Valid points all of them but there are other issues involved as well. Yes, dealers can move units to another dealer either through floor plan transfers or out and out buy's. As a general rule those transactions are producing zero revenue, or in my experience anyway zero to meaningless revenue. On the bright side it is a valuable tool in order to stem losses. Certainty valuable in its own right.
Originally Posted by 36654
Floor planning costs eat up dealers alive. Floor planning costs are a serious issue particularly within the motorcycle industry although they certainly exist in the car industry as well. When your local car dealer is running a 100 million dollar floor plan you can bet that dealer has substantial means behind him/her. More than likely they already have the funds in their possession to buy that Porsche and go racing.
Car stores are far, far better at getting rid of unwanted unit inventory than motorcycle dealers. The infrastructure within the automotive market to move product is phenomenal. Far from phenomenal in the motorcycle market. Although there are certainly bright spots in the motorcycle industry overall the motorcycle market has been hurt badly since the crash of the economy. We've witnessed who knows how many folks close the doors. Some to the economy and some due to poor business operations. Unit inventory sales over the internet have increased and maybe some would say it's booming. But if the total units nationwide is struggling you have merely swapped the mode of end user delivery. Usually accompanied by a downward price pressure. Now before people start writing in reference to my price comment I am not trying to complain about the price. The benefit may be solely to stem floor plan losses. Not the best way to stay in business but again valuable in its own right.
Despite some negatives I love this business even after 30 years and not many folks get to say that. Things are looking better around the country so I am happy for that. I consider myself blessed indeed.
By the way, motorcycles are still not a mass market in the United States as they remain firmly in the niche category when compared to automobiles.