Motorcycle Dealers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,000 motorcycle dealers in the US sell new and used motorcycles plus other powersport vehicles. In addition to motorcycles, products sold include motor scooters, motorbikes, mopeds, all-terrain vehicles (ATVs), and personal watercraft. Companies typically sell replacement parts or accessories and offer repair services. Some companies offer maintenance programs.
Dependence on Motorcycle Manufacturers
Dealers rely on a limited number of manufacturers to develop compelling new products that customers will buy.
High Capital Requirement
The ability to secure floor plan financing is critical to funding inventory purchases.
Industry size & Structure
A typical motorcycle dealer operates out of a single location, employs less than 20 workers, and generates $4-5 million annually.
- The motorcycle dealer industry consists of about 6,000 companies, employs 71,000 workers, and generates over $28 billion annually.
- The industry is fragmented - the top 50 companies account for just 17% of sales.
- The largest dealers operate "superstores", which stock a wide range of products and serve an extended geographical market. The largest Harley-Davidson dealers can generate more than $50 million annually.
Industry Forecast
Motorcycle Dealers Industry Growth
Recent Developments
Jul 18, 2024 - Employment, Labor Costs Up
- Employment by motorcycle, boat, and other vehicle dealers increased during the first five months of 2024, according to data from the US Bureau of Labor Statistics (BLS). May’s employment was up 3% compared to the previous month and down 4.4% from the previous year. Average wages for nonsupervisory employees in the other motor vehicle dealers industry, including motorcycle dealers, have grown year to date through May, when wages reached $27.43 per hour. Motorcycle dealerships may see an uptick in sales or a shift to more expensive bikes during periods of higher consumer spending. Consumer spending levels were up 0.2% in May 2024, from the previous month, according to the Bureau of Economic Analysis.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings fell in June 2024, with a seasonally adjusted 37% of small business owners reporting jobs they could not fill. The reading is down five points from May 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from May. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
- Sales of new motorcycles and scooters declined 5.6% in Q1 2024 compared to Q1 2023, while ATV sales fell nearly 5%, according to the latest Motorcycle Industry Council (MIC) data in DealerNews. Motorcycles and scooters represented 76.4% of total new-unit sales in Q1 while ATVs had a 23.6% share. On a positive note, new on-highway motorcycles sales were up 2.1% in Q1 year over year. The report tracks new-motorcycle retail sales data from 14 leading manufacturers and distributors in the US.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.