08-17-2022, 07:10 AM
(08-16-2022, 03:53 PM)darrell Wrote: Keep in mind how BMW allocates new bike models to dealers. The more they sell the more likely they will get more bikes allocated 2 quarters later. I recently spoke with a local dealer who is buying 2021 R18 models from various dealers and with the BMW corporate discount they get they are willing to sell at no profit or maybe even a small loss as it means getting a few more GS/GSA/RT models in 2023 they would not received otherwise. These models can bring a high profit margin a couple of quarters later.
Great point Darrell, but at the end of the day they still have to shift out these models they acquire as they take up floor space, which is very important to a dealership. Also, the average consumer could not care less about marketing strategy of Corporate BMW, especially if all they see when they walk into the dealership is the same bunch of bikes they may not be interested in, not selling.
At that dealer I am referring to (Woodlands Premium Motorcycles) they presently have 3 areas (rooms) for 3 of the brands - BMW (biggest room), Indian (second biggest with couch and TV), and Triumph (smaller floor area in front of the Parts counter). Goodness knows where the Royal Enfield bikes will go as there is no more floor space, unless they split the BMW area and Corporate could have a say in that. This dealership is close to where the north Houston affluent people (professionals and such) live (the real rich people live more centrally and probably don't give a rat's butt about motorcycles). The sign outside presently only has BMW signage.
Anyway, guess which area sees the most people? Based on casual observation when I drop by - it isn't the BMW area. Its Indian and Triumph, in that order. Yes of course there are people who look at the BMWs but when you look at who it is, you clearly see that it is either GS types or younger people interested in the S bikes. Hardly anyone looks at the big tourers (K bikes) and even less look at the R18s, so much so that the new R18s used to be displayed outside in the Houston heat. Even out there, people are looking at other bikes including the used ones on display a few feet away. As for RTs, even they seem to be outside in some other (overflow?) area close to be bikes that appear to be in for servicing are kept. I have only seen a couple inside the showroom, which is odd since there is BMW area floor space available. All the new GSs and S bikes tend to be inside. And the couple scooters.
The dealership with the $8000 off sale (is a different multiline dealership) with even less space for BMW. Don't know where they hide these 3 R18s but they are nowhere to be seen. Maybe they are upstairs where they keep stock and where customers are not allowed. At that location (they have several) that dealership sells Ducatis (big draw) as well as Yamaha, Kawasaki, etc. which are also popular draws. BMW visitors tend to favour the S bikes and then the GSs at this dealership.
I know this is long and is just based on my casual observation based on visits (there is a 3rd dealership with even less space for BMWs but I won't bore you with my assessment of that place).
I personally think that the plain R18 is a flop other than to the BMW fan-base who, unfortunately and contrary to what we on forums may like to believe, are not doing nearly enough to support the bottom line in the marketplace. The Transcontinental, on the other hand, is well positioned in the marketplace, both in price and in design execution. But can it beat the (sometimes more expensive) Indian Challengers and Pursuits in the next room at my main dealership ...? Not so sure.
Regards,
Grumpy Goat
2016 BMW R1200RS
2023 Triumph Tiger 900 Rally Pro
Grumpy Goat
2016 BMW R1200RS
2023 Triumph Tiger 900 Rally Pro