Triumphrat

Scrambler900 · 06-17-2006

I heard a troubling story today from an area Triumph dealer that, if true, implies Triumph USA's operating policy with local dealers is heavy-handed and hurting the company's potential bike sales. The dealer said he is forced to (1) buy a $9,000 Triumph sign for his store's exterior, (2) send his personnel to Atlanta to attend sales or tech/repair or accessories seminars, (3) stock $3,000 inventory of motor clothes or accessories, and so forth, as a precondition to being paid his sales commissions (called "hold back") on completed bike sales. He said the other motorcycle brands his dealership sells do not have the same practice. He said our state's franchise laws prohibit a vehicle manufacturer from requiring or implementing certain trade practices as he said Triumph does, and the company does not want to address the legality of his complaints. As a result, he said one or more other local Triumph dealerships have adopted an attitude of selling a Triumph if a customer wants one, but not going out of their way to promote Triumph sales. Those dealerships are focusing instead on their BMW or Ducati business. This dealer even said that he knows of another Triumph dealer in the area that just refused delivery of 30 bikes remaining in the 2006 inventory, as their protest to the US management about these practices. In short, I hope to see Triumph motorcycles sell well in the US and for me to have an ever growing number of dealerships to visit closer by, and this story does not bode well. I would hope Triumph has better dealership relations in general across the US and elsewhere.

Surfrat · 06-18-2006

Thank God!
Too many of these "so called" Triumph dealers don't do enough to promote the brand and increase accessory penetration. Ducati Dealers might not have to do this because Ducati (and BMW) has done a great job in creating a brand image, as Harley has done. It's about time that the dealers who carry Triumph begin the process of creating this brand image for Triumph. I have been in Triumph dealerships in Florida and California, and only one has impressed me (Southern CA Triumph in Brea, CA) with their Triumph merchandising and accesorizing. I applaud Triumph for holding their dealers accountable, they obviously need it!

robbo1847 · 06-18-2006

my son in-law is a Lexus mechanic , he has to to Atlanta every year for training how else is anyone going to be able to work on new stuff and learn what is what .
i work for a truck leasing company and we get sent all over the country for training , what is better than getting trained by the people who now there product best.

Diego · 06-18-2006

What a bunch of wusses your local dealers are! What did they think would happen...Triumph would pay THEM to buy a sign and stock merchandise, and be happy to have more mechanics on board who are ignorant of the bikes' inner workings?

Triumph's requirements for a new dealer are pretty darned modest. If you have an existing business with a good enough credit rating, it only takes about $25,000 of up-front capital to add a Triumph franchise. I wish that's all I needed for the business I'm setting up right now!

If you're not willing to stock a decent range of the company's merchandise, why would they want you as a dealer in the first place? That's been one of the big shortcomings with the early implementation of the dealer network.

Not to say that some of Triumph's regional managers haven't been real *****s sometimes, too, but I say it's about time to get serious about having more dealers wholeheartedly committed to the product line! If a dealer isn't willing to do that, let him turn in his franchise and give somebody else a chance!!!

cyclebob · 06-19-2006

It's too bad Triumph doesn't police there dealers' better. Having seen some of the worst treatment, extremely poor service (and repairs), as well as ignored service (even though on the work order), been lied to, then dismissed by HIND'S Motosports, Columbus, Ohio, all of which Triumph was/is aware, yet btold me there was nothing they could do. Then reading the opening comment, have to wonder what's up.
( The repairs were all put right by an honorable dealership, in Warren, Ohio, CAPE'S [THANKS!!])

Scrambler900 · 06-19-2006

Maybe I didn't better explain the specific nature of Triumph's US reported business practice that is chaffing some of their dealers in my area. First, our state's law prohibit certain practices as described by one local Triumph dealership. These state laws came about primarily to control car delealership/car maker relations, and protect the consumer. Of course, a Ford dealership must send a repair technician to one of Ford's out-of-state training programs if that dealership wants to sell and service the F-150 pickup truck, for example. But Ford cannot withhold that dealership's "hold back" bonus incentive to that same dealership for its past Mustang sales. If my Triumph dealer source is correct in how he described the problem, the factory is controlling the franchise dealerships as thought they were wholly owned Triumph dealerships, which they are not. The result is my state's few Triumph dealerships (6) may or may go out of their way to do business in this manner, especially when they sell other bike brands as well. If a dealership decided to cancel a new bike shipment of 30 units, then somebody tell me how the consumer benefits?

Shawn · 06-24-2006

This isn't new information.

When you hear a dealer complain about spending money on signs or mechanic training, it is usually a sign that they are having financial challenges.

Successful Triumph Dealers have no issue with investing in their stores, or their employee's training.

Taking a certain number of motorcycles is something that all manufacturers work to get their dealers to do. Ducati, BMW, Harley, Honda, Guzzi, Aprilia, and others. The practice, and general dealer agreement/relationship with Triumph, has been that way for years.

Some dealers do avoid dealer meetings, and stay out of the office when their dealer reps stop by, just to avoid the discussion about their "required order". There are just as many stories about dealers refusing shipments. One of the dealers I know went through a period where he had 2-3 year old models, still new, sitting on his floor with no new bikes coming in.

The grass isn't greener on the other side; but it is softened with a larger market share and higher sale rate than the Triumph Brand. We see Honda Dealers renovating right now with impressive storefronts that can run up to a million dollars.

I understand the financial stress that it may cause, but your dealer should focus on increasing sales. If he doesn't want to be a Triumph Dealer, that's cool - just put it up for sale and move on.

06-28-2006

So, this dealer knew that to become a Triumph Dealer ,he had to make certain investments to secure the dealer agreement, didn't he?
So the dealer doesn't want to put up a Triumph sign to let everyone know that he's a dealer? He forgot to tell you that if he does the sign and gets it up in 30 days he get co-op'ed back a portion of the cost?
He doesn't want to send a tech for training. How will he service the bikes with out a trained tech? I'm sure we all would take our bikes to him if they haven't been trained.
The triumph requirement are no different that Honda,Yamaha or any of the others.
He needs to step up and be a dealer. I'm sure we all would go to him if he has very little representation of the line, no trained techs, just a few accessories. Sound like a great dealership, if he represents the other brand like this, I'm sure he's a great dealer.
Sounds like he a hobby shop.
CS

Scrambler900 · 06-28-2006

You have it all wrong and you have simplied the situation with your erroneous assumptions. The dealer already had a Triumph sign, one that Triumph made him buy a few years ago as their approved sign. Now Triumph wants him to have a bigger sign, at $7,000. So until the dealer buys a bigger sign, Triumph won't pay the dealer his earned bike sales commission on past sales of Rockets, T100s, etc. And, Triumph won't give him his earned commission on bike sales until he sends an employee to Atlanta to take a Triumph "accessories" seminar. And, Triumph wants the dealer to pre-order and stock in inventory over $3,000 in tee shirts, chrome accessories, etc. If he doesn't do it, then Triumph won't pay the dealer his sales commission (called the "hold back") on past bike sales. That is blackmail. Since this dealer sells over 500 bikes a year, and only 10% of them are Triumph bikes, the question is whether Triumph wants to create so many dis-incentives to a dealer that the dealer drops the Triumph line altogether. Ask any US bike dealer that sells Japanese machines is this hard-handed business practice is used by Honda or Suzuki, and they will all say no. So the issue is not Triumph trying to get its franchise dealerships to invest in Triumph parts and accessories, tee shirts, or bike repair seminars. The issue is the dictatorial style that one local dealer tells me is unique among motorcycle manufacturers - that being Triumph.

06-29-2006

First off, Triumph does not do a Hold Back. The Bonus he is referring to is just that, a bonus. The dealer complies with those guidelines,he gets the bonus.
Yamaha just released a similar program. "if you do this, you EARN that".
Hold backs, as called a hold back, can be considered illegal in some states,as they cannot hold back dealer funds for no reason.
Yamaha's program is called a Dealer reserve.
My assumptions are correct.
CS