Info for becoming a Moto Guzzi dealer?

[Guest Isa]

With the thoughts of making my livelihood from my passion; I’ve been wondering what it would take to open a Moto Guzzi dealership. And I see Moto Guzzi as a great product that seems to be poised for rapid improvements and advancement, but in dire need of more US dealerships.

 

I’m willing to relocate to one of Moto Guzzi’s targeted market areas (actually prefer to); but I’m not sure what Moto Guzzi’s criteria is for opening up a shop. I was thinking more along the line of a smaller mom and pop shop; but it seems that only the mega motorsports centers are the way of the future. So if only the wealthy need apply, I won’t need to waste anyone’s time looking into it further.

 

Any insights and help would be appreciated.

[Skeeve]

With the thoughts of making my livelihood from my passion; I’ve been wondering what it would take to open a Moto Guzzi dealership. And I see Moto Guzzi as a great product that seems to be poised for rapid improvements and advancement, but in dire need of more US dealerships.

 

I’m willing to relocate to one of Moto Guzzi’s targeted market areas (actually prefer to); but I’m not sure what Moto Guzzi’s criteria is for opening up a shop. I was thinking more along the line of a smaller mom and pop shop; but it seems that only the mega motorsports centers are the way of the future. So if only the wealthy need apply, I won’t need to waste anyone’s time looking into it further.

 

Any insights and help would be appreciated.

 

Dunno what it is now, but back when MGNA was (mis)handling things, around '96 or '97, I contacted them to find out. In those dim, dark days, it took:

 

A regular place of business [storefront]

Space for two models on display [which you bought from MGNA at wholesale]

About $25k in parts supply

 

All told, about $50k in upfront money; '96 dollars, so call it $100k in today's inflated dinero. That would be under MGNA's laissez faire supervision [which netted them a declining dealer network, etc.]

 

Under Piaggio? Given their insistence that Vespa's be sold via the "boutique" format, I would expect a much higher initial cost to buy in as a Guzzi dealer! I'm guessing at least one of each model for display purposes, maybe a critical components list of parts to keep on hand for each, a substantial outlay for associated tourist trinkets [branded wear], and a service bay of some sort.

 

As I'm horrifically & perenially broke, I'm not even going to bother to try & find out exactly what Piaggio requires: I'll settle for dreaming of a new LeMans w/ the 8 valve motor!

[JoeV11]

FWIW, Marsh Motors in CT is for sale. One of the oldest Moto Guzzi dealers in the country, and hardly a boutique. So you wouldn't have to get a fresh franchise, or sell/service anything but Guzzi's. Joe

[Ryland3210]

FWIW, Marsh Motors in CT is for sale. One of the oldest Moto Guzzi dealers in the country, and hardly a boutique. So you wouldn't have to get a fresh franchise, or sell/service anything but Guzzi's. Joe

 

Yes, but time is of the essence. They are having an open house this coming Saturday, October, 6th. I understand the inventory is priced to sell.

 

 

 

 

FYI, besides Marsh, there are two other dealers in CT, Canton, and Branchville, so there is relatively nearby competition.

 

Recently, a new dealer was established in Harrisburg, PA. When I visited there, they had only a few Moto Guzzi's and some sports cars in the showroom, no other cycles, so the franchise requirements may not be so tough.

[Skeeve]

...

FYI, besides Marsh, there are two other dealers in CT, Canton, and Branchville, so there is relatively nearby competition.

 

Recently, a new dealer was established in Harrisburg, PA. When I visited there, they had only a few Moto Guzzi's and some sports cars in the showroom, no other cycles, so the franchise requirements may not be so tough.

 

"Nearby competition" or sufficient density of dealer support to make it a viable brand? There's a tight line to walk between exclusivity & availability: Harley is hardly exclusive any more, but you sure can't fault the availability of nearby dealer support anywhere in the lower 48!

 

WRT to franchise requirements, I would think that it would be an easier sell to have all 3 Aprilia/Guzzi/Vespa in one location than to try going it alone w/ any of the 3 brands; they dovetail together nicely, as far as it goes. Clearly the clientele has to have some appreciation for Italian marques before you're going to sell them anything, as all 3 are priced at a premium over the competition from the Far East, & may not necessarily outperfom them in straight up comparison.

 

But since I have no real knowledge, I'll just shut my yapper now & let someone w/ a clue continue this thread...

 

[Ryland3210]

"Nearby competition" or sufficient density of dealer support to make it a viable brand? There's a tight line to walk between exclusivity & availability: Harley is hardly exclusive any more, but you sure can't fault the availability of nearby dealer support anywhere in the lower 48!

 

WRT to franchise requirements, I would think that it would be an easier sell to have all 3 Aprilia/Guzzi/Vespa in one location than to try going it alone w/ any of the 3 brands; they dovetail together nicely, as far as it goes. Clearly the clientele has to have some appreciation for Italian marques before you're going to sell them anything, as all 3 are priced at a premium over the competition from the Far East, & may not necessarily outperfom them in straight up comparison.

 

But since I have no real knowledge, I'll just shut my yapper now & let someone w/ a clue continue this thread...

 

 

From the customer standpoint, the more dealers the better. Harley sells $billion/year. Plenty of business to go around. Not quite that level for Guzzi. Too much competition and the dealers all starve, unless they take on competing lines. Then there is the risk that they become demotivated to sell Guzzi's if there is any problem, such as reliability of newly sold bikes. The dealer closest to me had none on his showroom floor last time I was there, and rendered such poor warrantee coverage that I travel 100 miles to another dealer to get service. In some respects, I can understand his business decision to fill the floor with Triumphs.

 

My guess is that handling all three might even be a Piaggio requirement for a new dealer franchise, and probably a good thing for the success of a new dealer.

[Skeeve]

My guess is that handling all three might even be a Piaggio requirement for a new dealer franchise, and probably a good thing for the success of a new dealer.

 

Well, you certainly don't need to carry all 3 if you're interested in opening a Vespa boutique, but Piaggio may look more favorably upon someone who wants to carry both Aprilia & Guzzi in one location.

 

If I had the money, tho', I'd opt for all 3, & maybe try to carry a competing brand like Triumph "next door" as well. Try to cover as many Euro bases as possible w/o cannibalizing your own sales, ie: you wouldn't want to have an Aprilia/Guzzi/Ducati setup, since the Aprilia & Ducati sales are too competitive w/ each other...

[Jason Speaker]

Well let me tell you first hand. I took Guzzi on as my first line 5 years ago during the hydro valve models at the time I think they need anyone they could get to sell their products. Because all I had was an accessory store and some repairs.

 

I personally love my guzzi's I own 3 personally and choose them over anyother brand if I were to buy another.

 

When I Got started late 2002 the requirements was 10 bikes & $7,000 in parts plus the special guzzi tool kit & Sign. I Still have one of those very first 2003 bikes so don't think you can sell 10 bikes very easily. You might get lucky and they move quick but in your first year or two don't expect it. Then came the axone 2000 computer. All told the special tools & signs cost about $4,000. You will also have to establish a floor plan with GE which in 2002 was $150,000 which if you don't have that lying around you will have to put up at lest 50% in your assets like your home and or Money.

 

I believe that the new requirements are that you have to take 15 bikes plus tools, signs, & a $400,000 floor plan. They don't want any small shops they want you to have another major line or to take another Piaggio product.

 

I have thought many times of calling it quits but I just personally love being here & dealing with the people who own & buy guzzi's. I am a small shop 1,800 square feet total I do the sales, service, & the parts all in one I own the building with no mortgage and I think that is the only way I have survied by being a Guzzi only shop. I now currently sell Ural's as well and that has been a welcome addition

 

When a Guzzi dealer drops guzzi it usually isn't because He can't sell the bikes It is usually the way they are treated or should I say mistreated by the management at piaggio or who ever owns them at the time.

 

If you do decide to take them on I wish you luck and it helps if you are an enthusiast driven and not going it to it thinking you are going to make money. It took me 8 years in business before I made a profit and it is still a struggle from time to time.

[Skeeve]

Wow. Thanks for the 1st-hand info, Jason, & more power to you!

[Jason Speaker]

Happy to answer any questions about it on here or over the phone

[OldButNotDead]

Speaking with a current/past dealer sounds like a great opportunity to gather some realistic expectations about what it would actually mean in practice.

 

Sad to say, enthusiam and competence are not always enough -- http://www.detroiteurocycles.com/

 

Many thanks to Jeff: having a local dealer with his level of integrity has been awesome!