they were starting to ask questions on why we weren't doing the SeaDoo and Can Am lines as well. After 25 years I didn't feel like building a new building for 2 more lines and trying to pay for it plus getting help in a small town is pretty hard. I'm not sure why it is Marv lost BRP but I'm going to guess he was pressured to make changes he didn't want to make somewhere in the mix and Marv has never hid the fact he wants to run his business the way he wants not how he should by one of his franchise manufacturers. Lol. The problem the way I see it is all the smaller dealers who everybody loves are getting replaced by the larger urban dealers that no one likes. Its pizzing alot of peeps off thats for sure.
 

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For what it is worth, I used to be a service manager in a dealership (Chrysler), did it for several years and got tired of it. In the dealership structure, parts and service pays the bills for the entire store, and should also turn a profit at month end - sales profit is the gravy. If you factor in all costs: F&I, sales, parts, service and admin / support staff wages, business overhead: advertising, taxes, power, lease payments, building upkeep, freight for parts, belt warranties (if you get a belt warrantied by your dealer, odds are he will be eating the cost), interest on dealer floorplan, specialty tools and lossesfrom non current stock that didn't sell, you have taken a significant amount of money from the gross profit. Am I saying that you cannot make money? No, as that would be ridiculous. I think it is fair to say that nobody who works for wages will do it for free, so why should a dealer owner? Corporate structure is often based on population, so with a metro dealer that sells 2-300 units a year will be offered a certain amount of territorial protection, and the rural dealer often is forced out - which is sad, as they are the ones that built the dealer network in the 70's & 80's. Most corporations also have minimum standards for storefront area, showroom specifications, and are basically told what and how many machines they will have to order, with the exception of factory orders (presold vehicles). I for one would rather support a local dealer and person who is part of my community then a large metro store that wouldn't recognize your face if it was tattooed on his (or her) ass. Think about that when you are going to buy your next recreational toy...and consider if the businesses in your area close their doors, the municipality will still need revenue, and your property taxes will increase exponentially. My 2 cents...
 

snopro

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For what it is worth, I used to be a service manager in a dealership (Chrysler), did it for several years and got tired of it. In the dealership structure, parts and service pays the bills for the entire store, and should also turn a profit at month end - sales profit is the gravy. If you factor in all costs: F&I, sales, parts, service and admin / support staff wages, business overhead: advertising, taxes, power, lease payments, building upkeep, freight for parts, belt warranties (if you get a belt warrantied by your dealer, odds are he will be eating the cost), interest on dealer floorplan, specialty tools and lossesfrom non current stock that didn't sell, you have taken a significant amount of money from the gross profit. Am I saying that you cannot make money? No, as that would be ridiculous. I think it is fair to say that nobody who works for wages will do it for free, so why should a dealer owner? Corporate structure is often based on population, so with a metro dealer that sells 2-300 units a year will be offered a certain amount of territorial protection, and the rural dealer often is forced out - which is sad, as they are the ones that built the dealer network in the 70's & 80's. Most corporations also have minimum standards for storefront area, showroom specifications, and are basically told what and how many machines they will have to order, with the exception of factory orders (presold vehicles). I for one would rather support a local dealer and person who is part of my community then a large metro store that wouldn't recognize your face if it was tattooed on his (or her) ass. Think about that when you are going to buy your next recreational toy...and consider if the businesses in your area close their doors, the municipality will still need revenue, and your property taxes will increase exponentially. My 2 cents...


Hit the nail on the head.
 

Trukker

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For us it was a lifestyle decision although they were starting to ask questions on why we weren't doing the SeaDoo and Can Am lines as well. After 25 years I didn't feel like building a new building for 2 more lines and trying to pay for it plus getting help in a small town is pretty hard. I'm not sure why it is Marv lost BRP but I'm going to guess he was pressured to make changes he didn't want to make somewhere in the mix and Marv has never hid the fact he wants to run his business the way he wants not how he should by one of his franchise manufacturers. Lol. The problem the way I see it is all the smaller dealers who everybody loves are getting replaced by the larger urban dealers that no one likes. Its pizzing alot of peeps off thats for sure.
There's room now in High River you can open up and BRP dealer..........I would be happy with that:)
 

DRD

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I'm not going to type it again. I showed you how the other staff pay for themselves.
Head's not in the sand, proof is in the many mechanic shops making a decent living at your "impossible" 75/hr rate.
Factors like dealers losing their franchise is a different problem.
Have you ran a bussiness?[/QUOTE]

Yes. When I'm done coasting on wages and getting factory training I'll go back.
 

snopro

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There's room now in High River you can open up and BRP dealer..........I would be happy with that:)




HaHa! Having to much fun riding now and standing around smiling down at the store in Lethbridge. Life is good! Lol.
 

ferniesnow

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Have you ran a bussiness?

Yes. When I'm done coasting on wages and getting factory training I'll go back.[/QUOTE]


I will admit some businesses can run on $75/hr shop rate but not recreational or motor vehicle businesses. Add it up and open your eyes. Don't be reading this stuff with blinders on!

As for your last comment, "when I'm done coasting on wages" and the other benefits, I don't think that attitude would make you much money in your business whatever that may be.
 

d mills

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I agree that running any kind of business is work and isn't all sunny beaches and cocktails.I'm sure it is every bit as hard or harder than working for a wage (stress, long hours, etc). But this thread kinda reads that it is impossible to do so. Obviously that is not true. It is all speculation as to why this dealer has closed it's doors. We let this thread get derailed cause "willy" threw out a low shop rate IMO. My local dealer is 95. which i happily pay when i need to.


Moral of this story.....don't listen to willy.
 

imdoo'n

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i'm thinkin drd is on the money, although most dealers labour rate is 90/hr. parts are marked up more than 15 % try more like 45% minimum. sales of new product u have to be a moron if you think he's giving it away. i'm thinkin most have very little idea of running a business or where the money comes from. no dealer ship has 2 mechanics on the same vehicle , each mechanic charges out 90/hr and the apprentice also charges out 90 / hr

so 1 mechanic and 2 apprentices are pulling in 270 /hr. so if yer not makin money yer a lousy business man and really have no idea what the fawk yer doing.

and most are book rate so now a 3hr job takes 2 hrs yer makin money, if it takes 4 yer mechanic loses. don't take much reading to tell who has never run a business
 
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DRD

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Yes. When I'm done coasting on wages and getting factory training I'll go back.


I will admit some businesses can run on $75/hr shop rate but not recreational or motor vehicle businesses. Add it up and open your eyes. Don't be reading this stuff with blinders on!

As for your last comment, "when I'm done coasting on wages" and the other benefits, I don't think that attitude would make you much money in your business whatever that may be.[/QUOTE]

By coasting I meant as compared to being out there competing in a cut throat business like gas compression as an independent. Little more life balance working for wages, but not much more. I still racked up around 1000hrs OT last year. Coasting is a relative term. And wow, no money fixing compressors, turbines etc. in the patch? That's funny right there.
 

maxwell

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i'm thinkin drd is on the money, although most dealers labour rate is 90/hr. parts are marked up more than 15 % try more like 45% minimum. sales o new product u have to be a moron if you think he's giving it away. i'm thinkin most have very little idea of running a business or where the money comes from. no dealer shuip has 2 mechanics on the same vehicle , each mechanic charges out 90/hr and the apprentice also charges out 90 / hr

so 1 mechanic and 2 apprentices are pulling in 270 /hr. so if yer not makin money yer a lousy business man and really have no idea what the fawk yer doing.

and most are book rate so now a 3hr job takes 2 hrs yer makin money, if it takes 4 yer mechanic loses. don't take much reading to tell who has never run a business

some parts are 5% and some parts are 50%. none are the same accross the board.
 

imdoo'n

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some parts are 5% and some parts are 50%. none are the same accross the board.

a 1/2 cent washer goes for 75 cents. hm. can't see any parts at 5%, and i'm thinkin most at least 50%.

and how come most dealers have different prices for the same part, hmm i'm sure brp sells to all dealers at the same price, so don't even try to give me that ch!t.

aftermarket parts are close to 100% markup. i don't regret anyone making money. and i buy from dealer if he has the part, if he has to order it, i don't feel i still need to be paying 100% markup when he has absolutly no money output, and i can order the same for way less and wait the same time, if yer a dealer and don't stock parts don't be suprised if people shop around.
 
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