dlaing Posted February 20, 2005 Posted February 20, 2005 10% net profit would be ideal.We would do backflips if we made 1/2 that. 43718[/snapback] So would wall street. Please enlighten as to how the "small" dealers get by.(we work Mondays,too.) 43718[/snapback] My small dealer closes on Mondays, charges too much for parts and too little for labor( in my inexperienced in business opinion....purely a consumer's view.) I have no idea how they get by. Overhead is pretty low as I believe they own the land where they sit. They have a very slow turn over on bikes. The used T3 that I test rode in 1984 is still on the shop floor. Mr Laing,As a whining dishonest greedy "storekeeper", 43718[/snapback] I think only the whining applies. It sounds like you have a much better balance of labor to parts costs than my dealer. If you were greedy, I am sure you would have opened a Harley franchise. As for honesty, bless you for being one of the few dealers with enough huevos to dare approach this list, with assinine views like mine. When they sell-- pure profit(bad word again). Our lead tech has the trans recall time down to warranty rate after a few. We've done 12. This is the way warranty works. It is an industry-wide complaint--Ford had a huge revolt 2 years ago over warranty labor times-- and guys learn to work around it. Guzzi is no different from any vehicle manufacturer in this respect. I am sorry your trans leaks, but if it's the side plate leaking, there is no seal. Flange sealant is required, and not really a big job(20 mins?). I am not aware of any seal on the 6-speed which requires sealant or cement. The dealer should cover this, IMHO. We would. There is such a thing as not paying enough. "Price is what you pay, Value is what you get"- Warren Buffet Oh yeah-- We're not storekeepers. We don't sell 2-liter bottles of Coke. Or 48 ounce bottles of Tide laundry detergent. We sell repairs of machines, and there is more to it than shows up on the bottom line of the invoice. YMMVl Life is not Wal-Mart. 43718[/snapback] "Pure profit on the parts" after you pay the mechanic and the overhead... I was the first and possibly the only tranny recall they did. The only six speed they ever sold, as far as I know was a LeMans, (no recall applicable) They might fix it if I ask them, but I feel to sorry for them. And since I did not buy the bike there, I must be effected(affected?) with guilt. "Life is not Wal-Mart." ... which is why most of us prefer MGNA and guzzi dealers to the competition, despite the short comings. I simply urge you to consider installing parts that a customer brought in. They may have gotten them off of eBay for 90% of what your cost would have been. Explain to them that you reserve the right not to warrant the labor, if the part fails, and that they will have to take the part back to where they purchased it for warranty. They should understand. If it does not help your business than I think your labor rate is too low. Just a customer's humble(assanine?) opinion. Who knows, maybe you will gain customers by refusing to install their parts. "Chicken - the egg's way of making more eggs."
todd haven Posted February 20, 2005 Posted February 20, 2005 How do you undercut?You sell on the internet, out of local territory. Your customers are quoted as saying, "Great Prices" You have a reputation of not turning down bikes bought elsewhere. That undercuts the ones that turn down warranty work. You teach the customer how to fix the bike himself so dealers lose out on potential labor profit! Stucchi crossover at MGCycle $349.95 at your place, $339.00! I just bought a manual fuel petcock from my dealer for thirty something dollars, it was in stock, so I am not complaining, just pointing out that you internet dudes are undercutting the competition. The same petcock is $16.25 at http://www.mgcycle.com/fuel.html]MG Cycle[/url]. I knew that going in, and I lost about $20. But I'll install it myself. Maybe they should be pissed off that I buy parts from them and don't pay them to install the parts. That makes about as much sense as being upset about installing parts that you don't sell. 43737[/snapback] Yes, we have a website on the internet.mph cycles To my knowledge, we have never advertised a current model new bike for less than MSRP on our website. This is MGNA policy, and just a fine idea in my book. We have sold one bike to Hawaii-- a used Rosso. A year-old new V11 Sport to Dallas. An EV and a Breva to a couple from San Antonio(there was no dealer in San Antonio at that time.) And a few to Austin(no dealer). AFAIK, that is the limit of our out of territory sales. I don't think you've seen an MPH ad on Cycle Trader. Once someone calls me for parts, I may or may not give some discount, depending on the size of the order, and the markup on said items. Many MGNA items carry only a 33% markup/25% profit(I know and understand the difference.) I am unaware of any OE products on our website advertised for less than MSRP. MGNA did have a price increase recently, and some may not have been updated yet. I do not advertise oil filters, at any price. Stucchi crossover is not a factory part. Thanks for bringing my low price to my attention. It will change Monday. BTW, I buy those crossovers from MG Cycles. I have imported some pieces, but lack the warehouse space and volume turnover to make it worthwhile-- that's a job for cheeseheads. I think MG Cycles watches Euro fluctuations and the like much closer than I. I get a few bucks off. I wager they would do the same for your local dealer. I also buy oil filters and v/c gaskets from Rick and Gordon. Again, a few % points off what they sell them for on the web. I choose not to charge retail for oil filters, simply because $18.75 is a butt-jam, and I would not pay it myself. I am confused by your take on warranty work. How do I undercut another dealer when he refuses to do warranty work? (This is also a violation of the MGNA dealer agreement.) Warranty work carries a fixed handling percentage on parts used, and a labor reimbursement based on real shop-rate. Information is not a secret-- We provide information for all who want it. Dealer, independent repair shop, individual. TPS settings are not black magic. Nor are C/O readings. No secret handshake required. Properly-tuned machines make for happy customers-- who tell their friends what a great bike this is-- and maybe the friend buys a new bike. Which simply continues the viscious cycle of new bike sales. Where will it end? Every person in our shop has done a lifetime's worth of oil changes and valve adjustments. No one would feel put out if neither job ever came our way again. Grudgingly do it to our own machines. These tasks are also not a huge profit center. Much more a service for those can't, or don't want to, do the job themselves. One of many we offer. Some more profitable than others. If you refer to the later manual petcock from MG(03 California, e.g.) that petcock is not shown on MG Cycles website, and to my knowledge, is not sold by them. List price for the latest MG manual petcock has gone from $19.xx to $39.xx, MSRP. Not my doing. We don't get upset about installing parts we don't sell. We simply don't. And again, this is all within reason. If Texas Redneck has an oil filter in the saddlebag of his Solex, We'd probably agree to go ahead and change his oil, provided he kept his clothes on. I don't know if this policy gains us customers, but I am certain it has prevented us from getting some we are better off without.
TX REDNECK (R.I.P.) Posted February 20, 2005 Posted February 20, 2005 If Texas Redneck has an oil filter in the saddlebag of his Solex, We'd probably agree to go ahead and change his oil, provided he kept his clothes on. Hey , I was inspired by the bayou city flasher
al_roethlisberger Posted February 20, 2005 Posted February 20, 2005 Wow, ya'll wrote quite a tome here, and I honestly have to say that I think several points got lost/confused along the way .... at least I know I am unsure of a couple positions following all the verbiage Anyway, I'm not taking any particular side, as each dealer/business has to decide what works well for them in their market. But I will say that I attempt to purchase items from my local dealer if possible, as it's just more convenient to drive a few blocks than wait for days. However, up to just this month, the nearest dealer was almost an hour away, and that dealer doesn't typically stock some of the oddball items I want. Some he can order, some he typically doesn't. And even if he did, I'm back to waiting for days or weeks. So, if it's something I know I need, and isn't something I know my dealer has in stock, I often do buy over the Internet/Phone But I do try to buy what I can from them, although admittedly it doesn't work out to much. However I have a very good working relationship with my dealer. That being said, I am very grateful that they have so far been willing to install parts I have sourced from elsewhere when necessary. Of course, I pay full shop rates, but then again this happens very infrequently as I usually can and do install most things myself. The only recent exception is that whilst doing the engine case swap, they are putting in my new pistons, cam, and valve-springs from Mike Rich, for which I'll pay the additional labor of course. And I'm having them balance the engine. Not disparaging any other shop's policies, all I can say again is that I really appreciate my shop's willingness to at least entertain installing parts they don't normally source. al
dlaing Posted February 20, 2005 Posted February 20, 2005 Stucchi crossover is not a factory part. Thanks for bringing my low price to my attention. It will change Monday. BTW, I buy those crossovers from MG Cycles. 43774[/snapback] Oh Shit! Now everyone on the list is pissed at me!!! Are you working on Presidents Day? You guys are dedicated. I am confused by your take on warranty work. How do I undercut another dealer when he refuses to do warranty work? (This is also a violation of the MGNA dealer agreement.) Warranty work carries a fixed handling percentage on parts used, and a labor reimbursement based on real shop-rate. 43774[/snapback] Me too. Undercut is a bad word. You are simply doing a better job, more people will have respect for you and do business with you as a result. My dealer, whom I adore, charged me for the oil cooler brackets when they broke on my new bike...but he helped me install them in the parking lot free of charge. Ideally. It should have been under warranty....You would probably do better. If you offer a better deal, it undercuts the competition. Not the best word choice but the same effect. Please don't stop doing a better job or I'll have most of the Guzzisti in Texas pissed off with me. They probably already hate me for saying you should raise your labor rate. Information is not a secret-- We provide information for all who want it. Dealer, independent repair shop, individual. TPS settings are not black magic. Nor are C/O readings. No secret handshake required. Properly-tuned machines make for happy customers-- who tell their friends what a great bike this is-- and maybe the friend buys a new bike. Which simply continues the viscious cycle of new bike sales. Where will it end? 43774[/snapback] I hope the cycle never ends, and we appreciate your website. I simply heard a rumor a couple years ago that other dealers thought that you should not be post Do It Yourself information, as it was potentially robbing them of labor profit. Not exactly undercutting, but in the same vain, doing a better job, creating a web presence where I would go to you for a Stucchi Crossover before my local dealer. I have been waiting two weeks for a Brembo microswitch. I'll bet you or MGcycle would have had it at my door by now. If you refer to the later manual petcock from MG(03 California, e.g.) that petcock is not shown on MG Cycles website, and to my knowledge, is not sold by them. List price for the latest MG manual petcock has gone from $19.xx to $39.xx, MSRP. Not my doing. 43774[/snapback] No, they charged me $30+ for $16.25 unit shown on that page that I had to go to home depot to get a hose adapter for. I should have been patient and ordered the 03 California petcock. But it will work. Just more points of potential failure... We don't get upset about installing parts we don't sell. We simply don't. And again, this is all within reason. If Texas Redneck has an oil filter in the saddlebag of his Solex, We'd probably agree to go ahead and change his oil, provided he kept his clothes on. I don't know if this policy gains us customers, but I am certain it has prevented us from getting some we are better off without. 43774[/snapback] One of the problems we customers have is determining what parts will offend the dealer if we ask to install them. Al gives gives a good example, the Mike Rich parts. It seems silly for me to ask my dealer if he should order them or if I should order them. But maybe we should ask first. My dealer will probably pay 10% less and then we both win. So you have a point... But I still think it would not hurt you much to open your doors to people with parts strapped to their bikes that they got off of eBay or wherever. If Tx took his clothes off in the shop, you might get some of Cycle Garden's customers. But with genders or preferences reversed
Guest Guest Posted February 20, 2005 Posted February 20, 2005 Wow, ya'll wrote quite a tome here, and I honestly have to say that I think several points got lost/confused along the way .... at least I know I am unsure of a couple positions following all the verbiage al 43797[/snapback] Kinda like a temperance lecture from the town drunk.
Guest dkgross Posted February 21, 2005 Posted February 21, 2005 can we get back to talking about how cool Dave Richardson and Moto I are?? fyi...The Guzzi looks to have a new home..and he's VERY excited about meeting ya'll
Dirtybill Posted February 22, 2005 Posted February 22, 2005 can we get back to talking about how cool Dave Richardson and Moto I are?? fyi...The Guzzi looks to have a new home..and he's VERY excited about meeting ya'll 43992[/snapback] Dave's a wanker for selling my CapoNord to someone else He does read this forum, right?
Anthro Posted February 22, 2005 Posted February 22, 2005 Hi Tood, I appreciate your input here at this site and understand your points. I just have a question, Why some dealers did not participate into the MG-US bike sales frenzy with this deep price cuts last summer? Some delaers passed on the discount making the sales price so unreal that I mailed people I did not know a bank check , hoping that I would get a Bike shipped to my place ... It all worked all right , but it was the least desirable scenario to get my MG. I am sure they too made a profit with this sale. Anthro
todd haven Posted February 22, 2005 Posted February 22, 2005 Why some dealers did not participate into the MG-US bike sales frenzy with this deep price cuts last summer? 44045[/snapback] Anthro, I don't know which particular "frenzy" to which you refer, but I have a pretty good idea. Offers were made to dealers in lot sizes and timeframes way outside the norm. Don't quote me, but along the lines of buy 20 in the next 3 days, get them for X dollars off. All our bikes are paid for with cash, not financed. This type deal wouldn't work for us, particulary in the timeframe allowed. It apparently did work for others, and many people got great deals on bikes which we or most other dealers could not offer. This hurt our sales, but not drastically. It had a much larger impact on some other dealers, to the point of some dropping the line. Before I am accused of whining, let me say-- we are big boys, and we will deal in the market where and when we can. We don't happen to believe this was the best way for MGNA to move product, but they didn't ask us. It's water under the bridge now, onward and upward. Those blow-out deals seem to be gone. Yes, we will work on bikes bought elsewhere. Have since we started, and will continue to do so. I wish all dealers felt the same way. When I'm in charge, things will be different.
Guest thumper Posted February 22, 2005 Posted February 22, 2005 And on the subject of fire sales...least we not forget that our mother company disposed of bikes at auction in one dealers back yard. New unsold 1 or 2 year old bikes sold for 3 - 5 thou and wanted the dealer to do the pre-delivery Like Todd said ..."It's water under the bridge" but it sure smells like a cess pool... . It would be nice if were run like a business by a business man or woman....theres a thought....Guzzi run by a Woman Guido and Luigi would drink themselves to death thumper
DeBenGuzzi Posted February 23, 2005 Posted February 23, 2005 SAY WHAT NOW? they sold off new bikes for peanuts? why didn't I get the memo? I could use another bike or seven. But thats too bad I tell everyone how much I like my bike and I don't usualy have to say anything which is nice they come up to me. The power of a Guzzi. Its ALMOST, almost too bad they are not owned by a japanese company they seem able to make any bike sell. I mean look at kawis so ugly!. Anyway good they are not owned by an american company no one seems to care about tradition or history and so on they get a year to get it in gear or its out the door sell everything. Or inflate the numbers screw everyone on the stocks and dump the lot of it.
Guest dkgross Posted February 23, 2005 Posted February 23, 2005 And on the subject of fire sales...least we not forget that our mother company disposed of bikes at auction in one dealers back yard. ya really can't blame them for taking advantage of great deals and passing those savings on to customers....And, for every bike sold..more $$ for the service department at some point...
dlaing Posted February 23, 2005 Posted February 23, 2005 When I'm in charge, things will be different. 44055[/snapback] You have got my vote! Even if you are not perfect IMHO. But then again I am going to go to Vegas and win at Roulette 10 times in a row and make a hundred million bucks and buy out MGNA! So, then I'll vote for myself! I am glad that is water under the bridge. It sucks that some of us paid $12,000 for what others paid $8000. And some of us bypassed our local dealers to save that much. But like you said, all water under the bridge. I like companies like Saturn and Scion who have fixed, haggle free prices. Almost enough to buy from them...
twhitaker Posted February 25, 2005 Posted February 25, 2005 My small dealer closes on Mondays, charges too much for parts and too little for labor( in my inexperienced in business opinion....purely a consumer's view.) I had an experience about 25 years ago when a shop rebuilt the engine in my car. When I looked at the bill I saw he was charging me something like $2.75 for each of 8 spark plugs. I thought that was outrageous as I could buy the plugs for $.75 each. I got a quick lesson in economics. They only have to pay sales tax on the parts. Labor is subject to income tax and social security tax, the primary reason for their pricing tactics.
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