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20-08-2010, 02:13pm
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.
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.