Supposed rumour is that there are a few California and East Coast dealerships (all multi-chain dealerships) that have closed and possible a few more closing their doors in the next few weeks due to lack of new bike sales or credit problems. With some of the dealerships, the emphasis was mostly on "sales of new units" -- not "servicing of customers and their Ducati's" which is a strong defining characteristic of the better Ducati dealerships in the country.
So the question is thus -- how is the Ducati dealership doing near you as of late due to the change in the economy?
I haven't heard anything specific about our MN Ducati dealerships, but it's safe to say that everyone in the industry is hurting right now. I'm watching pretty closely.
Dealerships that will be most likely to weather the storm are those that have:
- good customer service
- get steady maintenance/repair business (also see previous item in list)
- maintained some volume in their parts/apparel/accessories sales
- access to credit
Used inventory is piling up - some dealers are refusing to tie up capital in used bike trades lately. Access to credit is a huge issue, too - some of the large lenders are shutting off credit lines to dealers who have a weak history. Lots of forces at play here.
The past couple of years have been pretty darn good for Ducati's new bike sales in the US. If a Ducati outlet closes its doors, it's probably not due to their inability to sell Ducatis. More likely because of issues related to their "other OEM" sales and inventory.
Funny you should mentioned...
The Downtown Atlanta one closed about three weeks ago.
I think it was a combination of doing a shit job in both the criteria you listed.
Purely a rumor... Moto Forza in Escondido, Ca could be in trouble. [coffee]
(http://cdn.psndealer.com/dealersite/images/moto-forza/dsc_0018500.jpg)
Gorgeous showroom, that always seems to be empty of customers.
My local place seems to be doing good. There are always different new bikes, and I'm assuming it's because people are buying the ones. Even the Tricolore Monsters they had are gone. I did notice they didn't replace their Rocket III's when they sold ~
JM
Quote from: bluemoco v2.0 on December 15, 2008, 02:58:34 PM
- good customer service
- get steady maintenance/repair business (also see previous item in list)
- maintained some volume in their parts/apparel/accessories sales
- access to credit
Also low overhead - my dealer could probably stay open w/o credit.
mitt
That looks familiar.
Quote from: Craig Thomas on December 15, 2008, 03:08:20 PM
(http://cdn.psndealer.com/dealersite/images/moto-forza/dsc_0018500.jpg)
Oh yeah, that's where I bought my 696.
Quote from: Craig Thomas on December 15, 2008, 03:08:20 PM
Purely a rumor... Moto Forza in Escondido, Ca could be in trouble. [coffee]
(http://cdn.psndealer.com/dealersite/images/moto-forza/dsc_0018500.jpg)
Gorgeous showroom, that always seems to be empty of customers.
Hmm, they've been doing my service and I need to get my Termi setup ordered. They by far are the best dealer I've been to in socal. [thumbsup]
My dealership seems to be selling Monsters as quickly as they can get them in.
Lots of other Ducati bikes sitting on the floor though.
I had a chat with my dealer about business and he said that things are slow. They are doing what it takes to move inventory to secure operating capital. I sure hope they hold on as I dont have any other dealers very close.
My dealer (Williamsville Competition) is doing well, considering.
I was down there friday for B's gifts and he had some new inventory on the floor.
They are working hard on their Monster 1100s for the DNA sponsored competition. He wouldn't let me peak. :'(
He also had a new (sold) Aprilia RS 125. It was a sweet little bike. I'm sure a blast to throw around the track. [moto]
(http://static.blogo.it/motoblog/aprilia-rs-125-2008/aprilia_rs_125_2008_01.jpg)
If there's any way I can come up with 25 large, I'll be doing what I can to help with their cash flow.
I can Haz a 1198SSssss, with a Termi kit. ;D ;D Monster bars and ditch the faring with a big round headlight. Use the shotgun exhaust cans of the StreetFighter 1098 termi kit.
Open clutch cover w/DP Pressure plate kit and a Quick change sprocket carrier and a two tooth larger rear sprocket.
Listening Santa?
LA
Dealer in New Orleans, Transportation Revolution, tells me they're doing well. They've been open for about 5 months and the showroom gets nicer every time i'm in
Quote from: LA on December 15, 2008, 05:47:23 PM
If there's any way I can come up with 25 large, I'll be doing what I can to help with their cash flow.
I can Haz a 1198SSssss, with a Termi kit. ;D ;D Monster bars and ditch the faring with a big round headlight. Use the shotgun exhaust cans of the StreetFighter 1098 termi kit.
Open clutch cover w/DP Pressure plate kit and a Quick change sprocket carrier and a two tooth larger rear sprocket.
Listening Santa?
LA
Santa,
since LA is asking for one, can you make it a deuce PEASE? I would like one too.
Quote from: trouble on December 15, 2008, 04:58:45 PM
Hmm, they've been doing my service and I need to get my Termi setup ordered. They by far are the best dealer I've been to in socal. [thumbsup]
Aren't you closer to GP?
Quote from: mitt on December 15, 2008, 04:23:41 PM
Also low overhead - my dealer could probably stay open w/o credit.
mitt
True - low overhead makes a HUGE difference.
That said, the vast majority of dealers use financing sources for their 'floorplan' of new bikes/ATVs/etc. Pull the credit plug and 'voila' - no inventory. :-\
Lenders are also leaving the powersports market for consumer financing. As the US credit markets tightened, dealers were scrambling to find financing $$ for their customers to borrow.
It's ugly out there in the powersports retail world, folks.
Quote from: DesmoDiva on December 15, 2008, 05:43:40 PM
My dealer (Williamsville Competition) is doing well, considering.
I was down there friday for B's gifts and he had some new inventory on the floor.
They are working hard on their Monster 1100s for the DNA sponsored competition. He wouldn't let me peak. :'(
He also had a new (sold) Aprilia RS 125. It was a sweet little bike. I'm sure a blast to throw around the track. [moto]
(http://static.blogo.it/motoblog/aprilia-rs-125-2008/aprilia_rs_125_2008_01.jpg)
I hope they are doing ok, I helped with their cash flow last month... :) Although he gave me an unbelievable price on my s2r1k, I doubt he made any money on that. Great people, I will be back often there.
It's tough times out there for everybody so it's up to the ducati community to support each other in the bad times so we will have some good dealers when the good times hopefully come back [beer]
Wouldn't be surprised to see Bert's stop selling Ducs, given their location/focus/rep.
Beverly Hills Ducati is likely high overhead, and is a small shop, but they may be doing well due to location.
My dealer just closed!! Moto-Meccanica in Santa Rosa, CA went under as of 12/6. >:( Now I'm stuck with Hattar, whose service dept hasn't gotten the best of reviews. Luckily I recently had my 7500 so I'm good to go til the biggie at 15000... Crap!!
I had ridden Kawi's exclusivley before coming over to the dark side. I still have the power cruiser and the dealer I go to for that said he tried to get the Ducati franchise and they were making him jump thru hoops so much that he just gave up!! Double Crap!! [puke] [bang]
DUCATI NYC in SoHo should close just for the fact that they just suck.
Quote from: That Nice Guy Beck! on December 16, 2008, 01:39:25 PM
DUCATI NYC in SoHo should close just for the fact that they just suck.
[laugh] [laugh] [laugh] [laugh] Tell us how you REALLY feel!!
Quote from: wbeck257 on December 15, 2008, 03:03:19 PM
Funny you should mentioned...
The Downtown Atlanta one closed about three weeks ago.
I think it was a combination of doing a shit job in both the criteria you listed.
They closed cuz they were a crappy dealer, I made the mistake of buying an MV from them, crappy service.
Chris
Quote from: hypurone on December 16, 2008, 02:39:32 PM
[laugh] [laugh] [laugh] [laugh] Tell us how you REALLY feel!!
bought 2 bikes from there and your lucky to get some one on the phone
Quote from: That Nice Guy Beck! on December 16, 2008, 03:17:48 PM
bought 2 bikes from there and your lucky to get some one on the phone
But pretty easy to get them in the room to sign financing papers right? ;)
Quote from: That Nice Guy Beck! on December 16, 2008, 03:17:48 PM
bought 2 bikes from there and your lucky to get some one on the phone
could it be just cause they don't want to talk to you ;D
Quote from: Ducatiloo on December 16, 2008, 03:27:06 PM
But pretty easy to get them in the room to sign financing papers right? ;)
cash is king
Wilsons in Fresno, Ca. needs to stop selling Ducati, they are scam artists. They would just sell more of their other crap.
Quote from: zvezdah1 on December 16, 2008, 02:51:12 PM
They closed cuz they were a crappy dealer, I made the mistake of buying an MV from them, crappy service.
Chris
I went to one of their Bike nights....I was turned off by the fact they were ragging out showroom floor bikes intended for sale. I never went back afterwards....for my Ducati service I went to MSP Cycles off Lawrenceville Hwy. Micheal and the staff were always top notch in my book.
Quote from: zvezdah1 on December 16, 2008, 02:51:12 PM
They closed cuz they were a crappy dealer, I made the mistake of buying an MV from them, crappy service.
Chris
Oh trust me, I know...
Quote from: venomousr1993 on December 17, 2008, 12:56:03 AM
I went to one of their Bike nights....I was turned off by the fact they were ragging out showroom floor bikes intended for sale. I never went back afterwards....for my Ducati service I went to MSP Cycles off Lawrenceville Hwy. Micheal and the staff were always top notch in my book.
Goto the DucShop in Marietta.
Or NPR in Athens.
A lot of things killed that shop, super secret silent owners, then other halfs leaving making the silent owner run the shop (who didn't know what the make the beast with two backs he was doing)... then the shot in the chest was loosing their dealer agreement with ducati... six days later and goodbye.
ducati dealer in columbus, ohio blows.
I wouldn't spend a dime there.
Especially in their parts department.
The prick behind the counter tries to argue that you don't know the correct part you are ordering or thinks a 1999 750 is a dry clutch.
stick to BMW's parts guy who will remain nameless.
Quote from: hypurone on December 16, 2008, 12:40:46 PM
My dealer just closed!! Moto-Meccanica in Santa Rosa, CA went under as of 12/6. >:( Now I'm stuck with Hattar, whose service dept hasn't gotten the best of reviews.
I heard about Moto-Meccanica, they were a good shop. I heard mixed reviews about their service as well but brought my bike there anyway (they were cheaper than Hattar). They did a pretty good job. I just got a service from Hattar and was very happy. I know most of the people there, I bought my bike there and I live in San Rafael. I also know the head mechanic, you don't have to doubt their service, they are very solid. I've had warranty work done there as well and they have always taken care of me and fixed the problem.
If you do take your bike to Hattar, be ready for a price shock.
Times are definitely a little tighter in the motorcycle industry, but with a little foresight and proper planning dealers should be able to survive. Those going down aren't going down because the economy slowed... they are going down because of decisions made long before the "economic crisis". The Economic downturn was just the last straw for many of them. Just like Madoff, bad practices are hidden in a good economy but show themselves quickly in a poor economy.
I'm not going to name names, but it will be interesting to see who is still standing in a few months. I've heard some big names being thrown around.
I know we are taking this "slow" time to get our dealership in a good position for next year. We are organizing, we've gone back through inventory of every nut and bolt and created a better bin system, we are sending techs to schools for more training with Ducati, Triumph, KTM and Suzuki, I've been adding many features to the website and have a lot more for release in the spring (though web sales are still going really good). Basically we stepped back and said what can we do to imporve our effeciency and level of service for our customers - most of it came down to being more orderly and putting effecient systems in place.
We are also using this winter to learn new technology such as tuning devises to be used with our dyno, etc... So our bike sales are down at the moment and service is a little slower than an average winter, but I think we are primed to make huge strides over the next few years both in the shop and online.
More good thinking! [thumbsup] Why other shops (of all brands) don't practice the same forward thinking/positive frame of mind is baffling. Customer service and good business efficiency work wonders in both good and bad economic times.
Mentioned these same concerns about the well being of shops and Ducati as a manufacturer on my local board and was teased about thread jacking. :P These are challenging times for everyone, especially the motorsports industry. Bikes are great, but they are a personal luxury item. What's more important your motorcycle or putting a roof over your family's head and food on the table? Wait, don't answer that! [laugh] It will turn around for sure, I just hope the good dealerships and the manufacturers find a way to stay afloat. No government bail out for them. [bang]
Good luck Desmoworks it's dealers with alittle forward thinking that hopefully will survive these hard times and to my mind it will sort the wheat from the chaff [thumbsup]
Quote from: 2 Wheel Wanderer on December 21, 2008, 01:59:10 AM
I heard about Moto-Meccanica, they were a good shop. I heard mixed reviews about their service as well but brought my bike there anyway (they were cheaper than Hattar). They did a pretty good job. I just got a service from Hattar and was very happy. I know most of the people there, I bought my bike there and I live in San Rafael. I also know the head mechanic, you don't have to doubt their service, they are very solid. I've had warranty work done there as well and they have always taken care of me and fixed the problem.
If you do take your bike to Hattar, be ready for a price shock.
Hey thanks for the info and the FHE! [thumbsup] Approx how much more of a sticker shock are we talking about here?
From the ashes the strong dealerships will rise up to reveal themselves. We will be better for it, think of it as culling the herd.
Quote from: gearhead on December 21, 2008, 06:03:40 PM
From the ashes the strong dealerships will rise up to reveal themselves. We will be better for it, think of it as culling the herd.
And the "stronger" dealerships get even stronger with less competition and the rates go even farther thru the roof!! [puke] [puke]
Quote from: hypurone on December 21, 2008, 07:35:47 PM
And the "stronger" dealerships get even stronger with less competition and the rates go even farther thru the roof!! [puke] [puke]
Maybe Ducati is weeding out the poor performers or those that don't pay their bills.
Quote from: hypurone on December 21, 2008, 07:35:47 PM
And the "stronger" dealerships get even stronger with less competition and the rates go even farther thru the roof!! [puke] [puke]
And as rates increase, it will become more viable for less expensive outfits to become established. and the cycle will continue.
It is indeed a cull of the weak and innefficient, and we as consumers should ultimately benefit in the long run.
I admire Desmoworks proactive response to this crisis. [clap] [clap]
Quote from: hypurone on December 21, 2008, 05:26:21 PM
Hey thanks for the info and the FHE! [thumbsup] Approx how much more of a sticker shock are we talking about here?
No problemo and it depends on what bike you have but with me changing my own oil my service was $570 (that's including the cost of the oil). Hattar charges $98 an hr., I dont remember what Moto-Meccanica charged but I do think it was less.
Quote from: Capo on December 22, 2008, 02:52:08 AM
I admire Desmoworks proactive response to this crisis. [clap] [clap]
+1 million.
Quote from: 2 Wheel Wanderer on December 22, 2008, 11:29:33 AM
No problemo and it depends on what bike you have but with me changing my own oil my service was $570 (that's including the cost of the oil). Hattar charges $98 an hr., I dont remember what Moto-Meccanica charged but I do think it was less.
+1 million.
MM was $85hr. Thanks for the hourly rate info. Are they amenable to " a la carte" servicing? I do the oil/filter, air filter service, I have Iridium plugs etc. so I would need them to only do the valves & belts (my next service is the 15k one) and TPS/TB synch only.
Quote from: hypurone on December 22, 2008, 01:18:34 PM
MM was $85hr. Thanks for the hourly rate info. Are they amenable to " a la carte" servicing? I do the oil/filter, air filter service, I have Iridium plugs etc. so I would need them to only do the valves & belts (my next service is the 15k one) and TPS/TB synch only.
Yeah, just let em know what you need them to do and you should be good.
Coulda bought em...
http://www.westauction.com/auction/item_pics/id/161/num/8648 (http://www.westauction.com/auction/item_pics/id/161/num/8648)
22.8k, not a bad price considering the inventory
Quote from: Munch on January 30, 2009, 03:46:07 PM
Coulda bought em...
http://www.westauction.com/auction/item_pics/id/161/num/8648 (http://www.westauction.com/auction/item_pics/id/161/num/8648)
22.8k, not a bad price considering the inventory
I wish I had known about it -- I would have bid quite a bit more than that for the contents of the dealership.
Quote from: Munch on January 30, 2009, 03:46:07 PM
Coulda bought em...
http://www.westauction.com/auction/item_pics/id/161/num/8648 (http://www.westauction.com/auction/item_pics/id/161/num/8648)
22.8k, not a bad price considering the inventory
WOW that was a good deal.
:'( :'(
Quote from: danaid on December 16, 2008, 09:36:59 PM
Wilsons in Fresno, Ca. needs to stop selling Ducati, they are scam artists. They would just sell more of their other crap.
Yep they suck ass, I'm hoping that their big new shiny building's cost drags them down. We dont need them here they are so bad. The last time I went in, they didnt have oil filters in stock for my bike!
The dealer in Jacksonville FL. I bought my 848 from closed. In there place a Suzuki dealer that charges $130/hr for service.
Quote from: MotoCreations on January 30, 2009, 05:09:51 PM
I wish I had known about it -- I would have bid quite a bit more than that for the contents of the dealership.
Well some body sure got a bargin, but to me it's not the bargin it's the fact that the dealer has ceased trading and another shop has gone to the wall :'( :'(
Glad to see Ducati management is taking a "realistic viewpoint" in regard to the direction of the business. (see below)
Since this thread started, I know of a few more Japanese/European dealerships that have gone under. Anymore Ducati dealerships as of late with problems?
http://www.reuters.com/article/managementIssues/idUSL565284820090205 (http://www.reuters.com/article/managementIssues/idUSL565284820090205)
Ducati management take voluntary pay cut
Thu Feb 5, 2009 5:35am EST
MILAN, Feb 5 (Reuters) - The bosses at Ducati, the Italian maker of racing motorcycles riden by world champion Nicky Hayden, have taken a 10 percent pay cut and given up their future bonuses in view of the economic crisis.
Ducati, which is owned by the Bonomi family in the city of Bologna, made the announcement after the latest industry figures showed a 38.8 percent drop in new motorcycle sales in Italy in January.
Ducati did not publish its own sales figures, but said in a statement its share of its market rose to 12.5 percent from 11.2 percent.
Ducati said the decision taken by Chief Executive Gabriele Del Torchio and other executives to take less pay was voluntary.
The announcement is the latest in a series made by companies looking to cut costs in the face of a severe economic slowdown.
Ducati has joined calls by Italian manufacturers for their government to help them through the crisis by stimulating sales.
Prime Minister Silvio Berlusconi's cabinet is expected to announce a package of incentives to encourage consumers to scrap their old cars, motorcycles and home appliances and buy new, more ecological ones.
QuoteSince this thread started, I know of a few more Japanese/European dealerships that have gone under. Anymore Ducati dealerships as of late with problems?
Not in the Northbay that I know of, but the owner of the former Moto Meccanica in Santa Rosa is re-opening (in the same location) as a service/parts shop, no bike sales! Not sure he is going to become a Ducati (or any of the other Euro lines that were sold) certified repair facility... i believe the sign said the opening date was gonna be April 1st. Hah! Fools day! We'll see....
My local shop seems to be doing well. Two 1198Ss on the floor. Looked like one was gonna be sold the other day. In the past month they sold at least three Monsters one of which was an 1100S.
They are also a Suzuki dealer.
Quote from: MotoCreations on March 02, 2009, 10:42:48 PM
Glad to see Ducati management is taking a "realistic viewpoint" in regard to the direction of the business. (see below)
Ducati has joined calls by Italian manufacturers for their government to help them through the crisis by stimulating sales.
Prime Minister Silvio Berlusconi's cabinet is expected to announce a package of incentives to encourage consumers to scrap their old cars, motorcycles and home appliances and buy new, more ecological ones.
Sounds like a heck of a plan - new Ducs for everybody [moto]
Quote from: SA_S2R on March 03, 2009, 10:49:45 AM
Sounds like a heck of a plan - new Ducs for everybody [moto]
Yeah, try explaining that to the wife.
"But honey! I needed that 1098R Bayliss. It is
much more ecological than my monster"
Quote from: MotoCreations on March 02, 2009, 10:42:48 PM
Prime Minister Silvio Berlusconi's cabinet is expected to announce a package of incentives to encourage consumers to scrap their old cars, motorcycles and home appliances and buy new, more ecological ones.
I remember a few years ago, there was a lot of talk about CARB's zero-emissions mandate. The automakers (and some automotive journalists) argued vehemently that it would be more cost-effective to offer a payment of $1000 to anyone who would bring their old car in to have it crushed/recycled. The only stipulations were that the car had to be more than 20 years old, and you had to have the title to the car (to verify that it wasn't stolen [laugh]). They could accept old cars in virtually any running condition.
The logic was that old vehicles generate a disproportionate amount of greenhouse gas emissions. The net effect of putting many more drivers into new (low-emission) cars would do more for the environment than would the sale of a small number of zero-emissions cars.
Of course, CARB opted for the Zero-Emissions path, and... [roll]
Quote from: caperix on January 31, 2009, 03:33:38 PM
The dealer in Jacksonville FL. I bought my 848 from closed. In there place a Suzuki dealer that charges $130/hr for service.
I hope the new Orange Park/Jacksonville dealer does well, but they weren't off to a great start when I was there. They had my bike for six weeks and couldn't diagnose a bad fuel pump. When I brought it in I told them it was the fuel pump because it was making a terrible noise and the bike was acting like it wasn't getting enough fuel as the RPMs rose.
Quote from: MotoCreations on March 02, 2009, 10:42:48 PM
Since this thread started, I know of a few more Japanese/European dealerships that have gone under. Anymore Ducati dealerships as of late with problems?
Well not that they're in trouble (at least not as far as I know), but my local dealer has decided that after 20 years of Ducati , they won't be an official Ducati dealer anymore. My guess is that in order to be considered an official dealer you must buy at least x number of models per year from the factory (which they probably didn't think would be a good idea in the current economic situation) or they where forced to go more in the direction of a Ducati Store (more Ducati apparel etc.) which wasn't the direction they wanted to go in. Now they only sell Aprillia and Bimota.
Quote from: IdZer0 on March 03, 2009, 12:20:38 PM
Well not that they're in trouble (at least not as far as I know), but my local dealer has decided that after 20 years of Ducati , they won't be an official Ducati dealer anymore. My guess is that in order to be considered an official dealer you must buy at least x number of models per year from the factory (which they probably didn't think would be a good idea in the current economic situation) or they where forced to go more in the direction of a Ducati Store (more Ducati apparel etc.) which wasn't the direction they wanted to go in. Now they only sell Aprillia and Bimota.
Wow. Sounds like that would be a pretty narrow customer base.
Here is North west Jersey, Jack Trebour has cut their sales force to 1 or 2 guys, parts to 1 guy, and service down to just Joe and about 3 techs. They sell Ducs, MV, Suzuki, and Triumph motos.
Any insight into Ducati Austin's business or lack there of?!
There aren't too many dealerships (that I've found) around Austin. That's good and bad.
Ducati made their move up north next door to H-D and a Yamakawazuki place last year.
I'm sure the move was/will be for the better.
Quote from: IdZer0 on March 03, 2009, 12:20:38 PM
Well not that they're in trouble (at least not as far as I know), but my local dealer has decided that after 20 years of Ducati , they won't be an official Ducati dealer anymore. My guess is that in order to be considered an official dealer you must buy at least x number of models per year from the factory (which they probably didn't think would be a good idea in the current economic situation) or they where forced to go more in the direction of a Ducati Store (more Ducati apparel etc.) which wasn't the direction they wanted to go in. Now they only sell Aprillia and Bimota.
i think to be an 'official' Ducati dealer/store you cannot sell other marques.
Both Seacoast in Derry, NH, & Riverside Moto in Sommerville, Ma, sell other makes, & they are both "official". Seacoast also sell Aprilla, & Riverside does Triumph & Kawi.
yeah but they aren't named Ducati Derry or Ducati Sommerville. you can only use that if you sell only ducati. (AFAIK)
Don't know the technical requirements for being a "Ducati store", but Transportation Revolution in NO sells Duc, Triumph, and Vespa, and DNA refers to them as Ducati New Orleans in letters to me.
IZ, I was reasonably impressed with Duc Austin when I saw the showroom back in 8/08. I took my 696 there for its 1st service. I hope they're doing well.
Scottsdale Ducati sells other marques in their store in AZ...
You can sell other brands and be an official Ducati Dealer.
The key to selling high end bikes successfully (this is true for all of them except HD) is that you have to have product line that covers all the price ranges. Most of the dealerships that have been listed so far in this post that are struggling have higher end or higher priced products (Aprilia, Bimoto, Triumph to an extent). You have to also have a couple of cheaper brands (the four japanese manufacturers) as well in order to have a successful dealership. You also have to have product variety, cruisers, sport bikes, standards, retros, touring as well as product diversity, ATV's, dirt bikes, street bikes and you need to run a pretty good used business.
If you look at all the dealerships that are successful it is because they have variety in their product lines. If they are only a one or two brand store, then they have to have a pretty small staff, which leads to the service issues that some people have expressed.