Motorcycle Dealers Industry Overview

Excerpt from Motorcycle Dealers Report

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.

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. The industry is capital-intensive: average annual revenue per employee is $320,000.

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.