Re: Losing Another BMW Dealer

["James H. Nazarian, Ph. D." <microdoc@xxxxxxxxxxxxxxxx>]

Greetings Bob:

Perhaps you have not heard this: It is common knowledge in the Ohio area, 
that the owner of BMW Motorcycles of the Tri-State has been seeking a buyer 
for the dealership for some time. The reason I was given, because he simply 
wants to retire. I first heard this news over one year ago from another 
local BMW dealer, the one I most often patronize. I was also told the asking 
price was unjustifiably high, and several purchase inquiries lost interest 
when it became clear that the owner was not going to budge from his inflated 
asking price.

I have no insider knowledge of the BMW dealer margins, or demo allowances, 
but I do know the US Dollar has been falling in the world money market, and 
if the price of the new model year bikes had not risen, I would have been 
very surprised. What better time for BMW to install a price increase than at 
the introduction of the new model lineup. Most if not all Honda car and bike 
prices for '06 have risen compared to the '05 models. Check out the new 
Honda Civic, and the '06 Goldwing price tags. The same is true of Mercedes, 
Lexus, Infinity, Volvo and, of course BMW cars. I think what you have read 
or quoted from the "Cincinnati BMW list" is a very incomplete and not too 
accurate fraction of the whole story.

Jim
microdoc@xxxxxxxxxxxxxxxx
- ----- Original Message ----- 
From: "Robert W Munday" <rwmunday@xxxxxxxx>
To: <bmwmc@xxxxxxxxxxxxxxx>
Sent: Monday, December 26, 2005 3:57 AM
Subject: Losing Another BMW Dealer


> Presidents,
>
>
> BMW Of The Tri-State in Cincinnati is going out of business within a few
> days.
>
> From a discussion on the Cincinnati BMW list:
>
> "several factors...  The factory's 4th president in 4 years is a bean
> counter, not a bike person (ala Roger Smith at GM).  As such, they made a
> corporate decision to raise the company's profitability at the expense of
> the dealers (and by default, current owners as well).  The company cut
> the profit margin on bikes and parts and did away with demo allowances.
> The cost of all new generation bikes has risen substantially with the
> introduction of the new models, the 04 RT at 16,300 vs. the 05 RT at
> 18,800 as an example."
>
> The remaining dealers available to owners from the Cincinnati area are in
> Columbus, OH and Louisville, KY.  A new Indianapolis dealer is in the
> works at present.
>
>
>
> Robert Munday...  Montgomery, Alabama    `98 R11CHP   `95 R1100RSL
> Village Idiot   Rolling Broccoli Rider   BOOF #131    SR #2   NFO #2
> Nebraska Nightriders    Big Sioux Riders    Indy BMW Club    Beemer Hill
> Riders
> Trustee, BMWMOA Foundation    Keeper Of The List    * Iron Bunny *

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End of oilheads-digest V2 #308
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