I just talked to one of my star dealers let's call him Smith, he's ok with me sharing his story, but he doesn't want the dealer across the street knowing how he's cashing in. Today he called me his first line was "Joey! You won't believe it I got me a 2007 ZUMA missing the tires and mirrors! for $100," I thought it was great. He's always happy, sold him two tires and he said he was going to paint it red.
He's focusing on USED Scooters. That's right. United Motors, Vento, TNG whatever he can get he has corned the market in his little college town. He's making insane amounts of money because he gets them cheap. He signed an exclusive deal with several towing companies, sent letters to all the apartment rental companies ( for scooters abandoned by students ) and is the only guy at the auction ever month. In September he purchased 36 scooters at auctions and towing sales. This October he did over 45 with an average price of $115, the paperwork averages $50 and he makes the new client pay for the new title $150. Average scooter sells for $699 to $899 nothing over $1,000 and he puts about $200 in parts and service into them.
Why do we know all this?
Because he calls us everyday single day to see what MRP has purchased and what company we acquired. He's starting his own virtual junkyard of bikes in his backyard and he's making money. He's averaging a $400 profit on most of them sometimes more than his competition does on the new scooters.
How does he find the parts? he uses the OEM manuals on our website and calls us with pictures or gives us the OEM numeber. http://www.martinracingdealer.com/WSWrapper.jsp?mypage=Manuals.htm
Now does this sound crazy to you that he can make more money in this market selling used scooters? Nope it makes perfect sense when students and buyers can't qualify for new vehicles and are buying used. Use the same strategy. If nobody claims the scooter at the tow truck company they hold an auction and if you're the only one there like Peter is then you make the money. Better yet work it out with an auction company.
This is what I spoke about at the SEMA show and I got some weird looks from the Honda and Yamaha dealers, but the truth is a lot of them are alive because of used units. MIC numbers say sales of used units are up 18.5%.
Look at todays report from Powersports Business Magazine: These case studies couldn't come at a better time. Unlike with the new unit market where the late fall and winter were traditionally down times, just the opposite can be said for the preowned-focus dealership. Their buying decisions in the next couple of months will go a long way in determining their success next spring and summer.
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This proves everything I was saying.
So let MRP be your partner in repairing these bikes and taking advantage of the NEW "Used" market.