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New BMW Stores?

BMW has announced a few New Dealers, How many went South ??? Mount Laurel NJ is one Dealer that went out of business last year. Is there a Net gain ?

I assume you mean "south" in the figurative sense! For certain there are less dealers all the time. When BMW went boutique the old mom and pop's dealers closed. Net loss over time. There are that I know of two, and possibly three less dealers in Iowa than in years past. (One in Riverside, and one in Des Moines and possibly Iowa Falls; uncertain if there was an Iowa Falls dealer though others here may know.)
JD
 
It is hard to keep track of what dealers are in the count at any given time. In this decade IIRC the low I remember is 142 and the high was 151. It has been holding in the 145+/- range most of the time. Within the US some markets have seen a decline in numbers. Those numbers have been offset by dealers opening in other markets. I suspect that dealers will come and go but the number will never go much beyond the 145 to 150 range in total.
 
What exactly is the "BMW experience"? My NC BMW dealership (about 130 miles fom me) is neither a social bike shop nor does it resemble a Lexus or Mercedes car dealership (though it does have free coffee). Sometimes there is someone on the floor or a nearby office when you walk in, sometimes not. The staff doesn't change (except for the parts guy) and they are all product-knowledgeable.

The Japanese (all brands except Honda) dealership down the street from me is much larger, better equipped, more inventory and as a dealership experience seems as good or better in every way that matters.

From what I can tell, the primary difference is that the BMW dealers floor is occupied mostly with overpriced riding gear hunting suckers dumb enough to pay list for items at best only a bit better than competition. Of course, what is actually on the floor (and mostly wasting space) is in sizes S or XXXL- the more typical sizes having been sold. Total store inventory is maybe 25-30 new and used bikes and many of the used ones are Harleys or J-brands.
The J-brands dealers floor is mostly bikes- easily 100 or more new not counting the ATVs ,etc - an adequate amount of gear and space displaying parts and accessories all at reasonable prices - all in all a much better marketing setup. And there are multiple other J-brands dealerships in a 30 min radius for those into comparison dealing.

I don't see anything noteworthy about a "BMW experience" and this is not intended to knock the local dealer who has competent staff. Its just that they're NOT winning any dealer experience comparison around here. They are outnumbered and outfiananced on all sides.

They can't support enough mechanics to have decent appointment times during much of the year - its usually 4 weeks for a routine service appt. And they're one of the 48 that qualifed to get the new sportbike early so presumably in the top tier.

I service my own, buy parts off the web,etc but that obviously is not the majority of owners. If I couldn't do that, a BMW wouldn't be much more than a toy where I live. Getting service at long distance isn't practical for anything used as routine transportation and hauling a machine for service certainly doesn't add anything to the "BMW experience"

BMW clearly isn't going to be much more than a bit player for bike market share during my lifetime unless they get a lot more serious about expanding the dealer network. And that is proably the essence of the "BMW experience" - well over 95% of the bikes you see WILL be some other brand.
 
Racer7 brings up a series of interesting points most of which I can understand and agree with. My current location is the first experience with a BMW only dealer. As a result much of what he says resonates with me now. Previously my BMW dealers have been multi-brand stores and the ÔÇÿexperienceÔÇÖ was completely different.

There are two things that continue to strike me as odd as we discuss dealers.

First that lack of understanding that BMW has no intention of expanding and thus trying to be a dominate brand. The company has clearly stated over and over again that it has identified and will be a niche player in the motorcycle industry. In 2007 it stated 150,000 units per year as its world wide goal for sales. That number would not make them dominate in the NA market let alone the US market. Their strategy to make money and create share holder value is based on scarcity.

The second has to do with the reasons to own a BMW. We all have our own lists to explain justify or rationalize why we own a BMW. On my list, and I believe for many long term/ multi-BMW owners, is that it is not a common bike. I donÔÇÖt expect to see a bunch of BMWÔÇÖs when I ride. This has an implication on dealer numbers and kind. If the penetration in the US is in the 10,000 unit range per year how many viable dealers can that number realistically support?
 
The one thing on this topic I have heard those who count at BMW say is they are not going to open dealerships unless they believe the business will succeed. That thus depends on location, market, financial horsepower, management acumen, etc. It boils down to the ability to sell enough bikes (new and used), enough parts, enough accessories, and enough other stuff to support the people it takes to get that done.

When combined with other brands it needs to be some sort of decent fit. And BMW ought to be something more than a logo on the sign and a bike over in the corner. I hate to detour significantly out of my way on a trip to go to a "BMW dealer" that has no parts, nor even tires that fit.

In the end this means that BMWs aren't for everybody; especially not for folks that need a nearby dealer for essential common services. BMW knows that. Why don't we?

p.s. I have engaged in these discussions since shortly after BMWNA took over from Butler and Smith. For the most part the substance of the discussion never changes. We want a dealer right down the street that has the best tech, all the parts, cheap bikes, and good coffee. Oh, and we want a shop like that every few miles on our personal route when we are traveling too. That is a rational desire that won't be true for most of us. So we learn to cope or buy a Harley.
 
BMWNA is desperate...The NJ opening is at an established HD dealership. Not that there's anything wrong with this particular dealership, but I do know they are looking for qualified BMW tech's:ear
 
Two dogs on one bone

It will be interesting to watch things in the Inland NW (Spokane WA - Coeur d'Alene ID area.) BMWNA just gave the nod to Westside Motorsports in Spokane (a well established, large, multi-brand dealer) to become BMW Motorcycles of Spokane. The equally well-established Beaudry's in Post Falls ID claims they will continue to carry the BMW brand. Not sure if the market will support two dealerships in the area, though. It would be nice to have two competing dealers but I've seen it happen in Pittsburgh: Two years after European MC of Pittsburgh opened, the old dealer, Heritage, had to close. The market only supported one dealer.
 
NA talks about opening 8 new dealerships, but how many closed in the last year or so ???

Personally, I don't think that BMWNA's attitude is helping the brand at all. Just try to call and talk to someone there about an issue... Their condescending attitude toward their customers is enough to put you off the brand forever. Now try being a dealer...
I can't go in details, but it isn't fun at all dealing with HQ....I know several first hand stories from potentially new BMW dealer candidates, all of whom already have existing bike dealerships, being jerked around by BMWNA to the point of them telling BMWNA to jump of a cliff....
Palm Beach County in Florida is the latest one in this saga...:violin
Their latest bike (S1000RR) is phenomenal and I hope BMW does well with it, but they need dealers to sell this bike and the crotch rocket crowd is not interested in a boutique store festooned with overpriced gadgets/clothing and stuffy sales people....
The mom and pop stores is where it is at, with personal attention and good wrenches who ride themselves. An enthousiastic small dealer is worth it's weight in gold. Another new megamillion $$ store being around for only a few years is not...YMMV
 
Van Wall Motorsports is selling BMW products in Perry, Iowa and state on their website they will be opening a new showroom in Des, Moines Ia. during the second half of 2010. They claim it will be the first Des Moines dealership. This is not so, as there was a dealer (Cycle Clinic) that still operates as an independent. I wish them well though and will give them my business as long as I consider them a worthy dealer with good business practices. It goes with out saying they will need to be competent in all things BMW as well.
JD
 
The one thing on this topic I have heard those who count at BMW say is they are not going to open dealerships unless they believe the business will succeed.
...

That sounds good...now how do we think they have been successful in their choices?
 
That sounds good...now how do we think they have been successful in their choices?

Good question Jack. I certainly don't know enough to know. I do know that the whole motorsports industry has been impacted by the overall economy and the recession. To the extent that I see a startup of 6 years ago not weather the storm, I'm certainly not going to say that BMW was wrong 7 years ago when they decided they thought that business plan could make it. If 100 year old or 50 year old major companies can't weather the current turmoil who am I to cast aspersions at a 5 year old or two year old business that just couldn't make it work in today's economy.

Kudos to the ones that survive!

Now lets go order more stuff off the internet and save a few bucks.
 
For me it is 90 mile drive one way after a two hour boat trip to the nearest BMW dealer. Actually there is one slightly closer but I don't enjoy shopping there. My current dealer is about 140 miles away. Anyway if I am in need of a part and the bike is not going in for service the internet it is. I do almost always buy my stuff at the dealer where I currently get the bike serviced. To get parts for me and I would guess others the net is the viable method. I really don't need the BMW "experience" when buying parts, if they have it and can ship it soon I'm pretty happy. My present dealer does that well. I think that if a dealer wants to be successful in this day and age and particularly in this ecconomy they need to make friends with the internet. If I had a BMW dealer five miles away I would probably shop there and support them but I don't have that option like many I think. I wonder what percentage of BMW owners live within say 30 miles of a dealer? Bet that figure is low.

In regard to the closing of dealers yes the economy sucks but IIRC some of the big new BMW only dealers were folding well before the downturn. Be interesting to see what the viability of the new crop is. I would think the dealers that already have a presence in the motorcycle biz might have a leg up. Time will tell.
 
You guys crack me up. :rofl

BMWNA didn't just figure out they need dealers to sell bikes. They knew that all along. They don't own the dealers they franchise them. They have held in the range of 150 dealers and will continue to do so for the near future.

The head of BMW Motorrad NA first public appearance was at a dealer meeting. His second was at the MOA rally in Gillette.

What discussions like this miss is that you have to find people willing to invest the money, no matter how the franchise agreement is designed, that are willing to become involved and stay in the business.

Indeed, you cough up about a million dollars and poof, BMW opens a new dealer. Man, I really feel for guys who invest the money and then find out its just plain hard to make money selling a bike with 2% of the motorcycle market. The new franchisees, I believe, are even discouraged from selling other brands that would help keep the doors open.

The old Butler and Smith Dealerships can offer better service, too. Since their service bays are full up with Kawis and Hondas, their lone old BMW master tech can concentrate on working with the Beemers at far lower rates than the stand-alones, because the big stand-alones have big costs to cover.

It is one tough row to hoe if you ask me.
 
For me it is 90 mile drive one way after a two hour boat trip to the nearest BMW dealer. Actually there is one slightly closer but I don't enjoy shopping there. My current dealer is about 140 miles away. Anyway if I am in need of a part and the bike is not going in for service the internet it is. I do almost always buy my stuff at the dealer where I currently get the bike serviced. To get parts for me and I would guess others the net is the viable method. I really don't need the BMW "experience" when buying parts, if they have it and can ship it soon I'm pretty happy. My present dealer does that well. I think that if a dealer wants to be successful in this day and age and particularly in this ecconomy they need to make friends with the internet. If I had a BMW dealer five miles away I would probably shop there and support them but I don't have that option like many I think. I wonder what percentage of BMW owners live within say 30 miles of a dealer? Bet that figure is low.

In regard to the closing of dealers yes the economy sucks but IIRC some of the big new BMW only dealers were folding well before the downturn. Be interesting to see what the viability of the new crop is. I would think the dealers that already have a presence in the motorcycle biz might have a leg up. Time will tell.

My closest dealership is 450 miles away. My long-time dealership which I have patronized since 1983 is 1100 miles away. When I need parts I pick up the telephone, call the dealership, tell them what I need, and get the parts usually "day after tomorrow". They usually have what I need. If they don't have the part they tell me how soon they can have it to me.

I buy all sorts of stuff over the Internet. I live 53 miles from town. I live 125 miles from the nearest Walmart. I live 210 miles from the nearest mall and 250 miles from the nearest Home Depot.

But I buy my BMW stuff from my BMW dealerships - 450 or 1100 miles away - by telephone.
 
Now lets go order more stuff off the internet and save a few bucks.

So what did you mean by this? I took it as sarcasm but perhaps I misunderstood as you appear to support internet and phone sales. I took your statement to mean that perhaps you thought those type of sales were hurting local dealer part sales.
 
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Wow! I have a completely different experience than expressed in this thread. My closest BMW dealer is 7 miles away. This dealer started out with Honda and BMW, but over the years has added other marques. I've purchased 5 BMWs and 3 other bikes from this dealer over the past 17 years.

There is another BMW dealer 18 miles distant. This dealer started out as solely BMW. It didn't take long for the dealer to realize that there was an insufficient sales volume with just BMW. In the last 6 years other marques have been added and the store moved to a larger and better location (easier access & greater freeway visibility).

While not a BMW dealer, Re-Psycle BMW is 28 miles away. Re-Psycle always has the airhead (and most other BMW) parts in stock. Good used stuff goes for half or less the cost of new parts. They have folks with extensive BMW experience and I've benefitted several times from advice and "how to" demonstrations (i.e., setting the proper shim thickness for airhead wheel bearings).

Only HD has a more convenient dealer network, and there isn't as convenient a source for good used HD parts.
 
My local BMW dealership is 30 miles away, they sell Yamaha, Suzuki, Argo, and the BMW Sales area is semi-isolated with Ducati.

It has always been 30 miles away, next dealer is 180 miles away, I knew that when I bought my 3 BMW bikes.

So if you are not happy with their network of dealers, why are you buying the brand?
Along with exclusitivity, comes a smaller amount of dealers.

You want convenience? buy Honda or HD, they are everywhere.

Ferrari, Lambourghini, not so much.

I have been nothing but satisfied with my bikes, sales, service, and BMW experience.:thumb
 
So what did you mean by this? I took it as sarcasm but perhaps I misunderstood as you appear to support internet and phone sales. I took your statement to mean that perhaps you thought those type of sales were hurting local dealer part sales.

It was sarcasm. As I noted I buy my BMW stuff from "local" BMW dealerships: the one most local at 450 miles away or the one that was local in Kansas when I lived there and which is still "my local dealer" as far as I'm concerned.

Where any individual chooses to shop is their personal decision. But it is the height of hypocricy when the same individual gripes about how few dealers there are and how far away they are and then hypes the great deals they can find from some far-away big warehouse that sells everything from chinese tires to Belarussian chrome.
 
BMW Experience

In the San Diego area we have two dealers. Both are Beemer only. One is very experiential: we get email newsletters regularly, coupons sometimes, arranged rides several times a year, open house events with demo rides and free bbq / drinks about twice a year, etc. They draw huge crowds on the weekends for these open houses which gives one a chance to gawk at other guys' bikes. The owner will just walk up and start talking to you like he's known you forever. Sales and parts guys are very knowledgeable and will call in a mechanic, if necessary, to help answer questions. There is no pressure put on the customers to do anything - whether on an open house day or regular day. I have no idea how they are doing profit-wise but their used inventory seems to move quickly and when the S1000RR release was imminent they had about 20 pre-ordered.

I realize I live in a metro area and this same model might not be workable in mid-Missouri or Montana. But, for me, so much about patronizing a dealership of any kind revolves around how much pressure I feel as I approach the lot. So, I don't think the "BMW Experience" has only one face as it could take on the face of just good old customer friendliness.
 
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