Issue link: https://read.dmtmag.com/i/343790
40 • July 13, 2014 • Powersports Business MOTORCYCLE www.PowersportsBusiness.com Growing from online to brick-and-mortar Former Internet-only dealer moves into ex-Saturn dealership in Chicago BY DAVE McMAHON EDITOR IN CHIEF Haider Saba admits that he doesn't know what he doesn't know, and he's concocted his busi- ness plan accordingly. Free shipping of pre-owned motorcycles to anywhere in the continental U.S.? Check. A money-back guarantee on those same used bikes? Check. Online advertising exclusively? Check. Saba is owner of iMotorsports in Chicago, a dealership that until recently sold pre-owned bikes out of a warehouse in the Chicago area. Now, Saba has decided to up the ante and formed his own brick-and-mortar dealership on Grand Ave. "We do stuff that I haven't even heard of in the industry," Saba said. "It's just part of our business model. It's not cheap, and it's defi- nitely not free. We don't want to be your next door mom and pop motorcycle shop. We're looking to do things on a national scale. We have out-of-state customers who have already bought multiple motorcycles from us." Saba and his business partner, Tim Walter, are both 32. They've been friends since child- hood, with Saba serving as Walter's best man in his wedding. "He brings the business side. He's an account and business major by degree," Saba said. "I know the industry real well. It's a per- fect match. It's been a really good match as far as the business goes." The 15-employee operation became incor- porated in 2009 and opened for business in 2010. Saba was fresh off stints working at deal- erships in the area, first as a PDI guy at Scha- umburg Honda-Suzuki as a 17-year-old high school student, and later at a Kawasaki-Yamaha store before he was laid off. Those transactions led to the two of them using eBay in 2001 to buy and sell bikes out of a garage. "This was pre-Craigslist, and back when Cycle Trader was print. We started using eBay and saw huge potential," Saba said. "But it was a hobby that we did for about a year." Saba became a lender at a bank, and Walter had also taken a new job. Fast forward to 2009, when the two revisited the idea of selling the bikes on a massive scale. "We started talking again and agreed that we wanted to give it a shot, full-blown," Saba said. "We got some private investors for loans, no equity, and we opened a 2,400 square-foot building with 20-25 used bikes." It's a business model that has some sheen to it, as the company is experiencing an impressive average year-over-year growth rate over its five riding seasons. "It's 100 percent used business, and last year we did $3.6 million in sales — no parts or accessories then because we weren't in the new building yet," Saba said. "Now we do have a full parts, apparel and service department, and we're aiming to sell 500 used bikes this year." Saba uses extensive photos and videos to market the bikes, which will continue to be important now that the business has moved into a 25,000 square-foot former Saturn dealership in Elmhust, sandwiched between a Honda car deal- ership and Buick/GMC store. The front show- room has added PG&A to go along with bikes, and the expansive service department in the back of the store now holds the bulk of the bike inven- tory. Saba said he likes to keep 200 bikes in stock. Previously an online-only retailer, iMotorsports in Chicago moved into a former Saturn dealership and added PG&A and service to its offerings. See Chicago, Page 42 iMotorsports business partners Haider Saba (right) and Tim Walter bring complementary skills sets as they aim to make the dealership a national player in the sale of pre-owned motorcycles.