I'm all in favor of supporting local (NZ) businesses, if they aren't taking the piss

[breakaway]

I would like to reference the below thread about how a 'supplier' forced a local store to gouge the fuck out of their customers. Not motorcycle related but the same principle applies.

http://www.gpforums.co.nz/threads/45...omputer-Lounge

The thing is, despite the Supplier/Importer causing the price inflation, the customer base is going to interpret the prices as the shops trying to gouge the customer. Most people have no idea of how things work, nor the inclination to figure it out.

It seems no one (shops) cares enough to rectify the situation (i.e. talk to someone higher up in the chain). They just whinge about how hard it is to run a business in NZ and how "New Zealand is too small, can't do anything about it".

They said the same thing about internet in NZ. Internet was horrendously expensive. Not uncommon to pay over $140 for over 100GB of data. 200GB plans were virtually unheard of. Then practically overnight, unlimited ADSL/VDSL plans were available for next to nothing. What changed? Unbundling. The govt sacked up and saw that Telecom (Spark) were either greedy or incompetent (or both) and resolved the situation. Artificial 'limitations' designed to maximise profits were removed. The govt essentially stepped in and stopped Telecom from charging the earth to other ISPs. As a result, broadband uptake and speeds rival and even surpass Australia now.

I guess what I am driving at is, something similar needs to happen in this industry as well. In the age of cheap global shipping, international purchasing is easier, safer and faster than ever and the local businesses need to adapt if they want to thrive. If that means challenging the supplier, so be it. Burying head in the sand and screaming the same bullshit excuse that they've been using for the past few decades isn't going to fly anymore.

[Edbear]

I would like to reference the below thread about how a 'supplier' forced a local store to gouge the fuck out of their customers. Not motorcycle related but the same principle applies.

http://www.gpforums.co.nz/threads/45...omputer-Lounge

The thing is, despite the Supplier/Importer causing the price inflation, the customer base is going to interpret the prices as the shops trying to gouge the customer. Most people have no idea of how things work, nor the inclination to figure it out.

It seems no one (shops) cares enough to rectify the situation (i.e. talk to someone higher up in the chain). They just whinge about how hard it is to run a business in NZ and how "New Zealand is too small, can't do anything about it".

They said the same thing about internet in NZ. Internet was horrendously expensive. Not uncommon to pay over $140 for over 100GB of data. 200GB plans were virtually unheard of. Then practically overnight, unlimited ADSL/VDSL plans were available for next to nothing. What changed? Unbundling. The govt sacked up and saw that Telecom (Spark) were either greedy or incompetent (or both) and resolved the situation. Artificial 'limitations' designed to maximise profits were removed. The govt essentially stepped in and stopped Telecom from charging the earth to other ISPs. As a result, broadband uptake and speeds rival and even surpass Australia now.

I guess what I am driving at is, something similar needs to happen in this industry as well. In the age of cheap global shipping, international purchasing is easier, safer and faster than ever and the local businesses need to adapt if they want to thrive. If that means challenging the supplier, so be it. Burying head in the sand and screaming the same bullshit excuse that they've been using for the past few decades isn't going to fly anymore.

In defense of some, it can be difficult when importing to keep the NZ retail price close enough to the Overseas price without low overheads. I priced the batteries retail as close as I could to the US price taking into account GST, freight and the exchange rate. So my margin as the National Distributor to my dealers is very tight. The fact that I work from home means overheads are very low with no shop space or wages to cover. I doubt I could compete otherwise.

[5ive]

If I don't know how to fix/install something, and I don't have time to learn how, I'll happily pay the market rate for parts and local labour.

I won't however pay someone else twice the price just to jump on the internet and order a product from an overseas supplier. I can already do that myself...

[breakaway]

In defense of some, it can be difficult when importing to keep the NZ retail price close enough to the Overseas price without low overheads. I priced the batteries retail as close as I could to the US price taking into account GST, freight and the exchange rate. So my margin as the National Distributor to my dealers is very tight. The fact that I work from home means overheads are very low with no shop space or wages to cover. I doubt I could compete otherwise.

I can appreciate the concept of volume. There is definitely truth to NZ being a small market and therefore smaller volume which means higher unit prices. What I do take issue with however is this fact being used to justify RIDICULOUS prices on items, sometimes coupled with silly "ex japan" wait times.

I have no issue with paying a (fair) premium for the convenience of being able to go down to the shop and get what I want, right there and then. But if the premium is 2-400% of the item price, then forget it.

[Edbear]

I can appreciate the concept of volume. There is definitely truth to NZ being a small market and therefore smaller volume which means higher unit prices. What I do take issue with however is this fact being used to justify RIDICULOUS prices on items, sometimes coupled with silly "ex japan" wait times.

I have no issue with paying a (fair) premium for the convenience of being able to go down to the shop and get what I want, right there and then. But if the premium is 2-400% of the item price, then forget it.

I agree. The price needs to be justifiable.

[ckai]

I would like to reference the below thread about how a 'supplier' forced a local store to gouge the fuck out of their customers. Not motorcycle related but the same principle applies.

http://www.gpforums.co.nz/threads/45...omputer-Lounge

.

Ahhhh, this makes sense now. I brought a pair of Sennheisers around that time from them and when I brought some more headphones just recently, I could have sworn I didn't pay anywhere near what they have them listed for now. Makes the price I paid seem like a steal.

I do think distributors need more of the blame regarding NZ pricing. Some retailers must get pissed off with the attitude towards them when it doesn't have that much to do with them. Oh well, the only way it'll change is when the distributors go out of business, and just like it is in Kiwiland, blame everyone else apart from themselves.

[Katman]

I don't mean to sound harsh but isn't the bottom line; if these stores die in NZ, the public just go online and purchase from overseas stores with better service and better prices anyway right? So what's the motivation to support these NZ retailers?

Don't forget, you'd also miss out on the opportunity to try something on in a local shop before heading back to your computer to purchase from overseas though.

[Tazz]

I would like to reference the below thread about how a 'supplier' forced a local store to gouge the fuck out of their customers. Not motorcycle related but the same principle applies.

http://www.gpforums.co.nz/threads/45...omputer-Lounge

Ha! They say they discourage 'grey imports' and in the same breath pull that shit.
Good on that business for being transparent about it. Some would be worried about backlash from the wholesaler for that. Personally I'd just put them on sale for most of the year as a bit of a FU if I was happy with less than RRP.

[Crasherfromwayback]

Don't forget, you'd also miss out on the opportunity to try something on in a local shop before heading back to your computer to purchase from overseas though.

Lol. Or test ride a bike they want to buy privately off TM!

[catharsis]

Don't forget, you'd also miss out on the opportunity to try something on in a local shop before heading back to your computer to purchase from overseas though.

I don't really see that as an issue.
I could pay shipping and gst twice to get the size right and still be cheaper than NZ retail.
Never got the size wrong from the measurement charts yet though.

[Tazz]

In defense of some, it can be difficult when importing to keep the NZ retail price close enough to the Overseas price without low overheads. I priced the batteries retail as close as I could to the US price taking into account GST, freight and the exchange rate. So my margin as the National Distributor to my dealers is very tight. The fact that I work from home means overheads are very low with no shop space or wages to cover. I doubt I could compete otherwise.

Yes but as a wholesaler you want to be moving a large volume with a small margin. The idea is to have things priced so your customer can sell heaps and also make a dollar from them. This is where some wholesalers go wrong, they want a retail cut which pushes the price right up for the end user and makes it uncompetitive. It is the same as having a product go through one to many distributors adding their cut.

I can appreciate the concept of volume. There is definitely truth to NZ being a small market and therefore smaller volume which means higher unit prices. What I do take issue with however is this fact being used to justify RIDICULOUS prices on items, sometimes coupled with silly "ex japan" wait times.

Freight is a killer, although I worked for a parts place that used to put a markup on the freight charge too (air or sea) which I don't agree with. Pushed the price for air freight stuff up an insane amount.
Different story if your wrapping something in heaps of bubblewrap and throwing it in the courier yourself. I don't begrudge covering the cost of packaging.

[Big Dog]

You'd be lucky to find any bike shop that keeps steering head bearings in stock... our local shop doesn't even stock spark plugs now. There are so many variations its about $$$$ worth of stock to hold when they can be ordered in overnight as needed.
If you were a shop would you want your cash earning interest at bank or stuck in a set of head bearings sitting on shelf for six months....

Most good bike shops carry the most common plugs and bearings they sell. When the head bearings on my Hayabusa needed the all balls treatment they were in stock. Common part to many bigger bikes. The head bearing for the DR is in the shed somewhere. Was bought for my wife's GN. Same part etc.

Not carrying 2-300 worth at wholesale may save your inventory a little but will punch you in the bottom line if you don't. This does require a little analysis of past sales. But that is a part of running any retail outlet professionally.

I won't get work done in places that don't stock at least a range of these sorts of parts. I can't afford to be without my bike while I wait for them. But then I go in for a service I make sure the mechanic knows what is likely needed. E.g air filter is 40,000 old spark plugs only 6000 so they can have any unusual stock available when I drop the bike off


Stupid phone / Tapatalk, apologies in advance.

[Mike.Gayner]

In regard to the OP, you forgot customs duties ($47) and shipping, likely another 50odd, so your 650 local (@RRP) is 26% more than your 515 foreign (@ RRP-25%).

Where are you getting customs duties of $47? Most products have 0% duties including bike parts and almost all electronics. If you're talking about customs charges, you're talking about a couple of dollars once you've spread the cost across a container load of goods.

[mossy1200]

Where are you getting customs duties of $47? Most products have 0% duties including bike parts and almost all electronics. If you're talking about customs charges, you're talking about a couple of dollars once you've spread the cost across a container load of goods.

When you get hit with the over $400 including freight GST charge 15% you also get a handling and bio security charge on top of the GST now.

[SNF]

Yeah if its something I can't do - lack of skill/tools etc. I'll check pricing first. I just got brake pads for my bike front and rear, had a look on ebay $25 gets you a set. Found both sets here in NZ for $25 each on sale. Ferodo and EBC, good brands will happily rock them on my bike. I got lucky since they are on sale. Some stuff you see on TM and its just someone marking up off Ebay, screw that.