Wednesday, February 1, 2012

The worst still not over another store closes

This is terrible but it goes back to everything I've been saying you can't survive just with luxury items.
Bikers Boulevard a Genuine Scooter Company, Aprilia / Vespa - Piaggio Group scooters lost another dealer in North Carolina this winter, they finally closed their doors after 14 years open.

Bikers Boulevard
9004 Glenwood Ave
Raleigh, NC 27617

What I have been preaching for the last 6 years is to repair everything. Clearly its the only way to survive. You cannot fight the Chinese everything is made there! I don't know how many times I get in this coversation with people every week. I sound like a broken record. Even Piaggio and Aprilia come from China.

You probably won't hear about this or read about it in the magazines. If you check the respective distributors they already removed Bikers Boulevard as a dealer from their websites, and the press won't cover this since everyone is trying to stay positive going to Dealer Expo. However, there is more than can be learned here which is what the magazines fail to do. You need to tell dealers the truth and the truth is you can't fight China and consumers don't have as much money as they used to. So you will sell 5 Jonways for every Genuine or Vespa in the shop. You need to have the low end product to make payroll.

You also can't only sell Kymco or Genuine. PGO scooters are pretty expensive even by Taiwanese standards so you need to have a high range, middle, and low range product price point. You also can't survive on only high end Vespa's making 10% on a sale, stores have too much overhead to survive on something so low.

Only by servicing everything and selling accessories do stores have a chance of survival in today's market.

If I meet another dealer at the show this year that tells me they only service Vespa. I will go nuts on them. I used to be that guy ten years ago. I only sold "Italian" I only sold Malaguti. I didn't want to touch Chinese products and smarter people who could see into the future would warn me. Guess what? They were right. Malaguti didn't open a factory in Asia or get a partner and look what happened.

You don't have to be a prophet to see the future, but high end shops in America can only survive by taking care of all the clients out there.

Here we continue our talks on how small scooter shops can stay profitable. The truth is you have to repair everything. ONLY ONE DISTRIBUTOR IN THE USA has parts for Zongshen (China), Malaguti (Italy), Diamo, TNG, CPI (Taiwan), DAELIM ( Korean ) Keeway - QJ - ANdretti - Yamati ( CHina ) and thats MRP we help your store stay profirable. Chinese parts are not all the same so if your store wants to make money, repair everything. Vespa shops that only repair Vespa close every other week, the same applies to Honda dealers we saw them close by the dozen in 2008 and 2009. If you want to money repair everything you come across. The repair manuals are on our website at under repair manuals and as a store you can call us for the parts.

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