"Your talent determines what you can do. Your motivation determines how much you are willing to do. Your attitude determines how well you do it."
-Lou Holtz
I have to agree with the original poster on this subject
If I can jump online and find the parts required in less than 20mins, and then organise for them to posted to my door in 7-10 days with full insurance and for (usually!) a quarter of the NZ cost!.....Why can't the local bike shop provide a similar service?
I firmly believe that most are stuck in there "old ways" and are reluctant to at least "Try" a new form of parts & goods sourcing.
It dosn't require bulk ording, stock piling parts or much effort at all, it just requires a little bit of time (Which any of us would be happy to pay for, plus a little profit margin)...I feel some people would rather make a single easy transaction through "old methods" to make a good profit, rather than several "small effort" transactions to make the same profit!
But its 2011....times have changed! now global shopping and sourcing is a way of life!....so either the bike shops start making an effort and thinking outside the box...or their customers will.(And then we ALL lose!)
For the record...I like to support NZ stores and I am happy to pay a little more to do so.....but I refuse to support the lazy & incompetent!
Case in point:
I Read about a retail store in wellington that sells cloths shoes bags etc etc....But they only stock 1 or 2 of each item?
....they then primarly promote/sell online, But if you want to drop in store and "try before you buy"...you have the option to do so.
But if you want the item there and then....you pay top dollar!!
OR, if you want to wait for 7-10 days for home delivery (while the item is sourced & shipped from overseas)...you get it at a fraction of the cost!
The result of this new kind of thought and resale is....they are KILLING their opposition! and making great profits in the process!
.....theres the proof of new age resale working!
(read about this store in some business magazine....they won an award for their smart business practices....go figure!)
When Life thows me a curve
...I lean into it!
Ive got two words for you Kim:
Honda Parts via Blue Wing
I thought elections were decided by angry posts on social media. - F5 Dave
I agree. And I am a confirmed online shopper.
Some of it at least might be that the agreement that appoints a given business to be (say) a Suzuki dealer more than likely mandates that they can only source parts via Suzuki NZ. So even if they can get it on ebay at half the cost. they're still screwed because they have to supply it from the official source. I'd love to see one of those agreements some time. I bet they are as fair, reasonable and delightfully user-friendly as any other franchise agreement I have looked at.
Its very like another dinosaur business practice which pisses me off at least once a week: record labels and geographic splits. So stuff I want to legitemately buy on emusic is "Not available in your country" But I live on the internet motherfucker, there are no borders here: Sony NZ: Fuck you!
I thought elections were decided by angry posts on social media. - F5 Dave
Just so everyone is aware, the standard margin for parts and accessories in Central Europe and the UK is 20%, The business's survive simply because of population, and therefore higher turn over.
It is that simple.
As for new bikes, NZ is (in most cases near enough to 20%), over here, more like %9
Again, for exactly the same reasons.
If the NZ wholesalers did not have the margins they did, they would shut up shop and do something else..... What would we all do then?
Yes, "The crooked cross" of Suzuki does unfortunately have a price to pay for (for most part) consistently the lowest priced bikes of the "Big 4", resulting in lower margins for the dealers.
Customers quite often believe dealers regularly bung 4k in their back pocket for a 9 grand bike, but the reality is something more like $900, and as we all know, trade ins are the important piece of the puzzle.
The money has to come from parts and servicing, the bike sale just opening the customer to the world of brand marketing.
And at a wild guess I would pick the Honda and Suzuki factory don't have wildly differing prices either!
While you guys don't stick together and threaten to tear up your franchise agreements as a group or approach the Manufacturing factory about this situation as a group your fucked. While you struggle through loosing customers and doin your best. I'd bet the margin even on a new bike isn't huge. They will keep you tied in and make big profits clipping the ticket on the way through! Ask yourself who's making the biggest chunk out of the $253??
But its got to the point no one is even selling that $253 item in NZ anymore. I can't see why even your guy from Suzuki can't see that. Your both loosing out along with your customers? Its got to change, and it can change for the benefit of us all. You just have to make it so.
Same with the oil companies my mate has gas stations they cut the margins from 4c to 2c per liter on petrol. That hardly covers his eftpos fees. But while they have him tied in and struggling along he's still selling their petrol ain't he! No skin off their nose and so it goes on and who makes all the money while he's trying to cover his overheads with coffee and muffin sales? All this does is piss off everyone in line trying to pay for their petrol. Does the oil company care, no they sell more petrol at a lower margin because there's coffee available to?? Go figure who the winner is here
While you carry on subsidising them and making all your money out of trade-ins nothing will change! We can't change it only you can.
OK so if the dealer margin is 20% lets do the math (sort of?)
$253 less gst is $220 x 20% is $44 retail margin therefore that part is $176 wholesale to the shop?
same part
$14-00 retail less 20% (your stated overseas margin) $2-80 = $11.20
Therefore $176.00 - $11.20 = a NZ Suzuki importer margin of 164.80 on that part
So can be deducted that the Shop makes $44.00 and the wholesaler makes 164.80 on one nut thingy.
You all have rent, staff and tax to pay (NZ and overseas) and we are paying retail this was not on special from what I can see.
I realise the reasoning above is floored, was gst involved or not? but one way of getting back at the costs.
( if I've done it correctly in the first place ???? )
Jeepers imagine what the percentage figures would be?? Is it a 1500% ish importers mark up?? that ain't 20%.
Does low volume cost us $1500% yeh right TUI!!!
From the above I think the guy turning $11.20 into $164.00 needs to look at why the customers ain't buying from him and sort out some other method the keep his retailers and customers on board aside from locking him into a franchise agreement and threatening to take his dealership off him if he buys elsewhere.
Because what is happening in real life is his customers are going elsewhere. And the more we find it easy and reliable and the more personal relationships we form with overseas companies the harder it will get for you to turn this around. I for one don't even browse BTO anymore I send my guy an email he sends me a price and parts number then I go to the checkout! I now have a relationship, I trust him, he trusts me! He cuts the freight rate gives me a deal! There's a line or two of chat in each email. Why? Because you let the importer price you off the market!
You ave two choices
give up, stop complaining and let us buy from overseas (which is the advice Soundbeltfarm got)
or get your shit together and put some practices/systems in place to change things!
Everyone here even admits they are willing to pay a premium to buy in NZ! What more do you want from your customers??
But the evidence is it ain't $14 to $253-00 (is that 1800%??)
The only control we have is where to spend, the balls in the court of the NZ retail bike industry.
Far out did I write all that?? That's my lunch hour stuffed and I have to work late bloody Kiwibiker Grrrrr LMAO!!
On a Motorcycle you're penetrating distance, right along with the machine!! In a car you're just a spectator, the windshields like a TV!!
'Life's Journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways, totally worn out! Shouting, ' Holy sh!t... What a Ride!! '
''i did not mind paying extra to buy local but to be told to go online myself and order it that seems a bit on the nose or am i out of touch nowadays''.
Probably doing you a favour...what was it that you wanted to buy?
I have not read past the 1st post so not sure if the question has been asked before.
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