Dealership question

[Cyle]

Be careful not to cheat yourself out of your end goal. If you get hurt who will make you money. If you retire, your business is worth less if it cannot continue without you. The best thing I learned in all my years of my business is it is way more valuable and easier to sell if it can run without you. It is okay to work and make that extra margin but don't count on it to survive. I purposely made less income the last few years as I put people in place to replace me. The big dealerships don't usaully put all their eggs in 1 basket and it can cost a bit more to structure like this but in the end it can be the safe move.

Honestly not a concern to me I only need to work like 1 day a week to pay the bills at the most and have a good safety cushion. I have zero intention to sell, having employees is way too much hassle. Few more years of it and will sell all the equipment and be set.

 

[ZRrrr]

$1000 dollars is a $1000 dollars. If I'm comfortable with the smaller shop, that's a $1000 in MY pocket and I helped support someone who will probably be thankful for my business.

 

[ABMax24]

BS. I'm a small guy with a few pieces all run myself and I guarantee you I make WAY more margin myself then ANY big company makes on 1 employee/similar piece of equipment, also I make way more because an employee working by the hour is way slower then someone paid by the job, on many jobs I can assure you i'm making 3-5 times what these big guys are on the same piece of equipment. The guys running equipment at those sites sometimes do it by the hour and many times do it cheap. There is a reason why so many of them go under when they blow up big and things slow down at all, they are drowning in debt and barely making any money.

You totally missed my point. The biggest companies in the business aren't digging basements.

 

[Cyle]

You totally missed my point. The biggest companies in the business aren't digging basements.

I never said digging basements and 95% of my work isn't basements either, there's no money in it compared to other stuff. I've done commercial excavation, I know what they are getting paid and it's nothing great, I don't even waste my time with it anymore. Government work is some of the best there is, but the barrier to entry isn't the size of the company.

There's a reason devlin and precision aren't around anymore. And it's not because they were making insane money.

 

[hevy_chevy67]

I would reply back saying bigger dealer should be moving more volume, so that kind of cancels out the overhead excuse.

 

[Dragonalain]

I can’t wait till all dealers are online. Think of the money savings for company’s not to have a store front and for the consumer. Go online build your ride check out and pay. A few weeks later the ride shows up at the depot. I’m sure this will be a thing in my lifetime.


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[catalac]

excuse is a bs line but what difference does it make really if you want both sleds. Next guy would surely pay the extra thou if he wanted it, cuddos to dealer B for knowing how to make money when supply is scarce.

 

[Cyle]

excuse is a bs line but what difference does it make really if you want both sleds. Next guy would surely pay the extra thou if he wanted it, cuddos to dealer B for knowing how to make money when supply is scarce.

Na it's gouging and I hope when it slows down they get what they have coming and people grind them down like crazy.

 

[t300]

Dl

 

[tex78]

for a 1000$ spread i believe that is acceptable for sure.

big buildings big bills, while his answer of "more overhead" isn't a great one he wasn't wrong. You could potentially be talking about a 10+million dollar major center property vs a 250k property in a small town. One could argue that they move more volume so that should cover it and they likely get more dealer incentives for moving such volume. While all of that is true, your talking about a large operation vs buying from perhaps the owner himself and maybe his wife working behind the counter. With that big corporation stuff comes a hefty upper management structure, share holders, division managers, Salesmen, mechanics, parts people, Not to mention the amount of cash put up front to fill up that huge space with gear, accessories, and a parts inventory that will actually get you back on the snow in a pinch. A lot of hourly and salary employees that don't bill out on an hourly basis to cover their burden on the company but still get paid when there's no snowmobiles available to sell. I'm not trying to paint a picture of these big box stores not making any money, because they do. But there is a mountain of behind the scene expenses that cut directly into margins. Now your probably thinking well, not my problem how they run their business, thats my 1000$ and im getting the same product. So in the end your left with what is this big store giving me for the extra 1000$? While for some that may be nothing because maybe your big box store just sucks, but For me in my experience its the convenience of having major dealers 5 mins from where i live, with stock on any part that i will ever need, and an assortment of gear that they will most certainly always have in my size, on the shelf ready to go. I've also found that the big dealers give back to the local community and the snowmobile clubs a lot more in forms of cash sponsorships, donations and extra programs etc. That is not always the case but in general that's what i have noticed. And while that might mean nothing to some people its important to others and makes that 1000$ price difference disappear pretty quick. Dont get me wrong, Small and rural dealers have their place and are just as important for some as far as convenience/service quality and relationships are concerned. Just consider that perhaps that big box store isnt taking your 1000$ and putting it directly in their back pocket.

I've attached the 2023 sponsor list for vale mount just as an example. Executive sponsors 5000$+ and premier sponsors 3000$+ in cash or goods. Take a look at the big box stores, cycle works, martins, riversides, banisters, wpms, all account for at least 50k+ in yearly sponsorship to the club. and i know for a fact most are donating above and beyond the 5000 mark. Just food for thought.

View attachment 264098

Ya well banister group, big big crooks right there


Scamming dealers group

Worked for one , anyone ever heard of dealer pro

They get the dealer to charge more ( parts and labor ) with a matrix , doing b.s flushes and crap on little old lady's cars with little to no km on them

I couldn't take it anymore, hence why I left a certain shuswap dealer, I have a consensus

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[maxwell]

Be careful not to cheat yourself out of your end goal. If you get hurt who will make you money. If you retire, your business is worth less if it cannot continue without you. The best thing I learned in all my years of my business is it is way more valuable and easier to sell if it can run without you. It is okay to work and make that extra margin but don't count on it to survive. I purposely made less income the last few years as I put people in place to replace me. The big dealerships don't usaully put all their eggs in 1 basket and it can cost a bit more to structure like this but in the end it can be the safe move.

this is 100% accurate. i just had a presentation yesterday on my business evaluation. a very key element in the evaluation of a company is how it can operate without its key personnel. If key personnel do not come with said business or pass away etc this is considered high risk and debt which devalues your business greatly. The smartest thing you can do is have the right people in place to maintain revenue and earnings without your presense. Which like you said is why these big dealers are structured this way. All your eggs in one basket never works out

 

[struglin]

this is 100% accurate. i just had a presentation yesterday on my business evaluation. a very key element in the evaluation of a company is how it can operate without its key personnel. If key personnel do not come with said business or pass away etc this is considered high risk and debt which devalues your business greatly. The smartest thing you can do is have the right people in place to maintain revenue and earnings without your presense. Which like you said is why these big dealers are structured this way. All your eggs in one basket never works out

No one wants to buy someone else’s headache.

To the original poster a $1000 is a $1000 why pay more?


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[Stompin Tom]

Paying $1000 extra just to buy from a big dealer makes about as much sense as getting Cyle to fix your trailer brakes.

 

[RGM]

this is 100% accurate. i just had a presentation yesterday on my business evaluation. a very key element in the evaluation of a company is how it can operate without its key personnel. If key personnel do not come with said business or pass away etc this is considered high risk and debt which devalues your business greatly. The smartest thing you can do is have the right people in place to maintain revenue and earnings without your presense. Which like you said is why these big dealers are structured this way. All your eggs in one basket never works out

When nearing retirement you definitely need a plan. Selling to key employees is one option.

 

[pfi572]

Charge whatever you want as it’s a free market .
You don’t like the price don’t buy it . Pretty simple isn’t it ?!

 

[Cyle]

this is 100% accurate. i just had a presentation yesterday on my business evaluation. a very key element in the evaluation of a company is how it can operate without its key personnel. If key personnel do not come with said business or pass away etc this is considered high risk and debt which devalues your business greatly. The smartest thing you can do is have the right people in place to maintain revenue and earnings without your presense. Which like you said is why these big dealers are structured this way. All your eggs in one basket never works out

Apples and oranges. Totally depends on the business. Many outside of a location and equipment, etc the "business" has little to no value in many industries. People go to the business because of the owner in the case of many small businesses and without them they wouldn't retain most of their customers.

Some of us me included have no intention of building a business to sell, just to make enough money to be able to semi-retire early to do other things.

 

[Stompin Tom]

Apples and oranges. Totally depends on the business. Many outside of a location and equipment, etc the "business" has little to no value in many industries. People go to the business because of the owner in the case of many small businesses and without them they wouldn't retain most of their customers.

Some of us me included have no intention of building a business to sell, just to make enough money to be able to semi-retire early to do other things.

I built my business to supply my family and myself with a good living. When I retire it will be about selling off the assets.

Also I fawking hated having a boss when I was younger.

 

[Rhodesie]

I can’t wait till all dealers are online. Think of the money savings for company’s not to have a store front and for the consumer. Go online build your ride check out and pay. A few weeks later the ride shows up at the depot. I’m sure this will be a thing in my lifetime.


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i shop online for things also. guilty! that being said i still like cruising stores or dealers and such and try to support when i can. i like shiny stuff and am definately an impulse buyer, lol.
go to revy a couple weeks a year and always take a recover day and go shop around. the one place sells klim, oils and spark plugs. always purchase something because its a great place and nice people.
i hope dealerships stay because they do employ a lot of people. i like grabbing a coffee after supper and cruising dealerships in the rag top just to see whats new.

 

[catalac]

I‘m sure those who are upset one dealer is a thousand more than another surely sold their used sleds for pre-covid pricing not the inflated prices the last couple years because that would be gouging lol.

 

[2kDoo]

this thread title should be Stealership question