The chance of a lifetime: You are asked to start a bike shop. How should it be done?

[Scorp]

To me it sounds like all NZ bike shops are facing the same problem: "Private overseas purchases are killing us".

Not just bike shops, goes for all retail sectors. Amazon are cheaper than Whitcools. But there seems to be room for both.

So what are you, the industry, doing about it? I tell you what it looks like: You are burying your heads in the sand. Your pigheaded attitude will only have one outcome: You be part of the history. To blame the customers, the government, GST, the Easter Bunny is easy. But will not fix the problem!

I can only repeat that I have just purchased a good quality helmet and a pair of boots from an NZ bike shop for LESS than I can find them (best price) on the internet. Perhaps not all bike shops are getting it wrong.

To the shop owners: The writing is on the wall. If you do nothing you are dead. So what are you gonna do about it?

How many bikers out there are really buying either 100% off the web or 100% from NZ bike shops. My guess is none. As buyers we are combining the two channels. Good retailers will work within this framework, not against it. It's just possible that some good NZ bike shop owners are already in the procces of adapting.

[Robert Taylor]

So it turns out its not a no, as wemoto buys from a wholesaler which offers international services, and with numbers like 2kg orders mentioned I'm guessing NZ has the buying power to buy from them right? Which begs the question, was your post; deliberately misleading, uninformed, or something else I've missed?

Something else youve missed. Do you really want me to type a whole essay to spell it out clearly?
Im an industry poster so clearly I know nothing.

[Scorp]

Perhaps and easier strategy would be to just mirror the stock available at other online stores, and place bulk orders to keep the freight costs down, the savings on freight costs then pay off the local postage and GST. Thoughts?

Trouble is, to compete with the likes of Revzilla or Kneedraggers etc, you'd have to buy stock in the same quantities as them. And if you did that, you'd need to compete in a market the same size as theirs, which is the USA plus the rest of the world. If you wanted to compete on that level, you'd need similar operating costs to them, which means for a start you'd need a US based distribution hub, so that you could keep your prices competitive. And if you did that, you'd be just another US online bike store adding to the pressure on NZ retail prices.

I've lived in two medium sized countries (the UK and France) and two small ones (Ireland and New Zealand). And I've found two simple facts of retail life: 1. Small retailers in small countries cannot comprehensively compete all the time with the bulk buying power of international online organisations (although they probably can in a few well-chosen niche areas). 2. Online international stores will never, ever compete with small retailers when it comes to personal trust, personal service, and personal relationships.

As buyers, we (usually but not always) make a compromise on price when we buy local, and always a compromise on personal touch when we buy off the web. It's really as simple as that. You can't have it both ways. Or at least, I doubt you can.

[Robert Taylor]

Obviously part of the problem is all these old codgers stuck in their ways, cant see the forest for the trees etc.
A fresh set of eyes and a new perspective untainted by past experience could be just the ticket.

Why dont you guys who have come up with all these brill ideas start up a company and bring parts for the NZ biker?
Buying in bulk direct from the manufacturer is an excellent idea, run it as a non profit organisation and pass the savings on. If you time it right the present crop of wholesalers and retailers wont know whats hit them until its too late.
That would just be the beginning, it wouldnt take long before you would have expanded to Australia and with the power of the internet, the world.
Probably find the bike shops wanting to buy from you as well.
If the price is right

What flipping shower did you come down in???????????????!!!!!!!!!!!!!!!!!!!!!!!

Manufacturers do not just sell to everyone, they want a proper distribution network in each country.

Non profit???????????!!!!!!!!!!!!!!!!!!!!

Why is making a profit such a dirty thing???!!!! ( fair and reasonable ) In case you hadnt noticed businesses need to make a profit to stay afloat, to pay tax. Tax makes Governments run so they can run essential infrastructure, etc ad infinitum.

Most or all industries that provide transport and leisure activities have to run as a proper business.

I just cant believe what you have posted. Ive certainly negotiated the forest much better than you clearly have

[Owl]

Sarcasm I think RT

[Katman]

I just cant believe what you have posted. Ive certainly negotiated the forest much better than you clearly have

I may be wrong, but I think he was being sarcastic.

[Scorp]

Oh, I do love good use of sarcasm, though it would sometimes help if there was an emoticon for it.

[bogan]

Something else youve missed. Do you really want me to type a whole essay to spell it out clearly?
Im an industry poster so clearly I know nothing.

see post 209.

and holy shit, theres more than 200 posts here

[bogan]

Trouble is, to compete with the likes of Revzilla or Kneedraggers etc, you'd have to buy stock in the same quantities as them. And if you did that, you'd need to compete in a market the same size as theirs, which is the USA plus the rest of the world. If you wanted to compete on that level, you'd need similar operating costs to them, which means for a start you'd need a US based distribution hub, so that you could keep your prices competitive. And if you did that, you'd be just another US online bike store adding to the pressure on NZ retail prices.

see post #161, its bulk freighting which is competitive as well as bulk buying.

[Dare]

Shouldn't really have bothered eh? Okay let's try again.
Other industries are using new models for distribution and business is booming.
Leaf from book, take.

[Genie]

After reading many of the pages on this thread, i'd like to say that owning a bike shop is far from "the chance of a lifetime", quite the opposite in fact.

Any man/woman/idiot that chooses to go into business certainly doesn't do it to make squillions and have a nice life.....good luck to any man/woman/idiot that goes into business, it's hard slogger for damn all reward at the end of the day.

[Katman]

Compare what you need with these prices here... http://www.mrcycles.com/fiche_sectio...1998&fveh=1849

You would probably get them in quicker from the US anyhow.

That works out to $580NZD.

It certainly sounds like Suzuki NZ have some explaining to do.

[Robert Taylor]

Sarcasm I think RT

Id sincerely hope so, if he is serious then he seriously has issues that only men in white coats could attend to

[Robert Taylor]

Trouble is, to compete with the likes of Revzilla or Kneedraggers etc, you'd have to buy stock in the same quantities as them. And if you did that, you'd need to compete in a market the same size as theirs, which is the USA plus the rest of the world. If you wanted to compete on that level, you'd need similar operating costs to them, which means for a start you'd need a US based distribution hub, so that you could keep your prices competitive. And if you did that, you'd be just another US online bike store adding to the pressure on NZ retail prices.

I've lived in two medium sized countries (the UK and France) and two small ones (Ireland and New Zealand). And I've found two simple facts of retail life: 1. Small retailers in small countries cannot comprehensively compete all the time with the bulk buying power of international online organisations (although they probably can in a few well-chosen niche areas). 2. Online international stores will never, ever compete with small retailers when it comes to personal trust, personal service, and personal relationships.

As buyers, we (usually but not always) make a compromise on price when we buy local, and always a compromise on personal touch when we buy off the web. It's really as simple as that. You can't have it both ways. Or at least, I doubt you can.

Youve nailed it as you clearly are prepared to think about it. Like you I have lived in a big economy and hear exactly where you are coming from. Those who have been in business or are currently in business have the best appreciation of all of the ins and outs and I entirely reject insinuations that we all have our blinkers on. And Im going to damn well have my say. Although I find the lack of a level playing field unpalatable and having to compete with the odd parasitical parallell importer Ive adapted to the reality.

Many people that work for wages in the motorcycle industry may only be on 35 to 50 k per year, if they are lucky. Certainly not well paid and a whole lot more brain damage than far less demanding and better paid jobs. The industry would pay more if it were able to but the market doesnt let it do so.

I know of a handful of mechanics that deserve to earn $40 per hour but thats not going to happen!

Ive said it before, this is so people dependent.

[Robert Taylor]

see post #161, its bulk freighting which is competitive as well as bulk buying.

You cannot bulk buy if you dont have a distributor agreement with the manufacturer

Distribution agreements are not handed out like Santas sweets, with especially the higher end products ( from countries that make quality and well engineered products ) you have to satisfy a load of strict criteria and have to have a solid investment in infrastructure. And they will only have one exclusive distributor in most small to large economies

Many or most manufacturers will not tolerate a distributor also having rights to a product that competes directly. For example we have been approached several times to take on a suspension brand that is pretty much the competition to Ohlins at that end of the market. That would seriously compromise our relationship with Ohlins and could end it.
This would be no less similiar if for example you were importing competing brands of oil , exhaust systems or any number of products.

Such business models of distribution that have been put forward would only happen if the rest of the world would accept it, well the rest of the world is not about to change to suit little old NZ lost at the bottom of the world.