All the manufacturers want a dedicated store or clearly delineated area to showcase their products. Their MBA marketing suits to earn their salaries have convinced the bosses this is the way it will be. We can't risk a customer looking at other brands. We must command their attention to our products.
It's a proven and solid practice for solidifying the brand as a major player. Can't fault the logic.
But these high earners forget one thing. The motorcycle shop owner is a small business. The dealer with multiple brands could care less which brand sells the most. Honda, BMW, Triumph, Duc Ural, who cares. Cash flow is what keeps the doors open. You'd be surprised at just how little some multi brand stores actually make.
Sometimes we hear that a manufacturer jerked the franchise from a dealer. Sometimes it is true. Poor service, crap efforts by the dealer to push a brand, customer complaints and so on will get it yanked. But in all fairness to the store, it is difficult to provide the floor space, staff, parts etc. to be in the top 10 favored stores with a seat at the presidents table at the dealer convention. The demographics may simply not support the volume expected by the suits at the home office. The products may not be popular for x years and the legitimate reasons go on.
Many stores can't get financing or be able to justify a $300K separate building to house one brand. Or they are land locked and can't add floor space to satisfy the new stipulations by the manufacturer.
So the dealer simply says EFF YOU to the manufacturer and by the way pull your junk out of here before the month ends. Within a week the semi arrives with the lawyers and regional sales parts and service people to do final inventory, clear the floor and shelves, and cement the accounting.
As the world economy is in a downturn, and discretionary income for toys dwindles we will see these exclusive boutique marketing philosophies wane.
Then it will be the about face. Dear Mr. dealer please sell my products. I don't care if my bike is sitting next to brand xyz. No you don't have to buy into the worthless no results co op advertising program that costs $10 grand. No you don't have to stock $10 grand in parts. No you don't have to buy $10 grand in clothing. No you don't have to buy 10 units of the dud model that we can't unload.
I was in the bike biz for 13 years. Been there done that. Told a manufacturer to stuff it.
*I don't miss it.
