GasGas Dealers Association?

[Berkyboy]

Ok first we had GGNA (GasGas North America - Don Knight), then we had GGMA (GasGas Motors of America - Juan Romero) and for another three weeks we have Dixie Sales (Barrett Marketing Group) and now for no fault of our own the US doesn't have a GasGas importer. It's time the GasGas dealers of Ameica unite to form one voice to deal with GasGas and its future in the US.

GasGas builds one hell of an off-road motorcycle and with the new 07 / 08 models GasGas finally has a motorcycle that the US off-road public is taking notice of.

For the moment the wheels are in motion putting in place another US GasGas importer. If we band together and form a dealer association at least we can speak as one voice and help insure the future of GasGas in America.

Because of the sensitivity of some issues we ultimately might have to work together "off-line" while we put together our conerns. If your a current US GasGas dealer and your concerned about the future of GasGas PM me.

In the mean time we should be able to have a civil discussion here on-line to help form a consensus of what dealers and the US consumer expects from it GasGas importer.

If your a dealer I would suggest that you identify yourself and your dealership in your posts. If your a GasGas owner and want to join in on the discussion go ahead and chime in, but please identify yourself as a owner.

Lets keep this discussion positive and not dwell on problems of the past. Please stay on topic.

Thanks -

GoFasters

 

[GMP]

I think the first thing that must happen is a total commitment from GG Spain to the US market/importer, and a mission statement to that effect.

The most damage to sales is done by lack of consumer confidence. Fear of parts availability and resale are the two reasons I hear why a rider decided not to buy a GG, even if he liked the bike better. You know, the play it safe and buy a KTM herd mentality. The parts issue we know is false but resale value is low and is important to some people. Much of this has been caused by the previous instability. They have to provide that stability. I think it takes much longer to build confidence than to shake it. Every change was a damaging move, will take reinvestment to fix, and will not produce overnight results. Cagiva/MV/Husky as a company came back from the edge, GasGas can do it too and its just here where the problem lies. Its a vicious circle that has to be broken.

Can some one tell me how the US trials market is? The trials importer seems to run a stable operation. I suppose the field is more level as all of the trials bikes are from small mfgs.

Bottom line is we need bikes, parts, and support for a cost and on a timeline that is competitive if not better than the others. If this can be done and maintained through a "rebuild" phase, along with continued excellent products, I'd bet things will start to take care of themselves.

 

[blitz11]

Gas Gas and North America

Greetings.

In June of 2007, I had the pleasure of visiting the Gas Gas factory in Spain, and speaking with the Race Manager and Technical Director. Both are top notch people. I am in the process of writing a trip report (it's been really busy...long story), but the sense I received from the trip is that NA is important to them, and they are doing all they can for this market.

I think once the business model is understood, "all they can" will make more sense.

Having visited the factory and meeting the people, I really have confidence in the brand. I really like Steve's suggestion, and I think that the factory will listen to the voice of the dealer.

I'll get that report done soon, I promise. It's about 1/2 there right now.

blitz (bike owner)

 

[tm_enduro]

Great idea
I agree that with such a great bike (the 250 and 300), it would be a shame to see GasGas dissappear from the USA market. You (the dealers) do have an opportunity to ensure the success of GasGas by sharing what does and doesn't work (like what are high wear items that must be in stock, and what parts ordering systems works best, etc).

BTW, I must correct you, first we had GasGas USA (Dale Malecek / Jim Snell) bringing in the GasGas enduro bikes along with trials bikes.

Non-dealer / Non-GasGas owner, but MAJOR fan of 250/300 (currently own Husaberg)

 

[Berkyboy]

From what I understand GasGas Spain would like to sell a minimum of 500 bikes a year in the US.

With those types of numbers GasGas could become competitve with their pricing in the US as well as support rider contingency and national advertising.

I would estimate the for 2007 about 250 bikes were imported, double what was imported in 2006, but still only 1/2 way to the magic number of 500.

What GasGas needs is 50 commited dealers who are willing to stock 5 to 10 motorcycles each as well as stock $3000 to $5000 in parts inventory.

More importantly the distributer needs to have "flooring" (dealer financing) available for all of the above and also needs to have in place a consumer financing program for all GasGas products.

GoFasters

 

[GMP]

Steve,

What were the '04 - '05 numbers? That seemed to me like the best time, like they were starting to take off. If I'm not mistaken that is also when prices were a little lower than the equivalent KTM. Even some magazine adds started to appear.

 

[tds2277]

I just wanted to chime in here, for a moment and give my 2 cents worth
I think it is a shame that the GASGAS dealers did not, or from the ones ive spoken with still have not, recieved any information about what is going on,
Not a Fax, not an email, Nothing

This situation could hurt several Mom and Pop shops that are not only GASGAS Delaers, but Moms, Dads, riders and racers themselves, this is how they make thier living. this could be horrible.

It is these dealers that are going to hurt in the long run, as they started thier business's to feed thier family, So if you want my vote, I say the dealers need to band together, and get something done about it,


My personal intention is too see GASGAS, TM, Beta, Sherco, Husaberg ban together and keep selling bikes here in the US, all the bikes mentioned above and some I may be missing, all have thier place in each one of our minds, rather it be the Racer, Enthousiast, Weekend rider, or the Dreamer, of someday owning one of these fantastic bikes

Dont allow this to Happen, fix the broken links, find out where is the bottleneck? and repair it.

Terry

 

[nhrider]

From what I understand GasGas Spain would like to sell a minimum of 500 bikes a year in the US.

That seems so small. I would think that 500 would be easy to do. Is that what the big 5 sell a year?

What GasGas needs is 50 commited dealers who are willing to stock 5 to 10 motorcycles each as well as stock $3000 to $5000 in parts inventory.

The dealer I use seems to have way more than 5 bikes in stock. I think he has maybe even 3 of each model. I do think he seats on some models and needs to let them go for less. I buy parts from him and some from GF. Both have had every part I needed...not like I need many parts.

I think GG website needs an overhaul. When you look for dealers in your area, all you get is “Dixie Sales Company”. There needs to be a filter to find a dealer in the given state or near a zip code. I know that on this site you have a page with links but some of those dealers don’t even show GG on their website or the links don’t work.

I’m a youngling when it comes to GG. I’ve had an Arctic Cat Prowler mini bike, XR80, RM80, KX125, KLX300 and a CRF250X. Now that’s not a lot of bikes but I can tell you that I love my 05 EC200. Heads above the KLX and CRF and I never thought I would go back to a 2stroke. It’s a great bike for the woods. I don’t race and I’m not very fast but I still love my bike. Well, maybe faster now riding this bike. Smoked my buddy on his yz426 on this own trails. Just think I almost didn’t buy it because someone I knew (that owns a used motorcycle shop) said the bikes are junk. I’m so glad I didn’t listen to him! Maybe I should put this in “Why I love my GasGas”.

I still think the dealerships should have a meet. Maybe invite anyone that purchased a GG or buys parts for GG to a ride at a public riding area. Server some food, water and have a place to sit down. This way the non-believers that get passed in the trails can see theses awesome machines up close. If you see 5 or more GG bikes at a trail you may think to yourself I got to check these bikes out. Strengthen in numbers. Any was, if you need any help let me know.

EC200 DE owner and proud of it!

 

[Nick]

They have to supply product and it needs to be available earlier than in the past. I have lost alot of sales because the customer can buy other brands months before i get bikes. I'm a dealer in Elko, Nevada. I'll start making a list of what i think needs to happen and will share it with the association. I think all dealers should do the same and then combine the list into a condensed version as i believe we all have alot of the same concerns. With this we can make a plan. Discussions can go on for ever and never accomplish anything without a plan. Nick

 

[GMP]

My personal intention is too see GASGAS, TM, Beta, Sherco, Husaberg ban together and keep selling bikes here in the US....

You know, that is a damn good idea. What if all the exotic bike importers could somehow work together to share certain resources like financing plans, advertising, and other costs? Kind of like a multi-line dealer but on the distributor level.

 

[GMP]

I'll start making a list of what i think needs to happen and will share it with the association. I think all dealers should do the same and then combine the list into a condensed version as i believe we all have alot of the same concerns. With this we can make a plan.

Maybe Jeff can set up a secure "dealer access only" area for this purpose.

 

[barkeater]

Can former dealers join the association?

Would it be feasable for Gas Gas to send over partially assembled or unassembled bikes (frames, engines, wheel sets, suspension) and let the US importer custom build a US market bike right here in the US?

Are there any import benefits to shipping in containers of parts rather than finished motor vehicles? Would any US company be foolish enough to tackle that?

US riders seem to like the 300 engine with the MC250 suspension and an MC black box. The frames being all the same makes stocking frame parts for 500 bikes a piece of cake.

I think Knight was trying to do something like this and had some luck with the SE300 models in 2001-02. Those things ripped.

What about street legal dual sports? With fuel in the $3.00+ range people might be able to justify a high dollar enduro bike if it had a plate. That shoots down 2 strokes though - the 450/515 is getting better, but still isn't reliable enough to ride to the trail head, spend a day on the trail and take you home again. But - does street legal tarnish the "purebred racebike" image. Owning a GG is a little like owning an F1 car. It's only good for one thing - racing and winning... well, thats two things...

Along those lines, does anyone motocross a Gasser? If you want to bring bikes in, fer criminy sake, why would you not be active in US motocross?!
I don't really like MX myself, but they outnumber us off-road guys 10:1! Get someone to start winning motocross on a Gas Gas and by the very nature of the MX crowd, everyone else would want to have one. This seemed to work for the Austrians.

Dealers: Large or small dealer, they might have a problem with dealer longevity if they dumped 500 bikes on showroom floors and they didn't move. Let alone dropping the bottom out of an already anemic resale value on the Gassers. Especially with NO marketing support. (Advertising/Marketing? Non-existant since the first GG bikes landed here in the 90's.) The dealers will choke on the bikes.

I believe that is what happened in '04. Too many new bikes, dealers were full, resale plummetted and 2004 bikes were selling at HEAVY discounts by early '05. Hence the flood of 2004 bikes on the market and the delay in the start of the '05 model year.

They do need a reliable dealer network. More than 50 dealers across the US. Big dealerships can't take on Gas Gas... no incentive and the high price bikes won't sell next to the $4,000 asian bikes. Mom and pop shops scare away those looking for longevity and reliability... Catch 22 for GG?

When I was a dealer, parts availabiltiy (unfounded fear, but perceived by most non-GG riders anyhow) and awful resale scared away more customers than my poor salesmanship.

Did I contribute anything, or did I just mentally puke all over this thread?

 

[gasgasman]

Gas Gas just dropped their pro US rider, Nick Fahringer.
Gas Gas has no "real" pro rider support.
People buy what wins on Sunday.

Bottom line is that the bikes are 12 year old technology. You can only milk a cow for so long.
On the other hand, KTM revamps their bikes every 3 years.

 

[dgrewe]

New GASGAS dealer in south east

Hey to all. Being a new dealer, I think the dealers need to pull together on this matter.
I just became a dealer in jun 07 and sold the 2 bikes that i could find. I have 6 presales for 08, plus the plan to get 5 on the floor. Now I have no idea if i can even get bikes. GasGas and Husaberg are the only bikes i have. Need some help on this one, with no word from the rep,

 

[GMP]

GGNA made some good inroads in the southeast, gave the bikes a lot of exposure. GGs were not uncommon there while being almost unknown up north. I would think the sales numbers would look best there.


Steve,

That 500 bike a year number, is that a goal or a projected requirement to do business here in the US?

barkeater,

Dan Marshall of Marshall's Motorsports (GG dealer in NY) is an active motocrosser on GGs.

 

[tm_enduro]

Bottom line is that the bikes are 12 year old technology. You can only milk a cow for so long.
On the other hand, KTM revamps their bikes every 3 years.

At the risk of veering off topic, I must partially dissagree with this comment. Yes the technology is getting old, but none of the other brands are really doing anything better. Believe me, the new bikes are significantly better than the 1997 ec250, and are much better than the 1994 ec125 and 1995 ec250. Personally, rather than reinventing the bike (or going to Alu frame), I would much rather see GasGas up the suspension spec (even that really is not necessary, but Ohlins f/r almost always wows the magazines and thus increases sales).

 

[tm_enduro]

That 500 bike a year number, is that a goal or a projected requirement to do business here in the US?

I think that 500 is seen as the "critical mass" to make the USA market successful.

 

[Berkyboy]

Thanks for all of the responses guys. This kind of discussion can make a difference for the future of GasGas in the US.

To my knowledge the GasGas factory was not supporting any US riders directly. All of that support came from Dixie Sales and the local dealer who sponsored the rider. With Dixie Sales out by the end of the month they most likely are not in any position to support Fahringer for the rest of the year. Not a good thing for Fahringer but a fact non the less.

As far as any official notification from Dixie Sales I too am a little dissapointed of no official word.

As far as the "500 bike a year" number, that comes from a very reliable source.

I do think that that number is attainable in the US as long as dealers are willing to invest in bike and parts inventory and that only comes if they are comfortable with the overall GasGas program that the new US distributer will put together.

As I see it, GasGas could easily hit 700 to 1000 bikes a year if the the distributer and manufacturer could overcome the following problems:

Late delivery of new model year bikes kills us every year. We (US GasGas dealers) probably lose 200 to 300 bike sales a year because we don't recieve any new bikes until late fall. This has got to change.

No contigency and/or small national presence. GasGas bikes are very competitve and they are not being raced because they don't have any contigency.

No consumer finance packages. Once again we lose bike sales because a potential buyer can use his "KTM" or "Yamaha" card to buy a new bike.

No ongoing long term marketing plan that places advertising in national off-road magazines as well as keeps GasGas bikes in the hands of magazine editors. I can understand the small amount of advertising, especially if the US sales numbers for bike sales are somewhere between 150 and 250 bikes but not working with the off-road magazines is a problem that has to be fixed.

Don't get me wrong I've had nothing but a positive relationship with Dixie Sales and I feel their involvment will be missed, especially with their parts management system, it was a welcome step inthe right direction over GGMA.

Now comes the part nobody wants to hear. All of the above "fixes" cost money and it is going to take some concessions from the manufacturer, the importer / distributer, the dealer and the consumer.

What Im saying is don't expect GasGas bikes to have much lower prices in the future, especially with the declining US Dollar against the Euro. The best we can hope for is to share the costs of the above programs but that in turn will drive sales up which will help support resale prices etc.

Sorry for the long response.

GoFasters

 

[MattR]

To my knowledge the GasGas factory was not supporting any US riders directly. All of that support came from Dixie Sales and the local dealer who sponsored the rider.

GasGas makes some great enduro/XC bikes, however 'outsiders' don't get to see them winning races. Here in the U.S., GNCC racing gets some decent exposure on Speed TV whereas enduro racing does not. It would make more sense to sponsor a good pro rider (such as Shane Watts... who is privateer now) and get some top 10 finishes. Folks will get to see GasGas running competively against Yamaha, KTM, etc.. I know Fred Hoess rides GasGas but you never get to see his exposure since its enduro. Nothing against Fred, but more visible tv/magazine race coverage will help sell the brand.

My point is... you have to go fishing where the fish are located.

 

[eff]

There are a few was to approach the financing issue. None of the manufacturers are actually doing the financing themselves. The KTM Card is a program run through GE Finance I believe. That being said there are two options as I see it.

1) First, a unified entity, whether it be a GG dealers association, importer, or the GG Corporate, needs to contact on of the finance entities and request proposals for these services. My guess is that it will not be GG Corp., but rather the importer that would undertake this and in the absence of an importer the dealers association.

I'm not sure if the current target volume of 500 bikes is large enough to attract GE Finance however. If they earn a 2.5 - 3% commisssion based on 500 bikes then we are only talking 90 - 100K. That is not to say do not try.

2) Is for each dealer to enter into relationships with your local banks. This is a financing source than many car dealers use, especially the smaller used car dealers. This option is available right now. It is not as flashy as a nice orange KTM card, but it can sell bikes if you can say "Yes, you can finance this bike! You have been approved!" The positive here is that the dealer doesn't have to wait for some other entity to provide the tools to sell his inventory.

There have been a lot of good posts here. The key point is that dealers need to take charge of their supply. There has been such great turnover in importers that the dealers are the only constant in the equation.

Better communication
Better supply
Better publicity
=
Better sales