I’ve just marked 30 years in the motorcycle industry, having worked across parts, clothing and sales, in both dealership and corporate roles. My enthusiasm for the trade has never faltered – but with the recent closure of dealerships, including Pidcock Motorcycles, where I began my career, I believe it’s time to scrutinise the business model that underpins our industry.
Dealership closures rarely come down to a single issue. Poor management, overspending on vanity projects, and the relentless pressure of online discounting all play their part. But manufacturers, too, must shoulder a significant portion of the responsibility.
The so-called “dealer standards” imposed by manufacturers have become a major burden. Dealers are required to meet demands for specific signage, flooring, paint, and showroom refits – often at enormous cost. I know of dealers who have spent £70,000-£100,000 to achieve little more than a showroom that looks like a fast-food outlet. Meanwhile, margins on new bike sales are wafer-thin, with manufacturers arguing that dealers make their money back on part-exchanges and workshop jobs. That is not a sustainable model. Why should anyone tie up half a million pounds in new stock when the same investment in used bikes could return three times the profit? If the model truly worked, wouldn’t manufacturers be running their own profitable retail outlets? History shows that most attempts have failed.
Let’s be honest: fitting a new suspended ceiling doesn’t sell a single extra motorcycle. Even if sales did increase, any additional profit would be swallowed by the cost of the refit. Likewise, being forced to invest tens of thousands in corporate clothing ranges – only to discount them heavily at season’s end – puts dealers in an impossible position. It’s a one-sided relationship where dealer interests come a distant second.
Manufacturers must become more empathetic and flexible. A week spent inside each dealership, not a half-day visit, speaking with staff and management, would give them far greater insight into the real challenges we face – and how both sides could grow together.
Unless this mindset shifts, dealership closures will only accelerate. And if that happens, none of us – manufacturers, dealers, or staff – will have an industry left to work in.
Paul Day, territory marketing and sales representative, Klim UK & Ireland