Something to remember about availability of parts and bikes

[Clay]

I just had a conversation with Mark at Go Fasters that I wanted to relate to you guys. Mark told me that he was going to cut off parts supply to a dealer because that dealer owed him some money. Mark said he often gets calls from customers in that area who say this dealer says he can't get parts from Go Fasters. What this dealer leaves out is that the reason he can't get parts is because he, the dealer, can't pay for them. Its seldom that anyone wants to admit to financial problems so its easier to blame the supplier.
This same issue sometimes comes up with motorcycle supply too. We have one dealer who recently closed his business owing us about $7000 for a motorcycle. We have four others who are still in business and who have sold bikes worth collectively about $50,000 and not paid us. All four of these guys will eventually pay us (I believe) but I will not ship them another motorcycle until they do pay us. My point here is that customers do not always get the whole story when it comes to supply issues.
I would like to point out that these are isolated issues and that the vast majority of dealers have paid us on time every time.
Neither Mark nor I mind if customers call us to check into availability of bikes or parts.

 

[jdtriplett]

HA Clay,
It comes down to the old "Supply & Demand" rule : If I supply you with something, I demand that you pay for it before you get anther damn thing .. Believe me in my business I am faced with that crap on a daily basis and I have had to go to a COD only on most of my accounts and clients

 

[Jakobi]

Mmmhmm. Another very open and honest post Clay, keeping everyone informed and opening our eyes without dragging anyones name through the dirt. You're pretty good at this stuff.

From what I understand my local dealer has to cough up the coin before he gets any floor stock. The downside being that he still has a 300 and 450 from 2011 sitting there and no 2012 models. I imagine he'll have to sell both at a loss as the longer they sit there the less they're worth. I was actually thinking about going in with a proposition for him to help get some more bikes on the floor.

 

[twowheels]

I was actually thinking about going in with a proposition for him to help get some more bikes on the floor.

The proposition we dealers like is when you, a prospective customer, bring in at least enough cash to cover the cost of said motorcycle (including freight, assembly, etc) and leave with a big smile and the bike in the back of your truck

That being said I have a 2012 300 estart fully prepped and upgraded with a Shorai battery and Fastway handguards that's looking for a good home

 

[Jakobi]

Yes yes! I know it is.. But the trouble is when customers like me have a bike thats still only half way through its life and performing like a champ! I need to be able to justify the upgrade.

I may have enough coin and be happy enough to chip in for a 2013 model to sit on the floor if it means I'll get it cheap 6 - 12 months later. In the mean time dealer doesn't have to fork all out for have a 2013 ready for customers to see. If they want to buy it by all means they can and we'll go from there.

 

[Clay]

HA Clay,
It comes down to the old "Supply & Demand" rule : If I supply you with something, I demand that you pay for it before you get anther damn thing .. Believe me in my business I am faced with that crap on a daily basis and I have had to go to a COD only on most of my accounts and clients

That really made me LOL! Thanks!

 

[Clay]

Yes yes! I know it is.. But the trouble is when customers like me have a bike thats still only half way through its life and performing like a champ! I need to be able to justify the upgrade.

I may have enough coin and be happy enough to chip in for a 2013 model to sit on the floor if it means I'll get it cheap 6 - 12 months later. In the mean time dealer doesn't have to fork all out for have a 2013 ready for customers to see. If they want to buy it by all means they can and we'll go from there.

Jakobi....Have you thought about moving to the US?

 

[Bryan]

HA Clay,
It comes down to the old "Supply & Demand" rule : If I supply you with something, I demand that you pay for it before you get anther damn thing .. Believe me in my business I am faced with that crap on a daily basis and I have had to go to a COD only on most of my accounts and clients

What I can't understand is why suppliers give the "customers" that don't pay there bills the same pricing that I get when I do pay my bills. Seems to me the supplier should work in a risk factor in the pricing and give the best prices to their best customers, i.e. the ones that pay their bills on time. Credit card companies and banks do this with the interest rates they charge.

Sorry for the rant, we see it all the time in the electrical contracting world, and then we get to listen to the outside sales folks complain about the other "customers" (our competitors) about not getting paid. I just laugh at them and say you didn't have to sell to them.

We had one contractor go out of business and stung a national electrical supplier for $7M. Funny thing is we saw it coming 2 years before it finally happened. They were quoting (buying) public works contracts for an average 25% below what all the rest of us were quoting at. It just took two years for the cash flow to catch up to them. But they sure did screw the market in the process. Probably 4 or 5 others that will go down the tubes because they got convinced they had to get to the low price, even though the price quoted didn't cover the costs to do the work. Fortunately, I work for a company that is very solid and smarter than that.

Sorry for the side track, but you are spot on Clay. Sure makes you think before you ship another unit to them even if they pay the bill.

 

[Jakobi]

Jakobi....Have you thought about moving to the US?

Then I could buy 2 bikes for the price of one here! I hear the ladies love the Aussie accents too. Hmm.. Don't think the girl friend would be too happy about it. Haha! She puts up with enough bike talk and time in the shed without bringing american girls into the mix.

 

[twowheels]

Then I could buy 2 bikes for the price of one here! I hear the ladies love the Aussie accents too. Hmm.. Don't think the girl friend would be too happy about it. Haha! She puts up with enough bike talk and time in the shed without bringing american girls into the mix.

Somebody insert the picture of the dude in bed with his girl and his GasGas

 

[Clay]

Funny story about this post.....
The day after I posted it a friend of mine who works in the industry called me to tell me he had visited a dealership and that dealer had a couple of older bikes on the floor. He asked the dealer why he didn't have any new Gas Gas motorcycles on the floor and the dealer told my friend that Gas Gas was not working out very well for their dealership and that he was not going to continue to carry Gas Gas. My friend called me and wanted to know why the dealer couldn't sell GG. I told him that the dealer apparently had no problem selling them....he just had a problem paying for them. Unfortunately this dealer has closed his doors recently while owing us more than $30,000. Do you know how many motorcycles I have to sell to recover this loss?

Now you know why we no longer floor motorcycles for dealers.

Again, the vast majority of our dealers have paid us on time, every time. A couple of bad apples ruined it for everyone.

 

[jaysktms]

Thanks Clay for the up front telling. Keep them coming in, I know I will be riding a new one soon.

 

[Jakobi]

This one?

I wouldn't be allowed to have the matching doona cover!

 

[dcg141]

The only problem with having good credit with the flooring company is that you become the "demo" bike king.

 

[wheelie]

Clay, do you have insurance that covers a loss like that ($30,000) if USA GG gets stiffed?
It would be hard to operate shipping out the bikes and wondering when & if you were ever going to get paid.
I agree it needs to be cash first deal, and throw the good faith out the window. Times are tough, you shouldn't have to assume all the risks.

 

[Clay]

Clay, do you have insurance that covers a loss like that ($30,000) if USA GG gets stiffed?
It would be hard to operate shipping out the bikes and wondering when & if you were ever going to get paid.
I agree it needs to be cash first deal, and throw the good faith out the window. Times are tough, you shouldn't have to assume all the risks.

No insurance to cover something like this. We are going to start legal action though to recover our money. Not sure we can get it back even if we win. Kinda like getting blood out of a turnip.

 

[desertgasser300]

No insurance to cover something like this. We are going to start legal action though to recover our money. Not sure we can get it back even if we win. Kinda like getting blood out of a turnip.

The IRS does it everday! They must like turnip juice!

 

[GasGas]

If the bikes are not paid, are they not still your property. Even if they got used they would still have value to resell.

 

[Nhuskys]

The IRS does it everday! They must like turnip juice!

Clay can't seize a bank account and assets like the IRS can......

 

[desertgasser300]

Clay can't seize a bank account and assets like the IRS can......

I meant the sqeezing blood from a turnip remark!