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Thread: Another one bites the dust.

  1. #21
    Member Ryanoceros's Avatar
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    Quote Originally Posted by INTJ View Post
    TLDR: Dealerships are a dated commercial structure and we should be buying direct from the manufacture.
    The commute to and from the factory in Austria or England would be a bit of a pain for me
    Rest in Peace

    #294

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    Member GsxInShed's Avatar
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    ^^^^^You'd get used to it..( see what I did there..?.) ^^^^
    " Imagination is the seed of life..."

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    Quote Originally Posted by CbrRider81 View Post
    They don’t have to pay taxes on meth Hahahaha 😂
    And you can work out of a cage or a squat...
    " Imagination is the seed of life..."
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    Quote Originally Posted by INTJ View Post
    TLDR: Dealerships are a dated commercial structure and we should be buying direct from the manufacture.
    It's what Tesla is going to do as he's closing all his dealers to allow him to lower the price of his Model 3
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    Noted. We'll check back on that one in three years
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  5. #25
    Member thro's Avatar
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    Quote Originally Posted by Benzo View Post
    Halve this, even as a best case..!
    Figured that might be the case. Was trying to use conservative best case numbers but that just strengthens my point.

    There’s no money selling motorcycles in the quantity required in wa with this many dealers.
    “Crashing is shit for you, shit for the bike, shit for the mechanics and shit for the set-up,” Checa told me a while back. “It’s a signal that you are heading in the wrong direction. You want to win but crashing is the opposite. It’s like being in France when you want to go to England and when you crash you go to Spain. That way you’ll never get to England!” -- Carlos Checa

  6. #26
    Member Heretic's Avatar
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    Quote Originally Posted by INTJ View Post
    TLDR: Dealerships are a dated commercial structure and we should be buying direct from the manufacture.
    global manufacturers understand factories, its their thing. they dont "get" customers and as Benzo pointed out the margins the dealer network get is so small why bother with the extra cost and layer of "risk" with inventory and servicing, and dealing with the public. if a manufacturer sold say 800 bikes direct in WA and made an extra $800-$1,000 per bike thats still only $800,000, chump change compared to overheads, to have a sales presence, employ staff and service staff. Whats the manufacturers motivation to go direct?

    yeh "but you could buy it online", sure you could, but choosing and buying a bike is with the "heart" yeh? you can watch a football game or a concert on the TV in your lounge room why would anyone want to go watch it live, i just dont get it...

    not saying you couldn't but if you like the idea of having a single outlet per state per brand and zero competition lets go manufacturer direct, prices would go up not down because there would be no inbrand competition. You also create opportunities for other brands by letting them into the market by your now concentrated and limited sales presence. ( been there done that )

    the company i work for, we 100% invent, develop, make, sell and service direct all our products, hardware, software and consumables but its now very niche and business to business not mass consumer market stuff anymore. we shed our layer of dealers but ended up with some now again for some of the reasons noted above.

    like a lot of industries when mining was full speed ahead it papered over the fact there were too many players in most industries, its a correction now we are getting back to normal i think as people fuck off back to wherever they came from now the boom is gone and left us to pick up the pieces, had to happen sooner or later. sad for those involved though.
    I cant help it if your perceptions don't match my reality



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    Member datsikk's Avatar
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    Quote Originally Posted by Heretic View Post

    yeh "but you could buy it online", sure you could, but choosing and buying a bike is with the "heart" yeh? you can watch a football game or a concert on the TV in your lounge room why would anyone want to go watch it live, i just dont get it...
    .
    This is going to be the unfortunate outcome. When buying a bike you want to sit on it, ride it, hear it before purchase unlike buying a car. I also think if there is one dealer per brand, they may rationalise their offerings meaning alot less choice.

    What I don't get is how dealers made a living back in the day when the population was alot smaller? Must be effect of online shopping for accessories?

  8. #28
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    In terms of Triumph, Lloyd Chapman's closed down leaving only JCS. Yet, another Trumpy dealer has recently opened up next to Cully's. It's one thing for existing stores to try survive, but opening a new one in the current economic climate must have involved determining if there was indeed a market?

    It seems impossible smaller places can still survive. The place I mentioned earlier only selling 2 bikes/month - the profit on those 2 bikes is less than most people make in a month - and they still have to pay business costs and then their own wage. Don't know if they do servicing but they would have to be selling a lot of accessories to help keep the lights on.

  9. #29
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    Quote Originally Posted by Kristy View Post
    another Trumpy dealer has recently opened up next to Cully's
    That's part of Cully's - we sell both Yamaha & Triumph now.

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    Quote Originally Posted by Benzo View Post
    That's part of Cully's - we sell both Yamaha & Triumph now.
    Ah, so it is part of Cully's. My main thing was, I assume a lot of number crunching was done given the current market and was deemed sustainable in order to proceed given Trumpy isn't a major brand here and already has a dealer in Perth.

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    Its a trumpy dealership close to joondalup, masterstroke ! if you cant sell an english motorcycle in the joondalup region you may as well give up completely
    I cant help it if your perceptions don't match my reality


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  12. #32
    Member Crim's Avatar
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    Ahhem! what is it with Joondalup & Poms?

    Dreams of Blackpool with a better climate?

  13. #33
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    I know trying to sell a Honda in Joondalup is impossible.

    Maya's CBR1000RR was in their shop from October to March and it didn't shift, looking at the stock they had when we dropped it off and when we picked it up, neither did anything else. No idea how they can keep their doors open.
    Trying to think of a wise and sincere signature quote, but the only words that leap to mind are, "TITTY SPRINKLES"
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  14. #34
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    Quote Originally Posted by Heretic View Post
    Good points cut out to trim my quote reply..
    I think the issue is that a dealerships business plan is all about selling bikes, but the margin is unsustainably small given the quantity of sales. The businesses need to instead focus on higher margin services like maintenance/customisation...

    I'd liken it to the process of buying a weapon through a firearms dealer... they charge a fee to have the gun sent to them direct from manufacturer (or online website)... that's a small part of their actual profit... the majority of their profit comes through gunsmithing/value adding which is a business model that is mostly sustainable because most dealers are part-time retired grumpy bastards who hate people and might have a 'real' job as well.

    But alas I digress, maybe motorbike dealerships need to be backyard part-time 'for the love of the sport' thingo's that people do partially for the money, partially for something to do.

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    Stealerships need to devolope a social conscience.

    Use basic good natured types to front counter the products and after sales.

    Get a grip on what motorcycling means to people....kids on peewee types...returning riders who hate being bullshitted to...community involvement, including training days for the new customers..ride day discounts for long term customers.

    Open days for anyone interested enough to drop by for maintenance info ..FFS they could sell basic tool kits.. instruct on pre ride checks...show video and link to customers phones for updates of recent product upgrade and changes to road rules/conditions.

    Advertise road safe promotions and charity rides. In house demos. live stream video of info in store...FFS sell coffee and have foot path tables n shit..best method security for parked bikes.. etc etc etc.

    Lobby local Gubbinmint for fair and equal share of road use .. sell bike insurance and not rip off factory loans ..and help promote initiatives like speed camera zones safe places to ride fast..

    And just try to not be sarcastic cunts.

    Oh wai...... No no It's OK I'm awake now... whaddayah want!!??
    " Imagination is the seed of life..."

  16. #36
    Member Tim the PM's Avatar
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    Quote Originally Posted by TurboR1 View Post
    I know trying to sell a Honda in Joondalup is impossible.

    Maya's CBR1000RR was in their shop from October to March and it didn't shift, looking at the stock they had when we dropped it off and when we picked it up, neither did anything else. No idea how they can keep their doors open.
    Was it on consignment? I considered putting mine with them but ended up selling to them for $8K (for a 1 owner 015 blade with full dealer history )

  17. #37
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    As much as current economic climate and dealer attitudes can be blamed, part of the problem is the manufacturers. Asking dealers to order/pay for 1 of each product line and model when dealers know they won't shift is economic disaster. Also, when was the last "new" everyday bikes from the big 4 jap companies? Each had half a dozen versions of the same bike (think mt09, sv650, cbr500/650, z1000/ninja/versys etc). Whats happened to the "special" models? And no, an ohlins sticker and $5k price hike does not a special make. Mt01, tlr, vtr sp, new supersports every 2-3 years etc. I have been trawling the manufacturer websites for months looking for something that suits, but way better off spending the 15-20k on 2 older bikes that are more specific than one all-rounder. If only rego was discounted on extra vehicles. This isn't bike specific either. The amount of models unavailable to oz is massive. I really wanted a stripped sti that japan gets, don't want climate leather sunroofed sat nav heated stereo in my tarmac race car
    yes, i am ignorant
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  18. #38
    Member Hillz's Avatar
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    no bike shop gets by on bike sales, most of the time you only talking a few hundred dollars profit from a 10k investment type scenario (alot of the time even losses just to move them on) the Honda rep will tell dealers they are there to move bikes not make money... idiot.. and Yamaha, well they are slowly destroying themselves, pretty sure cullys will be the only dealer in the world one day haha with nothing but a stack of vintage bikes in their line up, 4 years and to late to bring the 700 to the market plus a flat out refusal to even try to compete with KTM in the offroad market has slowly turn me from a Yamaha die hard to wanting to burn down the factory haha

    its the workshops charging a mechanic out for $110 p/h (he would only see $30 of that) & parts with much markup above retail for genuine parts, i hate shops that charge above retail. like you get charged extra of their shitty arrogant attitudes lol
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  19. #39
    Member Heretic's Avatar
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    Quote Originally Posted by shortSteve View Post
    As much as current economic climate and dealer attitudes can be blamed, part of the problem is the manufacturers. Asking dealers to order/pay for 1 of each product line and model when dealers know they won't shift is economic disaster.
    yes, i agree its absolutely the manufacturers to be blamed, not to mention having to use their floor plan ( bike stock finance ) they dont seem to get that manufacturers and dealers are symbiotic, if your long term dealers are not successful then neither are you and you need to take a good long hard look at yourselves. it a perfect storm for a lot of bike shops at the moment, high overheads, reduced economy, reduced interest in motorcycles overall, low bike margins and the internet effecting the accessories.

    Quote Originally Posted by Hillz View Post
    no bike shop gets by on bike sales, most of the time you only talking a few hundred dollars profit from a 10k investment type scenario (alot of the time even losses just to move them on) the Honda rep will tell dealers they are there to move bikes not make money... idiot.. and Yamaha, well they are slowly destroying themselves

    its the workshops charging a mechanic out for $110 p/h (he would only see $30 of that) & parts with much markup above retail for genuine parts, i hate shops that charge above retail. like you get charged extra of their shitty arrogant attitudes lol
    in my mind the profit you should get from a premium bike brand dealership by selling bikes is the reason to have one, it would be your core business, but thats not there so why bother?? if some dope is walking around actually saying dealers arent there to make money he should be sacked. on the spot. but i think hes highlighted the problem.

    i dont think $110 ph is too bad but charging over rrp isnt cool man, not cool, i had to order a clutch cutout switch for my GSXR an was seeing prices $35 USD and like that for genuine and non genuine parts on ebay and the net, wandered in and got a genuine suzuki part locally from a dealer for $19.00 including the mounting screw. happy dayz, i will be going back there ( and have )

    sorry to rant on but being on the outside looking in my opinion somethings on the nose with the dealer model.
    I cant help it if your perceptions don't match my reality



  20. #40
    Member Hillz's Avatar
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    some shops i know that charge over retail

    Savage, KTM OEM parts , not sure about suzuki ive never got any from them

    Mandurah city on every thing KTM / yamaha / everything.. most expensive place i ever bought yamaha parts from..
    Last edited by Hillz; 04-03-2019 at 02:32 PM.

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