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Shenandoah Honda Closed. What happened.

Found this on another site.



They are indeed done. The Honda trucks were there today loading up all the inventory. A few years ago they were one of the top Honda dealers in the country, and were a victim of timing.. they built and opened a brand new building just as the economy tanked.. just not able to dig back out unfortunately. The shops out here are working together to try and at least absorb some of the staff..".
 
Surprised to hear it is being pinned on the economy. Seems like if they didn't close until now that they made it through the bulk of the storm. MC sales have been on the rebound for a while now. Perhaps though they leveraged themselves too deep and it took this long to catch up to them.
 
The owner did file for bankruptcy but not because of sales. The owner is going through a divorce and filed to so his soon to be ex wife doesn't get half ownership of the business.
 
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In 2004 there were about 1200 Honda motorcycle dealerships. Today, only around 800.

However, on the auto side a completely different story. Give you one guess which product makes the most money for Honda. So, all research monies are currently on the auto side of the fence.
 
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It is hard to recover when motorcycle sales dropped during this 5 year recession from 1.2 million motorcycles sold in the USA to 600,000.
 
It may be good if you guys go into the garage once in a while and pay for an oil change.
It helps keep them afloat.

Nope. Not going to happen. I'm not paying the dealer to do something I'm willing and able to do, and can probably do better.

If dealers can't stay afloat, then they need to rethink their business model, it's a sign there are too many dealers, or the whole motorcycle distribution system needs to be revised. My donating money to them is not the answer.

Greg
 
I agree with Greg.
One of the problems with dealers--around here, anyway--is that when you walk in, the staff hardly notice you. They seem to be bothered if you have a question. Then there is the problem of the Japanese dealers around here not allowing test rides. Most people are not going to drop 7-18k on a bike if they cannot even test ride the thing. You could walk into a dealer here with 10k in cash and still be told to take a hike if you ask to ride the bike you are clearly wanting to buy.
 
Shenandoah was one of the good dealers with great staff, service and competive prices. Sometmes a bad timing of busines decision such as opening new facility when market tanks can sink the business. If the divorce was a catalyst then perhaps owner will be back. They sold 7 other NC sbefore I bought mine in July. The area has enough business to support a Honda power dealer.
 
All most none of the companies (includes auto also) want the small dealership anymore. Just plain old economics of scale. 60000 population will equal about 100 unit sales per year, less than 10 units per month. 1 million population will equal almost 100 units per month. If a dealership does not produce the numbers the companies want, they do not make life easy for the little guy. Now who do you think the companies are going to give top billing, and product to? A Honda only store in a high volume area gets all the product he wants, where the guy who owns the multi company store does not. No company will ever admit this, but is true. The companies control which product, how many of that product, and when the dealership gets the product. You have to be a top producer, then you get what you want.
 
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Nope. Not going to happen. I'm not paying the dealer to do something I'm willing and able to do, and can probably do better.

If dealers can't stay afloat, then they need to rethink their business model, it's a sign there are too many dealers, or the whole motorcycle distribution system needs to be revised. My donating money to them is not the answer.

Greg

I agree with Greg.
One of the problems with dealers--around here, anyway--is that when you walk in, the staff hardly notice you. They seem to be bothered if you have a question. Then there is the problem of the Japanese dealers around here not allowing test rides. Most people are not going to drop 7-18k on a bike if they cannot even test ride the thing. You could walk into a dealer here with 10k in cash and still be told to take a hike if you ask to ride the bike you are clearly wanting to buy.

Fortunately over here we still get good customer service.
It can cost 200chf ($185) for my first service but then I get best treatment.
If you pay cheap you get cheap.
Many US shops may have lost that TLC customer service attitudes. Sorry that you confirm this.


Sent from my GT-I9300 using Tapatalk
 
It's not all of them. The dealer where I bought my NC, the HD dealer, the BMW/Triumph dealer are pretty good.

Sent from a Speak & Spell wired to a record player, a saw blade, a fork, and an umbrella.
 
I support my local dealer by buying everything I can from him. It is a win - win relationship for both of us. I have a place to go and talk motorcycles, see new and used bikes, and ask questions about parts or service. I don't donate a dime to him - I research on line pricing and allow him to match it if he can or chooses to. I do all my own service but I have to buy parts and riding gear and he gets my dollars and loyalty. It's a two way street plus I am supporting a business in my own community. I am lucky to have a good relationship with this dealer and I don't want to lose it.

If he goes out of business all I'll have is a computer and impersonal websites to deal with. When I worked a retail job I resented the customers that came in and handled the thing they wanted and answered their questions about it then watched them go out the door and order it on line. That was a one way street.
 
"When I worked a retail job I resented the customers that came in and handled the thing they wanted and answered their questions about it then watched them go out the door and order it on line. That was a one way street."

dduelin you are 100% correct. The internet and chain stores like Wal-Mart have almost eliminated the little guy (mom and pop stores). Even the corner grocery store is now a chain store. But that is just the way it is, and no one can do anything about it. Everyone tries to maximize their dollar to the furthest extent possible, that is just human nature. Face it, this is one of the reasons why so many folks are members of this forum. A lot more black Friday post, than Happy Thanksgiving. I'm not saying it is a good or bad thing, I'm just saying that it is what is!
 
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Internet shopping has indeed changed the game.
We also have to be aware of rogue shops who think we are stupid when we asked for a more reasonable price.
Many are just too inefficient, plus did you see what he has for a company car?

Support wisely.
:p
 
I bought a 2007 CBR600 from them back in, well, '07 and when I was in the market for something new in 2011 the owner remembered me and the bike I bought.. pretty good considering I only go to the dealer to buy bikes. When I was in the market for the NC I was dumbfounded that they closed. I guess I can see it though. I am not sure what the profit margin is on motorcycles, I am guessing less than what the dealers make with accessories and clothing and I can't think of the last time I bought any parts or clothing at a dealer.. There is simply more selection and better prices elsewhere. The same goes for service, I do not mind turning a wrench here and there, but when it's time for tires(something I have not worked up the balls to attempt), I can go to one of the numerous independent shops in that area and have it done for a 3rd of the price as a dealer. I refuse to spend more on labor to have tires installed than on the actual tires themselves. Maybe Honda (and the other big three) should take a play out of HD's playbook and fill half of their showroom up with trinkets and T-shirts, add a coffee shop and a bounce house for the kids as a means of generating additional revenue.
 
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