Levers

[amcmo]

I've noticed a couple of threads on levers.

We distribute Pazzo and while Pazzo set an RRP of $290 (used to be $350 when Mladin had it to themselves), we comply with Pazzo's minimum advertised price policy.

Feel free to call or email direct (sales@amcmotorcycles.com) for the current specials we cannot advertise. Mention club membership or you'll pay $270, which is our standard price.

When we were looking at Pazzo, we did look at CRG, Titax and others, including some straight asian Rip-Offs of Pazzo.

While we could have sold some with obscene profits for $130-$150 per pair, we stayed away due to significant issues with quality. I don't know who does Leevaz (sounded like one of Motrax's Chinese rip-offs, but not on their site) and can't comment on the quality, but at that price I'd be assuming they're out of China or Hong Kong, given what we saw when researching levers. (I know China's getting better all the time)

Even some of the other 'brand' names have quality issues including anodising quality, which is why they can be had on eBay for $50-$60 each. At the end of the day we went with Pazzo for quality and the ability to assemble to customer order at our warehouse.

We did see a claim on another forum that their knock-offs were from the same factory as Pazzo. Pazzo manufacture everything in house and do not have a 'discount version' under any other name. The only brand we believe still comes from a Chinese factory is Vortex and that factory did offer us copies of Vortex product (a whole range). We used them for our original Rego Tube production run but QC was shit, ended up throwing away as much as we sold (warranty - sorry not know that word...). We moved back to Aus.

We have the full range of Pazzo parts and colours in stock for immediate assembly.

While we cannot match Asian pricing with Pazzo we can do super specials for club members for what is the standard that everyone tries to copy.

[CeeJay07]

Superbike Supply have them on their website for $205 per pair....can you compete with that?

[amcmo]

Superbike Supply have them on their website for $205 per pair....can you compete with that?

As I said, call or email direct for a price.

We cannot advertise a price below Pazzo MAP of $229.95.

While we cannot cut off a dealer solely for undercutting the MAP under Australian law, as a Pazzo distributor we can be cut off by Pazzo if we advertise below it.

Superbike Supply are advertising below the Pazzo MAP. Continued availability to them from Australian distributors could be an issue.

They might be grey marketing, however then they couldn't offer every colour combo, certainly not from stock and there's no local instant warranty.

We can offer replacement parts and rebuild damaged units. Sell your bike or want to change colours and you can ship them back to us to modify for the cost of the replacement parts. Because they are a safety related part, we can't offer a trade in or second hand parts.

To get back to your question, call or email.

[CeeJay07]

Thanks for the reply....appreciate the feedback....will be in touch.

[Rainbow7]

So, is AMC the sole Pazzo distributor now?

[amcmo]

So, is AMC the sole Pazzo distributor now?

No, we share it with Mladin/BGW, and a Melbourne company who apparently only stock a small range and only in black shorty's.

Pretty good for us. Most dealers we talk to claim to hate Mladin/BGW with a vengeance for adverts suggesting dealers were responsible for the excessive Oz cost of accessories, and then selling direct at below the price they had been selling to dealers in the case of Pazzo.

The Pazzo factory cost price hasn't changed in a few years from what we can see and the RRP was $350 until we came on the scene. The official RRP is now $A290. In my view, the rip-off has never been at the dealer level on that item!

While Aus bike dealers have to make higher margins to cover costs than US dealers generally they are not ripping off the public, just trying to exist in a country with the highest business costs outside of Europe. (We could pay our staff in Georgia where we have an office $9.50 per hour, not that we do as it's below subsistence level for a family. If I decide I don't like any of the staff even without reason, I can sack on the spot without fear of any interference and no entitlements - no super to pay, no accident compo levy, rent is 1/4 of over here..... thought of moving, but just can't bring myself to live amongst the rednecks...) I know, who cares, if you can get it cheaper elsewhere...

We prefer to support dealers as much as possible, but realise there are times when we have to supply direct due to competition.

Back to the levers. We will mix and match any combo you like, including single levers, 1 short/1 long and change the perch if you change bikes.

[Rainbow7]

Most dealers we talk to claim to hate Mladin/BGW with a vengeance for adverts suggesting dealers were responsible for the excessive Oz cost of accessories, and then selling direct at below the price they had been selling to dealers in the case of Pazzo.

Maybe that's true in the case of Pazzo levers but I really doubt that it's true with most of their other products. - Dealers were trying to charge ridiculous amounts for Yoshimura exhausts, for example. Their excuse was, "We have to charge that much because we sell lower volumes."
I always regarded that as a lie, since it seems to me that if they had been selling at prices comparable to O/S, they might have sold more stock! (Also, I have found that it's a good idea to regard most everything dealers say as being a lie!) I know it's a bit "chicken and egg", but if you make things really expensive, people won't buy them.
I'm really happy that BGW is selling directly to the public. In the case of high-end motorcycle accessories, and given the power of online businesses, that was exactly what needed to happen, IMO.
If Mat Mladin had continued to supply stealerships as per the old system they would have had fewer and fewer sales, since damn near everyone is now buying from overseas.

[amcmo]

If Mat Mladin had continued to supply stealerships as per the old system they would have had fewer and fewer sales, since damn near everyone is now buying from overseas.

Knowing the dealer's costs for most products, the 'stealerships' is not correct in the majority of cases - obviously some did charge over the top, but in general I stand by my comments that it is SUBSTANTIALLY more expensive to run a business in Australia (blame successive governments). There are not too many dealerships out there that make much more than a subsistence living for the owners. The exceptions are the big chains that carefully manage costs and benefit from volume pricing on their accessories and even some of those are just hanging on at present. I don't work for a dealer and don't have shares in any but do have a very close knowledge of their costs.

I know everyone thinks, 'drop prices and sell much more' but there's a calculation that shows how much you have to increase sales for every 5 percent you drop prices just to make the same end profit and it's staggering.

Not that all this is necessarily any reason on it's own that customers should ignore the cheaper prices available overseas. We try to work with dealers to enable them to get close enough to overseas prices to make it worthwhile for customers to consider the trade off of a slightly higher price for local stock and warranty support.

[Rainbow7]

There are not too many dealerships out there that make much more than a subsistence living for the owners.

That is more a reflection of poor management by the manufacturers than it is of anything else. If they carefully conserved the number of dealers then there would be more sales per dealer. (Not counting 2nd-hand sales, obviously.)

I realise there is sometimes a fine balance between reasonable profit and simple price-gouging, but the fact is that the stealerships were charging $2500 for an exhaust system that can be bought from BGW for <$1500. (Or even less if you buy from O/S.)
Why is it that I see boots being priced at $600, when I can get them sent to me from the U.S. for $350? I mean, how much profit is enough?
If selling bikes/bike accessories is no longer viable under the traditional model, I would suggest that dealerships either need to change or they should get out of the industry.
I do think there are too many dealerships around, given the small population.

Also, I still think that many retailers would have better sales if they charged less. - The average guy who rides a sport bike is not particularly wealthy and simply cannot justify spending thousands of dollars on equipment/accessories. If they were more affordable, the high-end products would have better sales.
Hell, I can afford to buy anything I want but I absolutely refuse to pay $1500 for a jacket! - I've bought cars for less!

[big kev]

i tend to agree with rainbow7 in the fact that i cant justafy the extravagant costs of bike gear so i look over seas , and i run a small home business and i struggle some months so i look OS for my parts .

case in point i wanted some small billet front fork adjusters , in australia a good set were $70 plus dollars , i got a set in the US for $29.50 AUS shipped to me ,

i look at custom seats that you can buy in the USA or OS and there asking shit loads some in the several hundreds , i try and run a service here at a comperable price , i look at every job i do as if i were the custmer and i make the price as best as possible , i make a small profit and im happy with the service i offer ,

i know its not easy running any business but there is clearly a system in place that gouges bike riders and most of the time its the bike shops doing it ,

[FastPhil]

Good on you big kev!

[amcmo]

I'm not saying that end users should ignore overseas pricing and just accept the local price. Far from it. If we as distributors can't offer a pricing/service to our customers, either direct or through dealers, we shouldn't be in the game.

Exhausts have been used as an example. I can state that there are exhausts being sold 'direct to public' today that a year or so ago were being sold to dealers for higher prices than today's direct' prices. There was a lot more happening there than the public are aware of. OK some individual dealers did/do go overboard on markups.

Kev mentioned seats. I know he makes great custom seats from comments we've had and if we don't sell a particular seat we happily recommend him. We distribute Sargent seats (Sorry no Hayabusa).

Every now and then someone writes Sargent direct and complains about the $A prices. When we go back to the customer and show the actual freight costs (Many seem to assume you can post a 2 piece BMW R1200GS seat from the US for $50) our advertised prices WITH GST are generally less than taking the US RRP, adding actual freight then GST. Now a direct import if under $A1000 doesn't pay GST, but we can't avoid it. At the end of the day on a $A900 seat our sell price is between $50 less to $50 more than a direct one off import depending on the actual seat and daily exchange. Personally I think up to $100 more could be justified for the local warranty (costs around $200 to post that seat back to the US for Warranty - usually after USPS/Aus Post put a hole in it and refuse responsibility), and the fact that any customer can send the seat back to us within 30 days and just say "Naa! didn't like it" and get their money back. (Try that with Corbin) We give our dealers a VERY modest markup on seats. I'm certain that some might try add more and I hope they lose out to another dealer or direct on our web site.

We sell Speedo Healers and Gear indicators and can confidently say that, provided dealers stick to recommended, our current pricing is below overseas prices.

I do TOTALLY agree with Rainbow that the bike manufacturers have set up far too many dealerships to the point where they fight so hard that a CBR1000RR often carries $600-$700 profit for the dealer - if he doesn't sell accessories with it or run a great service shop, he loses dough after running expenses. (But then we have got used to just running down the road to our local dealer and not having to go up to an hour or two for the nearest, which is what the market size really dictates)

I understand Kev's comments, as a smallish business owner, we like him, (we started out as an after hours home business) have to walk a fine line between trying to compete with the US market, support dealers who support us and be able to keep our staff in employment.

Having stuck my neck out and defended our pricing and dealers, if any member sees a price of ours on a product they want that they feel is out of line with overseas email me personally (robertr@amcaustralia.com) and I will discount beyond the club discount to bring it in line, provided we don't actually lose money on the deal. If you have a favourite dealer you want to support, I'll work with the dealer to give the same discounted end price as direct.

[Dave]

I'm not saying that end users should ignore overseas pricing and just accept the local price. Far from it. If we as distributors can't offer a pricing/service to our customers, either direct or through dealers, we shouldn't be in the game.

Exhausts have been used as an example. I can state that there are exhausts being sold 'direct to public' today that a year or so ago were being sold to dealers for higher prices than today's direct' prices. There was a lot more happening there than the public are aware of. OK some individual dealers did/do go overboard on markups.

Kev mentioned seats. I know he makes great custom seats from comments we've had and if we don't sell a particular seat we happily recommend him. We distribute Sargent seats (Sorry no Hayabusa).

Every now and then someone writes Sargent direct and complains about the $A prices. When we go back to the customer and show the actual freight costs (Many seem to assume you can post a 2 piece BMW R1200GS seat from the US for $50) our advertised prices WITH GST are generally less than taking the US RRP, adding actual freight then GST. Now a direct import if under $A1000 doesn't pay GST, but we can't avoid it. At the end of the day on a $A900 seat our sell price is between $50 less to $50 more than a direct one off import depending on the actual seat and daily exchange. Personally I think up to $100 more could be justified for the local warranty (costs around $200 to post that seat back to the US for Warranty - usually after USPS/Aus Post put a hole in it and refuse responsibility), and the fact that any customer can send the seat back to us within 30 days and just say "Naa! didn't like it" and get their money back. (Try that with Corbin) We give our dealers a VERY modest markup on seats. I'm certain that some might try add more and I hope they lose out to another dealer or direct on our web site.

We sell Speedo Healers and Gear indicators and can confidently say that, provided dealers stick to recommended, our current pricing is below overseas prices.

I do TOTALLY agree with Rainbow that the bike manufacturers have set up far too many dealerships to the point where they fight so hard that a CBR1000RR often carries $600-$700 profit for the dealer - if he doesn't sell accessories with it or run a great service shop, he loses dough after running expenses. (But then we have got used to just running down the road to our local dealer and not having to go up to an hour or two for the nearest, which is what the market size really dictates)

I understand Kev's comments, as a smallish business owner, we like him, (we started out as an after hours home business) have to walk a fine line between trying to compete with the US market, support dealers who support us and be able to keep our staff in employment.

Having stuck my neck out and defended our pricing and dealers, if any member sees a price of ours on a product they want that they feel is out of line with overseas email me personally (robertr@amcaustralia.com) and I will discount beyond the club discount to bring it in line, provided we don't actually lose money on the deal. If you have a favourite dealer you want to support, I'll work with the dealer to give the same discounted end price as direct.

Have been reading the reply's and there are some good points raised by both sides, for those who dont know me I am dead set against buying from Australian stealer ships/suppliers as I can all ways buy overseas and save heaps of money even when there are high postal charges and import taxes payable, also the customer service from US based companies are second to none compared to ours.
In saying that I'm now willing to put our old mate from AMC Australia to the test and see how he stacks up with pricing and customer service, so lets all give him a chance to prove what he is preaching. I'm sure the rest of you like me are willing to pay a little extra over what we can buy from OS if the products are stocked locally and customer service and delivery are first class.

Dave

[Rainbow7]

I am dead set against buying from Australian stealer ships/suppliers as I can all ways buy overseas and save heaps of money even when there are high postal charges and import taxes payable

I prefer to buy locally, but sooooooo many places are charging such enormous markups that I just don't want to give them my money.
I suspect that a large part of it is that these importers are bringing in relatively small shipments, which is by far the least cost-effective way to import. It seems to me that one must be a "big" importer, in order to really keep costs down.

[davegc]

While Aus bike dealers have to make higher margins to cover costs than US dealers generally they are not ripping off the public, just trying to exist in a country with the highest business costs outside of Europe.

"Australia has improved its competitive position relative to the United States since 2008, and now ranks 4th, with business costs 2.2 percent below the US baseline, despite a modest appreciation of the Australian dollar against the US currency."

KPMG's 2010 Competitive Business Costs Study.

KPMG Study 2010-full pdf