New Kawasaki Policy?

[NRiderUSA]

Originally Posted by Netnorske

Just a guess.....but this too MUST be Bush's fault.....

Lot of that going on lately.

[ponch]

Originally Posted by NRiderUSA

Lot of that going on lately.

It wasn't a political decision one way or the other.

[NRiderUSA]

Originally Posted by ponch

It wasn't a political decision one way or the other.

No doubt... was just commenting on the comment.... it does seem to have become the "catch all excuse" lately cause I sure keep hearing it.... and in many cases where it doesnt apply either.

[ponch]

Originally Posted by NRiderUSA

No doubt... was just commenting on the comment.... it does seem to have become the "catch all excuse" lately cause I sure keep hearing it.... and in many cases where it doesnt apply either.

I don't think it was a matter of schooling either. Kawasaki values its relationship with it's dealers above customers. There could be a few reasons for this, but I doubt it's anything that their management learned in school or a course per se. One of the dominant factors in how a company works and makes decisions is based on its culture and rules, both written and not. This is a subject that is a little out of scope here in terms of expediency.

[canedriver]

Curious about something. Keep in mind I know nothing about factory to dealer unit pricing.

How can a dealer say in Tampa, FL or Atlanta, GA compete with a dealer in say Pine Bluff, AR compete? The Tampa or Atlanta dealer should have a higher overhead just based on either rent or land cost.

If this is one of the reasons I could understand bringing the hammer down on dealers and only letting them publish MSRP. You could be a high overhead dealer and explain until your blue in the face why your price is higher and the consumer will always believe your lying. Based on this I could understand why they did it. I may not like it but i understand it.

They aren't stopping a dealer out of state selling to you, they are just making you work a bit harder to determine if your getting a good deal or not.

[ringadingh]

I think at the end of the day, money talks, if people refuse to pay the list price the dealers will have to negotiate.

[glwilson]

Originally Posted by canedriver

Curious about something. Keep in mind I know nothing about factory to dealer unit pricing.

How can a dealer say in Tampa, FL or Atlanta, GA compete with a dealer in say Pine Bluff, AR compete? The Tampa or Atlanta dealer should have a higher overhead just based on either rent or land cost.

If this is one of the reasons I could understand bringing the hammer down on dealers and only letting them publish MSRP. You could be a high overhead dealer and explain until your blue in the face why your price is higher and the consumer will always believe your lying. Based on this I could understand why they did it. I may not like it but i understand it.

They aren't stopping a dealer out of state selling to you, they are just making you work a bit harder to determine if your getting a good deal or not.

Holy cow! I believe I have to agree with ciandriver.

[ponch]

Originally Posted by canedriver

Curious about something. Keep in mind I know nothing about factory to dealer unit pricing.

How can a dealer say in Tampa, FL or Atlanta, GA compete with a dealer in say Pine Bluff, AR compete? The Tampa or Atlanta dealer should have a higher overhead just based on either rent or land cost.

If this is one of the reasons I could understand bringing the hammer down on dealers and only letting them publish MSRP. You could be a high overhead dealer and explain until your blue in the face why your price is higher and the consumer will always believe your lying. Based on this I could understand why they did it. I may not like it but i understand it.

They aren't stopping a dealer out of state selling to you, they are just making you work a bit harder to determine if your getting a good deal or not.

Why do I need Kawasaki to make it harder for me to find a good deal? I don't ask a dealer what their overhead is, nor do I care. Most people buy based on the bottom line. Again, this isn't 1950 where people's worlds revolve around the town they grew up in. It's a small world, getting smaller and people can look outside their local area if they want. Conversely, a dealer can try to extend their reach to sell more product. In the end, Kawasaki, the consumer and the dealer that is most competitive wins. When a manufacturer gets in the way of that practice (or the government for that matter), the consumer is the loser.

I live in an area where the cost of doing business doesn't compute with prices charged for bikes, when compared with dealers that deal on the internet in other states of comparable CODB. If it's a matter of $500 or less, it's not a big deal, but if a dealer a few states away is $2-3000 cheaper, then it's worth it. This is a result complaints from dealers that cannot compete. It's the same mentality that GM and Chrysler had in putting their hand out.

[ponch]

Originally Posted by glwilson

Holy cow! I believe I have to agree with ciandriver.

I don't, but that doesn't surprise me.

[canedriver]

Originally Posted by glwilson

Holy cow! I believe I have to agree with ciandriver.

MUHAHAHAHAHAHA WELCOME TO THE DARKSIDE (and no i don't mean the tire)

[ponch]

Originally Posted by ringadingh

I think at the end of the day, money talks, if people refuse to pay the list price the dealers will have to negotiate.

There is always some fool, that sooner or later that will buy at list. One of the Kawasaki dealers near me doesn't deal much at all. When I priced a nomad the out the door was above list and they tell you with pride too. I went 25 miles to a dealer that offered me a better deal and it was a no BS deal, meaning no tacking on non-sense right before I signed on the dotted line or trying to sell me a service plan. With the Beemer, I came close to buying in the Chicago area and used it to my advantage, when buying locally. I would have gone to Chicago had the local deal fell through. The megabus is only $1 to Chicago.

[ringadingh]

Just like there is nothing wrong with some dealers trying to earn a buck, Its my money, and I should be able to try to get the lowest price possible. Its no different than what they themselves do with vendors and suppliers.

[glwilson]

Originally Posted by canedriver

MUHAHAHAHAHAHA WELCOME TO THE DARKSIDE (and no i don't mean the tire)

I don't have to wear any funny hat or use a secret hand-shake do I?

[glwilson]

Ponch... you make good points, and I agree with some of them.

Yes, the consumer gets hurt on potential pricing. However there are more issues to consider beyond just the purchase price of the product. More on that later.

However, for a counter-point stance for the sake of discussion... if you owned a company and had dealers distributing your product... would you want to provide a consistent image, quality, pricing, and so on with your company?

I would suggest you should consider it.

McDonald's, Caterpillar, HD, and many, many more companies have such controls over their distribution system. They are successful companies and their customers world-wide can expect consistency in their products, pricing, image, and so on with each of these firms because of this approach to business.

There are numerous studies done showing consumers prefer doing business with, or purchasing products/services from firms that have consistency in pricing, image, and etc....

On a much bigger picture regarding Kawasaki... everyone here and everywhere complain constantly that their dealers don't carry any product, or have good service, or have a consistent image. BMW dealerships have their fair share of problems with consistency as well.

If anyone were asked to describe a Kawasaki dealer; you would hear a variety of responses. Some are big, some are found in run-down buildings, while others are hooked onto car-dealers. You get my point. There isn't any consistency to their distributorship -- which translates to the perception consumers have of Kawasaki.

Ask anyone to describe a HD dealership, and you'll get a more consistent answer (as HD controls their dealers). Consistent answers would be given about McDonald's or Caterpillar distributers. (There are many more companies that could be used to illustrate this fact.)

So, I would think some consideration to these thoughts should be given before one disagrees with Kawasaki's decision to require consistency in their dealers.

Just think if all Kawasaki dealers nationwide were consistent in looks, layout, and etc. I'll bet money that Kawasaki's image with consumers would improve... and so would their pricing-power -- which I realize goes counter to your point -- but not from my point of running a profitable, growing business.

Now it's your turn....

[ponch]

Originally Posted by glwilson

Ponch... you make good points, and I agree with some of them.

Yes, the consumer gets hurt on potential pricing. However there are more issues to consider beyond just the purchase price of the product. More on that later.

However, for a counter-point stance for the sake of discussion... if you owned a company and had dealers distributing your product... would you want to provide a consistent image, quality, pricing, and so on with your company?

I would suggest you should consider it.

McDonald's, Caterpillar, HD, and many, many more companies have such controls over their distribution system. They are successful companies and their customers world-wide can expect consistency in their products, pricing, image, and so on with each of these firms because of this approach to business.

There are numerous studies done showing consumers prefer doing business with, or purchasing products/services from firms that have consistency in pricing, image, and etc....

On a much bigger picture regarding Kawasaki... everyone hear and everywhere complain constantly that their dealers don't carry any product, or have good service, or have a consistent image. BMW dealerships have their fair share of problems with consistency as well.

If anyone were asked to describe a Kawasaki dealer; you would hear a variety of responses. Some are big, some are found in run-down buildings, while others are hooked onto car-dealers. You get my point. There isn't any consistency to their distributorship -- which translates to the perception consumers have of Kawasaki.

Ask anyone to describe a HD dealership, and you'll get a more consistent answer (as HD controls their dealers). Consistent answers would be given about McDonald's or Caterpillar distributers. (There are many more companies that could be used to illustrate this fact.)

So, I would think some consideration to these thoughts should be given before one disagrees with Kawasaki's decision to require consistency in their dealers.

Just think if all Kawasaki dealers nationwide were consistent in looks, layout, and etc. I'll bet money that Kawasaki's image with consumers would improve... and so would their pricing-power -- which I realize goes counter to your point -- but not from my point of running a profitable, growing business.

Now it's your turn....

My turn? As far as BMW goes, they are pretty stringent on requirements for starting a dealership, which requires a lot of training for all staff. The dealer I bought mine bitched and moaned as it wasn't so bad with other brands he sold.

Kawasaki can go that route and require dealers use MSRP, but it won't improve the looks, service, or anything else about any Kawasaki dealer. It's meant to protect dealers in their investment and to hell with what consumers want. When you talk HD, they are a iconic brand. They can get away with exclusivity and rigid requirements because HD riders expect a certain experience and they are often willing to pay whatever is required to buy a HD. This type of mentality does not exist with Kawasaki or any other brand save may be BMW, but even then the loyalty is not what HD is and the brand recognition isn't either. The other thing is, HD, no matter what you think of them, makes a fine product for what it is supposed to be. I don't see that level of quality and attention to detail in Kawasaki machines. again, I am not talking functionality or which one's engine will go longer before needing an overhaul, but rather look at the fit, finish and detail on the bikes. Then look at the Voyager with the same eye. Kawasaki offers a lot for the money and always has, so the niche is different. Expecting to create the same experience and brand loyalty is a little pie eyed, in my opinion, but they are welcome to try. It's kind of like the Hyundai Equus. It may be a lot of value for the money, but it's not a 750IL or an A8L and it never will be.

What Kawasaki should focus on is selling bikes and more bikes than their competition, if that is possible. I don't see this policy doing that.