Why is biking so expensive?

[Flip]

I'm not sure if I'm just tired, but that made absolutely no fucking sense chance.

I agree, that was a 10 out of 10 for a WTF.

[Flip]

Lucky you. GSX600F that dipped the wrong way (Canadian model): $1800 for new headlight.

One side of an '04 R6 headlight setup: $750.

I could go on. I frequently you.

$1800 is a lot of jugs!

[Owl]

$1800 is a lot of jugs!

I'd want to see a lot more than jugs if I was paying $1800

[Katman]

I'd want to see a lot more than jugs if I was paying $1800

After the fourth jug they all look the same.

[bikaholic]

Why would an e-commerce store be limited to the trickle NZ market?, hell the web server would not be even based here.

[superman]

I paid $20 for a low-beam bulb... less than $300 for a pair of new pirelli tyres. I'm happy.

[ducatilover]

If you're priced well enough for me to ignore the eBay shipping times, I'll buy from you.

I highly doubt that's possible unfortunately.

Chance; you amaze me, you're the most unintelligible twit I have seen post in a very long time, go to school.

[NewBusiness]

Might be worth looking for an international freight company to work with. If you sell in Australia too you'll increase your customer base ten fold.

Excellent idea, but to be honest that is what every other person is doing and it doesn't fit in with my vision of helping to change that for New Zealand. Setup an aussy shop isn't going to make it make it more affordable for NZ, while the real profits might be in Aussy the real value is needed here.

It depends what we are talking about but 'BRAND' is very important to me. If a company has a good brand name 9x out of 10 that means they have good quality product and im happy to pay for quality (or have someone pay it for me lol)

Example SHOEI, Teknic, RK, Pirelli, BMW etc etc. Now I certainly wouldnt use any 'cheaper' brands then these type of things.

Even small things like clutch and brake levers on MX bikes. You can get cheap knock off that look exactly the same but they break so quick but they look identical.

Tyres are the single biggest safty product you can have on a bike and on the track its what makes you go fast. I dont like the idea of cutting corners.

Anybody that takes there motorcycling seriously realise there is a big difference in paying for quality gear. Take all these POS chinese bikes that came on the market, they have done nothing good for motorcycling in fact the opposite because people buy them they break and it puts people off.

I like the idea of cheap but at the end of the day things are expensive for a reason and trust me there are not the mark ups from wholesalers and retailers you would expect. R&D on good products is expensive. Cheap products often use the expensive products as R&D but they still come up short.

I buy 90% of my stuff online so id prob use your service. It pisses me off that when I go into a bike shop they dont have anything in stock now, they have to order what I want then they charge me freight!!! I could have ordered it online myself, saved there mark up and paid my own delivery

So what you are really saying is that you want your brand but you want it at a much cheaper price than large retailers, and you want them to stock everything. Is that correct? You will be very suprised as to how much margin will actually effect your final product when it has to go through a couple of hands.

My next question to you now is, How much loyality would you show to such an online shop? if price is your biggest pain? Really what I am asking is, how much effort would you put in to searching for a branded product every time to find the best price for it?

$500 for a headlight? If you could get them that cheap you'd be doing us a favor.

Thanks for support James

I broke one on my Roady, went to Rolling Thunder MC, they asked is it the crystal (plain) or, paterned one? It was the plain one I replied! They went out back and got it and said thats $75 thank you.

It also came with a halogen bulb installed.




So thats $425 for .

Thanks for support James

If the business plan / model is really good, I'd suggest going to the bank for a loan rather than getting investors; that way you retain 100% shareholding and profits The crap thing with having other shareholders is that you do all the hard work and they get the financial rewards... I guess it's their reward for risking their money

Is that from personal business experience mate? Honestly speaking I prefer the latter because of the value a partner would bring into the business. As Mentioned above. I am looking for people who are have the passion for motorcycling, can see themselves behind one of New Zealand's largest motorcycle parts store to be. Have at least $15,000 to invest into the business, and would love every single day in the business of making motorcycling more affordable for New Zealanders.

The trouble with ecommerce is that while it's a brilliant idea, there's no incentive in it for the suppliers. You don't order and keep large amounts of stock, which means the suppliers just sit and wait for you to order, and even then, it's a trickle for them.

Unless you're a distributor of many brands and parts yourself and decide to go e-com, then it's feasible because you've already got existing stock and facilities to store them. But then your retailers will be mad at you because you're competing with them...

So it's a damned if you do, damned if you don't type situation, compounded by the small population and low turnover of this country. The e-com model can only work in populous countries like the US, China, Korea, etc., and with high internet penetration.

But I do agree, biking seems more an expensive hobby here than a sensible mode of transportation. Then again, I wouldn't want to see the huge volume of bikes on our roads as there are in Asian countries, like Malaysia, Indonesia, Vietnam, etc. In those countries, however, drivers are more aware of the motorbikes than here, because cars are expensive there, so drivers are very cautious about bump-and-runs, esp. the numerous motorbikers...

The main incentive for a suppliers to partner with retailers is that they are going to bring on board higher level of customer service which they wont be able to provide.

"The e-com model can only work in populous countries like the US, China, Korea, etc., and with high internet penetration." What you gotten any evidence to back this up?

Sounds to me like someone hasn't really thought their idea through fully.

Thanks for your utterly uselss comment.

just how much do you think it will cost you to set up NZ largest motorcycle parts store? or even a small store to start with?

Enough for me to seek out a partner at this stage. Hows is your business doing?

Sorry I can't be of any help. I spent all my money on ... tyres...

Firstly, great idea.

Before you go ahead, make sure you have completed costings etc and have planned everything through. I work in insolvency and I can't tell you how many companies I have dealt with that had a great idea and a great start but hit a few bumps and never recovered.

What they miss is a "Value-Added" component. It is easy to undercut your competition, usually at your cost. But it's that added something that you can provide that no one can duplicate. Do this and you'll have made it.

Figure out who you are targeting and pursue those customers and don't pursue customers to whom you cannot provide a great service. It will only lose you those customers and undermine your whole business.

Remember when you run your own business, you are an employee, its not your money, its your businesses money. If your business fails and you've taken more than you've put in, people like me will pursue you for the difference.

There is a lot to consider and no one ever regretted paying for GOOD advice.

Curious as to what are a few bumps and never recovered, do you have any examples for us? Perhaps this can your contribution to the world, just imagine how valuable it would be if you can share that with just a hand full of startups and they dont make that mistake.

The vision is not to undercut competition in any way, I never mentioned that either it is merely a misunderstand between providing customers products as cheap as possible and competing with compeition. I do not care about the compeition, my energy is focused on my customers and help deliver them products as cheap as pobbible. This is the really my value-added component you mentioned.

"Figure out who you are targeting and pursue those customers and don't pursue customers to whom you cannot provide a great service. It will only lose you those customers and undermine your whole business." This is gold for me, thanks.

I definitely agree with you that advice should be taken. As you can see from this forum there is some good advice, some bs, people just sharing their opinions, which I dont value. What I am after is people who either have experience and want to share that, not just anyone who wanted to start something up did their due deligence and did nothing in their life in related to what i am talking about.

sif u would even say something or have an idea Of something as such. thats pathetic it wont work dont waste or time.. hahah

Just like how you are wasting mine now, run along....

Firstly, learn to ignore some people on here (*cough*) and secondly, what you are planning on doing is commendable but will be a lot of work and is likely to fail. What I think: give it a go if you can but be aware that you have a high chance of loosing all or a large portion of your investment so don't risk anything that you couldn't survive on the bones of your ass for a while to pay back/save up again

Thanks for advice mate, two ways to approach everything, one is to setup rules that an investment in needed, and be scared to loose that. The second is to build something as efficently as possible without investment.

Lucky you. GSX600F that dipped the wrong way (Canadian model): $1800 for new headlight.

One side of an '04 R6 headlight setup: $750.

I could go on. I frequently you.

What did you end up doing? did you buy that head light?

I can only commend your idea and attitude, but like others I can see the holes. I would love to work in the industry (and probably could raise the $15k easily enough), but I’ve already thought about how to enter the market and NZ just has too many factors against it. I will clearly state at this point that below are my assumptions, so would absolutely love to be proved wrong, but just what I have found with my small amount of research…

1. The NZ market is just too small. Once you factor in the number of people who ride, the wide variety of machines we use, the variances as models develop and the fact that you’re dealing with a very small subset of a very small base population, you’re not looking at sustainable business model. A Series III Holden Commodore will be produced in huge numbers and remain relatively static in terms of development over a number of years, so when looking at stocking a headlight for one, you’ll have a much bigger market to service than you would for a headlight for 2009 GSX-R600.

2. The Manufacturer/Distributor/Dealer relationships are a serious barrier to easy parts supply. I can see why you want to side-step this process, as that’s adding effectively two middlemen, who are adding their margin to your purchase. However, manufacturers don’t generally supply direct to dealers or customers, because they need to support their distributor network. The distributors then support their dealer network. We may pay considerably more for a part in NZ than the US, but we are a much smaller market and both the distributors and dealers need to add the extra mark-up to exist. They just don’t have the turnover to compete with US prices. Admittedly prior to the web and ease of buying overseas, some dealers were a little greedy with their mark-up, due to the fact that they had the market cornered and you had very little option, but this is definitely changing. Also, in response to the fact I can just order my KTM crank from the US for a third of what it costs here, manufacturers are now starting to put pressure on traders and dealers who are supplying outside their local markets, so as to continue to support distributors and dealers locally. Dealers can’t afford to live off bike sales alone and if they go under, how does a manufacturer sell you a bike?

3. Web commerce will take over the world. Prior to the internet, you went to your local dealer, asked for your part, which they either had in stock or they would order for you. That was about it. Now you can ask your dealer, check the parts shop down the road, check Australian websites, check US websites, look at Trademe, look at ebay.com, work out what is the cheapest and Bob’s your Uncle. Local dealers will die a slow death, because they can’t afford to have the range of stock to satisfy the local market and carry the margins that the big ebay.com seller can afford, because they are based out of a warehouse in the Arizona desert with almost no rent, US minimum wage earning staff and a turnover of thousands of items a week which they get by selling world-wide.

To do this, you need to consider these things. Will you have a shop-front or be purely web-based? Web-based is obviously cheaper, but NZ hasn’t yet fully adapted to internet shopping, so how will to deal with the share of the market that still wants to go to shop and look at a product before buying? Will you consider markets outside NZ to sustain the business and maximise turnover? If so, can you compete for the Oz dollar with a web-based retailer in Oz? Could you compete with the US or UK markets? How much of the local market do you want to service? There’s a lot of bikes out there, lots of different kinds of riders and a huge array of products to suit, so do you cater for sportsbikes, dirt bikes, adventure bikes etc? If you don’t specialise, can you carry the amount of stock needed to supply the local market? Can you afford to buy in parts and products that could sit on the shelves for months, or even years? There are a couple of companies in NZ who are making a reasonable attempt at this already, can you compete with them?

I’m sure there’s lots more to it than I’ve put up and even though I’m reasonably convinced it’s not a good idea doesn’t mean I’m in any way right, but the only real advice I could add is definitely do your homework before investing your retirement funds…

Curious as to, how you can claim, "like others I can see the holes" while no post before you was picking holes in the business model.

1. Have you done around numbers around this? What assumptions were you making when doing so?

2. Can you try at me again, I dont understand how you question is relative to our due deligence process.

3. I dont believe local delaers will die a slow death, there is room for them if they can work on their uniqie prosotions (my opinion )

I am curious as to your experience and what you have done in your past, care to share with me?

Now you have given me a 1000 variables to consider, apprechiate it, its worth its weight in gold. I did the same due dillgence process about a year ago and in short, mine results were green. How do you think when we were looking at the same thing we came out with polar opposites?

Why would an e-commerce store be limited to the trickle NZ market?, hell the web server would not be even based here.

First, The point about web server is irrelevant.
This is what market damn well needs, thats why. For me its not just the money that matter, sure I could go setup in aussy and make more, but its more important that I make a difference in peoples lives. I dont expect everyone to share that vision with me, if anything i expect the majority to not !!!

I paid $20 for a low-beam bulb... less than $300 for a pair of new pirelli tyres. I'm happy.

Where did you end up shopping?

If you're priced well enough for me to ignore the eBay shipping times, I'll buy from you.

I highly doubt that's possible unfortunately.

Chance; you amaze me, you're the most unintelligible twit I have seen post in a very long time, go to school.

Does dealing with a New Zealand company hold any value for you?

[darkwolf]

Some bumps people experience are:

Expect slow growth.

Know when enough is enough.

Don't use the IRD as a bank.

Don't grow too big too fast.

Don't expect to be paid. But do draw a wage.

Do your own paperwork.

Unfortunately, I don't get to see the insides of many successful businesses so I mainly know the don'ts.

I'm happy to explain this stuff, just flick me a message.

[steve_t]

Is that from personal business experience mate? Honestly speaking I prefer the latter because of the value a partner would bring into the business. As Mentioned above. I am looking for people who are have the passion for motorcycling, can see themselves behind one of New Zealand's largest motorcycle parts store to be. Have at least $15,000 to invest into the business, and would love every single day in the business of making motorcycling more affordable for New Zealanders.

Yup. Director/shareholder of 6 businesses. Business partners can be very difficult to deal with sometimes. $15,000 in the scheme of things isn't a huge amount and IMHO not worth potential hassles. Oh, I guess it's OK if the $15,000 gives the investor <25% shareholding and no directorship.

I'm not sure how people can criticise your business plan when they haven't even seen it. There's some good info/advice/tips here actually; more than I expected. Go the KB Brain Trust.

Cool. Best of luck with your business

[sinned]

What is the business model, structure, and business plan? Where did the figure of $15,000 come from? Have you thought about what the Financial Markets Authority may make of your offer?

Why not just enjoy motorcycling?

[Padmei]

Firstly, great idea.

Before you go ahead, make sure you have completed costings etc and have planned everything through. I work in insolvency and I can't tell you how many companies I have dealt with that had a great idea and a great start but hit a few bumps and never recovered.

What they miss is a "Value-Added" component. It is easy to undercut your competition, usually at your cost. But it's that added something that you can provide that no one can duplicate. Do this and you'll have made it.

Figure out who you are targeting and pursue those customers and don't pursue customers to whom you cannot provide a great service. It will only lose you those customers and undermine your whole business.

Remember when you run your own business, you are an employee, its not your money, its your businesses money. If your business fails and you've taken more than you've put in, people like me will pursue you for the difference.

There is a lot to consider and no one ever regretted paying for GOOD advice.

That is some of the best advice I've heard from anyone in a long long time.

Good luck with your venture.
I always like a bargain & follow sites like Torpedo 7 for good deals.

[bikaholic]

What percentage of market share in NZ do you envisage achieving before breaking even, how have you come to that conclusion.
What volumes will you need to purchase to sell cheaper than other guys, will distributors even want to deal with you.
What is the percentage of the worlds motorcyclist that live in NZ, that actually have spare dosh.
How can you make sure that your courier company will not make more out of you than you.

For that reason, I am out.

[Tigadee]

The main incentive for a suppliers to partner with retailers is that they are going to bring on board higher level of customer service which they wont be able to provide.

You mean "e-retailer" such as your concept, right? Not just traditional retailers?

And what sort of higher level of customer service over existing retailers? An 0 800 call centre? Free delivery? Extensive online catalog? Secure online payment? Online instant finance option? Customers' forum? Specials of the week?

A good example of a successful NZ site I use frequently because of price, branded product range and free delivery is ascent.co.nz - very professional service and great prices and free delivery to boot. But then everybody uses computers so they have the whole of NZ as their market, but not everybody rides a motorbike...

"The e-com model can only work in populous countries like the US, China, Korea, etc., and with high internet penetration." What you gotten any evidence to back this up?

Top 20 countries with highest number of internet users:
http://www.internetworldstats.com/top20.htm

Now look at the world's top e-com countries:
http://leapingahead.wordpress.com/20...rce-countries/

Hey who knows, maybe you can make it work and I sincerely wish you all the best...

[James Deuce]

The $1800 one I had to buy to get through a WoF. The R6 one was an insurance claim. Very annoying.