If anyone could help me out I would appreciate it, how would I go about trying to become a horsetrailer dealer? Would I start by calling companies or where should I begin? For any of you who are a dealer, what should I expect? I'd like to offer quality trailers with a good service department, something that is lacking in my area. What kind of money would I be looking at to get started (not including my location), is there potential for a good income to be made? Any any information would be great. Thanks.
Posted 2011-02-10 8:53 PM (#130102 - in reply to #130089) Subject: RE: becoming trailer dealer
Veteran
Posts: 201
You will need to find out what brands of trailers are available for resale in your area, find a location that is accessible and visible,pick a name, find a great repair/parts person, get a floor plan to pay for the new trailers you will purchase($100,000 to $1,000,000)with your local bank or some major lender, get set up with brokers so you can finance customer trailers,get all your state sales tax and retail permits, get federal ID number, buy all shop equipment(forklift,welders, torches, wrenches,etc.), get insurance,advertise, buy parts, buy office equipment, get invoices and purchase agreements made up, get business cards and misc. office supplies, find an accountant/bookkeeper, maybe some sales people? Should be pretty easy, right? Expect to make 5-15% gross profit in good years and not lose everything in the bad years. Be able: to take trades, handle customer complaints, handle manufacturers screw ups and delays, your order screw ups, phone calls all hours of the day, theft, embezzlement, law suits, etc. OR buy an out an established dealer, there going out of business every day so there should be several for sale.
Posted 2011-02-12 3:40 PM (#130179 - in reply to #130089) Subject: RE: becoming trailer dealer
Location: A high mountain peak
Don't let anyone scare you. I'll bet for $30-50,000 you could start a dealership. Bet you could make real good money. The dealers I know are pretty well off.
Posted 2011-02-12 6:19 PM (#130181 - in reply to #130089) Subject: RE: becoming trailer dealer
Member
Posts: 23
Location: Turbotville, PA
Duckman is right it is lots of work and takes quite a bit of initial investment. I just started in May 2010 and am still getting all of the things around to be able to be a full service facility. It is a 24/7/365 job but if you are willing to put in the work its a ton of fun. Nothing like being able to take your wife to the shows and at the same time still be working and seeing the people that you really like hanging around with. Good luck if you decide to go forth with a dealership and don't be afraid to ask questions the whole way through as most are willing to help.
Posted 2011-02-12 7:27 PM (#130182 - in reply to #130179) Subject: RE: becoming trailer dealer
Veteran
Posts: 201
Beenaround, if you know dealers that are pretty well off because of selling trailers: they either have oil wells on their property, inherited a bundle and need the tax write off, spending all their borrowed money before they claim bankruptcy, or are doing something illegal.
Posted 2011-02-13 8:24 AM (#130190 - in reply to #130089) Subject: RE: becoming trailer dealer
Extreme Veteran
Posts: 430 Location: TN
It cost a lot more than 50K to start a trailer dealership. You would probaly have over 50K in just an inventory of 2 or 3 trailers. Does BeenAround even know what a floor plan is?
Posted 2011-02-14 8:51 AM (#130241 - in reply to #130179) Subject: RE: becoming trailer dealer
Location: Where the wind comes sweepin' down the plain...
Originally written by beenaround on 2011-02-12 3:40 PM
Don't let anyone scare you. I'll bet for $30-50,000 you could start a dealership. Bet you could make real good money. The dealers I know are pretty well off.
Starting off with $30-50k could be done. But realize how limited you will be. Even if you have a manufacturer that is putting the trailers on a floor plan, what are you going to do with that trade in that's two years old that the customer wants $45k for? Most dealers do not have any way to floor those. That's cash out of pocket. Most dealers that I know will have a minimum of$150k tied up in used inventory. That and be prepared to sign away your life for the floor plan on the new product.
Posted 2011-02-14 10:04 AM (#130244 - in reply to #130089) Subject: RE: becoming trailer dealer
Expert
Posts: 5870 Location: western PA
With most businesses, you will need enough exclusive funds to support yourself, your family and business, for the first several years. You cannot depend upon the business to supply them. If any initial profits are made, they are put back into the business, to grow the inventory and facilities.
Inventory and service are paramount. You need a variety of products and qualified people to support them. You can't sell from a brochure or rely on a competitor for mechanical assistance. Training, tooling and parts are essential and costly.
$50K is a drop in the bucket to establish a business. Unless you are going to park a couple of low budget trailers in your driveway and work out of your kitchen, you will be grossly underfunded. Most businesses fail in their first years because of underfunding, while not initially understanding the many costs involved in their ownership.
Contact you local college, and sign up for an adult education class on "starting your own business". They can make you aware of the many pitfalls that are involved, and what is necessary to effect a prosperous enterprise.
Posted 2011-02-14 10:19 AM (#130245 - in reply to #130089) Subject: RE: becoming trailer dealer
Veteran
Posts: 127 Location: rapid city sd
It take a min of $500,000 inventory to get started, and if you are talking shop and support, a million should do it. The toughest thing today is what to inventory. The special orders going out, I would never have put on inventory
becoming trailer dealer
