Motorcycle Dealers

First Research, Inc.
January 12, 2015
10 Pages - SKU: FRRS5461450
Countries covered: United States

Motorcycle Dealers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell new and used motorcycles, scooters, motorbikes, all-terrain vehicles, personal watercraft, and other motor vehicles; they also may offer repair services, parts, and accessories. No major companies dominate the industry; most have a single retail outlet.

The US motorcycle dealer industry includes about 4,600 stores with combined annual revenue of about $17 billion.

COMPETITIVE LANDSCAPE

Discretionary personal income and interest rates drive demand, since motorcycles are high-ticket purchases and often financed. The profitability of individual companies depends on volume and sales of higher-margin goods like heavyweight motorcycles. Large dealers have advantages in broad inventory selections and negotiating power with manufacturers. Small dealers can compete effectively by providing superior customer service or offering unique services, like bike customization.

Major competitors include private market sellers, other recreational vehicle dealers, service center chains, and independent service shops. The US industry is highly fragmented: the 50 largest companies generate just 10 percent of industry sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include new and used motorcycles, scooters, motorbikes, all-terrain vehicles (ATVs), snowmobiles, and personal watercraft. Apparel, parts, and accessories are known as aftermarket products. Most products sold by motorcycle dealers are known as power sports products. Many dealers offer repair, maintenance, customization, installation, or insurance services.

Touring and cruiser motorcycles are designed for comfort and long distance rides. Custom motorcycles emphasize style and owner-selected features. Performance or sport motorcycles are designed for superior handling, acceleration, and racing. Dual motorcycles are designed for...



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