Motorcycle shop retailers using the Internet as a sales tool for wholesalers

[Quasievil]

Its so interesting to me that all the motorcycle shop retailers are utilizing the internet as a sales tool for Wholesaler imported brands.
Wholesalers supporting such ventures in a significant way is two faced as as they wont support allow established internet sellers their product lines, based on what exactly we dont have a full on retail presence, is that it ? and errr why?

You think a NZ Wholesaler will supply me boots or Helmets or whatever........nah !!
It will be and is the demise of the retail and wholesale structure as guys like me start to consider parallel importing.

NZ is so Backward.

But good luck with your site

[caseye]

Quasi, while I support your right to express your opinion and I also have some sympathy for it,I'm not altogether sure that today was the right day to raise this particular issue.
While I've bought gear at shops and direct importers/wholesalers, I've also bought gear from you and on that basis I've not yet bought gear from anyone else, since.
Continue to make good gear, stay true to your standards and I'm sure most will continue to spend the extra dollars it takes to purchase Q gear.

[Quasievil]

Quasi, while I support your right to express your opinion and I also have some sympathy for it,I'm not altogether sure that today was the right day to raise this particular issue.

Dont go reading to much "KB" style into it, it is a dig at the wholesalers not the retailers

[Depot 4 Motorcycles]

They support us because we have a large retail store ! This allow's people to come and try before they buy. A sole intertnet based store dose not allow this!

We also have l large stock holding of most items they supply! unless we keep the bike shop's strong there will be no where to buy bikes and try and buy gear. i hope people understand this and support us!

[Quasievil]

They support us because we have a large retail store !

And a large Online presence and focus, which is contrary to the point and the discussion I'm having with you.

Thats the only difference as most internet sellers I know receive customers every week also, (I know we do), as well as (for us) a significant investment out layed.

As Retailers like you flock towards "our" online business model I wonder why it is taking so long before the wholesalers to recognize online trading as a valid sales route? to protect the shops so we can buy motorcycles? is that the reason ? I dont think so.

Ive had this argument many times with my mates at Whites and Nationwide. Its not that important to me as we can just get our own products in offshore, but isn't that part of why their is product saturation in NZ at the moment?

Please dont read this as against you ok, its against the wholesalers.
But I hope customers support you as well and indeed every motorcycle business.

[SS90]

And a large Online presence and focus, which is contrary to the point and the discussion I'm having with you.

Thats the only difference as most internet sellers I know receive customers every week also, (I know we do), as well as (for us) a significant investment out layed.

As Retailers like you flock towards "our" online business model I wonder why it is taking so long before the wholesalers to recognize online trading as a valid sales route? to protect the shops so we can buy motorcycles? is that the reason ? I dont think so.

Ive had this argument many times with my mates at Whites and Nationwide. Its not that important to me as we can just get our own products in offshore, but isn't that part of why their is product saturation in NZ at the moment?

Please dont read this as against you ok, its against the wholesalers.
But I hope customers support you as well and indeed every motorcycle business.

Jeeze man, get off your Soap Box will ya.

Simply put, your overheads, no matter how high they are to you, are a piffle compared to an average Bike Shop, and, as such, retail items have to have a margin in them that reflect the higher overheads.

Internet Based "Stores" can offer the same product at lower prices, simply because they don't need the same turn over as a shop with higher overheads to achieve the same end of year profit.

Simple really, and good on the NZ wholesalers for sticking to their guns in protecting their established dealers.

[Quasievil]

Jeeze man, get off your Soap Box will ya.

Simply put, your overheads, no matter how high they are to you, are a piffle compared to an average Bike Shop, and, as such, retail items have to have a margin in them that reflect the higher overheads.

Internet Based "Stores" can offer the same product at lower prices, simply because they don't need the same turn over as a shop with higher overheads to achieve the same end of year profit.

Simple really, and good on the NZ wholesalers for sticking to their guns in protecting their established dealers.

Yes Internet shops are a great business model because as you point out the costs of running the business is lower, I guess this is why the bike shops seem to be "flocking" to this model...........so that makes me think so whats the issue now with the wholesalers then?
The Wholesalers are protecting the retailers, yes your right, or are they protecting this dinosaur business model, bike shops are falling over left right and centre...............meantime with the wholesalers protecting the retailers "larger Margins" you guys, the customers are buying on mass in foreign online shops where the wholesalers already support the internet based sellers.

Get my point?

However I support Depot 4 Motorcycles, it is the way of the future, I just think (and my sole point is) that Wholesalers need to wake up to this future.........it is here.

[SpankMe]

I still prefer to go to a shop and buy stuff. I will look for what I want on the net, but will go to a shop to buy it.

[SS90]

Yes Internet shops are a great business model because as you point out the costs of running the business is lower, I guess this is why the bike shops seem to be "flocking" to this model...........so that makes me think so whats the issue now with the wholesalers then?
The Wholesalers are protecting the retailers, yes your right, or are they protecting this dinosaur business model, bike shops are falling over left right and centre...............meantime with the wholesalers protecting the retailers "larger Margins" you guys, the customers are buying on mass in foreign online shops where the wholesalers already support the internet based sellers.

Get my point?

However I support Depot 4 Motorcycles, it is the way of the future, I just think (and my sole point is) that Wholesalers need to wake up to this future.........it is here.

I get your point, but as I have spent 16 years in the motorcycle industry (13 in NZ 3 in Europe) I would have to say that I am all to familure with the business model.

Bike shops in NZ are closing their doors, as well as Europe, and all over the world.....it's got sweet FA to do with the established business models being faulty, it is simply a case of market saturation
Every man and his dog wanted in on what they perceived to be a money train, and, in the process, saturated the market with the same or similar products.

Did you not notice that not long after the online shops started appearing, then the first of the old school dealers started disappearing?

There is only so much market to go around (particularly NZ) and simply the same sized market has been shared among the many rather than just the few.

The survivors have been the cheaper ones.....or the ones that don't rely on the business as their sole income..... And therefore have less fixed costs....... Like an MD with a day job......

[Quasievil]

I get your point, but as I have spent 16 years in the motorcycle industry (13 in NZ 3 in Europe) I would have to say that I am all to familure with the business model.

Bike shops in NZ are closing their doors, as well as Europe, and all over the world.....it's got sweet FA to do with the established business models being faulty, it is simply a case of market saturation
Every man and his dog wanted in on what they perceived to be a money train, and, in the process, saturated the market with the same or similar products.

Did you not notice that not long after the online shops started appearing, then the first of the old school dealers started disappearing?

There is only so much market to go around (particularly NZ) and simply the same sized market has been shared among the many rather than just the few.

The survivors have been the cheaper ones.....or the ones that don't rely on the business as their sole income..... And therefore have less fixed costs....... Like an MD with a day job......

I to have been in the industry for a lengthy period, also as marketing Manager for a leading NZ m/c Wholesaler.

And yes to the Market being saturated, it is and ridiculously so in many areas, everyone in NZ is an importer that is clear.

In reference to your comment about the online shops being responsible for the retailers disappearing.........not so sure about that actually.

My previous comments about off shore buying is a contributor (just read the threads on KB about such things) as well as top heavy retail businesses that are finding themselves with less and less unique product offerings, not to mention in many areas multi margin trains creating high retail pricing.
Couple the above with market saturation and throw in a recession thats why bike shops are closing, and indeed now "flocking" towards internet business models for part of the business in an effort to gain bigger pools of potential customers.

[SS90]

My previous comments about off shore buying is a contributor (just read the threads on KB about such things) as well as top heavy retail businesses that are finding themselves with less and less unique product offerings, not to mention in many areas multi margin trains creating high retail pricing.
Couple the above with market saturation and throw in a recession thats why bike shops are closing, and indeed now "flocking" towards internet business models for part of the business in an effort to gain bigger pools of potential customers.

Yes, sure, multi margins are a problem, but by in large that is gone with the level of parallel imports and new brands, from Asian manufacturers now supplying anyone.

I wonder what it would cost to manufacturer a helmet in NZ now.... Puma and FFM only managed to do it when they had tariffs on such things, once the tariffs where gone, the very next day the market came alive with lighter, cheaper, safer, better alternatives.

But, as you too say, the current climate combined with saturation (saturation caused primarily by internet based retailers) has caused the downfall of many shops.... That is the reality, and, I agree to a certain point, as I have said before, there are things that needed changing in the industry.... But too many people got in on the act and it seems are fighting for smaller and smaller margins, and, in order to survive, with these margins many shops are having to lower overheads in order to survive.

Its not a case of following business models, it's leveling the playing field.

[Quasievil]

But, as you too say, the current climate combined with saturation (saturation caused primarily by internet based retailers) has caused the downfall of many shops.... That is the reality

Nope completely wrong sorry, add up how many brands are imported by the wholesale network and then look at how many small brands marketed partly via the internet i.e 1tonne, Qmoto......ummmm I can still include Trademe junk and win on this one mate

You will note the saturation isnt from the internet sellers.............its from the Wholesalers I can go into Boyds right now and find over 10 different types of apparel marketed by wholesalers. A quick flick through HALF of this months BRM mag shows me 20+ apparel brands marketed by w/s.

[SS90]

Nope completely wrong sorry, add up how many brands are imported by the wholesale network and then look at how many small brands marketed partly via the internet i.e 1tonne, Qmoto......ummmm I can still include Trademe junk and win on this one mate

You will note the saturation isnt from the internet sellers.............its from the Wholesalers I can go into Boyds right now and find over 10 different types of apparel marketed by wholesalers. A quick flick through HALF of this months BRM mag shows me 20+ apparel brands marketed by w/s.

eh?

I must admit I don't look at trade me too often, but a quick look has netted..........
Cycletreads
The motorcycle and scooter bar
Lifestyle imports
1tonne
Mohnsbikewear

As selling gloves, perhaps some is indeed junk, and some not.

All seem a cheap price, and you have to wonder " how much are they paying for it"

I would respectfully ask though Quasi, ( I understand you have a day job....correct me if I am wrong)..... But could you possibly earn a reasonable living based solely on your bike gear?

The reason in ask is that bike shop owners generally have to, as do their staff.

[Quasievil]

eh?

Really. OK here I go

Alpinestar, Spidi, Dianese, Shift, Rjays, Dririder, Tecknic, joe Rocket, Revit, Truimph, Harley Davidson,Neo, Macna, Draggin, Axo,AGV, Berik, RST, motowear , magello, GP star, Leoshi, Spool, BMW, SPYKE, OXford, Nortech, Motoline, Ixion, M2R, Orina ,

There is 31 brands available in Hamilton right now for example.

There are 4 odd bike shops.

Who is saturating the market?

[Hitcher]

We also have l large stock holding of most items they supply! unless we keep the bike shop's strong there will be no where to buy bikes and try and buy gear. i hope people understand this and support us!

Most bike shops and importer/wholesalers are only interested in stocking items that suit the "average" biker. If anybody wants to buy something unusual, say a 3XL helmet, then the current retail model is completely stuffed, unless the poor old customer wants to wait for an indent ordering system to fire up and deliver something for them that may not meet their needs after a wait of at least three months. The same situation applies to acquiring parts for Aprilia motorcycles.

Through the Internet one can have a 3XL helmet, with a choice of colours and graphics, delivered to one's home address in five days. One can have approved Aprilia parts fitted to one's motorcycle in a week. Try doing either of those tasks in those timeframes through an "approved" New Zealand importer/retailer channel.

Don't get me wrong, I am an ardent and loyal customer for my friendly neighbourhood motorcycle store. But the New Zealand distribution industry needs to seriously wake up and smell the coffee. Quasi's point, if I understand it correctly, is that customers have choices and they will exercise them. Retailers and their generally blase approach to running a business need to realise that.