Starting a Dealership!

[Cyrus]

Hi, I am new to this site, but not at all new to the world of Segway! I graduated to the red key quite a while ago and enjoy the Segway very much! I do not own a Segway, but i do rent one every time i go visit my beach house in Santa Barbara! I am 15 years old, and will be 16 late 2006. My dad decided that he wanted to begin a Segway dealership in our hometown of Bakersfield, CA. All he keeps telling me is, "I want you to basically be the owner of the store and figure out all of the technical stuff. I will be here to help you whenever you need me. I will mainly be your financial aid." This is exciting news for us, however, it will be a hard task and, since he put me incharge, we are looking at a 2007 opening. This leaves 2006 for planning, financing, renting, and doing any paper work necessary to open a dealership! I have this plan to take out a small loan to begin, AFTER all of the arrangments have been made, advertising for our new dealership and to get people interested! The loan will be for us to order 3 or 4 segways, that will be eventually used for either tours or rentals, and ride them around our town and pass out cards of the location and opening of the dealership!

I hope this sounds like an ok idea to all of you! I am mainly in need of some information. Here are the questions I have(the answeres will be passed on to my father): how many segways are necessary to open? what is needed insode of the store? what kind of insurance are we looking at? Where do you get the paper work for the renters to fill out? How many sq. feet minimum are needed for a segway dealership?

ANY...once again, ANY other information you may have would be greatly appreciated! We already have the print-out you need off of segway.com


THANK YOU SO MUCH!
-Cyrus

I am hopefully opening a dealership in my area!

[SONORAMA]

Cyrus,
That's great you're interested in starting a dealership. Certainly could be a lot of fun, and potentially lucrative.

I'm sorry I can't offer you much in the way of advice ... though I believe a call to LLC with some well thought-out questions would be a good place to start.

Hopefully your dad has some retail experience, I imagine it is a lot of time and hard work to start a store with employees, expensive merchandise, and a unique product.

Best of luck to you!

[SegwayDan]

Wow! You are one fortunate young man to have such an opportunity at such a tender age! Do all you can to learn all you can throughout this experience. You'll most likely find out soon that you've picked a "tough row to hoe," but with a lot of hard work you can make a success of it!

You know already what a great product the Segway HT is. Besides all of the business arrangements, one key step to accomplish in the coming year is to go to the factory to learn fully how the HT works and how to service them. You'll meet a lot of good people there and have a good chance to observe the fact that a company is its PEOPLE and the responsibility each one takes in creating and selling Segways.

You'll have a similar responsibility in your company, and as you get going, you'll need to find people to help you--people who share your dedication and who can take over some of the many "hats" you'll wear as a business owner.

I think you're going to need more than 3 or 4 machines. As reliable as the HT is, there are going to be the inevitable "problems" which pop up. Despite your best efforts, someone will manage to run over a nail or scrape a fender or break a handle, or something. If you have spare parts in stock, you'll be able to fix a lot of it, but you'll need extra machines so that you can have enough working ones to be on the road making money for you.

Plan on computerizing your record keeping--business communications with the factory, customers, regulatory and taxing bodies, prospects, customers, etc.; inventory; financial; insurance; planning; real estate. One of the most important keys to business success is good communication. The computer can help you be more efficient, but that means the computer system has to function smoothly, too. Pick and assemble its components wisely, and learn them thoroughly, too.

Promotional and sales actions and skills are also quite essential. You'll learn as you go what works and what doesn't. Some of your sales will be easy. Most will be quite tough. But if you sincerely believe in your product or service, people will eventually get to know and trust you, and some of those will be your customers. Take full responsibility for them and be willing to stand behind what you deliver.

Pricing is also an essential step. You'll learn what it costs to run your business, so you need to charge enough so that you can pay your bills and make a profit. That may be tough, especially at first.

You seem to be a bright, enthusiastic young man. From your demonstrated writing skills, it looks like you're getting a good education, too. And you've got a great father and family to have been given this kind of opportunity and trust. Give it your best shot, and realize that, win or lose, you can learn a lot about life in the process. Treat it as the fun and challenging game that it is, and HAVE FUN!



"Segway Dan" Swanson
727-403-2628
www.segwayclearwater.com

[wwhopper]

Start first with a workable business and marketing plan and a budget and a five year forecast.

Talk with your town officials, make sure that Gliding is allowable, and see where your local board of trade or business associaion is on youth entrapenurial projects, you may even be able to get some SBA grants (dad would like that)

Selling retail is one way, but business to business sales are where most of your business will come from.

Owning and enjoying a Segway is a lot different than spending 24/7 selling them and convincing folks that gliding is a better way of life. And with your own business it is a 24/7 proposition.

Will W Hopper
DCSEG Member
SEG America
The Premier Gliding Organization!
http://www.SEGAmerica.org
Washington DC - The Most Segway Friendly City in America!

[SegLegs]

You also might want to give some other Segway dealers a call to see how they started, see what has worked for them (e.g. advertising et al.)

Just a thought.

[slide4less]

call us at Segway of Oakland 510 832-2429

slide4less

[Dragan]

Cyrus,
Welcome, and best of luck! You're about to embark on one of the most fascinating, frustrating, rewarding, and exciting things you're ever going to do. It is a TON of work to get started, and the first place you want to talk to is Segway. There are a lot of things to consider and arrange first, and they can fill you in on what's involved.

Write a detailed business plan and stick to it. You'll find it a lot easier to obtain financing if you are serious about what you want to do, and have proven it by investing the time and thought. There have been more than a few people who thought the Segway business was a quick way to make a million bucks; nothing worth a million bucks is ever quick, or easy. You can certainly do very well financially, but you have to think it through very carefully and be prepared to live, eat, sleep and breathe Segway for at least the first couple of years.

If you're not prepared to make the personal investment, save yourself a lot of frustration. If you are willing to make that investment, go for it with all you've got and it'll pay off.
Wayne

Segway of Alberta - Calgary
www.mysegway.ca

[Cyrus]

All of you guys. Thank you for all of your kind words and encouragement. i am willing to endure the hardships and can not wait for the huge reward! I will give you a call tommorow, slide4less! As I have said, all of this information is going to my dad. I can not wait until I have an outline down! Once the outline is written, I will know that my father and I have taken the first step into owning a segway business!

When talking to the mayor and the other authorative figures of my town, should I bring a segway(might be getting one for christmas) to kind of sweet talk the people and show them how much fun they are!?

I hope to hear from all of you guys REALLY soon! Thank you again for all of your help!

-Cyrus

I am hopefully opening a dealership in my area!

[Dragan]

The single best way to convince people of the value of the Segway is to get them on one. We always take machines along whenever we're doing presentations for that reason. Also, when you're developing your business plan, really give some thought to how much space you really need (you'd be surprised how much business you can do in a small space) and how many machines you'll need for inventory. 4 or 5 seems like a lot of money invested, but if you handle your pre-opening advertising right, they'll be gone before you know it. we'd be happy to talk to you as well, if you want a Canadian perspective. Give us a call!
Wayne

Segway of Alberta - Calgary
www.mysegway.ca

[Tanner]

Good luck! I wish I lived where you lived.... We could be business partners. :)

-Tanner

----------------
Tanner S.

[wwhopper]

Do not forget to involve your local SEG America chapter. The local SEG members will often come out and participate in dealer openings. There is nothing better than more than 3700 person sales force behind your product!!

And for the immediate future (2005 - we have not confirmed 2006 yet) An additional benefit for anyone who buys a new Segway from a registered dealer. That New Segway owner gets a one year SEG America membership paid for by Segway. And that is a GREAT Deal!

Will W Hopper
DCSEG Member
SEG America
The Premier Gliding Organization!
http://www.SEGAmerica.org
Washington DC - The Most Segway Friendly City in America!