RAPID CITY, S.D. — Preparation for the Sturgis Motorcycle Rally is revving up.
But so are the challenges that many dealerships like Black Hills Harley Davidson are going through.
“This might be as difficult as ever in this time period that we’re in proper now,” mentioned Al Rieman, the CEO of Black Hills Harley Davidson.
The rally accounts for roughly a 3rd of Black Hills Harley’s enterprise, however rising costs for components and absence of bikes are taking its toll.
According to Rieman, Black Hills Harley has seen a 15 to twenty % dip in gross sales this yr in comparison with final yr.
One motive for the drop, a world provide chain disaster has trickled down, impacting the variety of bikes that they’ll promote.
“Typically, on the finish of May, we’d see 200 to 300 new bikes right here on our property and we might develop that considerably a bit bit into the rally,” Rieman mentioned. “In this yr, we had 45 new bikes. You can see how far the brand new product has shrunken.”
Black Hills Harley has turned to purchasing used bikes all through the Midwest to extend its stock.
The costs for non-motorcycle merchandise, like batteries, tires, oil, shirts and boots, have doubled in comparison with final yr.
Not to say the problem of getting the merchandise on time, forcing the enterprise to plan forward.
“If you went to purchase a few of that product now, you may not see it for 3 or 4 months as a result of it will likely be on backorder, onerous to get,” Rieman mentioned.
Motorcycle dealerships are overcoming key points as a busy time approaches.