Part II - Read Your Dealer
The Aug. '07 issue, we walked you through the nuts and bolts of buying a bike. That article addressed everything from filling out paperwork to adjusting levers but neglected to cover one of the most important aspects of any motorcycle purchase, namely establishing a good working relationship with your dealership. For this issue, we aim to rectify that oversight by sitting down with three different dealer principals. Our conversation uncovered the mistakes customers make, what every customer has a right to expect from the dealership and, similarly, what the dealership expects in return.
To ensure candor, no names or locations are mentioned, just general descriptions of the shops' demographics and product lines.
Shop No. 1 is a large Harley-Davidson/Buell dealership, selling 500-600 bikes a year in an area with both affluent and blue-collar customers.
Shop No. 2 is a moderate-sized multiline dealership, carrying Honda, Yamaha and Suzuki motorcycles. The majority of its customers are young sportbike or off-road riders, but it sells a fair amount of cruisers as well.
Shop No. 3 is a Eurocentric "destination" dealership, carrying BMW, Ducati and MV Augusta, catering to riders who are, for the most part, extremely well heeled.
All three are successful, professionally run operations that enjoy good reputations and have loyal customer bases. All of them emphasized that without a strong repeat customer base they'd be out of business. Their answers go a long way toward explaining what it takes to make the dealership/customer relationship a good one.
MCC-When it comes to buying a new bike, what's the typical customer's biggest mistake?
The single biggest mistake most customers make is to focus solely on price, and pit one dealership against another simply to save a buck. As Dealer No. 2 explained, "We need at least a 10 percent profit on new-bike sales to provide good service and to stay in business. If I slash prices (on new bikes), I have to make up the loss somewhere else. If a guy is blowing out bikes at cost, he can't possibly provide the same level of service I can." He added, "If a customer buys his bike elsewhere to save a few bucks and then comes here for warranty work, we'll be happy to do it, but our customers come first, so he'll be at the back of the line."
Dealer No. 3 said that the second biggest mistake customers make is to focus on one model. In many cases, they're reluctant to discuss their needs with the salespeople. "Often a potential customer picks the wrong bike for his needs, based on a magazine article or what his friends are riding. Too many guys come in to buy a 1098, when what they really will have the most fun riding is a Multistrada or even a GS BMW. They buy the wrong bike and then lose interest, so they miss out on the fun and we lose a customer."
MCC-What should the customer expect from the dealership?
Besides a certain level of competency, every customer should be treated with respect, courtesy and, above all, honesty from every member of a dealership's staff. But as our H-D dealer pointed out, don't expect miracles. If you show up on a Saturday when the showroom is packed, chances are you're going to be cooling your heels for a while. But, he added, when it is your turn, you're entitled to the salesperson's (or any other employee's) undivided attention.
MCC-Conversely, what does the dealership expect from the customer?
For starters, dealers would like you to be completely honest. If you're not ready to buy, let them know. Salespeople are paid on commission, so while asking questions is fine, spending an hour leading them to believe you're serious when you aren't takes them away from other customers and reduces their income.
Secondly, good dealerships welcome feedback. If you're unhappy, politely let the owner know and give him a chance to rectify the situation. Going away mad doesn't solve your problem, and if he doesn't know what went wrong, chances are good it'll happen again.
MCC-What constitutes a "problem customer"?
We expected this question to open up a floodgate, but our dealers-to a man-insisted that 99.9 percent of their customers were fair, reasonable people. When pressed, they described a problem customer as someone who has unrealistic expectations or assumes he'll be given some sort of special treatment.
Interestingly, Dealer No. 1 opined that a problem customer is one who refuses to have his bike serviced according to the manufacturer's schedule. This dealer felt that too many of his customers didn't have maintenance done on a regular basis, and then complained when their bikes failed to run properly, or they were hit with bills for repairs that wouldn't have been necessary if the bike had been serviced in a timely manner.
MCC-The flip side of that question would be: At what point do you decide a customer is more trouble than he's worth?
The consensus was that it's always case by case. But dealerships definitely don't feel the love when the customer lies, is disruptive or misrepresents facts. Warning flags also go up when a potential buyer walks through the door badmouthing another dealership. In all cases, the bottom line is this: If you can't turn a profit on a customer, there's not much point in wasting a lot of time on him. This may seem cynical, but dealers do exist to make a profit and the door won't stay open long if they can't. So, if you're obnoxious and cheap, you can expect the brush. (As a postscript, Dealer No. 2 told us that when a customer comes in with an attitude, he likes to see if he can change his mind. "It's a challenge, but if you can turn the guy around, you might end up with a great customer.")
Five Points
A few simple suggestions should make your next dealership experience that much better.
1. Treat the staff with the same courtesy and respect that you expect to receive from them.
2. Be open to suggestion-a professional salesperson should be able to help you pick a bike that'll best suit your needs.
3. If at any point in the negotiations you feel uncomfortable either with the deal or the dealership, step back and catch your breath. If the issues can't be resolved, shake hands, walk away and find a shop where you feel more comfortable.
4. If you want to negotiate price, by all means do so-that's part of the fun. But don't ask a dealer to give you a rock-bottom price on a current and popular model unless you like being disappointed.
5. If there's a problem after the sale, try and resolve it amicably. More drastic measures can be taken if you reach a dead end.
Facts and figures
Honda has 1200 (give or take a few) dealerships in the United States. Harley-Davidson has 684 U.S. dealerships.