For the last year or so, I've been daydreaming about selling used motorcycles. Originally, I thought I'd sell other people's bikes on eBay, for a commission. As I researched the opportunity, however, I discovered that while a "Sell it on eBay" store works great for antiques, collectibles, and other low-buck tchotchkes, it's not really viable for motorcycle sales.
Here's why:
- To sell more than 4 bikes a year in Arizona, one has to have a dealer's license and a $100,000 bond (so if I need that, why not just own the bikes as well?).
- By selling on commission, I'd have two clients to appease per sale, instead of just one if I outright owned the bike. If the seller isn't happy with how much the bike sold for, it'll be that much more unpleasant taking my (hefty) commission from them.
- With a dealer license, I can get into wholesale auctions and buy bikes on the cheap.
- When the seller still owns the bike, arranging shipping/pick-up/storage of the bike would be a huge pain.
- Arranging the title transfer would be a lot sketchier, since I'd just be a go-between between the seller and the buyer.
So it makes more sense to just buy the bikes outright and resell them. I still like the eBay sales model, however, because (once I have a bike to sell) I can just take the photos, write the ad and wait for the money to come rolling in. Meanwhile, I can keep my job until the business is really rolling.
My plan is to first get the VX800 running (because I need to get that sucker going again), and then start looking for bikes to buy and resell. I figure I'll sell one or two to get the hang of how the process works, and if it seems like a feasible business model, I'll go ahead and get established as a business.
Why am I telling you about this? Mostly to force myself to go through with it.
3 comments:
Here's another idea. A guy I know bought a motorcycle scrap yard. There are now three people who work full time selling the parts on e-bay. It's amazing what parts from used bikes fetch. The sum of the parts would be worth more than the bike as a unit. Of course, why ruin good used bikes, huh?
Was in your neck of the woods last week. I thought about looking you up. Had no bike and very little time. We flew in, got a ride to Prescott,( about an hour and a half ) did our thing, reversed the ride to the airport, and flew home. I'll probably be back later in the summer for fall on the bike. Maybe then?
How about I send you a money order for $1000.00 over the asking price of the bike and you send me the cash and the bike? I'm in Nigeria, BTW.
No dice? O.K. wanna buy a used Honda CB550K? Fresh paint, new brakes?
Huh, huh?
irondad - ...mmmm, selling bikes as parts. I'm going to need more space before I can do that though.
Definitely let me know if you're going to be in town and have time for a beer and a slice.
surly - Nigeria is in the midwest?
If you were here in Arizona, I'd totally buy your bike. But, alas, you aren't.
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