Dealer/distributor price gouging continues unabated

[DMNTD:Me]

.... Why is a NZ subsidiary - or whatever Triumph NZ may be - unable to secure parts at prices a DEALER in the UK can buy and sell for - at RRP!!!!

As mentioned a number of times....turn over (smaller market in NZ),shipping plus a number of other factors.
I know how frustrating it is from both sides of the counter.

[Coldrider]

Yes I know there is a thread on here about this but I cant seem to find it so....
After my trip through the Forgotten Highway
http://www.kiwibiker.co.nz/forums/sh...ighway-Warning

I found that stones and tar had got up into my radiator fan preventing it from turning and caused the motor to burn out.

must be a quaka thing, my 9er did the same, tar had melted the stone chip to the fan shroud, stalling the fan. I only noticed the noise while it was idling on the drive, but I don't commute so fan was probably saves from not coming on very often. Amazing how a chip can get behind the radiator.

[Bassmatt]

Slight dredge here...

So my US$15 (+postage, NZ$50 all up) has arrived and been installed and works perfectly.
Now... what to spend the $550 i saved on....

[Robert Taylor]

No, it's not Mark.

That $38 (cost price) part that you got free would no doubt cost the dealer $38 plus GST plus freight.

That would take the true cost price to the dealer nearer to $50.

A $15 mark-up is hardly exorbitant.

YOU KNOW, i RECKON ALL OF THE PROFFESSIONAL WHINGERS THAT INHABIT THIS SITE SHOULD START THEIR OWN BIKE SHOPS. WE COULD THEN SIT BACK AND SEE HOW LONG THEY WOULD LAST

[flyingcrocodile46]

It's a little like comparing lounge bar pricing and service with that of the bottle store.

When we are flush with cash we can aford to piss some away in the lounge bar. But for most it has been a few years since the days when that was viable.

Frankly I am just as happy having a few beers in the garage.

Like others have said. The world is a changing place and it's time that dealers and distributors got their shit together and looked at ways of offering a more cost effective and better quality service to their customers instead of sneering at them because they can't afford or wont pay above the odds for (in most cases) average and often surley service.

If traders in the US can deliver product from Japan via the US to NZ for between 25 to 50% of local dealer/distributor prices (and make a profit) then NZ distributors need to re-evaluate their business models and their buying rates from their suppliers and make a decission as to whether they are going to compete or impotently and pointlessly whine about a lack of loyalty from people to whom they have shown little if any interest in (other than to tap into their money).

If a dealer is ordering a product in from their supplier rather than buying parts for stock, then they should be happy to run with a 10 to 20% margin as often times they are paid for the order before they have to pay their supplier. Money for jam. They could even look at buying from overseas dealers themselves. Likely they could organise a bit of additional volume based discount to further reduce their costs.

Their high handed take it or leave it attitude when asked about the possibility of a cheaper price doesn't help the either.

Of course all of that requires them to get off their arses and make changes (incl to their attitudes) that their customers would benefit from. And as customer service in NZ is (generally speaking) only a verbal concept, it ain't likely to be seen as any incentive.

[Robert Taylor]

It's a little like comparing lounge bar pricing and service with that of the bottle store.

When we are flush with cash we can aford to piss some away in the lounge bar. But for most it has been a few years since the days when that was viable.

Frankly I am just as happy having a few beers in the garage.

Like others have said. The world is a changing place and it's time that dealers and distributors got their shit together and looked at ways of offering a more cost effective and better quality service to their customers instead of sneering at them because they can't afford or wont pay above the odds for (in most cases) average and often surley service.

If traders in the US can deliver product from Japan via the US to NZ for between 25 to 50% of local dealer/distributor prices (and make a profit) then NZ distributors need to re-evaluate their business models and their buying rates from their suppliers and make a decission as to whether they are going to compete or impotently and pointlessly whine about a lack of loyalty from people to whom they have shown little if any interest in (other than to tap into their money).

If a dealer is ordering a product in from their supplier rather than buying parts for stock, then they should be happy to run with a 10 to 20% margin as often times they are paid for the order before they have to pay their supplier. Money for jam. They could even look at buying from overseas dealers themselves. Likely they could organise a bit of additional volume based discount to further reduce their costs.

Their high handed take it or leave it attitude when asked about the possibility of a cheaper price doesn't help the either.

Of course all of that requires them to get off their arses and make changes (incl to their attitudes) that their customers would benefit from. And as customer service in NZ is (generally speaking) only a verbal concept, it ain't likely to be seen as any incentive.

10 to 20% margin on spares. Are you for real? do the sums, thats a recipe for insolvency / bankruptcy given the cost of just opening the front doors.

This response is not a justification for very real inequities that exist, including but not confined to the very distortional effects of currency

[jonbuoy]

10 to 20% margin on spares. Are you for real? do the sums, thats a recipe for insolvency / bankruptcy given the cost of just opening the front doors.

This response is not a justification for very real inequities that exist, including but not confined to the very distortional effects of currency

Thing is we can be our own importers with the power of the interweb, doesn't matter how exclusive the dealership is someone overseas will sell out of market. Its never going to go back to how it was, evolution.

[nzspokes]

10 to 20% margin on spares. Are you for real? do the sums, thats a recipe for insolvency / bankruptcy given the cost of just opening the front doors.

This response is not a justification for very real inequities that exist, including but not confined to the very distortional effects of currency

So the 50% margin model is working well for all the NZ dealer ships then. So they must have great GP.

[Robert Taylor]

So the 50% margin model is working well for all the NZ dealer ships then. So they must have great GP.

Why dont you try the 10-20% model for yourself then? Open a motorcycle shop ( or any business with low volume, motorcycle parts in this country are essentially low volume ) and odds will be taken on how many weeks you will last before being declared insolvent.

Have you wondered why so many Yamaha dealers are going to the wall? Great product, uncompetitive prices and abysmal single digit margins on many models, customers still expecting a discount and / or an unrealistic trade in price.

Would this thread and others like it exist with such voracity if the exchange rate was close to 50 cents US? THINK ABOUT IT....

[Robert Taylor]

Thing is we can be our own importers with the power of the interweb, doesn't matter how exclusive the dealership is someone overseas will sell out of market. Its never going to go back to how it was, evolution.

Funny you should say that, right now I have a customer who purchased several generic ''one size fits all'' cheap and discounted classic MX Ohlins shocks off a US reseller ( who is likely going bust like many companies in the States ) What they didnt tell him is that they will need respringing and revalving to suit the bikes they are being fitted to, perhaps even some length and stroke changes, end fittings etc.
If he had ordered locally this would have all been done at a realistic ceiling price, odds are that having fallen victim to ''box sale mentality'' out of the States it will end up costing him more than had he used local expertise and experience right on his doorstep. With such products its a bit different to buying books or cd's etc.

[nzspokes]

Why dont you try the 10-20% model for yourself then? Open a motorcycle shop ( or any business with low volume, motorcycle parts in this country are essentially low volume ) and odds will be taken on how many weeks you will last before being declared insolvent.

Have you wondered why so many Yamaha dealers are going to the wall? Great product, uncompetitive prices and abysmal single digit margins on many models, customers still expecting a discount and / or an unrealistic trade in price.

Would this thread and others like it exist with such voracity if the exchange rate was close to 50 cents US? THINK ABOUT IT....

So the current model is not working then.

[BoristheBiter]

What I don't understand is why come on here and whine about it.
It has been the same for years and now you have the choice of buying online.
So why do so many feel the need to come on here and gloat about "getting a great deal"?

[Robert Taylor]

So the current model is not working then.

So like I suggested, try your model.........

[nzspokes]

So like I suggested, try your model.........

Ive not suggested a model to work from.

And FYI I owned a company for 11 years on the model you guys work from now. It failed costing me a house, marriage and the ability to see my children when i want to. I now work for a business that uses the suggested model that is doing very well. So yes I know what im talking about.

I hope more dont end up In the position I am in due to lack of ability to realise what they are doing is wrong.

[jonbuoy]

Funny you should say that, right now I have a customer who purchased several generic ''one size fits all'' cheap and discounted classic MX Ohlins shocks off a US reseller ( who is likely going bust like many companies in the States ) What they didnt tell him is that they will need respringing and revalving to suit the bikes they are being fitted to, perhaps even some length and stroke changes, end fittings etc.
If he had ordered locally this would have all been done at a realistic ceiling price, odds are that having fallen victim to ''box sale mentality'' out of the States it will end up costing him more than had he used local expertise and experience right on his doorstep. With such products its a bit different to buying books or cd's etc.

I can see your point but I expect there are dealers out in the states who would re-valve and re-spring before shipping. If I tell a dealer in the states I want a rear shock for a Z750, I weigh 90 kg, most of my riding is regular street riding with the occaisional weekend scratch he could probably do just as good a job as you could. I'm not having a pop at you mate, its just that things have changed and they won't ever go back. Your not the only guy in the world who knows about suspension.