Dealers' Dollars Divvied Up

DEALERS' DOLLARS DIVVIED UP

SOME RIDERS MAY GRUMble that dealers make all their money on parts and labor, but figures released by the Motorcycle Industry Council show that isn’t so.

In 1993, the average franchised motorcycle dealer took in $1.37 million in gross income, with labor accounting for only 6.5 percent of the revenue, around $88,000. Sales of parts, accessories and riding apparel totalled 23.2 percent of dealer income, or about $318,000. MIC information shows that the numbers have been stable in recent years.

Sales of new bikes, scooters and ATVs brought in 54.1 percent of revenues last year, which equates to $741,000 per dealer. Sales of used vehicles generated 14.7 percent of the profits for the average dealer, slightly more than $200,000. Related sales, such as insurance policies and extended warranties, was the smallest segment, adding up to 1.5 percent, or about $20,000 of what the average dealer takes in.