Fecking markups

[nzmikey]

Ok so can someone EXPLAIN to me how & why this happens .
So I am looking for a new Front Brake Disc for my CB250F Hornet ( simple right ? )

Check Ebay ..... Dont ship to NZ
Goto MetalGear.com ....... Aud$170 ( Mint )
Send email off to Metal Gear asking for a cost of shipping to Auckland , Nz
Reply back ( from Nz agent ) :
Hello Mike,

We are the NZ distributor for MetalGear and as such your email has been forwarded to us.

We carry this disc in stock, so it is available directly to you through any motorcycle dealer in your area, or alternatively through www.bits4bikes.co.nz
The link to your disc is here: http://www.bits4bikes.co.nz/parts/honda/2367.aspx

Sweet this should be easy ........ Click link ........ & fair shit :crazy: Nzd$402 you have got to be kidding me .
so I phoned the guy up & asked him what the price is for said Item ( I was thinking that the site may have been out of date )
I got the same answer .

Me: Yeah Hi calling about a Break Disc for a CB250F Hornet
Agent: Yeah the direct link is in the email I sent
Me: yeah I saw that , I just wanted to check the price was current .
Agent: Yeah it is whys that ?
Me: coz it is fucking $402 , that is retarded , I can get this from MG @ Aud$160
Agent: Yeah but they wont sell it / ship it to you , you have to use an NZ agent .
Me: If i get my F.I.L to send it to me I can get it cheeper than Nz$402 even with the exchange rate & SHipping ..... What gives ?
Agent : We dont set the costs , we just sell it ........
Me: Bullshit thats fucking retarded ..... *click*

Yeah ok I was a little harsh on the guy but come on , I am sick of getting screwed over buy company's who have MASSIVE markup's on products , If there is a cheaper way of getting parts then I will find it .

Now you cant tell me it is Supply in demand etc & the fact that they are running a company , I am in the sales industry & yes we have mark ups but they are not MASSIVE .

TL;DR ....... Why are we getting screwed on prices here in NZ when we can buy it cheaper from overseas
MetalGear Link (http://metalgear.shopau2.info/mgear-brake-disc-front-right-p-6288.html) VS Bits4Bikes Link (http://www.bits4bikes.co.nz/parts/honda/2367.aspx?terms=brake)

[nodrog]

Holyshit! parts are really that expensive in NZ? thanks for pointing that out :niceone:

[avgas]

There is a guy selling disc in Waihi. He lists them on trademe. Give him a bell. Last time I saw his prices they were around half that.

[Latte]

Holyshit! parts are really that expensive in NZ? thanks for pointing that out :niceone:

I know!, we should go protest and occupy something. I like occupying my couch, and protesting lack of beer by diminishing the available resource I currently have.

[bogan]

Why did you ring the supplier? seems better to ring up the NZ distributor (edit, or did you ring b4b, i can't really tell), as they are to blame for the price. Also, you can get an EBC from UK for metalgear NZ money, put in some HH pads and it'll be fookin mint!

[gijoe1313]

:wait: Ah yes, the premium for living in god's own country! Tard'me often has some discs for sale now and then, may even be the guy mentioned earlier!

[Ronin]

Right.

Convert it to NZ Sheckels
Add Freight
Add GST
(there may be a middle man here in which case add more GST and freight)
Add markup - which believe me, will be fuck all compared to what you think it is
Sell... After being abused for how fucking expensive it is
Pay all your overheads

Now work out how much you have left. Good on the supplier for protecting their resellers.

[nzmikey]

Why did you ring the supplier? seems better to ring up the NZ distributor (edit, or did you ring b4b, i can't really tell), as they are to blame for the price. Also, you can get an EBC from UK for metalgear NZ money, put in some HH pads and it'll be fookin mint!

Went into Cycletreads , They looked up the part ... nill stock , on advice of a mate I checked Ebay , found what i wanted ( ended up being MG , so i emailed them & ended up with the reply at the top with an answer of $402

[Brian d marge]

roughly ,

225 cost

250 incl post

50 % odd mark up to cover everything what thats about 120

sell price 450 odd

no I'm not reaching for a calculator .... but hes probably got between 30 and 50 % mark up

So , you can suddenly see how many of these thing ya need to shift to pay the salary ....


The whole retailing is out of whack I reckon , maybe we are going towards a more centralized market ???


Stephen

still works out to under 20 k yen which ain't a lot

[Jantar]

Right.

Convert it to NZ Sheckels
Add Freight
Add GST
(there may be a middle man here in which case add more GST and freight)
Add markup - which believe me, will be fuck all compared to what you think it is
Sell... After being abused for how fucking expensive it is
Pay all your overheads

Now work out how much you have left. Good on the supplier for protecting their resellers.

Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?

[Gremlin]

NZ$402 is probably the NZ RRP. The people you rang probably won't sell it for that. They'll sell for less to the dealer, the dealer then adds their margin, sells to customer for around NZ$402.

At this point, you may have a good relationship with the dealer, they cut you a deal on the margin etc, and make a smaller one, and you pay less than NZ$402.

[Brian d marge]

Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?

hey for a wild guess I wasnt fat out ! ,,,8 dollars ,,, and 91 to pay staff with,,,

eeeewwwwwww

Stephen

[Edbear]

As an importer, I know the difficulties of trying to keep the price as close as possible to the US price. It's a tricky calculation as I pay freight, (air), and fees and GST upon landing, I have to account for fluctuations in the exchange rate, and my last order went through just as the exchange rate dropped 6c, costing me a lot more, (you'd be surprised what a difference a day makes to your bottom line!). Customers want stable pricing, too, not up and down according to the exchange rate, I have to absorb that.

Being the sole distributor for NZ I have to carry warranties until I can send the batteries back to the US at my cost in freight, and they refund or replace, leaving me out of pocket for a couple of months. (Fortunately it is rare for a Shorai to go wrong). I cannot afford to upset my customers and dealers by making them wait and Shorai's philosophy is to satisfy the customer first, then worry about the dud.

I have to invest heavily in stock and of course the most popular sizes sell out first meaning I have to re-order with a minimum quantity before I get the money back for the previous order. I am relying on volume sales to make my money and as yet have taken very little out of the business as I need to build it up and that means putting the profits straight back into it.

Some models will take a long time to sell and they are just sitting on the shelf, money in waiting. I think I have the pricing about right even though I feel it is a wee bit more than I'd like to see. I do agree the OP's example seems a rip-off but there may well be a good reason behind it. For example I usually offer KB'rs a discount and free shipping which means I miss out on the best profit, but as I say, I am looking towards the future and increasing volume.

Hope a bit of insight to the importing business helps.

[Madness]

There's also the other glaringly obvious differences;

Metalgear AU - AU Bike Dealers - Aussie GST @ 10% - Retail $170

Vs.

Metalgear AU - NZ Distributor - NZ Bike Dealers = 1 additional link with another minimum 30% markup and our GST at 15% every link in the chain. This, coupled with an exchange rate at $0.76 and a difference in average wage and cost of living.

If only Australians weren't so fucking irritating.....

[Ragingrob]

Whoa and your friggen convo with the guy is fully in 3d, epically screwed my eyes over!

[imdying]

Customers want stable pricing, too, not up and down according to the exchange rate.Not true. It goes up and down daily if I buy it off anywhere other than in NZ, doesn't make a difference to me as a customer. I might wait to order if the currency is going up and down a lot, but only if it's an item worth more than few thousand.

[Brian d marge]

Im beginning to think this whole consumer lark isn't such a good Idea and maybe buy once and repair is the better option ...who cares if the 2012 bike had ATAC or HISS .. or what ever (funnily enough I now now how the come up with these words ...more fool me ...)

buy NZ made Disks .....

Stephen

[Drew]

buy NZ made Disks .....

Stephen

The only NZ made disks I can think of are crap. They warp real fast because of how they're made.

[Maha]

''I am sick of getting screwed over buy company's who have MASSIVE markup's on products''

You do buy petrol and milk dont you?....:rolleyes:

[oneofsix]

''I am sick of getting screwed over buy company's who have MASSIVE markup's on products''

You do buy petrol and milk dont you?....:rolleyes:

just because you are trapped into buying from companies with massive mark-ups doesn't mean you don't get sick of it but you still have to do it. Isn't it nice and reassuring that we have the likes of the Commerce Commission and Fair Trading act to ensure these companies don't rip us off :whistle:

[Edbear]

Not true. It goes up and down daily if I buy it off anywhere other than in NZ, doesn't make a difference to me as a customer. I might wait to order if the currency is going up and down a lot, but only if it's an item worth more than few thousand.

Off-shore purchasers expect to be subject to the exchange rate, but the listings are usually set and consistent, it's like taking into account the variable freight costs in NZ.

The problem with frequently adjusting prices is customer frustration and demands for refunds if the item they bought yesterday goes down the next day. While the exchange rate is significant for the importer purchasing thousands of dollars worth of stock, it makes little difference to the individual price on the shelf, and the adjustment would be self-defeating and require a lot of administration work.

It's been said before, but bears repeating, that while I have to absorb the extra cost when the rate drops and the customer would welcome a drop in price if the rate goes up, the customer doesn't want to pay the extra for the rate drop that I have to. Better to set a realistic price with a small margin for rate fluctuations and give a stable prce structure.

From time to time it may be feasible to offer a special price if the importer has a significant win or his supplier runs an offer but you've seen the outcry over Honda recently slashing their prices. Great for the new customer, but the poor sod who paid thousands more the day or week before would be spitting tacks!

[5150]

For me is easy. Have family in Chicago. Surf Ebay, pick what I need and if it doesn't ship to NZ, I ask my family to buy it for me. Generally within USA it's free shipping. I wire them money and they send it to me once they receive it. Ok, so it might take 3-4 days extra but I think it is worth it.

There are also sites on the net where you can set up US shipping address. The goods are shipped there and then redirected to you. It only costs about $10/ year to have this account but if you ship lots of parts then it is money well spent

[MSTRS]

Quote Originally Posted by Jantar View Post
Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?
hey for a wild guess I wasnt fat out ! ,,,8 dollars ,,, and 91 to pay staff with,,,

eeeewwwwwww

Stephen

Yes - take off Aus GST, but then the net + freight = $240. Your calcs show that somebody just made $27 without justification.

[imdying]

The problem with frequently adjusting prices is customer frustration and demands for refunds if the item they bought yesterday goes down the next day.No, when I return overseas, they refund the original purchase price, not the current one, as would you.

Floating prices don't frustrate customers, they used to. Now what pisses us off is apparent hideous margins. Every week the price of cans of coke changes at the market, I deal with it and the scores of others that float just fine. The only reason that the Honda pricing upset was that it was unusual and a huge change.

[nzmikey]

roughly ,

225 cost

250 incl post

50 % odd mark up to cover everything what thats about 120

sell price 450 odd

no I'm not reaching for a calculator .... but hes probably got between 30 and 50 % mark up

So , you can suddenly see how many of these thing ya need to shift to pay the salary ....


The whole retailing is out of whack I reckon , maybe we are going towards a more centralized market ???


Stephen

still works out to under 20 k yen which ain't a lot
Ok so I have have jumped up & down a little bit when I say massive , but I would think that the NZ agent would not be paying $170per disc I am figuring that there would be a "cost" price lower than that , Why would the NZ agent pay Aust Retail ? ..... Remember .... Retail , Trade , Cost .........

[Jantar]

Yes - take off Aus GST, but then the net + freight = $240. Your calcs show that somebody just made $27 without justification.
You are correct, my mistake. It's even worse, because the 30% mark-up is on the entire price, so that $27 gets inflated by 30% as well. It still re-inforces that for may items buying direct from overseas is the best way.

I support my local retailers up to the point that an item is 50% dearer in NZ than importing it myself.

[Brian d marge]

The only NZ made disks I can think of are crap. They warp real fast because of how they're made.

its built in , generally by puberty

Stephen

but , ..here companies research , refine ,,,does anyone remember the early 70 disks ...truly horrible , Does, is there any benefit/ money for research and development ?

oh well off overseas to buy

[Brian d marge]

Ok so I have have jumped up & down a little bit when I say massive , but I would think that the NZ agent would not be paying $170per disc I am figuring that there would be a "cost" price lower than that , Why would the NZ agent pay Aust Retail ? ..... Remember .... Retail , Trade , Cost .........


no , you had a normal reaction to paying a perceived " double the price " ,,, looked at from my point of view 400 dollars ( and I know this is going to sound odd) but 400 dollars is a a night out on the piss, ive spent that on a handful of sticks with meat on them and a bottle of beer ( i nearly died when I saw the price), so from my point of view not so bad ,

not a lot you can do its the price you pay for living in NZ


As I have said, I'm not sure this whole consumerism thing is such a good Idea after all .... may work for disposable items such as Iphones , and wife ( should be recyclable) but for large items such as cars and bikes ...... they should be repairable ( india , but with better quality )

anyway , I would say what ever works out cheaper , go with that ,,, as my friend here says , work hard , save the money , tighten the belt .....its an oldie but a goodie !

Stephen

[Dodgy]

I wouldnt buy metalgear either - unless you want warped discs. I purchased two and one warped within three months. Returned it for a refund and then went and purchased EBC from Cycle Brakes in the US - for a better price than the metalgear.

At least if you buy local and there is an issue - you can just return it for a replacement or refund. If it was purchased from overseas, you will be lumbered with the cost of returning it for exchange or refund.

[imdying]

If it was purchased from overseas, you will be lumbered with the cost of returning it for exchange or refund.Not will, may. FWIW any time I've had a problem with an overseas product, they have sorted it all out. Hell buy from the Chinese and they let you keep the knackered/wrong bit.

[placidfemme]

:violin: another pointless rant.

Buy some real brake discs and not the cheapest rubbish you can find. But on the bright side the Metal Gear Disc's come with Free pads, which RRP at approx $27. So brings your disc value under $400 in comparison. Regardless of what the pricing is, on average most bike shops know the quality of those, so they will normally dicount them for you anyway (got to love the old addage... you get what you pay for), despite the margin being super small.

[DMNTD]

:violin: another pointless rant.

Buy some real brake discs and not the cheapest rubbish you can find. But on the bright side the Metal Gear Disc's come with Free pads, which RRP at approx $27. So brings your disc value under $400 in comparison. Regardless of what the pricing is, on average most bike shops know the quality of those, so they will normally dicount them for you anyway (got to love the old addage... you get what you pay for), despite the margin being super small.

Bullshit....m'bike shops are rip off cunts that make $$$$$$$$$$$ hand over fist, live in flash houses, oh and they own all of their bikes too!
Wankers...without exception! :niceone:

[RDJ]

As an importer,<>Hope a bit of insight to the importing business helps.

Agreed. I support local buying when I can and if I can pay and receive what I need in NZ with personal service and after-sales follow-up if needed, this is preferable.

[Edbear]

Agreed. I support local buying when I can and if I can pay and receive what I need in NZ with personal service and after-sales follow-up if needed, this is preferable.

Yup, imagine if you were to import a battery yourself and it went wrong, or it wasn't the correct model for your bike? I can't help you but to sell you the correct or good one outright. I can't warranty yours or trade it in even though I'm the NZ agent.

You'd have to send it back to the place you bought it from. :bye:

[placidfemme]

Bullshit....m'bike shops are rip off cunts that make $$$$$$$$$$$ hand over fist, live in flash houses, oh and they own all of their bikes too!
Wankers...without exception! :niceone:

:bleh: Good old KB aye!

[imdying]

Yup, imagine if you were to import a battery yourself and it went wrong, or it wasn't the correct model for your bike? I can't help you but to sell you the correct or good one outright. I can't warranty yours or trade it in even though I'm the NZ agent.

You'd have to send it back to the place you bought it from. :bye:I would indeed. But having said that, I could afford to send it back twice before I paid what it would cost from you.

[Edbear]

I would indeed. But having said that, I could afford to send it back twice before I paid what it would cost from you.

Could you give an example?

[imdying]

LFX14A1-BS12, NZD$253, presumably free delivery, your site isn't very user friendly.

That cost me NZD$165 delivered from CA.

NZPost International Air is $24.10, times two, which comes to $48.20. (assumes a weight of 830gm, dimensions of 15cm x 15cm x 15cm)

So in reality I could send it back 3 times. I expect I could get a sharper price than NZD$165 delivered if I leant on them a little, perhaps not.

Being Americans, they'll happily send the replacement before I send the other one back. I have to say that the English are also usually that trusting as well.

I don't expect I would have to send it anywhere though, they do their best to make sure it's the right battery for the bike.

At that sort of difference, to me it's a toss up. Some people are more sensitive to pricing though. The deciding factor for me is generally whether I need other components also.

[TZ350]

Convert it to NZ Sheckels AUS170 = NZ$224

Take off AUS GST = $NZ201

Add Freight AUS$30 = NZ$39 Total = NZ$263

Add GST NZ$40 Total = NZ$303

(there may be a middle man here in which case add more GST and freight)

No middleman as MG directly linked their NZ agent

Add markup - which believe me, will be fuck all compared to what you think it is 30%= NZ$91 Total = NZ$394

Yes, the NZ agent is ripping off the customer to the tune of $8.

Now, is it any wonder why so many of us buy direct from overseas?

Actually you have to add GST in there twice.

1) gst paid to customs on the total cost of importing the item, ie Aus cost plus shipping.

2) gst on the retail price of the item to be collected and paid to IRD.

[Edbear]

LFX14A1-BS12, NZD$253, presumably free delivery, your site isn't very user friendly.

That cost me NZD$165 delivered from CA.

NZPost International Air is $24.10, times two, which comes to $48.20. (assumes a weight of 830gm, dimensions of 15cm x 15cm x 15cm)

So in reality I could send it back 3 times. I expect I could get a sharper price than NZD$165 delivered if I leant on them a little, perhaps not.

Being Americans, they'll happily send the replacement before I send the other one back. I have to say that the English are also usually that trusting as well.

I don't expect I would have to send it anywhere though, they do their best to make sure it's the right battery for the bike.

At that sort of difference, to me it's a toss up. Some people are more sensitive to pricing though. The deciding factor for me is generally whether I need other components also.


Actually you have to add GST in there twice.

1) gst paid to customs on the total cost of importing the item, ie Aus cost plus shipping.

2) gst on the retail price of the item to be collected and paid to IRD.

$165.00NZD delivered? Are you sure? US RRP is $USD153.95, so = NZD $210.00 +GST which I have to pay upon landing in NZ, so NZD $241.50 plus freight, say I can get it for your $24.00, so all up it's $265.50NZD. My price on the site? $253.95. How on earth am I reaping unjust profits?

[jellywrestler]

There is a guy selling disc in Waihi. He lists them on trademe. Give him a bell. Last time I saw his prices they were around half that.
they're home made and I wouldn't trust them. I asked a couple of technical questions re materials he used and he wouldn't reply, nor to mates with same queries.
Dont be fooled by good feedback, that's done in the first few days since purchase not after a bit of usuage.
If he can't divulge the materials he's got NO credibility

[Edbear]

LFX14A1-BS12, NZD$253, presumably free delivery, your site isn't very user friendly.
That cost me NZD$165 delivered from CA.

...SNIP...also.

Sorry about my website, I'm still refining it and if anyone has suggestions I'd be happy to hear them. Naturally I mean constructive suggestions... :yes:

[Madness]

...I mean constructive suggestions...

Sex sells. (http://www.shoraipower.com/images/model/ShoCalDec2010-1000.jpg)

[R1madness]

Ok so I have have jumped up & down a little bit when I say massive , but I would think that the NZ agent would not be paying $170per disc I am figuring that there would be a "cost" price lower than that , Why would the NZ agent pay Aust Retail ? ..... Remember .... Retail , Trade , Cost .........

The NZ importer will pay about the same as an Aust dealer for the part... its volume based. lets face facts... there are more motorcyclists in Melbourne than the whole of NZ. so the melbourne dealers prob buy more disks than all NZ put together. Its only fair that the Aussies can buy them cheaper.
Here is a classic example. A particular spark plug RETAILS for $9.90 in USA but the same plug retails here for OVER $60... but wait... it only fits 1 model of a particular brand of dirt bike and they wern't sold in huge numbers here (like 20 in total). The minimum order quantity for that particular brand of plug is 200 units... so here is the hard choice... do we order in the 200 and spend the rest of our days sitting on the stock which to be fair has to cover its own expences) or do we buy from the Aust importer (we cant buy it from USA as our suppliers trading rules prevent this) in smaller quantitys but have to pay a lot more? Either way we are screwed as their min order quantity is 100 units. At least we stock it... imagine the uproar if your dealer had to get a plug from USA every time you wanted 1.....
silly little country we live in.... but hey if you want to move to Aust or USA just to save a few dollars you have totally missed the point of living in NZ..

[tigertim20]

Ok so can someone EXPLAIN to me how & why this happens .
So I am looking for a new Front Brake Disc for my CB250F Hornet ( simple right ? )

Tales of woe omitted
Yeah, it sucks. but frankly, I dont see it ever changing. I meeded a new clutch for my bike. best price i could find in NZ was around $480 or so if I remember correctly. I bought my clutch fibres, steels, gasket, and springs for $270 NZD landed to my door. I dont like the idea of sending my dollars overseas, but when I can get it this much cheaper, why the fuck wouldnt I?

Sex sells. (http://www.shoraipower.com/images/model/ShoCalDec2010-1000.jpg)

the one on the left looks like she has a mouth full of semen.
or really big teeth.

[Jantar]

Actually you have to add GST in there twice.

1) gst paid to customs on the total cost of importing the item, ie Aus cost plus shipping.

2) gst on the retail price of the item to be collected and paid to IRD.

No GST only gets paid once. At the retail level the retailer can claim back any GST already paid, then add GST onto the new (lower) total.

[Owl]

I had a similar experience when I wanted a Sargent seat.

My e-mail to Sargent was forwarded to their Australasian (Oz) distributor, who in-turn replied to me. The price increased from about US$360 to AU$750, though the Oz price included freight to NZ. At the time with gst added, I would've had little change from $1k.

By accident, I found one in the US on sale and had it landed here for a total of NZ$503 ;)

[ajturbo]

i want a belt for my buell..
phoned up 3 H/D dealers... cheapest was dunedin.. $380....
i got it from American Sports bike DELIVERED $285.00.....:yes:

[MSTRS]

$165.00NZD delivered? Are you sure? US RRP is $USD153.95, so = NZD $210.00 +GST which I have to pay upon landing in NZ, so NZD $241.50 plus freight, say I can get it for your $24.00, so all up it's $265.50NZD. My price on the site? $253.95. How on earth am I reaping unjust profits?
As an importer/reseller, you pay retail prices on your stock? :gob:


Yeah, it sucks. but frankly, I dont see it ever changing. I meeded a new clutch for my bike. best price i could find in NZ was around $480 or so if I remember correctly. I bought my clutch fibres, steels, gasket, and springs for $270 NZD landed to my door. I dont like the idea of sending my dollars overseas, but when I can get it this much cheaper, why the fuck wouldnt I?


Why not? The importer does...and when you buy off him (or his reseller) you just get to circulate the extra in the local economy.

[Edbear]

As an importer/reseller, you pay retail prices on your stock? :gob:

.

Of course not, I get a dealer discount for minimum order quantities. It means I have to spend thousands of dollars each time for an order and see many batteries sitting around for a couple of months or three as they are not as in demand as others but I do have to stock them. This order I was able to spend more on faster moving stock and hopefully as time goes by, I'll build my stocks enough to cover the complete range and have the oddball one for those bikes that are a bit unique.

As another poster pointed out, minimum order quantities are another expense we have to put up with if we want to be a dealer. We can't just import what we want or need immediately. Also, the larger orders mean we can spread the freight cost over a larger number of batteries bringing the per item cost down.

By being realistic and modest with my margins, I am able to keep the NZ retail price within cooee of the US price so customers don't feel they are being ripped off, although to be honest, I should be charging more.

[MSTRS]

OK. Your post I quoted seemed to suggest that you pay the same as any private purchaser.
The point about having to bring in large quantities of varied stock is a good one. There's no money in goods sitting on the shelf. And until you shift them, at a profit, you have no business, and won't be around long. Not a lot of people seem to understand that...

[tigertim20]

$165.00NZD delivered? Are you sure? US RRP is $USD153.95, so = NZD $210.00 +GST which I have to pay upon landing in NZ, so NZD $241.50 plus freight, say I can get it for your $24.00, so all up it's $265.50NZD. My price on the site? $253.95. How on earth am I reaping unjust profits?

that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

Bottom line for most people though, is how light their wallet is going to be at the end of a transaction, joe-average buyer doesnt give a fuck WHY the cost is different, he just cares that one price is significantly lower. I have almost exclusively used a local shop in Dunedin, because they have never done me wrong, but given the current climate, along with personal circumstances, I recently bought tyres from elsewhere, and a clutch kit from over seas (both in the last week). I have saved, in total over those two purchases, around $400, perhaps a tad more, because I NEEDED the parts, but couldnt afford NZ prices.

[Edbear]

OK. Your post I quoted seemed to suggest that you pay the same as any private purchaser.
The point about having to bring in large quantities of varied stock is a good one. There's no money in goods sitting on the shelf. And until you shift them, at a profit, you have no business, and won't be around long. Not a lot of people seem to understand that...


that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

Bottom line for most people though, is how light their wallet is going to be at the end of a transaction, joe-average buyer doesnt give a fuck WHY the cost is different, he just cares that one price is significantly lower. I have almost exclusively used a local shop in Dunedin, because they have never done me wrong, but given the current climate, along with personal circumstances, I recently bought tyres from elsewhere, and a clutch kit from over seas (both in the last week). I have saved, in total over those two purchases, around $400, perhaps a tad more, because I NEEDED the parts, but couldnt afford NZ prices.

You're both right. If my retail price was significantly more than the US price, I would find the same, that customers will import their own, so despite wanting a bit better margin I am counting on the business growing through reputation so that the volume I shift makes the whole enterprise worth while.

Being the sole agent for NZ means also that I am looking to sign dealers throughout the country and for them to want to sign up, they have to have a reasonable profit margin themselves. This means, a/ that my margin to them is minimal and I very much rely on bulk orders to make it worthwhile to supply them, but b/ that as sales volumes increase and the number of dealers increases, my overall dollar profit is larger and my role reduces to a supply role. Most would-be dealers are cautious if I am also retailing the batteries as they see it as unfair competition, which is true. When I sign a dealer, I ask him what his market is and what does he want to protect, then I assure him that I will not sign a competing dealer within his area for the same market. My aim is that the dealers have a good customer base with little or no competition in their sphere of the market. This keeps them happy and leads to enhancing the reputation of the brand through less discounting for competition. I don't want dealers reducing the prices in order to achieve sales. Shorai batteries are unique and there is no other battery with their technology in the market currently. So be careful if wishing to compare Shorai with other Lithium batteries. There simply is no other battery similar.

I am in discussions with a large NZ company, one of the oldest in New Zealand with a very strong reputation, to market the batteries to another type of application and if they come on board, which looks likely, I'll be ordering in the hundreds! That will raise the business to a whole nother level and will mean I go from percentages to dollars in calculating profit margins.

[ducatilover]

If memory serves correct, your Hornet has the same disk as a VTR250, VT250 Spada, CBR250R MC19 and I think CB250 Jade.
They're all cheap on eBay and readily available.

Of course there is mark up in NZ, you start a shop and beat the prices and I'll buy from you.



:facepalm:

[PeeJay]

that what people forget, or dont understand in the first place, the fact that there are often tariffs and taxes that YOU (as a business) have to pay, that a private person (like me) DOESNT have to. Its often these things that make the biggest difference, - not the small markup a business puts on to stay afloat.

.

Appropriate "tariffs and taxes" apply to any imports, regardless of who is doing the importing.

In fact business' have an advantage because any expenses, eg brokerage fees, are tax deductible, whereas they arent for a private individual

[Jay GTI]

Appropriate "tariffs and taxes" apply to any imports, regardless of who is doing the importing.



Not true, I recently bought a helmet off a German website and didn't pay any sales tax (for either country) or any import duty or in fact any tarrif or tax at all. Which is why my Fox V3 Carbon was a little over NZ$300 landed, whereas it is $600-700 off the shelves here.

[BoristheBiter]

Ok so I have have jumped up & down a little bit when I say massive , but I would think that the NZ agent would not be paying $170per disc I am figuring that there would be a "cost" price lower than that , Why would the NZ agent pay Aust Retail ? ..... Remember .... Retail , Trade , Cost .........

The way see it is you were made to go through an Aussie web site and at the moment their dollar is much higher than ours.
I had this same problem when buying a map for my Garmin gps.
I pick the one i wanted, charged in $US at the checkout part but when it went through to pay by visa it had changed to $AS (local agent) so the price went up by $80.

And surly there is more than one brake disc or site to use. I used a UK site to get my new helmet.

[PeeJay]

Not true, I recently bought a helmet off a German website and didn't pay any sales tax (for either country) or any import duty or in fact any tarrif or tax at all. Which is why my Fox V3 Carbon was a little over NZ$300 landed, whereas it is $600-700 off the shelves here.
And if a business did the same as you they would land it for the same price as well.

[Jay GTI]

And if a business did the same as you they would land it for the same price as well.

Would they? Or (assuming they are just bringing in a single helmet) would they not be under a legal requirement to pay tax and duty, being that it's being imported for the purpose of resale, they are a registered business, have to file tax returns, pay GST etc? Can't see anything on the NZ Customs website that explains that, so am curious how it works.

[Quasievil]

Threads like this make me laugh, Motorcyclist have unintentionally yet collectively fucked the NZ bike market by supporting overseas business instead of their own, then Bitch and moan about the prices in NZ compared to the overseas ones !!

Seriously WTF !!

Threads like this pop up from time to time, bikers accusing NZ based retailers of ripping you "Oh so poor bastards" off while they "go under" for lack of support with monotonous regularity

Okay so you found the international Market, good on ya, DONT compare the tiny NZ market to it expecting the same prices.

[bsasuper]

So retail owners like to make a few bucks, some just like to make a few more.I have worked in retail, the owner had a 60% profit on everything, but thats not unusual.

[Edbear]

So retail owners like to make a few bucks, some just like to make a few more.I have worked in retail, the owner had a 60% profit on everything, but thats not unusual.

That would be nice! Something to think about, though is that out of that profit margin have to come all the business running costs before the boss gets anything. I'm fortunate in that I don't have staff or premises to pay for. Add in wages for a couple of people, rental and insurance for the building, vehicle costs if you have a couple of vehicles, and the costs spiral up at a remarkable rate! Office equipment and supplies, your accountatnt wants his pound of flesh, legal costs, provisional tax if that's due, which means basically you pay your tax in advance...

Out of that 60% profit margin the boss probably gets, oh, say, .5%..?

A very popular and "successful" business I know of, (actually I know of a couple of them), is being cripppled by slow payment of its accounts as customers are struggling, add in one disgruntled customer who refuses to pay despite being do far in the wrong it is laughable, and not only did they fail to make Director's fees last month for themselves but are in danger of bankruptcy. They have little option but to take this customer to court, which they will win, but then he has to honour the judgement, by that time it could well be too late. Wher are they going to get the money to take this guy to court when they can't even afford drawings for themselves? He's their biggest debtor and very rich, and has obviously played this game before.

Businessmen have to balance their tax obligations and do a lot to minimise their tax liability which can then work against them. For example, you may work at a loss to get GST back, and avoid paying provisional tax. Making a profit means paying tax on it so many run their businesses to show little or no profit. That's fine until something like the above comes up and there isn't enough in the bank to cover the immediate shortfall. Or you have an accident and ACC won't pay diddly-squat as your drawings were nil or minimal and 80% of stuff-all is not very much. Fortunately they do now have a minimum payment to business persons in this situation or I would have had no income at all for the last 18mths.

Personally, while I am investing heavily into the business and running at a significant loss to date, my plan is to build a financial cushion and have assets behind me. I'd rather pay tax than find myself in a position where I have had a setback that I can't cover.

[PeeJay]

Would they? Or (assuming they are just bringing in a single helmet) would they not be under a legal requirement to pay tax and duty, being that it's being imported for the purpose of resale, they are a registered business, have to file tax returns, pay GST etc? Can't see anything on the NZ Customs website that explains that, so am curious how it works.

As far as customs is concerned they dont care who does the importing.
Tariffs and taxes, if applicable are charged irrespective of who is importing and why they are importing
As far as tax returns, gst etc thats all to do with the tax department, nothing to do with customs. Any gst they charge is on behalf of IRD and normal gst rules apply ie a gst registered entity can claim any gst paid and pays any gst charged.

I know a lot of small business have posted whining about all the costs they face, but they are only telling half the story.
eg
If you imported a single helmet, $300, it would turn up on your doorstep without customs getting involved.
If a business imported a single helmet, $300, it would turn up on their doorstep without customs getting involved.

The difference is if you sold the helmet you would have to sell it for $300 to break even.
The business would have to sell it for $300 + gst to break even.

If you imported ten helmets, $3000, customs would be involved and you would be paying customs fees/charges and gst
If a business imported ten helmets, $3000, customs would be involved and they would be paying customs fees/charges and gst

In this case both of you would have to sell at $300 + gst (+ share of fees) to break even

Generally speaking if the value of the import is less than $400 customs dont charge anything. Costs them more in time and paperwork than what they get back from the importer.
The reason business get charged by customs is because they generally bring in a whole swag of gear at once, pushing the value of the import over the customs threshold
The disadvantage is they are up for customs charges and gst
The advantages are
a better buy price for bulk buy
freight per item is way down
customs fees & charges are tax deductible
gst is refunded in total and only has to be paid as individual items are sold

So its not as bad as they try and make out, if it was they would import things one at a time like a private importer normally does.

As has already been stated, in many cases its too many people clipping the ticket that drives up prices in NZ.

It is tough for business out there, but thats life. Business has to get smarter rather than whinge about the internet.

[Edbear]

As far as customs is concerned they dont care who does the importing.
Tariffs and taxes, if applicable are ...SNIP...I know a lot of small business have posted whining about all the costs they face, but they are only telling half the story.
eg...SNIP...gst is refunded in total and only has to be paid as individual items are sold

So its not as bad as they try and make out, if it was they would import things one at a time like a private importer normally does.

As has already been stated, in many cases its too many people clipping the ticket that drives up prices in NZ.

It is tough for business out there, but thats life. Business has to get smarter rather than whinge about the internet.

Eh? I didn't notice any small businesses whining on here...

I have been explaining how importing and general business works and hope that by doing so others get a better understanding of business in NZ. I have also pointed out that my own pricing is very close to the US price, and in one given example my price beats the US price by quite a bit.

By the way, do you run, or have you run your own business and can speak from first hand knowledge? The two businesses I mentioned in financial strife are due to customers not paying, nothing to do with the internet at all. It was an aside.

[Jay GTI]

As far as tax returns, gst etc thats all to do with the tax department, nothing to do with customs.

I know that isn't to do with Customs, just more of a question around if you're a registered business and therefore on the Govt books, so to speak, you'd be then required to pay duty/GST on all imports, rather than just that above the $400/$50GST threshold that a private individual would have.

[warewolf]

Here is a classic example. A particular spark plug RETAILS for $9.90 in USA but the same plug retails here for OVER $60... but wait... it only fits 1 model of a particular brand of dirt bike and they wern't sold in huge numbers here (like 20 in total). The minimum order quantity for that particular brand of plug is 200 units... so here is the hard choice... do we order in the 200 and spend the rest of our days sitting on the stock which to be fair has to cover its own expences) or do we buy from the Aust importer (we cant buy it from USA as our suppliers trading rules prevent this) in smaller quantitys but have to pay a lot more? Either way we are screwed as their min order quantity is 100 units. At least we stock it... imagine the uproar if your dealer had to get a plug from USA every time you wanted 1.....Two big problems with all that.

Firstly, you are being fcuked over by your NZ supplier if they are forbidding you to order low quantities of low-demand products, and you in turn are then fcuking over your customers. The pair of you need to sort your shit out.

Secondly, what on earth makes you think there'd be an uproar if you had to get stuff ex-USA??? I get real tired of hearing about inventory costs being to blame for the prices, because 90% of the time the dealer never bloody has what I need and has to order it in. I don't give a shit about local inventory, ok? I'd rather wait 3-4 working days to get something ex-USA than wait 10-15 working days ex-factory (or even 2-3 days from NZ distributor) and pay three times the price.

I've said it before. Dealers should be able to access inventory in dealerships in the USA, Aussie, UK, wherever, clip the ticket, and supply at a reasonable price and profit in a few days. (Treat dealers worldwide as a distributed warehouse.) There is no need to persist with the outdated geo-political boundaries in the sales model... as is obvious from these threads, it's a lose-lose situation.

[warewolf]

Okay so you found the international Market, good on ya, DONT compare the tiny NZ market to it expecting the same prices.I don't expect the same price, but neither am I prepared to be shafted just because that's the traditional business model. 2-3 times the private import price is just too much.

[bsasuper]

Out of that 60% profit margin the boss probably gets, oh, say, .5%..? .

Yep about right, lots of bills and wages to pay.

[Brian d marge]

Two big problems with all that.

Firstly, you are being fcuked over by your NZ supplier if they are forbidding you to order low quantities of low-demand products, and you in turn are then fcuking over your customers. The pair of you need to sort your shit out.

Secondly, what on earth makes you think there'd be an uproar if you had to get stuff ex-USA??? I get real tired of hearing about inventory costs being to blame for the prices, because 90% of the time the dealer never bloody has what I need and has to order it in. I don't give a shit about local inventory, ok? I'd rather wait 3-4 working days to get something ex-USA than wait 10-15 working days ex-factory (or even 2-3 days from NZ distributor) and pay three times the price.

I've said it before. Dealers should be able to access inventory in dealerships in the USA, Aussie, UK, wherever, clip the ticket, and supply at a reasonable price and profit in a few days. (Treat dealers worldwide as a distributed warehouse.) There is no need to persist with the outdated geo-political boundaries in the sales model... as is obvious from these threads, it's a lose-lose situation.

agreed whole heartedly , the old business models are out the window ,in some area they may work but in others they are like the Dodo and my sex life , extint

I personally thing ALL retail outlets need to step back and have a good look at why or what they are ACTUALLY doing, Bike shops for example ( IMHO ) should now be facilitating entertainment , the clothing and spares and repair being secondary

As for this ordering parts stuff , the bike shop should tack on a premium for KNOWLEDGE and EXPERIENCE allowing the customer to get the right part cheaply , through the shop FROM overseas, and in some cases I think they are already doing that

the bikes are too reliable now a days , entertainment is where its at

anyway its my money , and it will stay in my wallet , until i am happy

end of story

Stephen

[PeeJay]

I know that isn't to do with Customs, just more of a question around if you're a registered business and therefore on the Govt books, so to speak, you'd be then required to pay duty/GST on all imports, rather than just that above the $400/$50GST threshold that a private individual would have.

The threshhold applies to business importers as well.

[SS90]

Do any of the detractors on this thread drink at a Bar?

Ever start arguments with staff/owners there about mark ups?

I can imagine it now...

CUSTOMER
" nine bucks for a Beer!... I can buy this same beer in a bottle store for less than a buck..... Your ripping me off"

BAR STAFF/OWNER

" Fuck off then"

[PeeJay]

Eh? I didn't notice any small businesses whining on here...

I have been explaining how importing and general business works and hope that by doing so others get a better understanding of business in NZ. I have also pointed out that my own pricing is very close to the US price, and in one given example my price beats the US price by quite a bit.

By the way, do you run, or have you run your own business and can speak from first hand knowledge? The two businesses I mentioned in financial strife are due to customers not paying, nothing to do with the internet at all. It was an aside.

Import and export.
The two businesses in financial strife, another outmoded business practice, credit.
If a bank wont give a customer credit why should you?

[BoristheBiter]

Do any of the detractors on this thread drink at a Bar?

Ever start arguments with staff/owners there about mark ups?

I can imagine it now...

CUSTOMER
" nine bucks for a Beer!... I can buy this same beer in a bottle store for less than a buck..... Your ripping me off"

BAR STAFF/OWNER

" Fuck off then"

That's why I don't drink at a bar.

[SS90]

Threads like this make me laugh, Motorcyclist have unintentionally yet collectively fucked the NZ bike market by supporting overseas business instead of their own, then Bitch and moan about the prices in NZ compared to the overseas ones !!

Seriously WTF !!

Threads like this pop up from time to time, bikers accusing NZ based retailers of ripping you "Oh so poor bastards" off while they "go under" for lack of support with monotonous regularity

Okay so you found the international Market, good on ya, DONT compare the tiny NZ market to it expecting the same prices.

You are right to a degree, but (correct me if I am wrong), you don't actually operate your imported bike gear business FULL TIME, and (again correct me if I am wrong), saw what you BELIEVED to be a "gap in the market" for bike gear, and, PART TIME, operate said business.

I have seen innumerable posts by yourself condemning "inferrior" branded bike gear, claiming it to be "over priced" (and so on).

To me, for you to come off as high and mighty as to members of the public bringing in their own stuff, as opposed to buying it from you is simply a case of the Pot calling the kettle black" ..... It could be said that you yourself have actually harmed existing bike shops long term viability by setting up a part time imported bike gear business, competing on "best quality for best price"

Before you get your back up though, and to put this into perspective, can you answer me this.

Approximately, how much would you have to RAISE your retail prices to be able to simply maintain your current lifestyle if you where to "quit your day job", and live solely off the gear sales....... 30%..40%.... more???????

[Edbear]

Import and export.
The two businesses in financial strife, another outmoded business practice, credit.
If a bank wont give a customer credit why should you?

I agree with you to an extent. My business is a cash business, you pay me for the item, I deliver with a receipt, end of transaction. I have to pay up front for my stock, freight and GST before I can receive it, so I think it's only fair that everyone else does the same. That way I don't have debtors owing me money.

The two other businesses work in a different sphere though with much larger transactions and longer delivery times. A job may take several weeks to complete and cost 10's of thousands of dollars. They work on progress payments in the main. I do think that in such situtations the customer should, as you suggest, take out a loan or mortgage from their bank to pay for the work. However in one case, the customer is deliberately refusing to pay with no legal right to withold payment.

[MSTRS]

To be fair, SS90, there is nothing to stop any gear shop sourcing manufacturers and importing gear for onselling. Just like Quasi does. Both are cutting out the middle men by being all things (importer, wholesaler/distributor, retailer).
The difference is, he has lower overheads, so can 'afford' to make a lower margin.* That, and do you seriously know any bike shop staff that have the time, passion, expertise and product knowledge (not to mention design and development) that is needed to do it this way?

* Actually his margin would be netting him a similar amount to that which the bikeshop owner makes. It's the markup that is important - it determines what's left when all the expenses are paid.

[Gremlin]

However in one case, the customer is deliberately refusing to pay with no legal right to withold payment.
Tell them a statutory demand for payment may be useful. However, following it through if the customer plays hard ball will be costly as it requires High Court, but would prevent receivership.

The amount must not be under dispute, they must simply be refusing to pay. I assume they're already on credit stop tho...

[Edbear]

Tell them a statutory demand for payment may be useful. However, following it through if the customer plays hard ball will be costly as it requires High Court, but would prevent receivership.

The amount must not be under dispute, they must simply be refusing to pay. I assume they're already on credit stop tho...

This guy's played the game before and is " in dispute" over the contract. He's very wealthy and completely arrogant.

[BoristheBiter]

This guy's played the game before and is " in dispute" over the contract. He's very wealthy and completely arrogant.

Auckland collections. very good and got most of our money back when this happened to us. Makes them shit when some big boys come round.

[Edbear]

Auckland collections. very good and got most of our money back when this happened to us. Makes them shit when some big boys come round.

Yeah, but they really have little choice but to take him to court.

[BoristheBiter]

Yeah, but they really have little choice but to take him to court.

You do have terms of trade right?
time to call the repo men.

[Edbear]

You do have terms of trade right?
time to call the repo men.

I think they're looking at that right now

[BoristheBiter]

I think they're looking at that right now

We actually rolled up with the truck took two big machines away. we where just about to leave before they said anything.
I took another 2 weeks after that to get our money, amazing how quickly they can get the money when it suits them.
It had only taken 18 months to get it.

[Jay GTI]

The threshhold applies to business importers as well.

I know, I did read your previous post... :msn-wink:


Do any of the detractors on this thread drink at a Bar?

Ever start arguments with staff/owners there about mark ups?

I can imagine it now...

CUSTOMER
" nine bucks for a Beer!... I can buy this same beer in a bottle store for less than a buck..... Your ripping me off"

BAR STAFF/OWNER

" Fuck off then"

Sadly that is exactly what is happening, a friend was doing very well in hospo, owned 5 bars all turning over nicely. One GFC later, he'll be working in the mines in Oz and seeing his wife and kids 4 times a year for some time, paying off his debt.

[thecharmed01]

It's a shame NZ suppliers seem to think things have to be so much more expensive, and that we should wait for them to be bothered supplying items.

I tried to purchase plastics for my bike when I bought it, and after people blatantly lying to me, and then admitting to me that it would be a 3 month wait for HALF my order, I got a refund, went home and jumped online.
Went direct to the US Manufacturer and had the complete set landed on my doorstep in 5 days for half the price.
After that I've always gone offshore before I even bother to look locally. Money talks as does service and if local bike shops had better service I might be more tempted to pay the overinflated prices, but when the service levels are so much better offshore, there really is no reason to shop here anymore.

I can see it hurts the industry, but honestly I think they all hurt themselves anyway with crappy service, so it's just another nail in their coffins.

[Edbear]

It's a shame NZ suppliers seem to think things have to be so much more expensive, and that we should wait for them to be bothered supplying items.

I tried to purchase plastics for my bike when I bought it, and after people blatantly lying to me, and then admitting to me that it would be a 3 month wait for HALF my order, I got a refund, went home and jumped online.
Went direct to the US Manufacturer and had the complete set landed on my doorstep in 5 days for half the price.
After that I've always gone offshore before I even bother to look locally. Money talks as does service and if local bike shops had better service I might be more tempted to pay the overinflated prices, but when the service levels are so much better offshore, there really is no reason to shop here anymore.

I can see it hurts the industry, but honestly I think they all hurt themselves anyway with crappy service, so it's just another nail in their coffins.

That's why I'm putting effort into price compatability and speed of service. It's worked for years and will only mean better rep as more people find me.

[DMNTD]

I can see it hurts the industry, but honestly I think they all hurt themselves anyway with crappy service, so it's just another nail in their coffins.

Despite that fact that I know of some poor instances, I think that many would actually learn a lot if you spent 3months+ working in a decent bike shop.
There are plenty of examples in threads like this which does explain why it is not exactly as it may appear from the other side of the counter.
People have some grandeur ideas as to how to 'fix things' which sadly in most cases simply just is not viable in NZ's market.

Oh my bad...dirty stealerships!

[thecharmed01]

That's why I'm putting effort into price compatability and speed of service. It's worked for years and will only mean better rep as more people find me.

I honestly don't mind what I pay for stuff. Cheaper is nice, but I'll pay top dollar for great service.

I spend a fortune on camera gear because I shop at one shop, that treats me how I expect to be treated. I could get it cheaper elsewhere, but I like that I get fantastic service so I keep going back. I even get phone calls when things I might like are in stock now haha

I also spend a slightly smaller fortune on PC gear, again I go to one shop, have done for years and the guys there are fantastic - have even been recommended by them for photography gigs which is awesome. I put all my IT clients through them in return because I know I can trust them. I have the managers personal cell and I'll call him with what I need, then send in the client to collect and they make it easy and never try to rip me off or talk to me like I'm stupid.

I'll pay more if I get the service that the price commands, so I reckon you are probably on the right track and if you can keep the service expectation high you will go a long way as you will quite literally have NO real competition in NZ when it comes to customer service.
:bleh:
Hope you do well dude!

[Edbear]

Thanks. Good fast service and backing up sales with quick response to any customer issues saw my last business back in the '90's grow fourfold in five years. Biggest problem was keeping up with the rapid growth!

I'm already stretching finances to max every month to attempt to get ahead of sales and am very fortunate to have an understanding wife!

[thecharmed01]

Well, I'll keep an eye out. Have bookmarked the site so if you expand to anything I need I'll give you a go haha
Dont need a battery at the moment that I can think of though :confused:

[ynot slow]

Looked to get new brake pads for bike,online saw price of US $19.95 Plus freight https://www.d2moto.com/shoppingcart.aspx the freight was $18.98,here is costing,but although cheap who knows how they fare,so decided to go with good old NZ bike outlet off trademe,free freight and here today or Wednesday,$129 full set sintered front and rear,at least I could ring the local outlet to get answers.

Mind you also sent an email 4 weeks ago to a bike outlet selling leather care/waterproof product I saw in store,still waiting for reply,only a $20-40 sale maybe but sure as shit doesn't endeer me to buy from them,will go to Sth Island manufacturer direct.

[Edbear]

Well, I'll keep an eye out. Have bookmarked the site so if you expand to anything I need I'll give you a go haha
Dont need a battery at the moment that I can think of though :confused:

I sell fire protection equipment including extinguishers and alarms of course; rescue equipment as used by NZ Fire service and Forestry Services; generators and pumps; Portable lighting including torches, emergency lighting and area flood lighting; bullet-proof, (literally), ESS military safety glasses which make great sunnies and protective glasses; Taipan boots; Liquid Image dive camera video masks for snorkelling, diving and jetski fun; Pelican and Nanuk military spec protective cases and the Shorai batteries.

Anything anyone may be interested in, ask and I'll give you a KB price! :cool:

[R1madness]

Two big problems with all that.

Firstly, you are being fcuked over by your NZ supplier if they are forbidding you to order low quantities of low-demand products, and you in turn are then fcuking over your customers. The pair of you need to sort your shit out.

Secondly, what on earth makes you think there'd be an uproar if you had to get stuff ex-USA??? I get real tired of hearing about inventory costs being to blame for the prices, because 90% of the time the dealer never bloody has what I need and has to order it in. I don't give a shit about local inventory, ok? I'd rather wait 3-4 working days to get something ex-USA than wait 10-15 working days ex-factory (or even 2-3 days from NZ distributor) and pay three times the price.

I've said it before. Dealers should be able to access inventory in dealerships in the USA, Aussie, UK, wherever, clip the ticket, and supply at a reasonable price and profit in a few days. (Treat dealers worldwide as a distributed warehouse.) There is no need to persist with the outdated geo-political boundaries in the sales model... as is obvious from these threads, it's a lose-lose situation.



Dude, do you really think that a small NZ based company is in a postition to tell a major international supplier how to set their international pricing structure??? 200 units is the LOW VOLUME MINIMUM, the USA minimum order for the same plug is 1000 units LOL we are lucky that they even bother to supply us at all...

I work for a importer not a retailer. We will supply overnight to any shop in NZ. As for 3 to 4 days delivery ex usa... I regularly privately import from USA (non bike related and only stuff not available here) and the standard is 7-10 working days (sometimes i get lucky and the bits are here in under a week but not often). Sure some people are ok with waiting but most are not.

I do agree that franchise dealers should be able to look and order nationally and in some cases this is possable. Internationally it has a downside. That is the NZ bike importer will stop carring any parts, even high demand ones cause they figure... "ok now everyone is happy to wait for it to come from south east kazicstan or Brisbane". So i will order it from there and hope that the 1 insignificant part i order gets sent when they have orders for bulk items comming in from other places around the world. Will they get around to sending 1 plug? maybe but i bet i goes to the bottom of the pile while they send out the large regular orders... cause they know "we are happy to wait"

There is no simple answer, support your local dealer where you can. Buy stuff in when you need to.

[Edbear]

Dude, do you really think that a small NZ based company is in a postition to tell a major international supplier how to set their international pricing structure??? 200 units is the LOW VOLUME MINIMUM, the USA minimum order for the same plug is 1000 units LOL we are lucky that they even bother to supply us at all...

I work for a importer not a retailer. We will supply overnight to any shop in NZ. As for 3 to 4 days delivery ex usa... I regularly privately import from USA (non bike related and only stuff not available here) and the standard is 7-10 working days (sometimes i get lucky and the bits are here in under a week but not often). Sure some people are ok with waiting but most are not.

I do agree that franchise dealers should be able to look and order nationally and in some cases this is possable. Internationally it has a downside. That is the NZ bike importer will stop carring any parts, even high demand ones cause they figure... "ok now everyone is happy to wait for it to come from south east kazicstan or Brisbane". So i will order it from there and hope that the 1 insignificant part i order gets sent when they have orders for bulk items comming in from other places around the world. Will they get around to sending 1 plug? maybe but i bet i goes to the bottom of the pile while they send out the large regular orders... cause they know "we are happy to wait"

There is no simple answer, support your local dealer where you can. Buy stuff in when you need to.

I could reduce the costs of a number of different items by directly importing from the manufacturer as I do with Shorai, but Shorai have a more realistic minumum order requirement, thankfully, though it has still meant I have maxed everything I have financially to become the sole agent in NZ and qualify for max discount. In time, sales will outstrip orders and I'll start to come right but meantime it makes life rather tough. However, that's the commitment you make if you want to do the best you can, you put into the venture whatever it takes and whatever time it takes.

I've got tens of thousands of dollars of stock on hand and haven't got half what I really need yet. The way things are going, my monthly order will soon become my fortnightly order. Anyone want to buy a battery..? :rolleyes:

For other items, there are usually minimum order requirements of 3,000 to 5,000 units! Even 1,000 is way out of my league! Of course I could sell the house... :confused:

[JimO]

funny how some people are moaning about bike shop mark ups and there is another thread with people moaning about bike shops not being open 7 days

[warewolf]

There is no simple answer, support your local dealer where you can. Buy stuff in when you need to.I think in part you misread my post.

You make it sound like we should be grateful we are allowing you to shaft us, because you certainly are sounding grateful your supplier is allowing you to be shafted by only ordering 200 rather than 1000 when you really only need 10.

You'll only ship overnight if you already have it in stock. Still means I can't walk in to the dealer Sat am and finish the job that afternoon. I'd rather it arrive direct from the USA by the following weekend than pay 3x the price... to wait 2-3 weeks for you to get the stuff from Japan or Europe through the outdated system. Yes my private imports arrive that fast, via USPS, not exactly a premium service either.

Whether I am "ok with waiting" or not is irrelevant - I said I'm forced to wait due to lack of inventory; I don't have the choice. I'm just sayin' change the source to improve price & speed. I'm happy with a 5 working day turnaround, heck its 2-3 times faster than the current system!

I hear what you are saying about low-volume orders being bumped - it has happened to me with tyres bought through official channels. So it won't be anything new. But funny how the wholesale levels are happy to do that, yet retailers aren't, eh? And the higher levels are trying to stop retailers who offer good customer service across geo-political boundaries.

I paid a premium to my local dealer for years because they were driven from the top with a high service ethic. Now the franchise has gone to someone else, and they suck. They are basically disinterested in selling stuff if it is not already on their shelf. Not paying a premium to get shafted, thank you. Hello private importing.

[warewolf]

Do any of the detractors on this thread drink at a Bar?

Ever start arguments with staff/owners there about mark ups?Yebbut a barman doesn't take your order then tell you to come back in a couple of weeks when he's got your beer in...

[bikaholic]

Fark me you guys have all these problems just trying to retail and buy these items, imagine what it is like trying to put designs into production here, give up, the fact that china is cheaper is just a bonus.

[DMNTD]

Yebbut a barman doesn't take your order then tell you to come back in a couple of weeks when he's got your beer in...

Fair comment....then would it also be fair if a bike shop made the same mark ups that bars do so he too could provide the same level of speedy 'service'?

[R1madness]

[QUOTE=warewolf;1130209725]You make it sound like we should be grateful we are allowing you to shaft us, because you certainly are sounding grateful your supplier is allowing you to be shafted by only ordering 200 rather than 1000 when you really only need 10.
QUOTE]

Greatfull... you got to be joking, i spent the first part of the thread saying how it was wrong... but its the rules... not my rules or even my bosses. Its the suppliers rules. Yep they suck but there is no way around it for us. Should we risk loseing our distributorship just to buy in 10 plugs from USA...?...?
Or not bother to suppply them at all??? or supply them even at a (very) high price so at least people that need them have speedy access?
Hey lets face it everyone knows how to use the internet but some people just wont... dont ask my why...

[warewolf]

Fair comment....then would it also be fair if a bike shop made the same mark ups that bars do so he too could provide the same level of speedy 'service'?Hmmm maybe; maybe you would get a split in consumption, some paying top dollar for on-premise, others using the wholesaler to save a buck.

But really I don't think it's a fair comparison. The sheer volume of motorcycle inventory items alone is a big differentiator to FMCG.

[warewolf]

Yep they suck but there is no way around it for us. Should we risk loseing our distributorship just to buy in 10 plugs from USA...?...?Ya gotta do what ya gotta do.

A few weeks ago I wanted a spark plug. No dealers in town had one, ended up picking one up at Repco, last one they had. Shoulda got one with the rest of my order for filters etc ex-USA. Almost the same story with brake pads; rang almost every shop in town and finally found the last set in stock. As slight change of topic, I've never known it this bad, but I suspect with the economic downtown shops are reducing inventory as much as they can in order to reduce costs. Which unfortunately has the negative effect of reducing service and driving customers to alternate suppliers.

[DMNTD]

Hmmm maybe; maybe you would get a split in consumption, some paying top dollar for on-premise, others using the wholesaler to save a buck.

But really I don't think it's a fair comparison. The sheer volume of motorcycle inventory items alone is a big differentiator to FMCG.

Indeed and I think it's fair to say that that is already happening on a level at the moment.
Must say that it is just one reason why I have left the motorcycle industry recently....share frustration as I can see both sides of the coin.
The main difference is that most can only see it from the consumer's point of view

[SS90]

Yebbut a barman doesn't take your order then tell you to come back in a couple of weeks when he's got your beer in...

Yes, but as DMNTD has already said, the margins a bar has allow extremely high stock levels, so high, that in some cases, PUBS ACTUALLY RUN OUT OF BEER!!!!!!!

You have demonstrated that you understand the concept that in order to survive, shops are having to lower stock levels.

Add to this the fact that, due to private imports, stock levels are lower as a result, as well as tight margins, it starts to become clear that bike shops (worldwide) are in survival mode, and most simply don't have the capital to stock parts people want, but are unwilling to pay for.

R1Madness has thrown me a bit, he has been in this game for a few decades now, and even he is (to a level) championing consumers getting their own stuff online.... I could be persuaded to consider that "special order" stuff that one person in a thousand wants is acceptable to buy online, but, things like plugs, filters, chains, sprockets??????? Support you local dealers, because if you don't, you will not be able to find a bike shop that's open 5 days a week, let alone 6! (mumble mumble, troublesome journey, mumble mumble Templeton boy)

[MSTRS]

...economic downturn shops are reducing inventory as much as they can in order to reduce costs. Which unfortunately has the negative effect of reducing service and driving customers to alternate suppliers.

Which reminds me of the old story....


It was October and the Indians on a remote reservation asked their new Chief if the coming winter was going to be cold or mild. Since he was a Chief in a modern society he had never been taught the old secrets. When he looked at the sky he couldn't tell what the winter was going to be like.

Nevertheless, to be on the safe side he told his tribe that the winter was indeed going to be cold and that the members of the village should collect firewood to be prepared. But being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked, "Is the coming winter going to be cold?"

"It looks like this winter is going to be quite cold," the meteorologist at the weather service responded.

So the Chief went back to his people and told them to collect even more firewood in order to be prepared. A week later he called the National Weather Service again. "Does it still look like it is going to be a very cold winter?"

"Yes," the man at National Weather Service again replied, "it's going to be a very cold winter."

The Chief again went back to his people and ordered them to collect every scrap of firewood they could find. Two weeks later the Chief called the National Weather Service again. "Are you absolutely sure that the winter is going to be very cold?"

"Absolutely," the man replied. "It's looking more and more like it is going to be one of the coldest winters ever."

"How can you be so sure?" the Chief asked.

The weatherman replied, "The Indians are collecting firewood like crazy."

[R1madness]

I've never known it this bad, but I suspect with the economic downtown shops are reducing inventory as much as they can in order to reduce costs. Which unfortunately has the negative effect of reducing service and driving customers to alternate suppliers.

Yep, so true, the dealers rely a lot more on the importers to hold the stock. Yep it has both effects you mention.
However I do think that most dealers still try to hold what they see as "bread and butter" lines. You know, the common items that regularly move off the shelf but are very quick to kill off slow(er) moving items.
I wonder if part of the problem is that our population is spread over a wide area (for the number of people we have here) and there are still plenty of local bike shops so to set up a motorcycle MEGA store that carries 1 of everything is not an option financially. Most people here just wont travel when there is a shop down the road to buy from. Even if you set up in central Auckland most people in Pukekohe would still think you were too far away.

[scott411]

Yep, so true, the dealers rely a lot more on the importers to hold the stock. Yep it has both effects you mention.
However I do think that most dealers still try to hold what they see as "bread and butter" lines. You know, the common items that regularly move off the shelf but are very quick to kill off slow(er) moving items.
I wonder if part of the problem is that our population is spread over a wide area (for the number of people we have here) and there are still plenty of local bike shops so to set up a motorcycle MEGA store that carries 1 of everything is not an option financially. Most people here just wont travel when there is a shop down the road to buy from. Even if you set up in central Auckland most people in Pukekohe would still think you were too far away.

The superstore type store has not really been tried in NZ, a couple of reasons, 1 it is a big risk, due to big overheads and set up costs, 2 the superstores in the States are usually all 4 japanese franchises and others euro brands as well, it would be interesting to see if they would allow it, Honda has never aloud another franchise in the same store, and Suzuki will only allow one other Brand, (although there has been the odd exception to this rule over the years)

alot of the products that are not available overnight would not likely to be stocked by a superstore either, we have a very small population but a very big range of bikes here,

[Edbear]

If I run out of a couple of models I can order a one or a few in but don't get my national distributor price I pay more but can have them here in a few days.

[caspernz]

Going back to the OP, what about a second hand part? I mean it's for an older bike....

Markups are a fact of life, but hey I want to get my bike looked after by a dealer, so for the most part I buy bits and pieces locally. I've bought the odd item in from overseas, mainly because it wasn't available locally.

It may be harsh, but I reckon when someone starts crying about high markups it is, in part at least, to not seeing the big picture.

[Brian d marge]

Ya money ain’t worth a hill of beans
ya have 4 people and a blind poodle , living there, one of which needs a set of points for a NSU quickly

Ya cant be arsed getting out of bed on Sundays

and ya moan about the prices ,

Damn , even the Poms are looking saintly about now

and we invented wingin

Stephen

[ducatilover]

Speaking of mark ups...

Repco prive for VHT engine enamel (black) = $18.
PartMaster price = $12.
That's a 50% increase :shit:

[warewolf]

I would like to have local dealers everywhere, but unfortunately not at my expense. They're facing tough times and are maybe shooting themselves in the foot trying to reduce costs by reducing inventory and opening hours (and manufacturing off shore). I'm doing it tough so I'm reducing costs and maybe shooting myself in the foot by shopping off shore.

I guess my biggest, over-riding gripe with the whole situation is that the wholesale chain through to the dealer should be the fastest, most economic way to get stuff. In the information age, it's not - private import doing everything at the retail level is cheaper and faster and more reliable. Consumers have changed but the traditional business models are still being foisted on everyone down that line. Historically it has been the only way, but the world has changed... adapt or die. I've at least offered a potential solution.

PS anyone notice the similarity of what I just said with Triumph vs the Japanese invasion in the seventies??

[Robert Taylor]

As an importer, I know the difficulties of trying to keep the price as close as possible to the US price. It's a tricky calculation as I pay freight, (air), and fees and GST upon landing, I have to account for fluctuations in the exchange rate, and my last order went through just as the exchange rate dropped 6c, costing me a lot more, (you'd be surprised what a difference a day makes to your bottom line!). Customers want stable pricing, too, not up and down according to the exchange rate, I have to absorb that.

Being the sole distributor for NZ I have to carry warranties until I can send the batteries back to the US at my cost in freight, and they refund or replace, leaving me out of pocket for a couple of months. (Fortunately it is rare for a Shorai to go wrong). I cannot afford to upset my customers and dealers by making them wait and Shorai's philosophy is to satisfy the customer first, then worry about the dud.

I have to invest heavily in stock and of course the most popular sizes sell out first meaning I have to re-order with a minimum quantity before I get the money back for the previous order. I am relying on volume sales to make my money and as yet have taken very little out of the business as I need to build it up and that means putting the profits straight back into it.

Some models will take a long time to sell and they are just sitting on the shelf, money in waiting. I think I have the pricing about right even though I feel it is a wee bit more than I'd like to see. I do agree the OP's example seems a rip-off but there may well be a good reason behind it. For example I usually offer KB'rs a discount and free shipping which means I miss out on the best profit, but as I say, I am looking towards the future and increasing volume.

Hope a bit of insight to the importing business helps.

You are beating your head against a brick wall here! Someone sometime will start a new thread on the same theme and make the automatic assumption that markups are huge, which in most cases they are not. By and large the cold hard reality is that the cost of running a business in NZ is disproportionately high. The current exchange rate ( particularly against greenbacks ) and lack of interception and gst charges on a lot of private imports ( of even high value ) further exposes NZ businesses and therefore the people they employ.

[Robert Taylor]

I would like to have local dealers everywhere, but unfortunately not at my expense. They're facing tough times and are maybe shooting themselves in the foot trying to reduce costs by reducing inventory and opening hours (and manufacturing off shore). I'm doing it tough so I'm reducing costs and maybe shooting myself in the foot by shopping off shore.

I guess my biggest, over-riding gripe with the whole situation is that the wholesale chain through to the dealer should be the fastest, most economic way to get stuff. In the information age, it's not - private import doing everything at the retail level is cheaper and faster and more reliable. Consumers have changed but the traditional business models are still being foisted on everyone down that line. Historically it has been the only way, but the world has changed... adapt or die. I've at least offered a potential solution.

PS anyone notice the similarity of what I just said with Triumph vs the Japanese invasion in the seventies??

In part though distributors are tied into pre-orders months in advance, linked to scheduled production runs that have finite numbers. Every variation of goods is not available from manufacturers at all times of the year. Given that large distributors in large population countries can order huge numbers they have much more of an operating ''buffer'' and sale flexibility. Our small population and market is severly inhibited / disadvantaged in that respect.
Those of us that have adapted and / or have products that require technical expertise will survive but there are still some inequalities out there ( see my immediate previous post ) that need to be addressed.

[superman]

Some companies are terrible. :no:

I check companies prices (not talking about bike parts...) via pricespy.co.nz, check TradeMe for recent finished auctions and the amount they've gone for and then decide upon a price to sell items for. Preferably lower than any other company (even if it means only a couple of $$ profit for me).

I source for as cheap as I possibly can, if stuff doesn't sell it gets a $1 reserve on TradeMe so a fair market price is found for the item.

Granted my only bill is a monthly $40...

[Robert Taylor]

Yes, but as DMNTD has already said, the margins a bar has allow extremely high stock levels, so high, that in some cases, PUBS ACTUALLY RUN OUT OF BEER!!!!!!!

You have demonstrated that you understand the concept that in order to survive, shops are having to lower stock levels.

Add to this the fact that, due to private imports, stock levels are lower as a result, as well as tight margins, it starts to become clear that bike shops (worldwide) are in survival mode, and most simply don't have the capital to stock parts people want, but are unwilling to pay for.

R1Madness has thrown me a bit, he has been in this game for a few decades now, and even he is (to a level) championing consumers getting their own stuff online.... I could be persuaded to consider that "special order" stuff that one person in a thousand wants is acceptable to buy online, but, things like plugs, filters, chains, sprockets??????? Support you local dealers, because if you don't, you will not be able to find a bike shop that's open 5 days a week, let alone 6! (mumble mumble, troublesome journey, mumble mumble Templeton boy)

Ditto for other businesses selling other goods, this is far far from being just a motorcycle industry problem and the smaller economies like ours can be badly affected. And I wonder aloud how many on here debating the cost of goods and availability etc ad infinitum are themselves in local industries that are seriously and adversely being affected by competition from overseas suppliers? That is not to neccessarily be read as a defence of our own people, but its a question that certainly begs some thought. If anyone cares about our own countrymen?

[thecharmed01]

In part though distributors are tied into pre-orders months in advance, linked to scheduled production runs that have finite numbers. Every variation of goods is not available from manufacturers at all times of the year. Given that large distributors in large population countries can order huge numbers they have much more of an operating ''buffer'' and sale flexibility. Our small population and market is severly inhibited / disadvantaged in that respect.
Those of us that have adapted and / or have products that require technical expertise will survive but there are still some inequalities out there ( see my immediate previous post ) that need to be addressed.

I do know SOME places work with runs, but really it's not that many!

And what I don't get, is why people spin lines like that when it's so frequently not the case at all.
I had a store clearly tell me that "oh that company only do runs of that twice a year and they have no stock left so you will have to wait for the next production run"
Ummmmm ok.
Lucky for me, I knew it was utter rubbish and what they REALLY meant is that their supplier were either too tight/too lazy/too stupid to order in the parts I wanted and hadn't kept their own system up to date with current stock, as I was there when they were called and asked if the parts were all in stock.
How you make sure you know the truth? Ring the Manufacturer direct and ask them. Then purchase direct and have said parts in your living room within 5 days (from the US) ready to fit up to your bike with the manufacturer going out of their way to give you excellent service because of the bad service from the NZ wholesaler.

:corn:

[SS90]

Here in Europe, we see, directly THE REAL REASON parts go out of stock (well parts that er produced in Europe anyway)

The majority of quality components (pistons, crankshaft components etc) are produced in Italy or Spain.

In August, Italy shuts for a whole month, not just some, THE WHOLE MANUFACTURING INDUSTRY, you cannot order anything, no matter who you are, because no-one is there to answer the phone or email. That is a fact. And September, Spain does the same.

Its just how it is.
Everyone is aware of this, yet, every year we get caught out, because no one has the budget to "double order" for 3 months stock, not wholesalers, not retailers, no one.....

As a result, by the end of August, so much stock is unavailable, particularly Pistons and such like.

It is just how it is.

And with the current market (worldwide) struggling just to pay rent and wages (I personally know of 3 well established shops closing this winter already in Europe) you can be sure that shops in New Zealand are going to be able to stock even less than before for the forseeable future.

It just the reality.

The wingers on here best save their breath for a while... They are going to need it when therr actually is something to whine about.

[imdying]

If those greasy wops really do that, then they deserve for their bloody economy to go down the toilet.

[Jay GTI]

If those greasy wops really do that, then they deserve for their bloody economy to go down the toilet.

Ok cool. If that's an issue, go to a factory anywhere in NZ right now and ask them to fill a large order before the end of Jan (oooo before Xmas would be better). Good luck.

It's their summer holiday, if you actually left this small island once in a while, you'd know that Spain, Italy and a few other Eurpean countries in that area are so oppresively hot during their peak summer months, they just go on holiday instead.

[scott411]

their has been some big shops close in the states as well, some that have been around 30 years,

as well as big websites, its a tough industry everywhere in the world at the moment,

[nzmikey]

If memory serves correct, your Hornet has the same disk as a VTR250, VT250 Spada, CBR250R MC19 and I think CB250 Jade.
They're all cheap on eBay and readily available.

Of course there is mark up in NZ, you start a shop and beat the prices and I'll buy from you.



:facepalm:

Yeah as far as I know they are all the same , the problem is tho is that the people in the states that have them dont ship here :blink:

[MSTRS]

Try these guys. vicwreck@iinet.net.au Had good luck with them in the past re discs.

[bikaholic]

You are beating your head against a brick wall here! Someone sometime will start a new thread on the same theme and make the automatic assumption that markups are huge, which in most cases they are not. By and large the cold hard reality is that the cost of running a business in NZ is disproportionately high. The current exchange rate ( particularly against greenbacks ) and lack of interception and gst charges on a lot of private imports ( of even high value ) further exposes NZ businesses and therefore the people they employ.What a load of bollocks.
The import of high quality suspension components for motorcycles that would cost about one sixth of the retail cost to make, that depreciate by up to half as soon as they are out of the packet, and that produce no outputs in terms of productivity are no more value to the NZ economy than a 60 inch lcd TV.
It is exports and increased productivity in those exports that spins the NZ economies wheels, and provides the jobs.
If the collection of all GSt on privately imported goods is your competition, you are fucked, as if GST was paid on all goods, they would be still far cheaper.

[Edbear]

What a load of bollocks.
The import of high quality suspension components for motorcycles that would cost about one sixth of the retail cost to make, that depreciate by up to half as soon as they are out of the packet, and that produce no outputs in terms of productivity are no more value to the NZ economy than a 60 inch lcd TV.
It is exports and increased productivity in those exports that spins the NZ economies wheels, and provides the jobs.
If the collection of all GSt on privately imported goods is your competition, you are fucked, as if GST was paid on all goods, they would be still far cheaper.

For a good example of what you are talking about, the Wharehouse started importing from China and drove NZ manufacturers out of business with clothing as they could land shorts here for 50c and sell them for up to $20.00. The best the NZ manufacturer could do was $1.50. This is what stuffs NZ companies.

Manufacturing costs are only part of the process and high quality stuff costs to make and distribute. Everything you buy is the end of a process of design, manufacture and distribute with every step costing something. Every person involved needs to earn a living, from the tea lady to the manager of the plant, the freight company and the retail outlet involved in getting your final product to you.

The world scene is changing as the world truly becomes a global village and it is easy to go online and order from anywhere in the world whatever you want. But if you want local backup and support you have to pay the local people, otherwise they go bust and you have nobody to complain to or go to for local knowledge and advice and warranty support.

If we could live as cheaply here as the Chinese do in China, we could compete. How low do you want your standard of living to go to facilitate this? It's a tough situation and NZ is as vulnerable as anywhere to the stresses of competition and the GWC. Aussie is doing badly apart from their mineral trade and is worse off than we are at the moment.

[bikaholic]

well another example could be dairy owners and vending machine operators buying goods from the supermarket at you amd I prices because it is cheaper than their wholesalers that they are meant to deal with, and purchasing parallel imports of their own branded goods.

Would tariffs being taken off colthing etc be a very good indicator to get out of that line of manufacture and head towards more intelligent productive lines that are less competitive?

Edit: I would have thought the addidas shirt fiasco, differential pricing in different countries would have not been forgotten about so soon, so much in marketing eh

[warewolf]

It's their summer holiday, if you actually left this small island once in a while, you'd know that Spain, Italy and a few other Eurpean countries in that area are so oppresively hot during their peak summer months, they just go on holiday instead.Coming from a place that is hotter and where the community never felt the need to stop doing anything, I find comments like the above highly amusing!

[imdying]

Ok cool. If that's an issue, go to a factory anywhere in NZ right now and ask them to fill a large order before the end of Jan (oooo before Xmas would be better). Good luck.Irrelevant. Our economy isn't so tanked that it's going to make the Euro implode.


It's their summer holiday, if you actually left this small island once in a while, you'd know that Spain, Italy and a few other Eurpean countries in that area are so oppresively hot during their peak summer months, they just go on holiday instead.What a load of shite, there are hotter places that don't do this, the wops are just lazy.

[SS90]

Irrelevant. Our economy isn't so tanked that it's going to make the Euro implode.

What a load of shite, there are hotter places that don't do this, the wops are just lazy.

Pretty naive statements really.

While it is true that in SOME parts of Spain and Italy, it really is actually too hot to work, (and too hot to shop actually) the main result of these hot Summer temperatures is simply to have a 2 hour lunch (possibly during which have a sleep), then work until say 7 or 8 PM. (not hard and fast rules, but more than common)

The primary reason for these extended breaks is actually religion...... There are so many Saint the Catholic faith, that there enough "Saint someone" to have 40 days off a year (plus secular holidays), and, to keep the public happy, even though the governments are secular, they combine many if these "Saints days" in one month (and in the case of Spain, some (most) combine the 3 day reunification day into a 5th week off, right at the end of summer.

Kiwis, and Aussies are in the minority with our "work ourselves to death" attitude.

NZ's economy is not much better than Spains (NZ does now have %15 GST remember, only 3% behind Spain (and the rest of the EU)

Its only a matter if time.......

[imdying]

While it is true that in SOME parts of Spain and Italy, it really is actually too hot to work, (and too hot to shop actually) the main result of these hot Summer temperatures is simply to have a 2 hour lunch (possibly during which have a sleep), then work until say 7 or 8 PM. (not hard and fast rules, but more than common)These are bike parts, not veges in a field. They should get some aircon.


The primary reason for these extended breaks is actually religion...... There are so many Saint the Catholic faith, that there enough "Saint someone" to have 40 days off a year (plus secular holidays), and, to keep the public happy, even though the governments are secular, they combine many if these "Saints days" in one month (and in the case of Spain, some (most) combine the 3 day reunification day into a 5th week off, right at the end of summer.If that's true, then that doesn't make them deserve it any less.

[Pseudonym]

My local dealer is at the mercy of the importer.
The importer won’t have the parts for 3 weeks.
The local dealer’s price for my 3 week away part is a little under $160NZD and that is the RRP set by the importer.

I drop an email to an overseas dealer.
They are also at the mercy of the prices set by their importer one would assume.
One week later I have my part, $56NZD total.
I now go to them first, no shopping around.

Ok, I know that not all parts are going to be in stock all the time.
But it seams that every time I call I will have to wait for 40-70 percent of the parts.
And at three times the price?

I buy tyres off my local same with gear/helmets/batteries etc but for OEM parts I can’t afford and I don’t have the time to go local.
No bike for three weeks?
Three weeks?
Train fare alone would be another $200!
And there are so many things not available in NZ where I have no option but to ether go without or buy online.

[Woodman]

My local dealer is at the mercy of the importer.
The importer won’t have the parts for 3 weeks.
The local dealer’s price for my 3 week away part is a little under $160NZD and that is the RRP set by the importer.

I drop an email to an overseas dealer.
They are also at the mercy of the prices set by their importer one would assume.
One week later I have my part, $56NZD total.
I now go to them first, no shopping around.

Ok, I know that not all parts are going to be in stock all the time.
But it seams that every time I call I will have to wait for 40-70 percent of the parts.
And at three times the price?

I buy tyres off my local same with gear/helmets/batteries etc but for OEM parts I can’t afford and I don’t have the time to go local.
No bike for three weeks?
Three weeks?
Train fare alone would be another $200!
And there are so many things not available in NZ where I have no option but to ether go without or buy online.

The importer is setting the price that the dealer sells it to you for?

I don't think so.

[scott411]

The importer is setting the price that the dealer sells it to you for?

I don't think so.

most of the parts supplied from NZ distributors will have a RRP price set by the distributors,

[SS90]

These are bike parts, not veges in a field. They should get some aircon.

If that's true, then that doesn't make them deserve it any less.

This is the point about different cultures. If you can only relate life to your own experiences living on a small Island, then you are unable to see why "Things are the way they are"

The majority of the rest of the world realise that they can't just have "things now", for little more than the orice of a cup of coffee.

[Edbear]

The importer is setting the price that the dealer sells it to you for?

I don't think so.

As the importer, I advise the NZ RRP and recommend that the RRP should be adhered to for individual sales as I believe it is fair. I leave it up the my dealers, though, as it is their business and they know their own market as to whether they discount or not.

I'd be unhappy to see competitive discounting between dealers as this would cheapen the brand. In order to alleviate this, when I sign a dealer I ask them what their market is and assure them I will not sign a dealer in their area that would be in direct competition with them.

[Woodman]

As the importer, I advise the NZ RRP and recommend that the RRP should be adhered to for individual sales as I believe it is fair. I leave it up the my dealers, though, as it is their business and they know their own market as to whether they discount or not.

I'd be unhappy to see competitive discounting between dealers as this would cheapen the brand. In order to alleviate this, when I sign a dealer I ask them what their market is and assure them I will not sign a dealer in their area that would be in direct competition with them.

Yep a recommended price is fine, but they have to be free to charge what they like otherwise it is price setting and thats illegal as far as I know.

Its a fine line as an importer/distributor as to how many resellers you use. The old fashioned thing to do as an importer was to limt your resellers and limit supply to them no matter how big they are so they and you can retain a good price and profit. Too many importers would not give decent discounts based on volume sale either, continuing to supply mum and dad retailers at the same price as a big box retailer that would sell hundreds if not thousands more units. Unfortunately this has become out-moded now that the global market has been opened up and the traditional resellers are now bringing stuff in themselves, bypassing the traditional importer/distributor. Of course the end user is also bringing stuff in themselves bypassing everyone local.

[Edbear]

Yep a recommended price is fine, but they have to be free to charge what they like otherwise it is price setting and thats illegal as far as I know.

Its a fine line as an importer/distributor as to how many resellers you use. The old fashioned thing to do as an importer was to limt your resellers and limit supply to them no matter how big they are so they and you can retain a good price and profit. Too many importers would not give decent discounts based on volume sale either, continuing to supply mum and dad retailers at the same price as a big box retailer that would sell hundreds if not thousands more units. Unfortunately this has become out-moded now that the global market has been opened up and the traditional resellers are now bringing stuff in themselves, bypassing the traditional importer/distributor. Of course the end user is also bringing stuff in themselves bypassing everyone local.

That's why when I sign a dealer, as I did Boyd Motorcycles yesterday, I ask what his market is so as not to sign another in direct competition with them. Also the contract states that RRP, while recommends is up to them as an independent dealer.

[Brian d marge]

I just see a shit load of reasons why I can't ....surely u are the for the customer
if not let me,

stephen

[PeeJay]

That's why when I sign a dealer, as I did Boyd Motorcycles yesterday, I ask what his market is so as not to sign another in direct competition with them. Also the contract states that RRP, while recommends is up to them as an independent dealer.

So Boyds are the only bike shop in Hamilton selling Shorai batteries?

[Edbear]

So Boyds are the only bike shop in Hamilton selling Shorai batteries?

At present and depending on how they want to play it, probably remain that way. Their choice really. I assured Greg I would not sign anyone else in direct competition to him in his market.