12-02-2018, 09:51 AM
I was considering buying a BMW franchise in the northeastern U.S. about twenty years ago. The margins on new bikes back then were very thin -- about 10% at MSRP. A slow selling model, which incurred excessive flooring costs, would eat into the dealer's profit potential. The dealer makes his money at the parts counter, the service counter, and on used bikes. BMW dealers are required to comply with the factory's requirements for carpeting, displays, signage, paint, demo bikes, etc. it's not an easy business.