Honda Otago to close

[Headbanger]

they are importing bikes from japan, in fact undermining the other bike shops so i doubt they will be wanting to take on a honda franchise

Wellington Mototcycles seem to get away with it.....

[Virago]

Hmmm, small advert in this morning's ODT:

TRIUMPH MOTORCYCLES OTAGO, 462 Princes Street - Freephone 0508-466-321

Is the shop staying open, without the Honda dealership?

[JimO]

Wellington Mototcycles seem to get away with it.....

no i meant all their stock is bikes from japan, i doubt they do trade ins or have a workshop

[Kemet]

no i meant all their stock is bikes from japan, i doubt they do trade ins or have a workshop

They have a workshop and second hand bikes

[JimO]

They have a workshop and second hand bikes

they are all second hand, so they take trade ins and do work for customers???

[hayd3n]

i take all my work and just bought tyres from advanced and they even picked me up/dropped me off just for a 260 dollar z4 rear tyre
\great service friendly go out of their way
hell im gonna to get a full rebuild in a couple of weeks

[Forest]

Hmmm, small advert in this morning's ODT:



Is the shop staying open, without the Honda dealership?

Ring the number and ask...

[Virago]

Ring the number and ask...

It just doesn't seems right, phoning Triumph Motorcycles Otago on 0508-HONDA-1...

[Robert Taylor]

Does this mean cheap bikes at closing down sale?

I think that what too many people have no conception of is that being a motorcycle dealer is not a license to print money. The bigger dealerships are the higher their overheads and it is notable that dealer margins on new bikes are razor thin. There are also far too many dealers and bit players. Often your biggest competition is the next dealer just up the road that shares the same franchise. Which leads to THE biggest problem, too many dealers are paying way too much for the trade ins, theres stupid competition to get the deal and the price on the new bike becomes a dutch auction. The most insane example is trading of 250cc 4 stroke MX bikes. Technically these bikes are worth NOTHING after a couple of years. The frame and running gear is flogged out and many of the minimalist engine components are at their limits in stress hours. I bet many many dealers can lay claim to trading such a bike and paying too much for it. Then onselling it and having it blow apart a few days later incurring maybe 4-6k worth of damage. They have to wear it.
The industry has very serious problems re sustainability and I really feel for the franchised dealers who try and dit it properly, they have to compete with too many industry parasites who from a basis of less committment pick the eyes out of it. If there is one positive to the recession it will also weed out a few of these parasites.

[Headbanger]

If any company is dumb enough to trade gear in for more then they are worth to them then tough titties, Stupidity has its own rewards.

Although I don't believe you have any inside line into whatever caused Otago Honda to go under, Likewise I have never met anyone who thought a bikeshop was a license to print money, In fact 100 percent the opposite.

[Forest]

I think that what too many people have no conception of is that being a motorcycle dealer is not a license to print money. The bigger dealerships are the higher their overheads and it is notable that dealer margins on new bikes are razor thin. There are also far too many dealers and bit players. Often your biggest competition is the next dealer just up the road that shares the same franchise. Which leads to THE biggest problem, too many dealers are paying way too much for the trade ins, theres stupid competition to get the deal and the price on the new bike becomes a dutch auction. The most insane example is trading of 250cc 4 stroke MX bikes. Technically these bikes are worth NOTHING after a couple of years. The frame and running gear is flogged out and many of the minimalist engine components are at their limits in stress hours. I bet many many dealers can lay claim to trading such a bike and paying too much for it. Then onselling it and having it blow apart a few days later incurring maybe 4-6k worth of damage. They have to wear it.
The industry has very serious problems re sustainability and I really feel for the franchised dealers who try and dit it properly, they have to compete with too many industry parasites who from a basis of less committment pick the eyes out of it. If there is one positive to the recession it will also weed out a few of these parasites.

I agree with a lot of what you're saying, but there is definitely room for well run bikeshops in this world.

It isn't fair to compare NZ with Australia. So don't put too much weight on this, but the top Ducati salesman working for Peter Stevens in Melbourne sold 248 brand new bikes last year.

[Solly]

I think that what too many people have no conception of is that being a motorcycle dealer is not a license to print money. The bigger dealerships are the higher their overheads and it is notable that dealer margins on new bikes are razor thin. There are also far too many dealers and bit players. Often your biggest competition is the next dealer just up the road that shares the same franchise. Which leads to THE biggest problem, too many dealers are paying way too much for the trade ins, theres stupid competition to get the deal and the price on the new bike becomes a dutch auction. The most insane example is trading of 250cc 4 stroke MX bikes. Technically these bikes are worth NOTHING after a couple of years. The frame and running gear is flogged out and many of the minimalist engine components are at their limits in stress hours. I bet many many dealers can lay claim to trading such a bike and paying too much for it. Then onselling it and having it blow apart a few days later incurring maybe 4-6k worth of damage. They have to wear it.
The industry has very serious problems re sustainability and I really feel for the franchised dealers who try and dit it properly, they have to compete with too many industry parasites who from a basis of less committment pick the eyes out of it. If there is one positive to the recession it will also weed out a few of these parasites.

What he said........I think????

[Robert Taylor]

If any company is dumb enough to trade gear in for more then they are worth to them then tough titties, Stupidity has its own rewards.

Although I don't believe you have any inside line into whatever caused Otago Honda to go under, Likewise I have never met anyone who thought a bikeshop was a license to print money, In fact 100 percent the opposite.

Theres actually a LOT of pressure from many quarters, especially the relevant distributors for the dealer to ''perform'' I.e order lots of bikes off the distributor, that places lots of pressure to do deals. It wouldnt be an overstatement that with many franchises you are a serf to the distributors / manufacturers agenda. To coin your phrase if you dont perform its ''tough titties'' Because also there is such an historic turnover of dealers there is a very small ratio of very experienced industry people. And frankly, if there were many many more experienced people that would not neccessarily suit the distributors. Any industry insiders who may read this will understand exactly what I mean.

[Headbanger]

Theres actually a LOT of pressure from many quarters, especially the relevant distributors for the dealer to ''perform'' I.e order lots of bikes off the distributor, that places lots of pressure to do deals. It wouldnt be an overstatement that with many franchises you are a serf to the distributors / manufacturers agenda. To coin your phrase if you dont perform its ''tough titties'' Because also there is such an historic turnover of dealers there is a very small ratio of very experienced industry people. And frankly, if there were many many more experienced people that would not neccessarily suit the distributors. Any industry insiders who may read this will understand exactly what I mean.

And none of that has ever been a secret....

Sell the crap or lose the franchise, Try not to go broke doing it.Sounds fair to me.

But yes, I can see your point in that pressure to move units may cause idiotic trade-ins that will result in a bigger hole then if they didn't sell the bike.

More fool them for doing the trade, Bad management no matter where pressure is coming from.

Not that anyone with any information has so far commented on the Otago Honda sitiuation.

[Robert Taylor]

And none of that has ever been a secret....

Sell the crap or lose the franchise, Try not to go broke doing it.Sounds fair to me.

But yes, I can see your point in that pressure to move units may cause idiotic trade-ins that will result in a bigger hole then if they didn't sell the bike.

More fool them for doing the trade, Bad management no matter where pressure is coming from.

Not that anyone with any information has so far commented on the Otago Honda sitiuation.

Of course there are likely myriad reasons for their failure but the fact is there are so many industry ''idiots'' to compete against it creates a rod for the backs of those trying to do it truly proffessionally.