Power Profiles

Bak BMW Victory KTM KYMCO – Sioux City, IA – Jul. 12, 2010

1900 Hwy 75 N Business
Sioux City, Iowa 51105
Dave Bak


What started out as a Honda Suzuki BMW dealership evolved into a successful store that caters to different types of customers. In 1991, owner Dave Bak joined his father in running the dealership. In 2003, they split the BMW brand off and later added Victory in 2006. Then in 2008, they picked up KTM and KYMCO. BMW started off as the store’s top brand, but Victory recently surpassed it. “Up until about a year and a half ago it was BMW. Being in the Midwest we’re a lot more focused on cruisers than sport bikes,” said Bak. “The most units sold are KTM. The most dollar amount is the Victories. Victory has been going strong.”


“Right now product availability seems to be very slim,” said Bak. “The bikes we can sell aren’t available, and the bikes that aren’t selling are the ones the manufacturers want us to take. Flooring expenses are going up because of this.”


“Victory, in general,” said Bak. “They’re growing and coming out with some neat new products that sell well and maintain a good margin. BMW adventure bikes, like the R1200GS and F800GS, are also selling well. I’ve only had KTM two full years now and that segment is picking up.”


“The (smaller-displacement) bikes have always sold well, but the larger bikes are starting to take off in our area,” said Bak. “The brands I carry are premium marquees with a slightly higher price and a more discerning buyer. They’re still selling well compared to the Japanese because the buyers we target live the riding lifestyle. It’s what they do regardless of economic situations. They didn’t look at their 401k and say, ‘I need to sell my toys’ because to them it is not a toy. I try to encourage that lifestyle in the shop and build that brand loyalty, so they continue to want to ride and come into our shop over some of the others in the area.”


“Everyone says they have the greatest techs and parts department in the world. Well I do too,” said Bak. The dealership’s parts department does well due to a few different strategies. One being, “We do a lot of closeout or blem (cosmetically blemished) lots from our distributors. This gives us a price advantage over the other shops in town,” said Bak. “We also carry some top-end gear to give the customer a choice. The lower-end items also give us a comparison point to up-sell the customer. We also have everything new and closeout items in the store listed on eBay. There are a lot of people who pay retail on eBay just for the convenience of being able to shop when they get the chance.” The service department also does well thanks to its technicians. “They are enthusiastic about what they do and enjoy being here,” said Bak. “It’s important to make an enjoyable workplace. You get better work from your employees and more of it. They also don’t mind when you ask them to do a little extra at times.” To promote the service department, the dealership works to condition its customers to bring the bikes in at scheduled service intervals. “I also sell prepaid maintenance contracts to get the customers back in,” noted Bak. “They usually don’t just get the minimum service included in the contract. Many times they get extra service work or some accessories.”


The dealership has put its own creative twist on its events to entice participants. They do two open houses every year, but one is in March – not quite riding season. “We always try to be the first one in our area each year,” said Bak. “Sometimes the weather doesn’t cooperate, but the riders are always ready regardless. In fact, the worse the weather is, the better the sales of both bikes and PG&A have been.” The second open house is held in October, which they call Baktober Fest. “There is also an annual event in Sioux City called Awesome Biker Nights,” noted Bak. “The last four years I’ve brought the Victory Demo truck in for the event. Demos sell bikes.” That belief is supported by offering demo rides on the dealership’s own fleet any day of the week, says Bak. “If someone has a particular bike they’re looking at, I always try to get them on that one,” he said. “I don’t care if I have to service it out for them. People want to ride the very bike they are interested in. We also have a KTM dirt bike demo day at one of the local MX tracks each year. It helps raise brand awareness and showcase the quality of KTM.”


“Be positive. No one wants to buy from a downer,” Bak said and added, “Don’t take a bike you don’t think you can sell just because you might get assistance somewhere else.”

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