Saturday, February 12, 2011

Stocking up the store, parts for your scooters!

Stocking up the store, parts for your scooters!

This year were going to the Indy Dealer Show and we've noticed that the market has changed from years past. The norm in the industry for brands such as Kymco, Piaggio, Aprilia, Malaguti was that when you signed up to be a dealer for a top tier brand you would have to buy from $1,000 to $5,000 in parts and accessories. What we've noticed at the dealer show is that more and more dealers seek brands that have no buy in.

Basically, they can become dealers for a Chinese brand by buying 2 scooters and no parts whatsoever. They then rely on JIT - Just in Time from the distributor for all their parts needs. This has actually lead to consumers getting less service as well as having to wait on parts ( because there is no way any Chinese distributor has 90% or more fulfillment in the parts department ) having purchased several as they closed I can tell you the number is closer to 70% on warranties. Chinese brands by nature have no P&A requirements, no insurance requirements, no marketing requirements, just the idea that you need to buy more units. This flood the market unit mentality is one of the reasons many stores closed during the downturn the last few years.

So dealers have less money for parts, they stock less, Chinese distributors focus on the factory unit sale mentality which is to push units at lower prices. The truth is for a healthy market dealers need to focus on P&A which is what keeps most companies and dealers open when there are slow unit sales like 2008-2010. When you have a unit sale mentality you leave yourself open to stores that only buy one or two units and can't or won't give good Parts and Accessories service on the brands they sell. Our outlook is different by stocking upgrades, accessories, and OEM parts it will help you sell more and give better service. If the Chinese supplier you are buying units from doesn't offer these items we are here to help you.

Now back to the Dealer Expo. What I have noticed is there are more tire kickers, this is the term that applies just like the consumer shows where people walk in to look, but don't buy. More dealers go to the Dealer Expo and they all claim they will buy there or call you the following week after the show, but the ROI - Return on Investment for the cost of the show is lower and lower for all exhibitors to the point where major companies don't go anymore. As a matter of fact the trend is to forget the store altogether and focus on Ebay or direct to consumer sales. It's a cycle that continues to get worse. So my opinion is look we are here to help you to stock up on the parts for scooters that you need as a dealership to stay profitable. MRP has been at Dealer Expo 11 times and we've come to the conclusion that the show is more about education since smaller shops don't buy the way they did before. It's about making connections so we are there to educate the same way we are helping with the classes, information sessions, and going to the OEM symposium on Chinese companies. Our message is clear. Parts and Accessories can be profitable despite a reluctance form smaller shops to carry them.

We can make suggestions the Chinese companies won't. We can offer you the largest selection of Chinese, European, and Korean scooters. We are the only company in the US for many of these brands such as Daelim or United Motors that have left the market. So if you have questions about how to increase P&A sales, how to stay profitable, come meet with us at the show and we will show you how to do it. Don't wait until the show to get your yearly order in, by phone or email MRP will help you get the right combination to keep your store profitable all year long. If you need repair parts for your scooter store the MRP is your one stop shop for all your Asian scooter parts!

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