Buy from NZ? I tried but come on...

[Katman]

I still have no idea how the $2 shops do it. They must pretty much get their stuff free (or damn close). And have a single entity that does everything in the line, from shipping to retail. And work on the narrowest of margins. They are DEFINITELY NOT using the standard NZ distributors and large size retailers.

I hope you're not suggesting that motorcycle shops should emulate the $2 shops.

[R-Soul]

I hope you're not suggesting that motorcycle shops should emulate the $2 shops.

Only the ones that want a shedload of my business...

There is a business model out there for every market...

[ukusa]

Exactly. I've got about $1K worth of genuine KTM parts on order from the USA at present, & I'm going to pay the full whack of GST with a smile on my face, because I'll still have almost $600 left in my pocket compared with buying the same parts locally. In the current market KTM NZ have a simple choice; they can make a little money off me, or they can make none at all, they are choosing the latter.

Local retailers, & those in Oz kicking up a stink at present, obviously have little idea of the reality of the situation if they think getting GST applied to low value imports will help them. Most people don't bother importing stuff to save 15%, it's when it's more like 25-50% that the consumer cries enough.

Cheers
Clint

well put. Even with a shit exchange rate & if GST was on everything, the savings are too great to ignore. Some people are bullshitting themselves when they say "but I'm also paying for the expertise & warranty" when buying local. The truth is that most parts are still covered by warranty anyway, and when I'm adding a chrome rack or a sissy bar, what expertise do I really need?

[Katman]

Only the ones that want a shedload of my business...

There is a business model out there for every market...

Have you seen the shit that's sold in the $2 shops?

Half of it's not even worth $2.

[Brian d marge]

I have to say though , the products and the price I have paid for stuuf in NZ can ( i think ) be pretty good though

Just to compare , Budgets in CHCH and Casbolts Quasimoto good products , very reasonable price , good customer service ... ( apply the opposite to the Name i listed that should have a NUT on the end of it, they are truly shocking)


We have the 100 yen shop here and the products are not to bad , if I am going to a meeting and I forget my tie , 100 yen shop, looks ok !

we even have the 99 yen shop and I believe the ..yes.... 69 yen shop .. and no they don't sell what I think you are thinking

Stephen

[R-Soul]

Have you seen the shit that's sold in the $2 shops?

Half of it's not even worth $2.

Hell most of it is worth more than $2 on raw materials alone, much less assembly and shipping from teh far ends of the world. Thats why I cannot figure out their business model. Or correlate their transport and shipping and distribution costs with the alleged costs of some of the (similarly sized) goods on sale in bike shops.

Besides, this is changing the discussion. The point I am making is that the costs to the dstributor/wjolesaler/retailer are always pleaded as being extravagant. But they need not be. Getting the same stuff from around the world at airmail/courier distribution costs proves that. Perhaps if your distributors are giving you such expensive goods, you should dump them and order its yourself from the states for cheaper.

[Reckless]

Have you seen the shit that's sold in the bike shops?

Tail pieces for $600 you can buy elsewhere at $214
Exhaust systems for $1500 you can buy elsewhere at 1/3 of that?

Half of it's not even worth it.

I'm not try to wind you up Katman but I edited the above for an alternate view?

And it appears in practice the market is deciding if this thread is anything to go by?
I'm not saying its right or good for NZ but the market is deciding where their dollar is being spent!

I say again its not up the Joe Blogs to fix the industry, its the industries problem. If the $2 shop buying/supply model is working maybe it does need a look at. It doesn't mean you have to sell low quality products!
Maybe they have no middlemen and maybe with modern freight systems, internet communication you don't need middlemen. I certainly don't imagine the Wharehouse buys much to off a middleman they'd be going overseas directly?
It looks like your customers have certainly caught into this!

The trap of coarse is that the bike shops need actual bikes to sell and the importers have got this tied up with parts so they can't go overseas independently or even as a national Co-op for parts and accessories or they won't be supplied Honda's or Kawasaki's. Shops feel pretty trapped I'd imagine.

So in my view the only answer is fix the whole supply chain or put up with closing shops and people going overseas to purchase goods.
To totally fix the imports at customs or lower the import threshold is only going to create a captive market and I don't think even the govt will go there! I'd guess if this became the case people would soon start deciding its cheaper to actually live in that another country. Rather than an uncompetitive, controlled, expensive place, face it, a price check is only a Google away and that ain't gonna change in the near future!!

Secondly there appears to be so much price disparity its actually worth paying the Duty, freight and the 15% G.S.T.
How are bike suppliers going to stop that? Regulate the shit out of NZ to retain their margins or fix things to get your customers back? Its not hard we do feel very loyal!!
Looks like 30% or so might be acceptable over what can be landed for here (if this thread is anything to go by) but 100-150% is not!
So how are you going to meet your market as its not coming to you at the moment?

[Katman]

If the $2 shop buying/supply model is working maybe it does need a look at.

The reason the $2 shop system works is because a large percentage of New Zealanders base their purchasing decisions on nothing other than price - and consequently buy a lot of shit.

Then, come the day they discover they've bought shit, they moan their arses off.

It's the New Zealand way.

The Chinese must be pissing themselves laughing at us.

[rustic101]

I've just discovered ebay after my flatmate recently made some purchases and the quality etc was amazing let alone the price. Shes showed me an 'Apples for Apples' comparison using Motomail as the control measure.

I was blown away. Even with the postage there was up to 60% savings on some items identical as those 'on sale' and in stores here. That aside some like the ncom intercom were about the same price.

My biggest concern was around counterfeit products but all of the items she has purchased are genuine..

The best part is you don't have to deal with sales people who can treat you poorly if you are not tooled up in your riding gear. Thats another story though lol.

My experience of late whether that be buying parts or real estate is that Kiwis are lazy and will just pay the price..This I believe allows retailers etc to gouge the consumer.

[rustic101]

The reason the $2 shop system works is because a large percentage of New Zealanders base their purchasing decisions on nothing other than price - and consequently buy a lot of shit.

Then, come the day they discover they've bought shit, they moan their arses off.

I use to say 'buy cheap buy twice'. However I'm changing that to buy wise, buy once Its all about the research

[MarkH]

I use to say 'buy cheap buy twice'. However I'm changing that to buy wise, buy once Its all about the research

So very true - I've bought great stuff at a wide variety of prices, some cheap items are worth way more than their cost and some expensive items aren't worth half of what they are selling for.

[Smifffy]

The reason the $2 shop system works is because a large percentage of New Zealanders base their purchasing decisions on nothing other than price - and consequently buy a lot of shit.

Then, come the day they discover they've bought shit, they moan their arses off.

It's the New Zealand way.

The Chinese must be pissing themselves laughing at us.

Generally speaking the $2 shop model, and more so the "somebody or other's emporium" stores base their business model on picking up stock through liquidations and disposals.

Some typical hard working business person who has a proper business model, and myriad overheads to cover buys in and stores a bunch of stock.

In order to serve his business model and cover his overheads, along with an appropriate margin to keep him only slightly below the poverty line, he sets his retail price accordingly.

He sells one or two items, and the customers seem ok about it, but the things aren't racing out the door as he expected they would when he did his initial market research and found that 1 or two people were absolutely gaga for the product and would buy it at any cost.

He drops the price, advertises a little and sells a few more.
The rest of the market starts parallel importing, or moves onto the next new fad, or something and for whatever reason he now has a pallet load sitting in storage.

If he's quick enough he manages to sell the whole lot as a bulk deal and realises maybe 20 cents in the dollar.

If he has too many of these product lines sitting on too many pallets in too many storerooms, then his liquidators sell it for him at maybe 10 cents in the dollar.

Del boy (or should that be Diao boy?) buys em up, swaps a few of em for someone else's pallets of junk and sends em out the door for 15 cents on the dollar and child labour behind the counter.

Most of the costs of the raw materials, shipping etc have been borne by the first guy who has sold his clubsport to buy a lawn mowing round, because after all he's a business man and could never work for anyone else again.

He might even start buying the parts for his lawnmowers from overseas web sites, or from Diao's cousin on Trademe.

[98tls]

I use to say 'buy cheap buy twice'. However I'm changing that to buy wise, buy once Its all about the research

Indeed,generally with enough of it you will be forced to buy offshore when it comes to bike stuff(not always),ive no problem with a bloke owning a bike shop making a living but many times in my experience over the years the answer to my question "how much" has had me laughing.Ive even the odd time handed over my hard earned when the difference hasnt been to "laughable" in an attempt to support local business but generally no bugger that.

[rustic101]

Indeed,generally with enough of it you will be forced to buy offshore when it comes to bike stuff(not always),ive no problem with a bloke owning a bike shop making a living but many times in my experience over the years the answer to my question "how much" has had me laughing.Ive even the odd time handed over my hard earned when the difference hasnt been to "laughable" in an attempt to support local business but generally no bugger that.

Whole heartedly agree and I will (where reasonable) continue to support a Kiwi bike shop making a living...However I'll ensure I've explored alternatives that don't leave me booking into the soup kitchen for Christmas dinner

I genuinely believe that most consumers are becoming wiser to shopping on-line Nationally and overseas and if Kiwi retailers in general are not careful will face a decline in business. The Retail Association already want to place a GST on imported (individual) purchases as well as driving Customs and Excise to tax more on imported goods.

[Smifffy]

Whole heartedly agree and I will (where reasonable) continue to support a Kiwi bike shop making a living...However I'll ensure I've explored alternatives that don't leave me booking into the soup kitchen for Christmas dinner

I genuinely believe that most consumers are becoming wiser to shopping on-line Nationally and overseas and if Kiwi retailers in general are not careful will face a decline in business. The Retail Association already want to place a GST on imported (individual) purchases as well as driving Customs and Excise to tax more on imported goods.

I'd be ok with paying GST on all individually imported goods, but an increase in customs & excise would apply to shop stock too surely?