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Hello, I am about to get out of military and wanting to know if anyone is thinking of doing there own dealership or Ducati shop, asking for business or partner and looking for business partner because I have 2 veteran business loans, let me know also I am here in the USA.
 

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ask ducati how much it will cost to set up a dealership, and what hoops they require you to jump through to get their approval. it'll be a over a million dollars i expect, by the time you buy the required fit outs, etc.
 

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t'll be a over a million dollars i expect, by the time you buy the required fit outs, etc.
Are you thinking to buy or rent a shop, install the equipment and tools, then also bikes and parts, etc? Then hire and train people.
Because there is one near me that I think is pretty new to Ducati. They have a while bunch of Ducatis and a good size shop. They also have Kawasaki and Yamaha. So there has to be a lot of money tied up there.
 

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ducati, out here at least, and i expect over there too, will specify the floor tiles and carpet and wall fittings and anything else the punters will see, there's all the special tools as well as the basic workshop stuff. depends on how the importer runs it, but out here the shop owns the bikes on a floor plan, so depending on what they make you stock that can be a significant cost on its own to front up.
 

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ducati, out here at least, and i expect over there too, will specify the floor tiles and carpet and wall fittings and anything else the punters will see, there's all the special tools as well as the basic workshop stuff. depends on how the importer runs it, but out here the shop owns the bikes on a floor plan, so depending on what they make you stock that can be a significant cost on its own to front up.
I'm curious to see what will happen when NFI hand back the reins to Ducati Spa as of what? april 1?

I know a couple of dealers who have thrived under Frasers management, and others that struggled a lot! coming in and making them paint shelving, bike lifts and floors, automatically supplying huge dollar stuff like the "wall" portions and diagnostic tools and manuals irrespective of what they actually service...
Being forced to take x amount of base monsters if they want 1 limited edition bike, forced to take desmosedici' on which inevitably ended up on floor plan....

No thanks! the glamour and notoriety of representing an upmarket brand is a double edged sword and as a customer i know all too well how that pressure and expectation is passed on in the form of pricing, questionable service practices etc....
It's easily understandable how independent shops thrive, especially with an enthusiastic owner at the helm, a much more viable way to be "self employed" than answering to bullies
 

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Hello, I am about to get out of military and wanting to know if anyone is thinking of doing there own dealership or Ducati shop, asking for business or partner and looking for business partner because I have 2 veteran business loans, let me know also I am here in the USA.
Let me save you a lot of effort and heartbreak, and maybe your retirement.

I love Ducatis, have owned several for many years along with other brands, but one of the last businesses I would start at this time would be a dealership for new toys. Especially toys at the top of the price market.

IMO, the economy is on borrowed time. I don't mean a mild recession, although that may be what will be perceived to be taking place given the unprecedented deficits over the last decade. Even a mild recession would quickly crater sales of toys (powersports). If it is a recession and interest rates reach historic sustainable levels, forget about it. Most people will have more important things to worry about than whether to get the 950 or upgrade to the 1260 Multistrada. Just servicing their ARM and paying health insurance will take precedent.

In that inevitable downturn (nosedive?) there is a finite number of buyers in that environment that could afford new $20k toys, and with the folks that stretched to buy one a year or two ago on credit now feeling the pinch, they will be unloading barely used machines at cheap prices. Same thing happened '07-09 in Harleys and entry-level exotic cars.

This puts tremendous pressure on a new bike dealership, and I suspect if there was a wealthy area in the US that could support a Ducati dealership, one (or more) already exists.

And sometimes even experienced dealerships which are a good fit on paper struggle with this brand. Case in point was Yacht Club Powersports in Osage Beach, a resort and vacation area in MO where I live. While few people live there full time, thousands of seemingly well-to-do people from St Louis and Kansas City have second homes (and multiple boats and jet skis and other toys) along the lake. Yacht Club has been around for many years selling Polaris, Honda, Kawasaki, and boats. The closest Ducati dealer was 3 hours away. They picked up Ducati in 2012, and ended up losing the franchise in 2015 with all their remaining inventory being sold to MotoCorsa in Oregon.
 

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There are a couple of things Ducati wants aside from solid funding to start a dealership.

They want a dealer to be located in an area where they want additional distribution. They want to add to their total distribution, not create a local over supply of distribution. Having too much distribution in an area, weakens existing dealers, doesn't result in additional sales and creates the potential for discounting which can undermine their pricing in markets beyond a local market.

They want dealers to be technically qualified to be a motorcycle dealer. This means they want people who have demonstrated experience in operating a dealership and/or a motorcycle service operation. They don't want dealers who have low probability of success, as these dealers can tarnish their brand and get into a situation where they discount prices, again impacting prices beyond a local area.

To start a dealership, you will need to address the preceding in addition to addressing concerns over start up funding. Thanks for your service, and best of luck in this endeavor.
 

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Hello, I am about to get out of military and wanting to know if anyone is thinking of doing there own dealership or Ducati shop, asking for business or partner and looking for business partner because I have 2 veteran business loans, let me know also I am here in the USA.
Welome here. Thanks for your service.

What was your MOS (or MOSs) or job description(s)? How long were you in and doing said job(s)? Unless you're retiring, and will be getting your pension, I'd look at getting positive cash flow doing what you did while 'In'. At the same time, continue getting answers to your direct questions above and creating a plan.

Vet loans are great. But, they'll have to be paid back, of course. Nothing's a sure bet. So, it's best to get a solid plan laid out, for a solid business, before owing monies to anyone. Maybe use the loans to start a business is a field related to your military background and work on bikes for fun (and a little cash)? Prove you abilities in the former to help get you into the latter down the road?
 

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I don’t regard the motorcycle industry in general , or Ducati dealership in particular, as being a solid business bet. Sales in the USA certainly don’t indicate it would be a good investment. .3 dealers in my area in Michigan have gone under in the last couple of years. Go into heating and cooling. Nobody can avoid repair and replacement on that stuff.
 

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Yup, you can't automate the repair of plumbing, heating and air conditioning.
 

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I would go for a custom and repair/service shop, way less money ton invest. Maybe add coffee/bar/food and create a place where bikers like to hang out, hosting bike nights etc.
 

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Yup, you can't automate the repair of plumbing, heating and air conditioning.
This is so true, invest in the necessities and you will prosper, electricity supply, install and maintenance, plumbing, heat/air etc. all heavily in demand whether it be maintenance, upgrade emergency repair or expansion.

If it's something people need you can't go wrong, if it's something people want then that's what usually takes the hit first when money gets tight, and money getting tight for the masses is something no business has any control over, minimise exposure by minimising risk, regardless of how much fun or satisfying you perceive your dream to be.

At the end of the day a business needs to make money every month, rain hail or shine, seeing your business grow, people gainfully employed and your bank account in the black is more satisfying than looking at an overstocked shop full of toys that the bank is about to own......
 

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It's the investment and the fixed costs that kill a motorcycle dealership. Most of the shops that I know of who are successful are shops that have had the real property in the dealership or family forever. What this means is that there is a small or no mortgage, only the opex (taxes, HLP, maint etc) to keep the place running. The initial investment is usually borrowed at prime plus and then the floorplan on bikes can be significant, esp if they make you take bikes you can't sell. And motorcycles is a volume business as a result. If the volume falls off, you're done as we have seen in today's horrible market. Does Ducati have the volume you need? No. And, apparently not a lot of other mfgrs have the volume either these days.
 

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Yup, you can't automate the repair of plumbing, heating and air conditioning.
You can make good bucks just doing the work, not even owning the shop.
According to my retired Dad who spent a long career in HVAC, residential, then commercial.
I can only hope to have as financial worry free a retirement.
 

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Though working in the motorcycle business sounds like a dream job if you love bikes, making money in a good job and spending it on your favorite hobby is nice too. It’s just not a good business investment in the current bike market. Work at a shop for awhile before you invest In the business.
 

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Been there, done that. I found out you don’t open a bike shop to make money, you open a bike shop to hide money...wink-wink


Sent from my iPhone using Tapatalk
 

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Yep, you can make a small fortune by owning a motorcycle shop...










..of course, you start out with a large fortune. ;)
.
 
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