Starting a chopper dealership requires substantial funding.
Becoming a chopper dealer requires a franchise with either a manufacturing company or a wholesale parts seller, assembler and distributor. A chopper dealer is the link that connects the manufacturer of choppers and parts with riders. Choppers have specific markets so proper research on the market and location of the dealership is paramount. Motorcycle and chopper manufacturing companies may require a new dealer to raise a certain amount as financial investment and pay a franchise fee before a formal dealership contract is entered into.
1. Conduct market research. Carry out a survey of the state or county where you want to situate your dealership. Know the popularity and demand for choppers there. Consult motorcycle and chopper manufacturers, owners, locals and dealers in your area. You can make use of the directory provided in the references to find dealers in your state. Knowing your competition helps in identifying specific areas of need when you start a dealership.
2. Find a chopper manufacturer. Reliable and established chopper manufacturing companies are ideal for partnering with dealers. Find out the franchise requirements for different manufacturers and compare them.
3. Get capital. You can use personal savings or low-interest loans from banks or credit societies/firms. Entering into a franchise with an established wheels manufacturing company is less costly and allows the business to pick up before it becomes independent. As part of the franchise agreement, the wheel manufacturing company can supply wheels and receive payments later when sales pick up.
4. Make a franchise bid. Chopper manufacturers have conditions like proof of initial investment, fund availability and may carry out their own market research to establish your proposed market’s viability and consistency. For example, the minimum requirements that Harley-Davidson looks for when reviewing dealership applications is $2 million net worth and $1 million unencumbered funds (liquid assets).
5. Sign a franchise contract. This is an agreement of supply of units and parts and the conditions governing the agreement.
6. Register your dealership. Get a license and an operating permit by registering with your state Secretary of State Office and pay required registration fees. If you plan to set up a store front, check to see what permits are required.
7. Advertise your dealership and begin the supply of choppers and parts to your clients. There are numerous chopper and motorcycle magazines like Mondo Chopper, Barnett’s, Bikers Life, Bikers News, Biker Profile, Born to Ride, Hot Bike, Biker Zone, Rumble among others. In addition, market the dealership in local newspapers, online and by direct calls.