New Kawasaki Policy?

[glwilson]

Originally Posted by ponch

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.

Keep in mind HD dealers were not always how they are today. The decision was made in the 80's when their sales were hurting badly coming-off a decade's destruction of their image by AMF. Most HD dealers prior to that were a mishmash of dealerships similar to what you might find Kawasaki dealers are today. The local one here also sold bicycles.

During the "change-over" with HD they were no longer considered to be as "iconic" as they are today... so to that point I will disagree.

So, when HD forced dealers to either play the game or leave... many left, if for no other reason... money... they couldn't afford it.

The major marketing-move by HD started in the 80's... and did well for them. One of there best moves was to have Malcom Forbes ride a HD with leather and Liz Taylor on the back.

With regard to comparing quality, as you mentioned, don't forget... I used McDonald's in my argument. Quality isn't exactly what McDonald's was founded on. It was an image and consistency of product and service that made them what they are. They ended up selling more hamburgers than anyone in the world... while at the same time not providing the best hamburger in the world. So on that point; the level of quality isn't the issue either.

I believe Toyota came initially to the U.S. with the biggest bunch of junk know to man -- but somehow ended-up building a series of vehicles considered to be the best in the world in the middle-market price point range. They also developed the Lexus line as well. So, progress can be made with a company with regard to quality if they so choose to do so.

So... all in all, I again would ask you... if you were the CEO of Kawasaki, wouldn't you consider some of these points when you try to direct the company... or would you just let you product be sold in a free-for-all distribution manner?

Just debating here...

[ponch]

Originally Posted by glwilson

Keep in mind HD dealers were not always how they are today. The decision was made in the 80's when their sales were hurting badly coming-off a decade's destruction of their image by AMF. Most HD dealers prior to that were a mishmash of dealerships similar to what you might find Kawasaki dealers are today. The local one here also sold bicycles.

During the "change-over" with HD they were no longer considered to be as "iconic" as they are today... so to that point I will disagree.

So, when HD forced dealers to either play the game or leave... many left, if for no other reason... money... they couldn't afford it.

The major marketing-move by HD started in the 80's... and did well for them. One of there best moves was to have Malcom Forbes ride a HD with leather and Liz Taylor on the back.

With regard to comparing quality, as you mentioned, don't forget... I used McDonald's in my argument. Quality isn't exactly what McDonald's was founded on. It was an image and consistency of product and service that made them what they are. They ended up selling more hamburgers than anyone in the world... while at the same time not providing the best hamburger in the world. So on that point; the level of quality isn't the issue either.

I believe Toyota came initially to the U.S. with the biggest bunch of junk know to man -- but somehow ended-up building a series of vehicles considered to be the best in the world in the middle-market price point range. They also developed the Lexus line as well. So, progress can be made with a company with regard to quality if they so choose to do so.

So... all in all, I again would ask you... if you were the CEO of Kawasaki, wouldn't you consider some of these points when you try to direct the company... or would you just let you product be sold in a free-for-all distribution manner?

Just debating here...

There are two different issues really. One is, should Kawasaki have a consistent experience from dealer to dealer with a goal of higher quality, customer satisfaction etc. The other question is, should dealers be made to only advertise MSRP? If I was the CEO, I would want the former, but would allow some latitude in pricing. Car dealers can advertise prices different from MSRP too. I don't see the big deal with that. Again, competition is good, even within a brand. The other thing is, CEO's serve the BOD and stockholders, dealers are supposed to serve customers. It doesn't always work out well for both sides.

[ponch]

And all you need to do is take a trip to eBay and see who is undercutting who. Some of those deals are thousands less than non-internet based/savvy dealer advertise.

How about this:
They can advertise MSRP, but cost must be disclosed as well. That would make for some interesting sales. Judging by the eBay sales, the markup must be tremendous. Do you know what the markup for HD is? I used to work with Apple stuff and their margin is insane. 25% would be low, more likely 33% on computers. I have read that Apple makes $300 on every iPhone sold. They don't have to corner the market with those margins to make money, yet they do very well.

I am all for transparency.

[ponch]

Interesting take on the topic: http://forums.delphiforums.com/kawvu...?msg=106662.17

[twowheeladdict]

You guys really have nothing better to talk about? Who cares if Kawasaki requires dealers to advertise MSRP only. Even the original post from the dealer said to call to get pricing. This is all over the internet for a variety of products. You have to put the product into the cart in order to get the selling price. No big deal.

Good dealers will figure out that if you treat the customer fairly and take care of them you will have loyal customers. Bad dealers will fall by the wayside.

Even our local Harley dealer was losing a lot of business to dealers an hour or two away because all the employees thought they were doing the customer a favor letting them buy a Harley. The new owner, who happens to also own the Kawi dealership I frequent, has turned that place around. I can even come in there with a Vulcan T-shirt on and am treated with respect.

[canedriver]

Originally Posted by ponch

allow some latitude in pricing.

They already do that. You can sell the item for whatever you want, you just cant advertise that price.

Many products already do this when you see "call for price"

This really changes nothing if the consumer is smart and does their home work. Hell they don't even have to do that. If they are comfortable paying a price they agreed to then by all means pay that price. I for one play them off each other and i personally know the owners of the local dealership.

Hoping to buy a new vaquero in the next couple months and already in talks with them on price. Still not sure I am going to pull trigger but I certainly know I wont be paying the MSRP they have listed.

[Loafer]

Berlin City is on e of the largest car dealerships in VT., N.H. and Maine. They are constantly advertising, every Thursday in the local paper there is a flyer from them. They list the sale prices for Toyota, Kia, Chevy and Chrysler products. The Honda products have in very small print the MSRP, and a call for sale prices listed. So I guess Honda cars are using the same theory.

[cactusjack]

Originally Posted by Loafer

Berlin City is on e of the largest car dealerships in VT., N.H. and Maine. They are constantly advertising, every Thursday in the local paper there is a flyer from them. They list the sale prices for Toyota, Kia, Chevy and Chrysler products. The Honda products have in very small print the MSRP, and a call for sale prices listed. So I guess Honda cars are using the same theory.

I find this practice annoying. If I wanted to call a business for pricing, I wouldn't be looking at their products online or in the newspaper.

[ponch]

Originally Posted by cactusjack

I find this practice annoying. If I wanted to call a business for pricing, I wouldn't be looking at their products online or in the newspaper.

+10

[Dave]

Originally Posted by twowheeladdict

I can even come in there with a Vulcan T-shirt on and am treated with respect.

Sacrilege!!!

[ponch]

Originally Posted by Dave

Sacrilege!!!

We'll have to contact his local HA chapter and have them give the dealer a visit.

[Top Cat]

Originally Posted by twowheeladdict

You guys really have nothing better to talk about?

Sometimes things get real slow around here.

[glwilson]

Originally Posted by ponch

Do you know what the markup for HD is?

I am all for transparency.

I don't know the margin for HD's is other than it isn't as much as many may think.

Regarding transparency... I would not want that for a business I owned -- but would for a business I was purchasing from.

[ponch]

Originally Posted by glwilson

I don't know the margin for HD's is other than it isn't as much as many may think.

Regarding transparency... I would not want that for a business I owned -- but would for a business I was purchasing from.

Exactly.

I think we need a road name for you. I was thinking Slip as in Slip Mahoney, AKA Leo Gorcey Jr.

[Top Cat]

Jim, nice avatar.
Are you auditioning for the part of Jason in the next Halloween movie