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ScottyP

Selling motorcycles/dirtbikes at my shop?

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I've been a dirt biker since I was 12, that's 40 years of riding and racing and it's still in my blood, I ride every week. I have an opportunity to get a Beta dealership. Beta is a small 110 year old Italian motorcycle company who produces the worlds best trials and off road bikes as well as dual sport. They've been breaking into the US market the last few years with their enduro models and have their sites on KTM, who is due for some competition. One aspect of the Betas is that they are physically smaller than other race bikes. My KTM has a 38" seat height and some models are 39". The Beta is 36". This is huge for many riders and makes the Beta a clear choice for a lot of us. And of course they're Italian, and gorgeous!

 

At this point I see them as KTM was 15 years ago, a small Euro company who took over the off road racing market in short order. Beta stands a chance at the same, they certainly are producing a bike that is on par or superior to KTM. To me it's like a ground floor opportunity with an emerging brand that is ready to explode in this market. The investment is minimal, $1200 for parts required to stock and that includes the EFI scan tool/programmer, minimum first bike order of 2, 4 is preferred with one being a demo(at special pricing from Beta). Margins on bike sales are 17% and prices range from $7,300 - $10,000+. No idea how many bikes I could sell in a year, but dirtbiking is huge around here.

 

One hurdle is I would have to get a class A dealers license. Beta requires it and so does the state. Maybe not a huge deal. $15-18k investment initially for 2 bikes and parts. I have very little room in my lobby for bikes, I would have to push them outside every day. Would eat up my time with tire kickers and people wanting to see and learn about them.

 

I'm guessing knowing my area and the riders around here I would sell 5 - 10 a year, so $7500 - $15000 in profits. I'm very passionate about dirtbiking so this fits me personally. I'd get my own bikes and parts at cost, and dang I just ordered a new 2016 Beta a month ago, it's why I'm looking at a dealership cause the closest was over 4 hours away. I'd have the whole U.P. of Michigan and most of Northern Wisconsin so potentially sales could be much more than I'm expecting.

 

Anyone ever sell anything outside of the automotive world at their shops? Any thoughts on this?

 

RR-4-stroke-rear-LR2016.jpg

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