What happened to Chicago BMW?

[IT_Mike]

OK, I've been away for awhile...but what happened to the best place to order discounted parts? Now they charge full list?

 

I was counting on the usual discounts and now have to deal with my local stealership. I'm very disappointed. This will add hundreds to my order.

[dirtrider]

Hi Mike

 

You might call them to ask about the discount. I haven’t bought from them in a couple of months but last I knew BMW put the squeeze on them to quit “advertising” a parts discount so you have to ask for the discount now and they then quote the discount price.

Same with online orders, you have to ask, or at least that is how it was a while ago.

 

[JayW]

I have purchased from them within the last few months and got the usual discount, though more often I buy from one of 3 dealers I can ride to on a day off. You're not going to endear the local dealer toward you if you refer to them as a stealership. They're just business owners who work very hard and take home less money than many of us do.

 

Jay

[Deadboy]

Try Max BMW in NH......

[RTinNC]

Try Max BMW in NH......

 

Just bought from them about a month ago and same great price and great service ! Put a small scratch in the side case lid on my R1200RT ... ordered a new painted one and saved well over $100 off list. I checked list prices first on Max BMW and A&S site using fiche so I am sure of the savings.

[Deadboy]

I live just up the road from A&S (where I bought my bike) and do all my shopping at Max......

[CarrotNC]

Placed an order with 'em last week, and after the online checkout at list price, they emailed my invoice with the discount applied. I'm guessing that's part of their efforts to appease the parent company by not advertising the discount.

 

Didn't have to request the discount, but certainly wouldn't hestitate to do so.

[bmw_rider]

Correct, no advertizing but will honor it.

[moshe_levy]

I was counting on the usual discounts and now have to deal with my local stealership. I'm very disappointed. This will add hundreds to my order.

 

Fast forward a few years to when the local shop goes under, and getting any service on the bike now requires hours of extra driving or other such inconvenience, which of course carries extra cost as well. Worth it? Just sayin'....

 

-MKL

[Deadboy]

100% worth it.....Just saying!

[dirtrider]

Hi MKL

 

I guess there is more than one way to look at this issue. If selling BMW parts at “full retail” to local customers is keeping my local shop in business then they need to get a better business plan or go belly up and allow a more profitably run business to open a shop in that location.

In this day and age of internet sales, competitive pricing, customer loyalty incentives, etc there has to be more to a successful business than squeezing every penny out of every person that walks through the door.

 

I could sort of understand the higher retail pricing if I could walk into my local dealer and ask for a “so and so widget” and have them hand me one right there and then. It costs money to stock things in inventory, I will sometimes pay more for the “right now” part right then.

On the other hand I live a fair ways from my dealer so when I ride all the way over there and they tell me they have to order the part, wait a week or so to get it in, then I have to ride back over there pick it up, then pay full retail plus sales tax I then ask “what” is “my” incentive to buy from that dealer when I can sit at home in my office, order the part myself from a “progressive” dealer that offers an online discount. It has to be ordered anyhow, it is sent directly to my door, I pay no sales tax, in a lot of cases it will be at my door before I could ride back to the dealer to get it “and” I save lots of money in the process.

Thing is, why can’t my local dealer offer me the same parts deal? You would think that making something on the parts is better than making nothing, it would go a long ways towards keeping me as a loyal customer and get me into their store. I also imagine selling more BMW parts would give then a better standing with BMWNA.

 

A Harley dealer that isn’t too far away does something similar to what I suggested. They have a two tier parts buying program. If you walk in and buy it from their in-store stock it is full retail handed over with a pleasant smile. If I order it from their store from home using their online ordering, then pick it up at the store when it comes in it is a 20% discount. They win on that deal in many ways, first off they sell me the part that I would had bought from some other online business anyway, they don’t have to actually stock that part, and probably the best part for them they get me into their store to see other things that might catch my eye. Did I mention a young girl just out of school was the one that got them to institute this program. This dealer is still in business while others not too far away went out of business recently.

 

[moshe_levy]

Well, this discussion is one we've had many times in this forum. I didn't mean to take it off track, just giving another side to consider. I'm lucky enough to have a good dealer 15 miles from me (1 of only 2 in NJ), as well as one of the most respected BMW indy mechanics in the country (Tom Cutter) within 25 miles of my house. I patronize them, usually at full retail. In return, when I need first class service or advice, I have it at my fingertips, locally. That works for me, and has been my philosophy for years since my time with Harley Davidson - see http://www.mklsportster.com/xlindyarticle.htm For others, maybe such factors are not part of the bargain, nor am I advocating gouging the customer. But I am saying, without equivocation, that sometimes saving a little in the short run is really painful in the long run. YMMV of course....

 

-MKL

[ltljohn]

I have gone to my local dealer and the part I needed was not in stock, so they ordered it and had it shipped to my house.

I guess it just depends on my dealer.

[MIST]

Well, this discussion is one we've had many times in this forum. I didn't mean to take it off track, just giving another side to consider. I'm lucky enough to have a good dealer 15 miles from me (1 of only 2 in NJ), as well as one of the most respected BMW indy mechanics in the country (Tom Cutter) within 25 miles of my house. I patronize them, usually at full retail. In return, when I need first class service or advice, I have it at my fingertips, locally. That works for me, and has been my philosophy for years since my time with Harley Davidson - see http://www.mklsportster.com/xlindyarticle.htm For others, maybe such factors are not part of the bargain, nor am I advocating gouging the customer. But I am saying, without equivocation, that sometimes saving a little in the short run is really painful in the long run. YMMV of course....

 

-MKL

 

+1. I feel the same way about my local dealership in Ft. Myers, FL (Gulf Coast Motorcycles). Kinda like Cheers where everybody knows your name type of thing. Free hamburgers, hot dogs, soda and water every Saturday. Customer service that's second to none and highly trained top notch service technicians. Nothing wrong with trying to save a few bucks on some things, but a close personal relationship with a trusted dealership is priceless.

 

Mike

[RichEdwards]

But I am saying, without equivocation, that sometimes saving a little in the short run is really painful in the long run. YMMV of course....

 

Yes. But the local dealers must be flexible. Sticking to high prices in the internet era is a good way to go out of business. My local dealer will now match internet prices on tires and make his money on the $40 per tire he charges for installation. That's fair and has brought me back from ordering the tires myself and installing them myself. Being competitive has brought this dealer more business, more traffic coming thru the store, more folks seeing the new bikes on the floor and being seduced into buying a new motorcycle.

[dirtrider]

Hi Rich

 

Now there is a dealer that will probably be around when others fail and flounder.

 

[moshe_levy]

Yes. But the local dealers must be flexible. Sticking to high prices in the internet era is a good way to go out of business.

 

Dealers should be flexible, yes. My dealer has a similar program or the occassional open house or other sale day. By the same token, customers must be reasonable too. Meaning, don't spend hours of a salesman's time at the dealer asking 1,000 questions about a part or garment, then go home and order it somewhere else to save $5. Meaning also, understand that a discount online supply store with an unfinished warehouse and a few phone clerks making minimum wage has an entirely different overhead and breakeven point than a dealership with millions in inventory and a small army of (hopefully) quality technicians in the service bay to pay.

 

Most people I speak to on this subject understand that you can't have your cake, and eat it too. I don't go to restarurants and bring my own meat to give to the chef, so I can save $2.50 on the meal. Likewise, if I go to a place and they treat me well, are there for me when it counts, and are at least competitive price-wise, they will get my business. I see how I am treated compared to some others who play the game of buying everything outside and then coming in for installation. To me, the little extra $$$ is well worth the treatment I get.

 

-MKL

[PLW]

Since this thread has turned into a discussion of pricing I'll throw in my .02.

My local dealer is outstanding--Irv Seaver BMW in SoCal--and I have always used their service dept. for tires. I pay the price and I don't complain. I hate to mount tires and I don't have a place to put a tire machine. Otherwise, I was formerly an auto mechanic, so I do my own maintenance.

That said, I would love to scoot over there and buy all my parts but over the past few years BMWNA has raised parts prices through the roof. One case would be oil filters going from about $12 to over $17 in the last 5 or 6 years.

At the moment, I'm needing a pair of front brake rotors for my RT. At the current list price they're about $900, add state sales tax at 8.75% and we're closing in on a thousand dollars. By going online and dealing with you know who it's going to be under $750 with shipping. I can't afford to not do it this way.

For perspective, I priced rotors for two other bikes I have considered as eventual replacements for the RT. An H-D Road King, less than $250 for both and an FJR1300, less than $350 for both.

I'd really like to patronize my local BMW store but at those prices it ain't happening.

 

 

 

 

 

 

 

 

 

 

[RTinNC]

Well, this discussion is one we've had many times in this forum. I didn't mean to take it off track, just giving another side to consider. I'm lucky enough to have a good dealer 15 miles from me (1 of only 2 in NJ), as well as one of the most respected BMW indy mechanics in the country (Tom Cutter) within 25 miles of my house. I patronize them, usually at full retail. In return, when I need first class service or advice, I have it at my fingertips, locally. That works for me, and has been my philosophy for years since my time with Harley Davidson - see http://www.mklsportster.com/xlindyarticle.htm For others, maybe such factors are not part of the bargain, nor am I advocating gouging the customer. But I am saying, without equivocation, that sometimes saving a little in the short run is really painful in the long run. YMMV of course....

 

-MKL

 

+1. I feel the same way about my local dealership in Ft. Myers, FL (Gulf Coast Motorcycles). Kinda like Cheers where everybody knows your name type of thing. Free hamburgers, hot dogs, soda and water every Saturday. Customer service that's second to none and highly trained top notch service technicians. Nothing wrong with trying to save a few bucks on some things, but a close personal relationship with a trusted dealership is priceless.

 

Mike

 

 

+1 for Gulf Coast BMW and for BMW Charlotte! Both treat their customers first class!! My local dealer is Charlotte and they do an excellent job of customer service. My bike was the personal bike of Jeff Gallo at Gulf Coast and when I bought it from Jeff he treated me like an old friend. Both are true quality dealers. I have on occasion used Chicago as well as A&S and Sierra .... but when ever possible I use my local dealer for the reason's Moshe Levy explained above.

[Boffin]

That said, I would love to scoot over there and buy all my parts but over the past few years BMWNA has raised parts prices through the roof. One case would be oil filters going from about $12 to over $17 in the last 5 or 6 years.

At the moment, I'm needing a pair of front brake rotors for my RT. At the current list price they're about $900, add state sales tax at 8.75% and we're closing in on a thousand dollars. By going online and dealing with you know who it's going to be under $750 with shipping. I can't afford to not do it this way.

For perspective, I priced rotors for two other bikes I have considered as eventual replacements for the RT. An H-D Road King, less than $250 for both and an FJR1300, less than $350 for both.

I'd really like to patronize my local BMW store but at those prices it ain't happening.

 

The reason for the price shift is the relative strengths of the Euro and Dollar - prices have remained fairly stable in mainland Europe. In the UK they have increased by about 25% for the same reasons as in the USA.

 

As for rotors - can I suggest you try Grimece brakes from Motobins in the UK? You should get them in about 1-week.

 

Andy

[Robus]

What happened to Chicago BMW??? Nothing, I hope, as I just bought a 2010 RT from them last month and the only other place to have it serviced is out in Barrington, 60 miles away. I think we are down to two BMW places in Illinois since the one in Champaign went away. These are tough times for retailers. As long as they are fair and prompt, I'm not going to complain too much if they do what they have to do with pricing of parts.

[Motodan]

I was counting on the usual discounts and now have to deal with my local stealership. I'm very disappointed. This will add hundreds to my order.

 

Fast forward a few years to when the local shop goes under, and getting any service on the bike now requires hours of extra driving or other such inconvenience, which of course carries extra cost as well. Worth it? Just sayin'....

 

-MKL

 

It is always an interesting question. However, this shop or any shop giving a "discount" is, in fact, a local shop for some buyers....so as a "local" shop how are they staying in business as a discounting business?

 

I suspect, just like any other shops who decide to be competitive and give a discount, by watching their expenses and managing to their business plan, which evidently includes discounts.

[moshe_levy]

Dan, see the post directly above yours. Have you been to Chicago BMW? I have, back in 2007 when I was driving across country and needed rain gear. It's a little hole in the wall. Nothing in stock, literally. It was one clerk, one bike, maybe 5 jackets, and a desk when I was there. Now, apparently the service department is gone, too.

 

There is no free lunch - this discount gets paid for, somehow. My point is, if you want your local dealer to match these prices, that's how it's going to get done. Then you can drive hours away for service, just like Robus in Chicago. There's no magic to a "business plan." If your parts margins are cut to the bone, you need to pay for it by cutting expenses or increasing profit somewhere else. See above for how Chicago's doing it.

 

If, like another previous poster, you do all your own maintenance and don't rely on the local dealer for service, in my opinion you should use lowest price as the major factor in your buying decision. Otherwise, this is a pretty intelligent group of people in here, and I think Robus made my point for me.

 

-MKL

[moshe_levy]

In rereading Robus' post, perhaps I misunderstood. Maybe service is still there in Chicago. But it is a tiny place with no inventory, at least when I was there in 2007. Sorry if I misunderstood.

 

-MKL

[jfremder]

As for rotors - can I suggest you try Grimece brakes from Motobins in the UK? You should get them in about 1-week.

 

Andy

 

$106 ea for rotors is a great price. What might it cost to ship a pair to the USA?

[Boffin]

As for rotors - can I suggest you try Grimece brakes from Motobins in the UK? You should get them in about 1-week.

 

Andy

 

$106 ea for rotors is a great price. What might it cost to ship a pair to the USA?

 

Alas, for that answer you will have to ask Motobins.

 

Andy

[DavidEBSmith]

In rereading Robus' post, perhaps I misunderstood. Maybe service is still there in Chicago. But it is a tiny place with no inventory, at least when I was there in 2007. Sorry if I misunderstood.

 

Yes, you did misunderstand. The service department is still very much there and pretty busy every time I've been there. They also have a substantial inventory of bikes - there are a bunch of them in the basement that you don't usually see.

 

As far as parts inventory - they stock what they need to have on hand for service, they order the rest when they need them. BMW NA has a fairly efficient parts distribution system and if you're a dealer, why carry parts in your inventory when you can let NA carry them in their inventory?

 

Please don't anybody get the wrong impression or start any Internet rumors - Chicago BMW is doing fine (considering the economy and the motorcycle market), is selling new and used bikes, is doing service, and is selling parts at the usual discount (which they're not permitted to advertise anymore by the powers-that-be because other dealers complained).

[DavidEBSmith]

It is always an interesting question. However, this shop or any shop giving a "discount" is, in fact, a local shop for some buyers....so as a "local" shop how are they staying in business as a discounting business?

 

I suspect, just like any other shops who decide to be competitive and give a discount, by watching their expenses and managing to their business plan, which evidently includes discounts.

 

Chicago BMW sells a lot of new bikes at good prices, sells a lot of parts at a lower markup than retail, is one of two official dealer service franchises in a metropolitan area of 9 million people, hasn't spent of ton of money building a palace for their facility, and minimizes expenses. The latter two points are probably making a big difference in this economy.

[Robus]

Chicago BMW's service department seems to do a booming business. They're one of only two departments in the area. Despite that, they got me a prompt appointment for service on my bike, did the work in about three hours while my wife and enjoyed a stroll around the Lincoln Park Zoo, and had me back on the bike by early afternoon. And the bill came in at $100 below their estimate. Beyond that, I feel like I paid a fair price for the motorcycle. I'm well satisfied with this dealership and hope they prosper.

[dirtrider]

I have bought one bike from Chicago BMW back in the mid 90’s. I wanted a certain BMW make and model so went to a couple BMW dealers in my area, or more like within riding range. The local BMW dealers wouldn’t budge on price, not even a little wiggle.

So I called Chicago BMW and got a price quote over the phone, didn’t even have to do any dickering. They quoted me a price over $1,500.00 lower than any of my somewhat local dealers. I want back to both dealers in my area and said can you match this price, or even get close. Neither would budge, so called Chicago back and they met me at the airport, bought me lunch, said they would find me a reasonable place to stay the night if I needed. Just a great experience from a dealer I had never dealt with before.

 

The local dealers knew I bought that bike form Chicago but never said anything to me when I took it in for warranty service. Next bike I bought I went to the local dealer and said we have two options here, either you give me a good deal or I know where I can get one. They really worked with me on price that time.

 

[Motodan]

Dan, see the post directly above yours. Have you been to Chicago BMW? I have, back in 2007 when I was driving across country and needed rain gear. It's a little hole in the wall. Nothing in stock, literally. It was one clerk, one bike, maybe 5 jackets, and a desk when I was there. Now, apparently the service department is gone, too.

 

There is no free lunch - this discount gets paid for, somehow. My point is, if you want your local dealer to match these prices, that's how it's going to get done. Then you can drive hours away for service, just like Robus in Chicago. There's no magic to a "business plan." If your parts margins are cut to the bone, you need to pay for it by cutting expenses or increasing profit somewhere else. See above for how Chicago's doing it.

 

If, like another previous poster, you do all your own maintenance and don't rely on the local dealer for service, in my opinion you should use lowest price as the major factor in your buying decision. Otherwise, this is a pretty intelligent group of people in here, and I think Robus made my point for me.

 

-MKL

 

As you can see, they are doing fine. Not sure what you saw in 2007 when buying rain gear, but it wasn't the shop I've bought from in the past?

 

I've purchased a couple of bikes from them and ordered parts. Mike Abt, their Mr. Sales Guy, is a laid back nice guy whose about as Mom and Pop as you can get. They have one of the biggest service staff I've seen in the mid-west for an exclusive shop. Glad those who use the place chimed in here, so misunderstandings aren't passed on as gospel...good example how internet info should be questioned. Hope a wrong story doesn't show up in a magazine article.

[moshe_levy]

No, no articles planned... Forgive my misunderstanding of Robus' previous post. I was going on 24 hours with no sleep when I wrote that, and I came off grumpier than I intended! I have nothing against Chicago BMW per se, and I have ordered parts from them in the distant past (for my endless R75/5 cafe project), without ever having problem.

 

When I was there in 2007 it was it was far from stocked - I walked across the way to Chicago Harley and wound up buying my rain gear there. Chicago Harley also is famous in the HD community for 20-25% off MSRP for parts, and that dealer was pretty large and had plenty of inventory of everything. That's how my local BMW dealer is, here in NJ. (They carry Triumph, Ducati, and scooters too).

 

I guess I just wanted to bring up the angle of considering local service and support in a consumer's buying decision in addition to price, that's all. Hope that valid point wasn't lost in the confusion over Chicago BMW.

 

-MKL

 

[DavidEBSmith]

When I was there in 2007 it was it was far from stocked - I walked across the way to Chicago Harley and wound up buying my rain gear there. Chicago Harley also is famous in the HD community for 20-25% off MSRP for parts, and that dealer was pretty large and had plenty of inventory of everything.

 

FYI Chicago H-D and Chicago BMW are owned by the same guy and, as you mentioned, are across the street from each other. The H-D building is big and the BMW building is small so it doesn't make sense for them to duplicate inventory. The BMW guys will happily send you over to the Harley shop to buy stuff.

 

Also FYI Chicago BMW used to have much more clothing and stuff hanging on the walls and someone made them remove it because it was too cluttered and didn't comply with the corporate image.

[Timmer]

I bought my parts local (Marin BMW)because they generally had the parts in stock and I was down that way frequently. Every time I have gone to my other "local" dealer, he doesn't have stock.

 

It's all internet ordering for me now. (Now that Marin BMW is closed)

[Motodan]

No, no articles planned... Forgive my misunderstanding of Robus' previous post. I was going on 24 hours with no sleep when I wrote that, and I came off grumpier than I intended! I have nothing against Chicago BMW per se, and I have ordered parts from them in the distant past (for my endless R75/5 cafe project), without ever having problem.

 

When I was there in 2007 it was it was far from stocked - I walked across the way to Chicago Harley and wound up buying my rain gear there. Chicago Harley also is famous in the HD community for 20-25% off MSRP for parts, and that dealer was pretty large and had plenty of inventory of everything. That's how my local BMW dealer is, here in NJ. (They carry Triumph, Ducati, and scooters too).

 

I guess I just wanted to bring up the angle of considering local service and support in a consumer's buying decision in addition to price, that's all. Hope that valid point wasn't lost in the confusion over Chicago BMW.

 

-MKL

 

Point made and taken.

 

While revenues certainly make a difference, it is not the only or even primary factor in a motorcycle business's success. Looking at revenue too closely can take your eye off the customer and their changing needs. Dealerships fail regardless of their business plans because they lose focus on what's really important.

 

We have a Honda car dealership in our town. During these rough times, when many of his competitors are shortening hours and attempting to maintain revenues, our dealer has expanded the hours they are open, charge only $12.50 for a Honda filter and oil change, give free car washes with any service and started a Rewards Program. Of course they also expanded their used car segment of the business and sharpened their competitive pricing. They now have more business and are surviving quite well.

 

Some of their competitors, who took other routes, are not fairing as well. Who has the best plan? For whom? Appears to me my dealer is focusing on the customer and his competition is focusing on $$$. Focusing on giving the customer what they need and want will result in more revenue, not the other way around.

 

I think this applies to motorcycle dealerships as well. When I have to drive 120 miles to get to my nearest BMW dealer (we have one right here in town, but apparently there's a problem because inventory is nil at the moment and parts aren't available), it simply doesn't make sense for me not to use the internet for parts and accessories. Next closest is 150 miles...neither gives big discounts on a regular basis.

 

As you say, if too many people (the market) gravitates to the discounters, more "local" dealers (those who don't discount) may fade away. Will the market (us) then shift to support the non-discounting "local" dealers, if there are any left? I think not...not unless those local dealers become an also discounting dealer, who survive just like their discounting competitors do....with their eye on the customer's needs and a balanced business plan to meet those needs and still profit.

[IT_Mike]

UPDATE: As noted, when I called Chicago BMW to check pricing they confirmed the website is configured to conform to BMWNA, but they don't charge your card until after deducting the 20% discount.

 

As to supporting my local shop, forget it. They charge 3-10% OVER list. I happily drive 2-2 1/2 hours away to reach a great BMW shop (Morton's).

 

Supporting your local shop is one thing, being shafted by them is another. YMMV