Dealer/distributor price gouging continues unabated

**Bassmatt** · 2nd February 2012, 12:22

Yes I know there is a thread on here about this but I cant seem to find it so....
After my trip through the Forgotten Highway
http://www.kiwibiker.co.nz/forums/sh...ighway-Warning

I found that stones and tar had got up into my radiator fan preventing it from turning and caused the motor to burn out. So I made a call to my friendly Kawasaki dealer to order a new one.....

$600!!!
" I only want the fan" I told him "not the radiator as well". "Yes sir one radiator fan without the radiator is $600".

So thats yet another purchase that will be going offshore.
US$40 on Ebay, second hand.

**Maha** · 2nd February 2012, 12:40

Local suppliers may wise up.....eventually.

**Katman:Me** · 2nd February 2012, 12:42

Don't point the finger at the dealers.

Pricing rests solely with the distributor.

**MSTRS:Me** · 2nd February 2012, 12:47

Originally Posted by Katman

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Don't point the finger at the dealers.

Pricing rests solely with the distributor.

Eh! Wrong! Pricing rests with each step of the chain. Finishing with the retailer. Who may or may not add a murderous markup.

**Maha** · 2nd February 2012, 12:47

Originally Posted by Katman

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Don't point the finger at the dealers.

Pricing rests solely with the distributor.

...its the markup that makes a difference.
Example: a brand new item was purchased two weeks ago (actually, we got it for free) but it cost $38.00 if you know the right people.
Over the counter..its $65.00

**FJRider** · 2nd February 2012, 13:06

Originally Posted by Maha

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... but it cost $38.00 if you know the right people.
Over the counter..its $65.00

Is that "if you know the right people" price ... inclusive of GST and delivery charges ... ???

**Bassmatt** · 2nd February 2012, 13:07

Originally Posted by Maha

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Local suppliers may wise up.....eventually.

I w.onder if they even WANT to be supplying parts, at these prices eventually no one will even ask for a price on a part so they wont need to stock them.
Also was quoted $18 for a bolt which Im sure the factory in China spits out for a couple of cents each.

**Maha** · 2nd February 2012, 13:13

Originally Posted by FJRider

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Is that "if you know the right people" price ... inclusive of GST and delivery charges ... ???

Free of both...like I said, it cost us nothing.
My point was, the Markup on the product is almost double.

**Scuba_Steve** · 2nd February 2012, 13:16

Originally Posted by MSTRS

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Eh! Wrong! Pricing rests with each step of the chain. Finishing with the retailer. Who may or may not add a murderous markup.

and that right there is the problem we having, too many links in the chain each adding their 50% mark-up regardless of any "value" added in getting it to it's final destination, you the customer.

**Katman:Me** · 2nd February 2012, 13:19

Originally Posted by MSTRS

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Eh! Wrong! Pricing rests with each step of the chain. Finishing with the retailer. Who may or may not add a murderous markup.

The distributor sets the recommended retail price.

They would not look favourably on their dealers/retailers starting pricing wars.

**zeocen** · 2nd February 2012, 13:21

The ZX14 needed a new lower fairing cowl and it was something in the order of $340. Got it and went to install it and noticed it didn't have the little foam strip where you join the two fairings together. Called up and asked about it, "Oh that's an extra $40".

A TINY STRIP OF FOAM.

FOURTY DOLLARS.

**BoristheBiter** · 2nd February 2012, 13:26

Originally Posted by Bassmatt

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Yes I know there is a thread on here about this but I cant seem to find it so....
After my trip through the Forgotten Highway
http://www.kiwibiker.co.nz/forums/sh...ighway-Warning

I found that stones and tar had got up into my radiator fan preventing it from turning and caused the motor to burn out. So I made a call to my friendly Kawasaki dealer to order a new one.....

$600!!!
" I only want the fan" I told him "not the radiator as well". "Yes sir one radiator fan without the radiator is $600".

So thats yet another purchase that will be going offshore.
US$40 on Ebay, second hand.

Was it in stock or did they have to order it in? We put a bigger mark up on stock items than ordered parts.
Are they a direct suppler or does it come in from Aussie? Anything we get via Aussie is double the price.

On saying that $600 for a $40 part, there is something wrong there.

**Katman:Me** · 2nd February 2012, 13:30

Originally Posted by Maha

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Free of both...like I said, it cost us nothing.
My point was, the Markup on the product is almost double.

No, it's not Mark.

That $38 (cost price) part that you got free would no doubt cost the dealer $38 plus GST plus freight.

That would take the true cost price to the dealer nearer to $50.

A $15 mark-up is hardly exorbitant.

**MSTRS:Me** · 2nd February 2012, 13:32

Originally Posted by Katman

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The distributor sets the recommended retail price.

They would not look favourably on their dealers/retailers starting pricing wars.

They might state a RRP, but really? They 'set' it? I doubt that. They charge the dealer $X and 'suggest' that $Y is what the dealer should sell it for. But the dealer is the one who understands the retail game, and the dealer sets the price he is comfortable with. Sometimes the markup is high, and sometimes it's not. If dealers all over the country sold the same item at the same price, that would make a mockery of the freight part of the price eh? Pity the poor bastard in Invers having to sell at the same price as the dealer right next door to the wholesaler in Orks.