Starting a Max or Argo Dealership

[wheeler]

Again I don't want to beat a dead horse, but I try to keep up on the sales of the different machines, i.e. Argo, Max, Mudd-Ox. I still am seriously thinking about a dealership and wonder how sustaining this type of business is? I have an employer that I work for that is (possibly) interested in selling one of the utv's that there are, be it Mudd-Ox, Max or Argo. He almost did it a few years ago with Argo, but they told him that he was to close to another town that sells them. He is close to 100 miles from that dealer. The possible dealership would include me as a partner. But with Argo telling him No, he's a little apprehensive about even looking into it again. The business he has is a 1.5 to 2 million dollar business a year, with mechanics, me as a sales and parts staff and a partner. Why would Argo not even consider him. I had my MaxIV at the business and people stopped to see if I was interested in selling it. Several people asked why we don't sell the Max's or Argo's? The ones that had machines say they have to drive 80 to 100 miles to get the parts for them or to get them fixed. We live in a community of close to 4000 and are right off the main interstate. I believe his location is prime for a business like this. In fact when he was younger his father had owned 2 different Argos. My concern for a UTV business in a location that is not a major City is sort of a concern. My possible business partner stated to me one day, "If I don't sell some of the Lawn equipment, Snow Plows, Tractors or most of my other equipment the company takes them back, and I don't have all the overhead from equipment not selling, otherwise I couldn't stay in business. I have to be able to get the new modernized equipment every year to stay competitive other wise it's a bust. When I talked with the Max corp. before the new owner, the want you to buy 2 to 3 machines and then the parts to supply to a buyer when needed. I asked if I don't sell these machines is there any type of return so I can get the newer models the next year. They said no, you buy them and thats it. There is no return. Maybe I'm way off base but it seems they would try to let you get newer machines after a couple of years and not hold onto old merchandise that doesn't sell. Am I way off base? I am going to contact Argo and see if they would review again the possibility of having a dealership in my town. There was one gentlemen who sold Argos for many many years and was quite successful. He put a new pole building up and sold, as I understand close to 15 to 20 machines a year along with doing repairs and accessories. I'm still putting feelers out there to see what people think. I haven't called Argo and really don't know who is the best contact person to talk with but figured somebody on here (Mike the administrator?) would know who to contact at Argo. I'm shying away from Mudd-Ox machines simply because of the cost at this time. But would like to sell the Max or the Argo lines. Ok, I'm done rambling. I would love to hear from the people on this site about what they think.

[john swenson]

just to start some ideas for you, i think touching base with argo again is a good start as far as a dealership. is the other argo dealer still so close you would be competeing for sales ? also are the sales prices of any machines you would sell up to you ? when i manufactured and sold amusement rides, i kept the prices low and that way sold more volume and ended up with a better profit margin. matt at mudd ox may let you just be a max dealer for now... and offer mud ox as special costumer orders. just a few thoughts wheeler........ johnboy va.

[whipper-ag]

Don't do it!

Whipper

[wheeler]

cmon whipper say it like it is.

[marauder]

wheeler, you have hit upon the main problem with having a dealership with Argo, Max, or MuddOx, and that is that the dealer assumes ALL the risk of trying to sell the machines in that he has to buy a number of them and if he doesn't sell them he is stuck with them, there is no give back policy for a refund if the current model year doesn't sell. The manufacturers look upon the dealers as customers who buy their machines and then re-sell them for whatever they can get for them. Other than listing them on their website as a dealer there is very little help from the manufacturer, similar to what you would encounter if you bought directly from the factory as a regular customer. I think if you can't absorb the cost of a number of machines in case they don't sell right away then you and your partner probably shouldn't become a dealer unless you can get the factory to buy them back at the end of the model year. I think this is probably why MuddOx has so few US dealers, nobody wants to be on the hook for a $30k machine that just sits gathering dust due to low interest. Good luck in whatever you decide.

[hydromike]

A local Argo dealer has been sitting on this 2014 XTi for over 2 years now. That's an awful lot of money to have strung out there for what promises to be a minimal gain on markup. Biotech stocks are a much better risk.

ARGO 750 XTi

[SHOTGUN]

I will give my opinion as a dealer of Golf Cars. Most of the Rec based Manufactures are exactly as you described (ruthless). If you cannot sell your current inventory they do not want you as a dealer let alone take machines back, parts and service is usually a must. The Companys want a few mega dealers that order hundreds of machines a year. Small dealers cause more hassle for them in every way (advertising, paper work, accounting, ect.)I have talked to Boat and ATV dealers and have described the same throughout "it is your luxury to sell the companies product, if you cannot sell it they will find somebody that will". Couple other things to consider, I would strongly recommend to NEVER do a business partnership, there needs to be one boss, if not trouble usually follows. One alternative You could consider is get a hold of all your local AATV Dealers and tell them you would sell all there lease or rental machines, most are only a couple years old and get good maintenance. You can usually get good money on newer used equipment and not have the hassle of being a Dealer. Hope this helps, it can be very rewarding being a dealer but it is no cake walk.

[whipper-ag]

[whipper-ag]

[john swenson]

i've still always wondered if there is a general idea how many new argos sell in the u.s. a year. and how about max's and mudd-ox's. is there much demand ? j.b.