What You May Need When Opening a Motorcycle Dealership

With the world slowly moving towards lesser carbon emissions and green energy, many people opt to use motorcycles and significantly reduce their carbon print. Motorbikes are versatile, low maintenance, consume less fuel, and are handy for beating rush hour traffic on busy city roads. Hence, there is a significant increase in motorcycle dealerships to cater to the increasing demand for two-wheeler machines. This is an insight into what you require to set up your motorcycle dealership.

Identify Your Customer Base and Their Demands

Conduct thorough research to see if there is enough local demand for your proposed motorcycle dealership. Smaller versions were in high demand in the early part of the decade as commuters looked to reduce their transportation costs, but current needs might have changed.

Some market segments perform better than others, where motorcycles with engines ranging from 401 to 600 cc and more than 1,000 ccs sell well. Commuter bikes sell well compared to performance and vintage motorcycles, though this may vary based on the market segment you’re targeting.

Many organizations provide current statistics on motorcycle trends, such as popular brands, types, and engine sizes which may help you make informed decisions. Examining the following aspects will help you create a desirable inventory:

  • Examine the availability of motorcycles in your area and determine whether you can meet the local demand.
  • Whether servicing, repairs, and MOT testing services are required.
  • Whether renting out motorcycles and providing other services such as Compulsory Basic Training courses is possible.
  • Which brands and models are in demand, and what are their pricing criteria.
  • How to hire qualified personnel and whether to market your products physically or online.
  • Whether your business space and furnishings are modern and trendy.

Price Your Products Competitively

You must ensure that the motorcycles, their parts, and other items you sell have a cost and selling price sufficient to cover all your operating expenses. Unless you are targeting a niche market that your competitors don’t attend to, it is prudent that you give your products competitive prices similar to the local competitors.

In the modern age, your biggest competitor is online shopping because the normal can now access almost every product you offer on the internet, a tool they use for comparison. Therefore, you risk losing out on numerous customers if you cannot effectively compete with other dealerships, including online.

With used equipment, you must be flexible in pricing depending on their current condition, years of service, and maintenance history. Motorcycle magazines contain specifications on numerous motorcycles and accessories that you may use as a pricing and performance guide for your dealership.

Discounts are a good way of acquiring new clients and rewarding existing clientele, but they should align with your pricing policy and the level of local competition. You can also use discounts can also be used to clear off inventory from the previous season or to boost sales when the company is slow.

Recruitment and Management

Innovative management is the secret behind a successful business, and the mystery behind innovative management is the competent and intuitive staff. Therefore, when trying to set up your motorcycle dealership, you must ensure that you recruit skilled, hardworking, motivated employees with good work ethics.

It would be best if you deployed intuitive technology to manage some aspects of your dealership affairs. These include security, inventory management, and safety management, among others. A good tool you could try out is the Powersports dealer management system, which according to many, offers more than good administrative qualities.

Most importantly, you must ensure you hire a shop manager who is not only skilled but has good people skills and is strict with employee policies. When you’re away attending to other obligations, your shop manager will act as your gatekeeper and ensure that the daily activities run as intended. Moreover, they will solve disputes and concerns at a more localized level, only bringing to your attention what’s beyond their ability.


Generally, setting up a motorcycle dealership is not an easy endeavor, but the eventual rewards are great. The dealership market is a robust and highly competitive arena where established institutions tend to quash new firms because of their strategies. However, you can succeed if you are strategic in your business management and client practices while avoiding fundamental errors.

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