Stark actually profitable... kinda


Erwin P

Active member
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Netherlands
I am not sure on the margins and it depends where you live I suppose. Having a dealer network is more than just service and markups though. A good dealer network can do localized marketing and outreach, especially to folks who are not early adopters and willing to make the change to a non-ice bike.

EVs generally in the US are suffering from many things but among them is a strong anti-EV press sentiment which sort of aligns EVs with one kind of politics or another. Local supporting dealers who are in communities serving those communities can do a lot to overcome this. Particularly with their core customers. In dealerships Starks can be seen as a good competitive bike not some symbol of some wokeness internet conspiracy or whatever the politics flavor of the day is.

And more than that, with production reaching upwards of a 1000 bikes per month, dealers can act like an inventory buffer in market fluctuations and directly serve customers in varied geographies. The internet is flat space un-tuned to localities. Plus, many customers are not willing to part with 10k for a mail order bike on the internet even though Stark has a pretty good reputation.

I am not a dealership fanboy but I think it would be short sighted --at least in the US which is currently one of Stark's largest markets-- to think the short term profit boost of a few bikes on the front end will offset the potential to really grow the brand in a solid way in varied markets. Even old well known companies like Nike have stumbled in failing to recognize how dealerships/resellers serve the overall business and often are more than just profit skimming middlemen.
I think Stark does a great job of a ''hybrid'' system here.
They have rather few dealers as you might expect from a starting brand. But there are enough to pick up and serivice your bike at one if you don't mind a longer drive there. However they also sell them online wich takes out the dealer margin and make more profit.

With a low number of dealers it's worthwile for them to be a dealer since they sell enough through scarse. But Stark can also sell them themselves for a higher margin.

A little sidenote. In the Netherlands we actually almost never see dealer mark-ups. The price any OEM mentiones on their website is the dealer price. For what i've heard thats very different in the US?
 

AL_V

Well-known member
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134
Location
Canton, Ohio
Wait, what?

What's a dealer markup?

I'm in NZ and the price is the price. I can order direct for NZ$17,900 or go to the dealer and pay $17,900. How can it be different?
The price to the consumer may be the same, but that means that Stark is providing some discount to the dealers so that they can make a profit from the sale.
So it's better for Stark to sell direct.
In the US, (in general) dealers may provide a discount, sacrificing some of their profit to make a sale.
On rare occasions, a dealer may ask for more than the official "sticker price" if demand is high and supply is scarce.
 
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Waupaca, Wisconsin
The USA is huge market and the AMA is doing everything they can to sabotage Stark. How do you sell a race bike that you can't race? Without AMA insurance, most tracks couldn't afford to have races. Most tracks are AMA in this country.
 
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