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Post by mainepeace on Jul 28, 2012 22:30:36 GMT -5
Yes, the shady ones ruin it for everyone. However shady dealers have existed as long as money has existed. It's up to the business to deal with it.
Up until 15 years ago or so EVERYTHING was run with terms. Heck, I even offered net terms to my customers who bought computers for their business. Not a single distrib I dealt with required cash up front. That was the result of the "careful" screening process and background checks performed by distributors before they took on a new retailer.
Seems like they made their own problems by getting too greedy and offering to sell to any Tom Dick or Harry who opened up a shop.
Now it's the small dealers who feel the crunch.
And people wonder why small businesses are GOING OUT OF BUSINESS.
(Nothing directed at Bintelli at all)
Greg
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Post by Bintelli - Justin on Jul 28, 2012 23:04:15 GMT -5
I don't know... a lot of small businesses that are going under around here are due to improper management or embezzlement from management. A lot of owners think they can get away with not putting any money in the company, strike it rich, and take all sales as profits for their pockets. I've seen a few power sport dealerships struggle and close because the owners never left any profits in the company to help grow the company or get more inventory on the floor.
I still get dealers to this day that buy 10 scooters, sell all 10 scooters, and when I contact them to figure out what their reorder will be for, I'm told "I don't have any money to buy more." Well, in a well run business, if 10 scooters are sold, there should be money for 10 more scooters at the very least. In a growing business, selling the 10 scooters could allow the dealer to then possibly get 12-15 scooters in the next order. Keeping some money in the business is essential to grow and prosper.
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Post by Bintelli - Justin on Jul 28, 2012 23:06:53 GMT -5
Also, no background check in the world can predict what a person will do in a pinch. In my 12 years, I gave terms to 4 people. All were checked out and had squeaky clean records. Two got in financial trouble and ran with the inventory. I learned my lesson when the second time was a big amount of inventory... no more terms after that. Most people these days can't be trusted to be honorable and it's a sad fact. Until we get more honorable as a country, our economy will continue to suffer.
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Post by mainepeace on Jul 28, 2012 23:28:19 GMT -5
Most people these days can't be trusted to be honorable and it's a sad fact. Until we get more honorable as a country, our economy will continue to suffer. AGREED! Now back to the thread... Greg
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Post by jdikov on Aug 1, 2012 12:14:27 GMT -5
Exactly right. That is one of the reasons. Dealers selling Chinese scooters close and open as often as most people change underwear. Very risky to sell that way at the low margins we have to deal with. After all is said and done markup on dealer sales is around $50/scooter. Why? A container runs around $5k to ship from China once you include all the fees, customs, trucking to warehouse etc... Then you pay the warehouse to unload the scooters. We have custom pallets built for our scooter another chaching$. Then you pay the warehouse to put the scooters on the pallets and strap them down. Then you pay a monthly storage fee and then an outgoing fee and a paperwork fee.
It can be done a bit cheaper by bringing in scooters unassembled, not using pallets, not stocking all the plastics for the scooters frees up space in the container for a few extra units etcc. But we already have enough distributors like Peace. Dealers want a better scooter, they don't want to spend hours putting it together and tracking down parts that fell out of the box, they want a warranty, they want parts support, plastics, people who speak English and can understand the dealer.... When a dealer calls us they get me or Linda on the phone every time so they know they are speaking to the owner and not a part time sales rep who will be gone in a month
Just my 2 cents on this
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Post by hardd1 on Aug 1, 2012 12:51:58 GMT -5
here in Fla most of the amateur Peace/Tao Tao sellers operate out of flea markets, laundromats, feed stores, barber shops or a storage unit... they don't stock parts or offer service.... craigslist is full of these schmucks advertising scooters for 6-700.00 cash-n-carry
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Post by Carolina Fun Machines on Aug 1, 2012 17:39:46 GMT -5
And people are (fill in the blank) enough to buy from them. Go figure!
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Post by Cookees on Aug 1, 2012 19:39:30 GMT -5
Helps that here in PA you have to be a registered dealer with the DMV to sell a scooter. $1000 a bike fine if you get caught.
However, I still have to put up with the flea market atv sellers.
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Post by hardd1 on Aug 2, 2012 6:02:36 GMT -5
I wish fla would adopt a position having all scooter dealers to be licensed, insured and bonded....would eliminate convicted felons from operating 50cc only shops....anyone selling over 50cc, requires an operator be of good character, to obtain a dealer license that includes being insured and bonded
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Post by twhittico on Sept 27, 2012 11:32:13 GMT -5
But still no credit cards? I know you pay % of that but payment,and you get your money with in a few minutes. Might try again next spring, just trying to get something started
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Post by thumper650 on Sept 27, 2012 13:39:58 GMT -5
I'm enjoying all this info about scooter dealers, it's cool. I love the Oliver City scooters on Valley Scooter's website. They look so great!
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