Author Topic: Why are there so few Guzzi Dealers?  (Read 32839 times)

Offline O

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Re: Why are there so few Guzzi Dealers?
« Reply #60 on: September 14, 2015, 09:13:35 AM »
I also feel fortunate to be only two hours away from a terrific MG dealer. They have been super to deal with, most importantly they are there to fully support what they sell, no bs. They seem to have all the necessary service parts on hand for modern guzzis, and they have no problem shipping if you can't make the trip. A great bunch of people, and when they say they will call you back, they do,every time. I  can highly recommend Seacoast Sport cycle,in Derry N.H. to anyone searching for a dealer who has there poo together.  dave

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A great shop all the way around!  There was a well-traveled old Eldo they had just done the clutch on when I was there last Friday.  It was nice to see a classic among all of the newer bikes.
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Offline Curtis Harper

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Re: Why are there so few Guzzi Dealers?
« Reply #61 on: September 14, 2015, 09:47:29 AM »
Curtis,  I just noticed that you surepticiously edited my original comment by removing the reference to an "o-ring". My earlier post in this thread emphasized the importance of context. Do you care to comment on why you felt compelled to edit that context out of the original quote without saying that you did so?

Simply for the same reason as leaving out your name. The conversation was about an O-ring, easy to go back to original poster.
« Last Edit: September 14, 2015, 11:07:13 AM by Curtis Harper »
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Offline rboe

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Re: Why are there so few Guzzi Dealers?
« Reply #62 on: September 14, 2015, 10:21:02 AM »
From what I can tell, a good deal of the problem can be Piaggio being such a pill to deal with. I've heard of dealers dropping the mark because Piaggio was impossible to work with. Maybe the dealers had their own issues making the relationship rocky but it seems to be a common theme.
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Re: Why are there so few Guzzi Dealers?
« Reply #63 on: September 14, 2015, 10:33:48 AM »
Correct.

The problem though is the lack of models of MGs people want to buy. We can say MG evolves and offers great designs until pigs fly. The market speaks and the fact is that the typical motorcycle buyer doesn't want what is being offered by MG. Then, without MG doing more than hosting a website and praying for an honorable mention in a cycle magazine wenhave what we have, a sparse dealership network.

It doesn't matter what we say, it only matters what customers buying new motorcycles say and they are saying that they don't by and large want what MG is selling.

Why is that ?? 

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Offline Lannis

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Re: Why are there so few Guzzi Dealers?
« Reply #64 on: September 14, 2015, 10:41:49 AM »
Why is that ??


Because Moto Guzzi is not selling a lifestyle, or a reality TV show, or a Tough Boy image - they're selling what they hope are competent road  motorcycles.

But the vast majority of motorcycle buyer in the US are not looking to buy the most competent road motorcycle.   They are looking to be Sons of Anarchy, or to be a Hell's Angel once they put their futures-trading software away for the weekend, or to be able to tell their friends that they saw 280 MPH on the speedometer on River Road last Saturday.

It's hard to sell into that sort of environment.

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Offline rocker59

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Re: Why are there so few Guzzi Dealers?
« Reply #65 on: September 14, 2015, 10:51:15 AM »
Brand awareness is also a huge problem for Guzzi.

Many people have never heard of the brand.  I get that all the time.  More people don't know the brand than know of it from the 1970s.

Increasing brand awareness is expensive, and in the end you still have an Italian exotic that many US customers are going to be scared of. 

The second question I get asked about my Guzzis is always, "where's the closest dealer".  They lose interest when I tell them it's in the next State, 120 miles away.  US customers want dealers on every corner, and that is why Honda and Harley rule the roost.  And for them, it's a snowball effect.  They are able to grow because they are already big.  They have name recognition.  And, they have dealers in every little Podunk down in the USA.

I find that people who drive European cars are much more open to the idea of a Moto Guzzi than people who drive Honda/Toyota/Ford/GM.  The European car owners are used to the bigger commitment required to own and maintain their machines.
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Re: Why are there so few Guzzi Dealers?
« Reply #66 on: September 14, 2015, 10:54:44 AM »


Because Moto Guzzi is not selling a lifestyle, or a reality TV show, or a Tough Boy image - they're selling what they hope are competent road  motorcycles.

But the vast majority of motorcycle buyer in the US are not looking to buy the most competent road motorcycle.   They are looking to be Sons of Anarchy, or to be a Hell's Angel once they put their futures-trading software away for the weekend, or to be able to tell their friends that they saw 280 MPH on the speedometer on River Road last Saturday.

It's hard to sell into that sort of environment.

Lannis

 What you say is true...but some or many buy a Guzzi because of it's style. A practical buyer might buy one of many competent Japanese machines for less money...And what is a competent bike? A Harley ridden within it's limits is quite competent. Is a Guzzi competent? Yes, within the limits of a 550 pound shaft drive bike...

Offline rocker59

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Re: Why are there so few Guzzi Dealers?
« Reply #67 on: September 14, 2015, 11:04:23 AM »
What you say is true...but some or many buy a Guzzi because of it's style. A practical buyer might buy one of many competent Japanese machines for less money...And what is a competent bike? A Harley ridden within it's limits is quite competent. Is a Guzzi competent? Yes, within the limits of a 550 pound shaft drive bike...

But Guzzi dealers do not have bikini girl bike washes, free hamburgers, huge lifestyle (clothing) sections, poker runs, and dozens of hang-arounds on Saturdays.

People generally want to be part of something, and with lifestyle brands like Harley, the customers are buying more than a motorcycle.  The motorcycle is just the price of admission into the lifestyle.

Not that there's anything wrong with that, but the Guzzi scene is much smaller and much more obscure.  A person wanting to buy into a scene with their bike purchase will not buy a Guzzi.  And, there's not much that Piaggio can do about that...
« Last Edit: September 14, 2015, 11:05:33 AM by rocker59 »
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Re: Why are there so few Guzzi Dealers?
« Reply #68 on: September 14, 2015, 11:11:37 AM »
Brand awareness is also a huge problem for Guzzi.

Many people have never heard of the brand.  I get that all the time.  More people don't know the brand than know of it from the 1970s.

Increasing brand awareness is expensive, and in the end you still have an Italian exotic that many US customers are going to be scared of. 

The second question I get asked about my Guzzis is always, "where's the closest dealer".  They lose interest when I tell them it's in the next State, 120 miles away.  US customers want dealers on every corner, and that is why Honda and Harley rule the roost.  And for them, it's a snowball effect.  They are able to grow because they are already big.  They have name recognition.  And, they have dealers in every little Podunk down in the USA.

I find that people who drive European cars are much more open to the idea of a Moto Guzzi than people who drive Honda/Toyota/Ford/GM.  The European car owners are used to the bigger commitment required to own and maintain their machines.

 Riding the ferry across Bull Shoals a few years back when a gentleman in a Porsche made a beeline towards the Jackal . There were several HDs and there Japanese counterparts on the ferry , he paid no attention to them at all . He seemed to know it is Italian , and asked some serious questions about the brand .

  Dusty

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Re: Why are there so few Guzzi Dealers?
« Reply #69 on: September 14, 2015, 11:32:14 AM »
In another thread a couple of months back we were talking about the strategic decisions made by BMW and Ducati, some 20 years ago or more, that led to their traction in the US market, while Guzzi snoozed. It is possible to regain lost momentum (Harley did it after the AMF debacle, and Triumph came back from the dead) but you don't do it without building a loyal dealer base and communicating with the public.
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Offline blackcat

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Re: Why are there so few Guzzi Dealers?
« Reply #70 on: September 14, 2015, 11:55:22 AM »
But Guzzi dealers do not have bikini girl bike washes, free hamburgers, huge lifestyle (clothing) sections, poker runs, and dozens of hang-arounds on Saturdays.



My local dealer is also a BMW, Indian,etc. shop and they have free hamburgers on occasions along with dinner rides but it still has not helped that much in this location. They sold 22 Guzzi's last year and I don't know how they are doing this year but they may only be around for another year(with Guzzi) if things don't pick up for the brand.

Personally, I wouldn't bring my bike there for service because the head mechanic doesn't like Guzzi and basically tells anyone who asks and I probably know more about my bike then he does even with his "training"  I don't need any parts for the Norge and any parts for the older bikes are ordered from the usual sources.  When I finally get around to buying a new Guzzi, I will shop around for the best price, go back to the local dealer and see if they can match it and if not I'll just do what I did last time and fly or ride to pick up the bike.

I just don't think it is my responsibility to financially support a local dealer when the world has become competitive due to the internet.  My thinking has changed about this when doing research for parts on other household projects and then going to a local dealer to be ripped off to the tune of 30% to 40%. I'll gladly pay a premium for a part be it Guzzi or whatever but not that much of a premium.

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Offline rocker59

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Re: Why are there so few Guzzi Dealers?
« Reply #71 on: September 14, 2015, 12:08:27 PM »
  They sold 22 Guzzi's last year and I don't know how they are doing this year but they may only be around for another year(with Guzzi) if things don't pick up for the brand.
 

Funny thing, 22 units sold makes them a top Guzzi dealer in the USA, but I'm sure it's just a drop in the bucket to the Indian and BMW sales.

I'd imagine the hot nature of Indian has caused them to think less and less of Guzzi.  It's more work to be a Guzzi dealer.  People are knocking down the doors to buy Scouts and Chiefs.  And those customers probably never heard of Guzzi !!!
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Re: Why are there so few Guzzi Dealers?
« Reply #72 on: September 14, 2015, 01:07:14 PM »
After re-reading all the comments, I did a little research and if I go to the dealer as suggested I'd pay $2.20 for a $.30 o-ring. If you can't see what's wrong here I'm not the guy to 'splain it.



   Paul B. :boozing:

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Re: Why are there so few Guzzi Dealers?
« Reply #73 on: September 14, 2015, 01:57:14 PM »
I'd love to support a local dealer. At one time, the sole Guzzi dealer in the area was a well-known shop not too far north of Coors Field -- about 30 miles from me. When I worked in Denver (and commuted on the T) I went in there a couple of times with a list of parts, to be told that they wouldn't stock parts for a bike that old. Not even a clutch cable. So I'm a loyal customer at Harper's etc.
I work just blocks away from that dealer and bought a new V7C off their showroom floor a few years ago. When I came back a week later to take delivery and bring it home, the battery was flat, the tires had 22 psi, and the gas tank was 1/4 full. Did they earn my business? I ultimately sold the bike a year later because I had no faith in their desire or ability to provide fair, proper service to my bike, let alone provide warranty repairs or have a sufficient parts inventory.

Offline blackcat

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Re: Why are there so few Guzzi Dealers?
« Reply #74 on: September 14, 2015, 02:33:58 PM »
Funny thing, 22 units sold makes them a top Guzzi dealer in the USA, but I'm sure it's just a drop in the bucket to the Indian and BMW sales.

I'd imagine the hot nature of Indian has caused them to think less and less of Guzzi.  It's more work to be a Guzzi dealer.  People are knocking down the doors to buy Scouts and Chiefs.  And those customers probably never heard of Guzzi !!!

They sold something like 65 BMW's but I have no idea about the Indians. And the previous MG dealer in town sold something like 25 units their first year and they weren't happy either with that number either and then they went out of business but that was mostly due to the economy collapsing and their Piaggio's scooter sales took a nose dive when the price of gas started to go down.
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Offline stick

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Re: Why are there so few Guzzi Dealers?
« Reply #75 on: September 14, 2015, 03:53:59 PM »
'Guzzi did it...
My local dealer in central Mass., used to have Moto Guzzi.  That was over 5 years ago.
I inquired as to why they stopped that part of the franchise? 
His answer was that they (the dealership) could not stand dealing with Piaggio any longer.  I guess they just ticked them off to the point where they just gave up.  I recall him saying that random bikes would get delivered (forced into their inventory), un-announced.  And I believe obtaining parts (timely) was a headache also.

So, they continue with BMW and Ducati.  Also brought in KTM.  And Indian, as a separate area.

And now my closest 2 places are over 70+ miles.  One in RI, and one in Derry, NH.  Seacoast in NH has been great.  They'll pick up your bike in the Northeast for $25, and deliver it for $25, if you cannot dedicate a day or 2 for service.  They claim they do this from NYCity to Maine...
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Offline Aaron D.

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Re: Why are there so few Guzzi Dealers?
« Reply #76 on: September 14, 2015, 04:24:00 PM »
Stick, if you are in Worcester your closest dealer is probably Gill, and they are now Guzzi only as BMW decided they were no longer sufficiently modern to be a BMW dealer.

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Re: Why are there so few Guzzi Dealers?
« Reply #77 on: September 14, 2015, 04:41:38 PM »
Funny thing, 22 units sold makes them a top Guzzi dealer in the USA, but I'm sure it's just a drop in the bucket to the Indian and BMW sales.

I'd imagine the hot nature of Indian has caused them to think less and less of Guzzi.  It's more work to be a Guzzi dealer.  People are knocking down the doors to buy Scouts and Chiefs.  And those customers probably never heard of Guzzi !!!

My buddy was a Guzzi dealer from the early 80's to the early 90's. He was the top seller for a couple of years East of the Mississippi and possibly the country moving 25+/- Guzzi's per year . Something's never change. A while back he found a box of his advertising plates that go under the license plate. I have them on a few of my bikes.
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Offline O

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Re: Why are there so few Guzzi Dealers?
« Reply #78 on: September 14, 2015, 05:07:04 PM »
Stick, if you are in Worcester your closest dealer is probably Gill, and they are now Guzzi only as BMW decided they were no longer sufficiently modern to be a BMW dealer.

They're about equidistant to Seacoast from the Worcester area.  I've heard nothing but good things about AJ Cycles in Gill, but have never stopped by.  Looks like they have a Verde Legnano in stock.  I may have to pay them a visit for a look.
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Re: Why are there so few Guzzi Dealers?
« Reply #79 on: September 14, 2015, 07:11:14 PM »
This discussion is all over the place with lots of good points.  But I had to think about the dealer who will pick up/deliver for $25.00
There's not way he's not getting killed at that price.  How do you own a truck, trailer, insure it, pay your man, etc. for 25 bucks?

So, is this the guy that has to match internet pricing?  Or do we pay him list (or close to it) so he can continue to provide a negative cost service?  This is really an involved topic.  I have no value judgement, good or bad, just adding to the conversation.
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Re: Why are there so few Guzzi Dealers?
« Reply #80 on: September 14, 2015, 07:24:22 PM »
Are dealership "co-ops" a thing? Like, different from a traditional small business, where several people are co-owners and people come in at different contribution levels in starting it up? Not a business person here, can ya tell. Wonder what it would take to do something like that... We desperately need a Guzzi+ dealer somewhere like Santa Rosa or Petaluma or something, Napa is too small and Fairfield is the wrong direction, Elk Grove fills that area.

Does anyone know what it takes in terms of legalities (zoning, licenses, permits, etc.) for a lease that a dealership would need? Super curious now...

Offline O

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Re: Why are there so few Guzzi Dealers?
« Reply #81 on: September 14, 2015, 07:54:21 PM »
This discussion is all over the place with lots of good points.  But I had to think about the dealer who will pick up/deliver for $25.00
There's not way he's not getting killed at that price.  How do you own a truck, trailer, insure it, pay your man, etc. for 25 bucks?

So, is this the guy that has to match internet pricing?  Or do we pay him list (or close to it) so he can continue to provide a negative cost service?  This is really an involved topic.  I have no value judgement, good or bad, just adding to the conversation.

Re: Seacoast, they have a big transit van that they fill with numerous bikes for each trip.  They don't make a trip just for a single bike.  This means you may have to wait several days, a week, or a bit longer before they come get your bike.  Given the quality of service and trustworthiness they provide, the wait is well worth it, especially when work and/or weather make a ride there unfeasible. 
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Re: Why are there so few Guzzi Dealers?
« Reply #82 on: September 14, 2015, 08:02:08 PM »
Are dealership "co-ops" a thing? Like, different from a traditional small business, where several people are co-owners and people come in at different contribution levels in starting it up? Not a business person here, can ya tell. Wonder what it would take to do something like that... We desperately need a Guzzi+ dealer somewhere like Santa Rosa or Petaluma or something, Napa is too small and Fairfield is the wrong direction, Elk Grove fills that area.

Does anyone know what it takes in terms of legalities (zoning, licenses, permits, etc.) for a lease that a dealership would need? Super curious now...

The ownership structure is mostly up to the participants - depending on the company's bylaws, it can behave like a co-op (though technically it is still an incorporated partnership) but it would be difficult to make it a co-op in the same way that REI and MEC (for example) operate. A retail operation has the opportunity to structure as a co-op because it is built as a collective buying agent for the co-op members; dealing with the liability, warranty support, licensing and other issues that a vehicle dealership faces makes a co-op something that can be emulated, but not duplicated.

In most jurisdictions that I know, setting up a vehicle dealership takes a minimum of six months and a pile of cash and credit. Vehicle sales are typically regulated at both the state and local (county and municipality) levels. You will need a location with appropriate zoning, a use-specific local business license and various permits to convert the location (if not already a vehicle dealership) to that purpose. You will need construction permits for any required renovations. At the state level, you will need a business license, articles of incorporation and all related business documents, and a sales tax permit. In most states, you will need DMV approval as a dealer and DMV authorization to issue temporary license placards. You may need DOT permitting to inspect vehicles for safety before resale. Your vehicle sales staff will all need to have criminal background checks and be licensed by the state, and in some areas by the county or municipality.

If you are taking on a franchise as a new product dealer (not a used vehicle only dealer), you then have a bunch of contracts to negotiate to obtain the dealer franchise for your area of choice. This may have geographic restrictions (no other dealer within xx miles and you are also not within xx miles of another), requirements for dealer presentation (floor plan, signage, exterior appearance), requirements for inventory (new vehicles, parts and supplies, clothing and accessories), requirements for training (sales staff, techs, parts staff). You will need to commit to move a certain number of units to establish pricing levels and if you're lucky, co-op advertising reimbursement.

You will need the senior investors or officers of the company to sign over their hearts, souls and first-born children to one or more banks or investment financiers to obtain what is called "flooring" - interest-only financing for all the vehicles you keep on the floor, so the previous owner (manufacturer/importer, or person you bought that used bike from) gets their money, and you have some time (30-120 days, usually) to sell the bike before you have to pay off the vehicle or move it into your pool of 'owned' assets (and make payments on the principal as well as the interest).

You will need those same people to sign various instruments to attempt to cover themselves, the business, and its staff from all the various ways the courts have found to make them liable for anything from a bad brake job to a butterfly sneeze.

Other than that, it's simple.  :evil:
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Re: Why are there so few Guzzi Dealers?
« Reply #83 on: September 14, 2015, 08:28:24 PM »
I've heard a lot of good things about Seacoast.
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Re: Why are there so few Guzzi Dealers?
« Reply #84 on: September 14, 2015, 09:14:47 PM »
Yup it's true, Seacoast picked up my cali last fall and returned it about two weeks later. 50$ round trip in the big conversion van, it looked like it could carry around eight bikes. I think the drivers name was Kyle and he man handled that 800lb. cali like it was a mini bike. Never heard a bad word about Seacoast and I can  understand why. I look forward to the couple times a summer I get to take the two hour ride there on a Saturday and drool on all the Italian splendor, Ducati, Aprilia, and of course Moto Guzzi. They have a first come first serve policy on Saturday and they open at 10 am. I usually try and be the first one there which means I leave at 5 am and get there at 7, and and it's great to hear all the duc's and v4's come roaring in. By 10 o clock there is usually around 20 bikes lined up for mostly scheduled services and tires and such and they bend over backwards to get them all in. Makes for a great day and free burgers and dogs at lunch. But above all else they are all a great bunch of people to deal with. They really don't care if your looking at a scooter or a super leggra,  they will treat you as a valued customer. Pretty rare these day's.   dave

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Re: Why are there so few Guzzi Dealers?
« Reply #85 on: September 15, 2015, 02:31:04 AM »
The ownership structure is mostly up to the participants - depending on the company's bylaws, it can behave like a co-op (though technically it is still an incorporated partnership) but it would be difficult to make it a co-op in the same way that REI and MEC (for example) operate. A retail operation has the opportunity to structure as a co-op because it is built as a collective buying agent for the co-op members; dealing with the liability, warranty support, licensing and other issues that a vehicle dealership faces makes a co-op something that can be emulated, but not duplicated.

In most jurisdictions that I know, setting up a vehicle dealership takes a minimum of six months and a pile of cash and credit. Vehicle sales are typically regulated at both the state and local (county and municipality) levels. You will need a location with appropriate zoning, a use-specific local business license and various permits to convert the location (if not already a vehicle dealership) to that purpose. You will need construction permits for any required renovations. At the state level, you will need a business license, articles of incorporation and all related business documents, and a sales tax permit. In most states, you will need DMV approval as a dealer and DMV authorization to issue temporary license placards. You may need DOT permitting to inspect vehicles for safety before resale. Your vehicle sales staff will all need to have criminal background checks and be licensed by the state, and in some areas by the county or municipality.

If you are taking on a franchise as a new product dealer (not a used vehicle only dealer), you then have a bunch of contracts to negotiate to obtain the dealer franchise for your area of choice. This may have geographic restrictions (no other dealer within xx miles and you are also not within xx miles of another), requirements for dealer presentation (floor plan, signage, exterior appearance), requirements for inventory (new vehicles, parts and supplies, clothing and accessories), requirements for training (sales staff, techs, parts staff). You will need to commit to move a certain number of units to establish pricing levels and if you're lucky, co-op advertising reimbursement.

You will need the senior investors or officers of the company to sign over their hearts, souls and first-born children to one or more banks or investment financiers to obtain what is called "flooring" - interest-only financing for all the vehicles you keep on the floor, so the previous owner (manufacturer/importer, or person you bought that used bike from) gets their money, and you have some time (30-120 days, usually) to sell the bike before you have to pay off the vehicle or move it into your pool of 'owned' assets (and make payments on the principal as well as the interest).

You will need those same people to sign various instruments to attempt to cover themselves, the business, and its staff from all the various ways the courts have found to make them liable for anything from a bad brake job to a butterfly sneeze.

Other than that, it's simple.  :evil:

This is why I ask questions. Thank you for that epic post, TIL much stuff! Hmmmm, another thing I was thinking of was what it would take to have an existing, established dealership open another location, assuming all the location criteria you mentioned was met. Certainly, all regionally-specific stuff like licenses and permits and such will need to be re-acquired, but I'm wondering how much better a proposition that would be than swimming up that horrific stream you described there. Also, that's sort of the point of the "co-op" approach; even though there are more copies of contracts being signed and such, distributing the workload and risk across more people--specifically, the right people--might improve the experience in general. At least that's my theory, lel.  :boxing:

Offline kingoffleece

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Re: Why are there so few Guzzi Dealers?
« Reply #86 on: September 15, 2015, 05:54:36 AM »
Not to mention that Gizzi is wanting to make a shipment of bikes to the Northeast dealers in the 3rd quarter.  Not so good unless they will pick up the floor plan all winter.  Sales season is almost completed by now with winter on the horizon.

There's a zillion things to being a dealer.  I know and work with several but it's not my place to speak to some of the practices.  Maybe the dealers here would care to chime in.
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Offline stick

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Re: Why are there so few Guzzi Dealers?
« Reply #87 on: September 15, 2015, 02:53:56 PM »
Stick, if you are in Worcester your closest dealer is probably Gill, and they are now Guzzi only as BMW decided they were no longer sufficiently modern to be a BMW dealer.

Thanks for the tip.  According to Google Maps, all 3 are 60+ miles from Northboro - I live on the West side of Nbro.

RE: Seacoast -- Last year, the price was $20 one way, and you do have to schedule ahead of time.  They won't run "everyday" in your area.  They just got a newer Mercedes van.  The ol' Sprinter had over 250K mi on it.  They actually phoned me, because I was potentially interested!  Turned out it wasn't a bad price, either, but I got cold feet (plus there were a few issues w/ the rig).

I believe even the new one is set up for 4 bikes.  So on a good day, you're delivering 4, and picking up 4.  Still $200/day must still be a loss for them.  The van is not inexpensive to buy/lease!  It's a convenience they offer, to keep your business.  My Stelvio made the round trip twice, while under warranty.   Now, she's freed from that chain, and I can start playing with the NTX myself!
« Last Edit: September 15, 2015, 02:54:36 PM by stick »
Stick

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Offline kingoffleece

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Re: Why are there so few Guzzi Dealers?
« Reply #88 on: September 15, 2015, 03:36:40 PM »
And the most obvious answer to the original question........... ....there's almost NO money in it.
I'd be amazed if the #1 USA dealer moves 50 units this year and absolutely dumbfounded if it's 75 units.
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Offline rocker59

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Re: Why are there so few Guzzi Dealers?
« Reply #89 on: September 15, 2015, 03:40:02 PM »
And the most obvious answer to the original question........... ....there's almost NO money in it.

BINGO !!!

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