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May 7th, 2004, 06:22 PM   #11
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KTM at Parker Bros Powersports

This is top secret so you didn't hear it from me. "Apparently" parker bros in Etobicoke is getting KTM's in. They have not sold bikes before (only accessories). There must be some economies of scale by carrying both bergs and KTM's (similar parts!).

Other than the cost of the inventory tied up on the showroom, (say 4 bikes at $7000 cost), is there major investment to carry a new manufacturer. I'm often confused why dealers only carry 1 or two manufacturers. Why not offer more choices?
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May 7th, 2004, 07:03 PM   #12
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KTM Canada is going to have a big problem on their hands if they dont stop setting up dealers everywhere. I bet they have set up at least 10 new guys this year in Ontario. Probably 70% of them dont know squat about the bikes either. I dont know who they think they are going to sell these extra bikes to. My local KTM dealer is way down in units sold this year and still has more 03s left over than 04s ordered. He is considering dumping KTM as there are too many dealers and not enough customers to support the brand.

On the topic of why dealers dont stock more brands. The answer is economic. The more brands they sell the more inventory they have to carry, the more parts and accessories they have to stock etc... Most guys dont have the money to carry more inventory.

Also, the big four give a lot of incentives to the dealers if they are a stand alone shop. My buddy was a Honda/Yamaha dealer and Honda told him they would give him more hard to get products, longer financing terms and cheaper parts prices if he dropped Yamaha. He sat down and did the math and he would be money ahead to only sell Hondas. He dropped the Yamahas needless to say and is now a stand alone Honda dealer.
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