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Thread: Another one bites the dust.

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    Member Green Trident's Avatar
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    Another one bites the dust.

    Joondalup Motorcycles is giving up its Suzuki dealership, and closing down.
    Sale now on.
    The only thing wrong with a perfect ride to work is that you end up at work.
    G T

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    Quote Originally Posted by Green Trident View Post
    Joondalup Motorcycles is giving up its Suzuki dealership, and closing down.
    Sale now on.
    Yer Bit sad but just the way the market is at the moment. Steve is staying on to do servicing/suspension work out the back. But the main shop front will close.

    Adam and Steve were always good to deal with. Can only wish them both the best.
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    Member Hillz's Avatar
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    so its not closing down, just down grading operations to more affordable levels, makes sense WA is a shit place to own a bike shop these days

    90% of them is there own fault for being stuck up cunts, but even the nice ones struggle
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    Member Kristy's Avatar
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    Was in at Cannington Motorcycles (pretty sure that's the shop) last winter looking for a new pair of oven mitts for winter and they said they used to sell 30 bikes/month. They're now selling 2 bikes/month. Tough gig.

    They were in a prime position on Albany Hwy but they've shifted a bit further back - presumably smaller shop and less rent.
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    Adam is a bloody legend. Best customer service of any dealership in Perth by a mile. Always remembered my name, even if I hadn't been in there for 6 months. Took my bike in there just before 5pm for a service the following day and Adam offered me a lift home as he was finishing work.

    I needed my valve clearances done, so I took my bike in there, he threw me a service manual and said save some money and do it yourself, just bring the manual back when you're finished.

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    Member claymen's Avatar
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    Quote Originally Posted by Speed Dealer View Post
    Adam is a bloody legend. Best customer service of any dealership in Perth by a mile. Always remembered my name, even if I hadn't been in there for 6 months. Took my bike in there just before 5pm for a service the following day and Adam offered me a lift home as he was finishing work.

    I needed my valve clearances done, so I took my bike in there, he threw me a service manual and said save some money and do it yourself, just bring the manual back when you're finished.
    This 100%. The service I got there is the reason I kept going back. Their service has been top notch.
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    Legitimate question for those who may know, just how many new bike dealers are still operating in WA, especially the metro area / surroundings?

    If possible, how many were there during the good times?

    It would be interesting to see the actual attrition rate vs downsizing or restructuring...
    Sventek, being a predominantly lazy fuck can you please purchase some for me, bring me the stuff, create something I want after you think of it for me then clean my house, wash my car, dog, bike breathe for me.

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    it would take me a little while to make up such a list, i'll try & have a look tomorrow if things are quiet. would be interesting

    as we know many are gone Kawasaki Northside / chapman / highway yamaha / wanneroo m/c the KTM west / all the causeway etc many shops giving up their franchises & plenty of rumors others are closing

    but i can tell you shit looks bad for franchises in WA, some are doing well & many sole traders can do very well but i think the big brands suck the life out shops in WA when the demand just isn't there , even some sole trader shops that use to do big business back in the day are having trouble even keeping the lights on today
    Last edited by Hillz; 15-03-2018 at 03:35 PM.

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    Midvale will be closing at the end of feb... another shop put to the wall thanks to yamaha's unrealistic demands

    word is savage was keen to purchase but that fell through when Cam-am didn't want to compete side by side with yamaha

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    Quote Originally Posted by Hillz View Post
    Midvale will be closing at the end of feb... another shop put to the wall thanks to yamaha's unrealistic demands

    word is savage was keen to purchase but that fell through when Cam-am didn't want to compete side by side with yamaha
    I got that feeling last year when yamaha oz sent out letters saying midvale would no longer be a warranty agent and to go to five star. So not including nandurah/bunbury i think it is 2 yamaha dealers left, one big kwacka franchise over 3 stores, 2 suzuki, 4 honda (maybe five with rockingham??) and a couple of triumph. Rick gills is multi branded (iirc honda, suzuki, mv and something else??) as may be rockingham dealer aswell, think they took over witch cycles. Brittons (kim) is triumph now i think too.
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    rick gill doesn't have honda anymore, got taken off them at the start of the year. and pretty sure rockingham told honda to stick it, apparently the dealers are not there to make money only there to move bikes is what the honda guy told him

    seems like there will only be one of each in the metro area in the years to come, as of now yamaha is just Cully's, five star & mandurah (if you want to pay +20% above retail) normally trade get trade price.. not at mandurah, everyone gets raped lol
    Last edited by Hillz; 31-01-2019 at 01:43 PM.

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    Quote Originally Posted by Hillz View Post
    pretty sure rockingham told honda to stick it
    Correct. Just been there a few days ago now it's Kawasaki and Suzuki only and it's called "Western Edge Motorcycles". Nearly missed it cause I was looking for the Honda sign that was of course gone by then

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    Quote Originally Posted by Hillz View Post
    rick gill doesn't have honda anymore, got taken off them at the start of the year. and pretty sure rockingham told honda to stick it,
    That's a bummer Looks like I'll be buying ALL my parts online from now on as THS can go suck a dick, not getting a cent more from me given the bad dealings I've had with them previously
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    Rick gills do MV Augusta, Aprilia and Moto Guzzi as well as Suzuki.

    Cully's have Triumph as well now. I was at their new store the other day, very nice.

    Quote Originally Posted by Para045 View Post
    That's a bummer Looks like I'll be buying ALL my parts online from now on as THS can go suck a dick, not getting a cent more from me given the bad dealings I've had with them previously
    There is a few of the remaining dealerships that I won't deal with ever again, well except to throw in a hand grenade.

    Can we buy motorcycles online?
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    I remember the same thing happening in the UK in the late 70's...unrealistic prices and insurance premiums were the main cause back then...still many bike shops closed their doors. Insurance was and still is mandatory before you can ride or drive anything on the road ergo they charge like a wounded bull.
    Smoke me a kipper...I'll be home in time for breakfast

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    Member thro's Avatar
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    Realistically, given the size of the Perth bike market there are simply too many shops. Sad, but... (these figures are rough guestimates).

    • Lets say 2 million people in Perth
    • Even if 10 percent ride (and i doubt that, given that many are aged, too young, sick, just don't care for it, etc.), thats 200,000 riders. I'd say this number is a lot lower than that (i'd guess 25% of that - tops), but still... will carry on as the math is simple and it still works out badly...
    • Lets say 10% of THOSE buy a new bike every 5 years (and I'd say that is optimistic), that's
    • 20,000 / 5 = 4000 bikes a year.



    Or say 333 bikes a month

    Between how many dealers? 30? 10 bikes a month each, best case? Maybe 1-2 grand profit each sale on average (best case)...10-20k/month? Would barely pay for the room to keep them on a shop floor. Never mind wages, insurance, actual profit to justify running a business, risk/liability of carrying stock, etc.

    The number of bikes vs. number of dealers makes no sense. Unless motorcycling takes off massively (and the opposite is occurring) then going into business to sell motorcycles in this state with the numbers this way simply makes no business sense.

    For new bike sales, i'd say there's room for maybe 1 (maybe 2 for the big 4) brand outlets in Perth metro for each manufacturer.


    Adjust the numbers/fudge-factor up and down as you see fit, but it just doesn't look good.


    edit:
    If you run my estimate of the number of total riders being say 40,000-50,000 total it works out to the average dealer selling 2-3 bikes a month - for a profit of (guessing) 4-6 grand a month (excluding accessories, etc.)? Which sounds like what is going on right now? Economic boom time maybe things would be better. But you can't run a business banking on boom time. Whilst the current situation is sad, i don't think it is unexpected if you just run the numbers.

    The cost increase on sports bikes coupled with the current economic climate, and much of the change on the new stuff being nanny-aids or emissions focused simply won't help either. Right now for example, i have no desire to blow 25-30 grand on a bike that won't be night/day different to what i already own (I'd rather spend say 20% of that on upgrading my current bike). We simply aren't seeing the level of progress that we saw in the 70s, 80s, 90s and early 00s.
    Last edited by thro; 01-03-2019 at 12:24 PM.
    “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

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    Member INTJ's Avatar
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    TLDR: Dealerships are a dated commercial structure and we should be buying direct from the manufacture.
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    You can run these types of numbers for anything
    I cant even work out how meth dealers turn a profit.

    i work for a duopoly supermarket chain
    looks like i'll be stuck here forever
    Note: this may not be the universe where the above is relevant.

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    Member Benzo's Avatar
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    Quote Originally Posted by thro View Post
    Maybe 1-2 grand profit each sale on average (best case)
    Halve this, even as a best case..!

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    Quote Originally Posted by somebodyelse View Post
    You can run these types of numbers for anything
    I cant even work out how meth dealers turn a profit.

    i work for a duopoly supermarket chain
    looks like i'll be stuck here forever

    They don’t have to pay taxes on meth Hahahaha 😂
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