Wildguzzi.com
General Category => General Discussion => Topic started by: mphcycles on November 20, 2015, 11:57:41 AM
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This time its us. I have had all I can stand of PGA business model, and have little hope that the local oil based economy will improve much for the next couple of years. Toys like bikes dont sell well when the daily news is full of lay off announcements.
MPH Cycles WILL remain in business right here as a service outlet for all our customers, but the high dollar cost of keeping bikes on the floor with so little interest from buyers makes this distasteful choice the only one that makes sense. PGA does not allow for a service only arrangement like Pete has, so we will not be able to do warranty work .
Its been an interesting ride for 15 years, but even with Larry's help, without Todd's knowledge of the F'd up parts system, I just don't need the headache. The termination letter is at the lawyers office for final touches.
Thank you to all who supported us for so many great years.
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Kind of leaves a big hole Mike , but we do understand . Good luck in however this works out .
Dusty
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Sorry to hear this, Mike. I hope things look up very soon.
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i am sorry to hear .
Hey Piaggio, what are you going to do for all this guzzi dealers ?
....crickets...
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Sad. But understandable. And also not the first, nor the last, time I have heard this from dealers trying to deal with PGA.
Best wishes!!
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SAD. All the best...
Spud
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same sad story from pre-PGA days as I've been told. damn shame and completely understood. Best of luck to you, you certainly gave it your all!
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Oh s**t!
Totally understand, and wonder how you hung on so long.
I still look forward to, and rely on your always great service.
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Damn...
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The sad lesson is.... if you buy a new Guzzi, don't assume your dealer will be around.
If these guys go, anyone can go.
Mike
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Thank you, for the awesome 750 Breva you sold and shipped to me, and for all of the dumb questions you answered, and for all the stuff you sold me to keep my Guzzis running.
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Sorry to here this, Mike. But, you have to keep your business afloat. Thanks for all you've done to try to keep the Guzzi fever alive and well in the states. :boozing:
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The sad lesson is.... if you buy a new Guzzi, don't assume your dealer will be around.
If these guys go, anyone can go.
Mike
They're not going anywhere. They're just dropping the Guzzi dealership. And, they have always had more than just Guzzi to keep them busy.
From the OP: "MPH Cycles WILL remain in business right here as a service outlet for all our customers".
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Sorry to hear this. I never had the opportunity to visit MPH (I've never even been to Houston), but I know from this forum that you will be sorely missed as a trusted and highly respected Guzzi dealer.
It's yet another classic example of how it's not the product, it's the service, that makes or breaks a company (MG, not MPH). Lousy management. What a shame.
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A real shame. I always considered MPH and M.I. the premier shops. So sad to see you go. Best of luck in whatever you do. Thanks for all the support over the years.
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Really sorry to hear things worked out that way Mike, but you obviously gotta take care of yourself.
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Truly a shame that one of the Dealers that kept Moto Guzzi alive in the US has been forced into this. Over the years, I recall the many times MPH, particularly Todd helped me out. This was the type of dealership Piaggio should have studied to create the foundation for other dealerships, not scooterships with 2 guzzi's. It is a shame, but my loyalty will be to MPH and as long as they can provide me things that I need, they will be my first choice. This is a travesty the Piaggio allows this to happen, the end is near my friends....
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Wow, sorry to hear the best of the best has to do this.
I had to bring my Goose to MPH to get my warranty work done because no other Guzzi dealerwould touch it in DFW area.
I guess that clenched the decision on buying a new goose...
GOD Bless you Mike, and Thanks for everything
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Sad news to be sure. I've heard similar rumblings in my neck of the woods, drop the new bikes and keep the service end. They are making some nice new bikes but it's too bad they are making it hard for folks to sell'em. Best wishes.
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The sad lesson is.... if you buy a new Guzzi, don't assume your dealer will be around.
If these guys go, anyone can go.
Mike
The sadder lesson is that so long as apologists excuse every contempt MG has for its customers and dealers, this will not be the last example we will see.
Treat your customers and dealers well, money flows into your bank account. Unfortunately, MG thinks they are a grace to motorcycling and that loyalists will always be there for them. That list gets smaller every day.
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Mike -- sorry to hear of this.
I'm assuming by "PGA Business Model", you mean their practice of requiring dealers to floor plan all four of the Piaggio Brands (Guzzi, Aprilia, Vespa, and Piaggio)?
That's stupid, as some markets are better scooter markets than others. What's wrong with a dealer just wanting to sell Guzzi? We need MORE Guzzi dealers, not LESS.
I know of a Guzzi dealer (who has a member on this board) who made an arrangement PGA and another dealer in the area. They are selling only Guzzi, while the other dealer is selling Vepsa and Piaggio (I don't recall if they have Aprilia or not). Could MPH make this arrangement as well? Would this help you keep the Guzzi dealership?
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Bummer.... I wonder what good ones are left?
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This is truly a sad day.
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Mike Haven said part of his issue is he's smack in the middle of the oil industry epi-center and with the low price of oil now oil workers are being laid off for lack of their skills needed right now and who knows what the future holds for them in Houston. They may be lucky enough to relocate some where else to keep employed, but that's not going to help MPH sell new Guzzis in Houston. Add that to the demands of Piaggio and it's a loser for MPH as a dealer. Least that's what I read out of what Mike posted here.
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Mike, You are the reason I stayed with Guzzi as the unnamed dealer I bought the new '98 from couldn't get it to run right after many return trips. You had it running RIGHT in leas than an hour and I put over 100K on it after that.
Warrantee work is a sad note from some, I call them GINO, Guzzi In Name Only dealers. Guzzi riders don't have a clue as to the amount of Guzzis that you did work on even tho the bike was bought from someone else.
I think my 44 year relationship with Guzzi ownership is coming to an end.
Ken
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I think my 44 year relationship with Guzzi is coming to an end.
Ken (aka Texas Turnip)
:shocked: :copcar: :popcorn:
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Bet Ken get's an Indian next. :grin: Or he could ride all his old Guzzis he has kept for more than 100K miles when he parked them. :smiley:
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Mike, Larry and Todd in abstencia. God bless you guys. You'll still see me on a regular basis for maintainence and parts. Still the best guzzi shop in Texas whether you sell the new ones or not!
Dave
Galveston
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Mike, Larry and Todd in abstencia. God bless you guys. You'll still see me on a regular basis for maintainence and parts. Still the best guzzi shop in Texas whether you sell the new ones or not! Dave Galveston
Ditto on that...let's hope the oil economy does bounce back in a year or so...how easy would it be to reactivate the Piaggio arrangement and start selling again?
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Mike -- sorry to hear of this.
I'm assuming by "PGA Business Model", you mean their practice of requiring dealers to floor plan all four of the Piaggio Brands (Guzzi, Aprilia, Vespa, and Piaggio)?
That's stupid, as some markets are better scooter markets than others. What's wrong with a dealer just wanting to sell Guzzi? We need MORE Guzzi dealers, not LESS.
I know of a Guzzi dealer (who has a member on this board) who made an arrangement PGA and another dealer in the area. They are selling only Guzzi, while the other dealer is selling Vepsa and Piaggio (I don't recall if they have Aprilia or not). Could MPH make this arrangement as well? Would this help you keep the Guzzi dealership?
No, quite the opposite is true. When the local Aprilia dealer wanted to sell Guzzi too, I again asked for the application to sell Aprilia. It was never sent to me. I had been asking about it since 2006. And I would sooner chew my legs off than enter into any business association with that local operation.
I would also never attempt to sell scooters here. As far as I know we were the only Guzzi only dealer in the USA. I have always bought the bikes at the the end of free flooring period, I dont see the point in paying interest on products sitting here, although there is certainly a cost to using my own funds for inventory, at least the cost doesnt go up every month. The recent straw is the fact that to gain access to the benefits and discounts needed to remain competitive in the Texas market would require me to continue to order many more than I am selling, including models that have always been hard to give away at cost. The sales scene state wide is a race to the bottom , to dump all non currents at cost, less rebates. So a profit of maybe 100 dollars for uncrate, set up, sales, disposal of crates, washing, web site tweaking, social media, phone calls, emails etc. And maybe after a year of all that and having 7-14 thousand dollars each sitting here the bike goes home. I have better ways to earn my living.
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I guess the old saying is still true, "to make a small fortune selling motorcycles, you need to start with a large one."
Are other makes this bad with floor planning?
How do they expect dealers to be able to even make money!?!?
Sorry to hear that this is the way it has gone for you.
Question: will you still be selling Moto Guzzi Parts? I'm not in Texas, but, have been an online parts customer.
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F#@&K Me gently, I hate hearing this again. We had two great dealers here in Maine ditch them in the last couple of years, really stinks if you like the bikes. All the best moving forward and thanks for giving it a hell of a go. Dave
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I'm very sad to hear this. I guess it's a volume thing. Not enough people buying Guzzis. I can see contraction to 1 or 2 dealers per state. I can see, for example, Pro Italia to service the So. Cal market and Elk Grove to service the No. Cal market. If you want a new Guzzi it's fly-n-ride. The few dealers might survive that way.
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Sorry to hear this, but as is the case with most crappy relationships, it's better to get out than prolong the frustration and suffering.
Rich A
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I'm sad to hear this too. It's almost like a death in the family.
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Darn it! I hate change!
So, are you now sitting on a pile of collectors edition MPH CYCLES Moto Guzzi shirts?
Seriously, good luck guys. I hope your new business model works well for you.
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Ok, the more I think about this, the more irritated I become. Although my frustration is surely dwarfed by Mike's.
Any clues about who we could write to at Guzzi to explain how suboptimal this outcome is?
I could not be happier with the V7 Mike sold me. 35,000 miles in less than two years--warranty expires in a month. But looking back on it, I'm not sure I would have taken the plunge on Guzzis if I wasn't convinced about longstanding competence and integrity of a place like MPH. There was a Guzzi dealer in Dallas where I live, and in Austin, but in my mind there was no question I would go to MPH.
Just seems really dumb for Guzzi to throw away such high class dealers.
When prospective buyers expressed concerns about skimpy dealer network or lack of parts, I'd always say not to worry, because there are places like MPH. Now I'm not sure what to say.
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Having been riding Moto Guzzis for 30 years, it's been my observation they don't appreciate other's opinions on how they should run their business and don't care what we think. There's the joke Moto Guzzi's been going out of business for decades, but some how some Italian source keeps them afloat. Their ownership changes hands every few years, it seems. :azn:
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we will continue to sell parts and service, but our access to OE parts is going to be slower than before. T shirts still available!
I was in the motor vehicle repair and service business as a sole prop for 20 years before I got hooked into being a Guzzi dealer. MPH is a deeper subject than selling Guzzis, we will be fine. Maybe someday they will come back and ask me to re-join, maybe not,but I hope to be retired by the time oil recovers.
One thing i have learned is pushing a rock uphill year after year gets tiring, more so every year.As a younger man I took it as a challenge, now i realize that moving goal posts makes it hard to win even half the time.
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Well, sheeit, @ least I got a t-Shirt! :thumb:
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This is getting toward being the last straw for me. With my Norge problems, tappet problems, no dealer in the state, as much as I like the bike I am about ready to dump it for whatever I can get, keeping the T-3 for fun. I have an excellent Honda/Kaw dealer about 10 miles away. May have to look at those brands for a touring bike.
GliderJohn
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I would like to thank Mike, Todd (bless his spirit) and Larry for their fine professionalism, sales, service and just friendship. A better family business you will never find. May there be good fortune for the House of MPH.
My full confidence remains in MPH service for my V7R. If timing were right I might snag one of their left over deals. That just won't happen for a few months, at least.
The oil crash has indeed really impacted the Houston economy. In my opinion, as a 40 year veteran of the oil cycles, this major dip has at least two or three years to go until an upswing occurs. Just about everyone in my age group has been terminated, force retired, or simply quit in utter boredom and frustration. The remaining workers are very much at risk. The big disposable incomes from the big bonuses have gone poof. Most are worried about losing jobs, paying off mortgages and car notes, and supporting families. Such is the oil "bidness"--"it varies from the sublime to the ridiculous".
Moto Guzzi being a boutique, niche brand will always have its fans. Moto Guzzi interest remains in the 4th largest city in the USA. My bet is one of the big Piaggio dealers here on the SW Freeway will pick up the Guzzi flag and keep selling.
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Thanks for all the good work over the years. Seems like the powers that be aren't making a shop like yours sustainable for selling new bikes.
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Best of luck ahead.
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I'm sorry to read this, Mike. But you must do what you must do.
Most Americans get excited when oil prices drop and stay lower - gas gets cheaper at the pump and that's all they think about. But in cities like Houston (and Midland, Odessa, and other petroleum-economy cities) things quickly get desperate; people lose jobs, families lose homes, and small businesses close their doors. In this case, the frustrations of Piaggio's business practices caused a storied dealer to end his relationship with the marque since it looks like Italian motorcycles won't be selling in Houston for years to come. Such is life "in the oil patch."
Thanks for everything you've done for Guzzi owners, Mike. And thanks to Todd, too.
Bill
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Sorry to hear this but certainly understandable. Seems they make it very hard to stay on as a dealer. We have seen some damn fine and helpful folks fold. Maybe PGA is really an ISIS group trying to kill Moto Guzzi. If that was their goal...they seem to be succeeding.
Best of luck with your other business. I am convinced it will get easier for you now.
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Mike- Thanks for your and Todd's years of dedication to keeping our Guzzis going. My 98 EV is still running better than new since you gave it a tune up back at the 2001 LA Rally. Will still be my go to dealer for parts. - Jack
(http://i261.photobucket.com/albums/ii76/LaMojoe/2001%20La%20Rally%20EV.jpg)
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Man That was a busy day, more than 50 bikes tweaked and adjusted. too old for that now for certain.
Thanks Jack
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Shame, that happened here a while back with old school Guzzi dealers being pushed out.
We're lucky to have Pete down under but here in SA they pushed out Eurocycle as the last service centre, I believe when they allocated a new dealership which didn't want the competition. That place has terrible service & the staff know F'all about Guzzis.
Corporate treats you blokes like car dealerships which is a real shame. Best wishes for the future.
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Mike Haven said part of his issue is he's smack in the middle of the oil industry epi-center and with the low price of oil now oil workers are being laid off for lack of their skills needed right now and who knows what the future holds for them in Houston. They may be lucky enough to relocate some where else to keep employed, but that's not going to help MPH sell new Guzzis in Houston. Add that to the demands of Piaggio and it's a loser for MPH as a dealer. Least that's what I read out of what Mike posted here.
I work for a company based in Aberdeen Scotland and the slump in oil prices has hit the industry there hard too.
MPHs problem is the sad consequence for many "support businesses"
My company is skirting round the edges at the moment as we're in the refurbishment business of existing equipment
However, if I end up down the road the bikes will be at the front of the queue if cash becomes a problem which takes them away from the local motor cycle garages - and the vicious circle begins again
Good luck MH
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Piaggio executives keep there jobs by increasing sales. Dealers are "pushed" to take more product in the hope it sells thru and the year ends on an up note. It's only business.
After 30 yrs in sales to resellers .....I've had enough myself to retire.
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Sorry to hear it Mike. Been there from the beginning for you with Guzzi and you guys have always done a great work for me, starting with my Centauro that the "other dealer" could never get right. Todd, of course, was the man. Find you that crazy part , figure how to get Guzzi to cover repairs when possible.
I know you're still there for work, but will miss seeing the latest and greatest from Mandello.
Happy Thanksgiving too to you, Larry and everyone there. You all run a tight ship.
Ted
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Thanks Ted.
BTW all you MPH T-shirt admirers should know that Ted did the original art work/design of our shirts.
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So sad to hear! Have purchased parts from MP for some time and one less resource. Not sure why Piaggio even bothers trying to market in the US? Seems as though the less support they give the dealers, the less incentive there is to buy a MG and then they can justify, in their own minds why they should not spend any money in the US :violent1:
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No dealer and repair shop more trustworthy in the US (and VERY few even approaching your equal!) Sad day for Guzzidom. The same story from every ex-dealer I know. "I love the bikes, I HATE the company" (Usually accompanied by vehemence, glaring eyes, and flying spittle!)
How does Piaggio manage to move at all with multiple self-inflicted bullet wounds in both feet?
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For what it is worth :weiner:I emailed Piaggiog and gave them my opinion of this. Only had dealings with Mike MPH for 4-5 yrs and he is one of the best. Shame on Moto Guzzi for letting it come to this. They need to take a good look at themselves. Best of luck to Mike MPH in the future.
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Sad but I can perfectly understand it. Piaggio has been jacking Mike around for years, it can only of been deliberate. Look at my experience with my Cali, ordered and paid for months in advance yet they were sittin on the floor in other states while Mike ground his teeth. Maddening. I'm surprised he didn't tell them to bash it up their quoit a decade ago.
Pete
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Not the first time for something like this.
http://wildguzzi.com/forum/index.php?topic=23678.0;imode (http://wildguzzi.com/forum/index.php?topic=23678.0;imode)
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Back in 2010, when I'd purchased my first Moto Guzzi (1200 Sport), I was attempting to work through a simple warranty repair.
The local dealer in NE Ohio at the time (not Phil at Cleveland Moto, who has been extremely helpful) advised me to try contacting MG in NYC directly.
Hah, hah ........... that was fun! Reminded me of the old Popeye cartoon where Wimpy would say 'give me a hamburger today, and I will gladly pay you Tuesday.'
Problem was ..... Tuesday never came. 'Oh, Bob ..... we are so sorry, but we haven't heard yet from Italy.'
Well, after several weeks of the same response, I simply gave up.
Thank Gawd, Todd Haven contacted me and took care of the problem.
Love the bikes, love the Guzzi community. The manufacturer and their way of doing business, well, not so much!
No more new ones for me.
Amendment: No more new ones for me unless Guzzi brings out a big block equivalent of the V7 bikes. That might cause me to overlook past experiences with the Corporation. But it needs to happen quickly ...... the new T120 is looking like it might meet my criteria ..... and it has the same 270/450 degree firing sequence as Guzzi.
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Not the first time for something like this.
http://wildguzzi.com/forum/index.php?topic=23678.0;imode (http://wildguzzi.com/forum/index.php?topic=23678.0;imode)
I had forgotten that well written manifesto. It would be amusing if it was not so sad. But perhaps in the intervening 7 years things have improved? Mike went from beating his head against a wall until it is bloody to just pushing a rock endlessly up a hill. That's progress, right?
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That was Todds writing in that missive. I just added a few comments, but its still the same battle, I simply got older and less tolerant of BS.
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I'm very sad to hear this. I guess it's a volume thing. Not enough people buying Guzzis. I can see contraction to 1 or 2 dealers per state. I can see, for example, Pro Italia to service the So. Cal market and Elk Grove to service the No. Cal market. If you want a new Guzzi it's fly-n-ride. The few dealers might survive that way.
Not too many people willing to buy a bike that means a criss state ride for service. If you get there and it has to stay you are looking at plane far home and back, it isn't worth it no matter how much one might like the bike.
It is obvious to me that there is some part of the MG/Piaggio business that leverages Guzzi bike manufacturing for something other than selling bikes, something we are all unaware of because selling bikes doesn't seem to be the goal, supporting owners sure isn't.
Somewhere on a balance sheet there is a line item that makes all the difference.
There is no they can't, there is only no, they don't want to. What drives that reasoning only they know but it isn't because they sell only 7k bikes a year, that is a symptom, not a cause.
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Mike, are there any niche manufacturers (and that's what Guzzi is in the US) doing it right? Without betraying any confidences between you and MGUSA, how would you go about things if you were in their shoes and you wanted to grow the brand into the midrange and take care of the dealers? Maybe consolidate to just a few geographic areas and hit those places hard until they were strong enough to expand on? More or less presence at the various motorcycle shows? Raise list prices and leave more room for dealer-level discounts?
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Mike, are there any niche manufacturers (and that's what Guzzi is in the US) doing it right? Without betraying any confidences between you and MGUSA, how would you go about things if you were in their shoes and you wanted to grow the brand into the midrange and take care of the dealers? Maybe consolidate to just a few geographic areas and hit those places hard until they were strong enough to expand on? More or less presence at the various motorcycle shows? Raise list prices and leave more room for dealer-level discounts?
I always wondered why they have jobs called dealer development, and national sales manager and brand manger, when only one of the three ever came to see our operation, never asked about business or how we were doing, if we were using the programs to the best of their ability, what could be done to make things better for us and the end consumer.
Just get more units on the floor, not really concerned with out the door.
Maybe go learn from the top 5 dealers in the USA what makes them top 5 , and implement those practices to others who cared. In fact a few years ago a survey went out asking about Best Practices. I gave several hours of time to fill in the questionaire, and saw the responses from a couple others. Then corporate condensed and sanitized it and sent it out as if it was word from on high.2 of the top 3 from 2011 are now gone. The bikes are better than ever. The need for a dealer on every block is no longer there. 50 strong ones nationwide would be plenty .There have been as much as 100 listed at one time, but most were non stocking. The current requirement of stocking the complete model range is what drove me over the edge. V7 Special must be on the floor to get the bonus and discount money from PGA. I just sold my 2013 and 2014 Specials at cost, less the $2000 rebate to get them out of here.Never had a 2015 Special. Not interested in buying bikes that have proven to be boat anchors. Now the recent PGA auction to dealers of all the non currents in stock has re-devalued the in stock inventory of any dealer who didnt buy more bikes and dollar cost average . It did not make sense to me to keep buying into oblivion.
Bikes shows are a waste of time and money. Not one single person I spoke to at any of the IMS shows I worked, both here and the one in Dallas ever resulted in a warm body walking in my door.
Pricing seems like the market is not comfy with where the bikes are now at MSRP. The Ducati Scrambler is discounted locally to 8450, how can they dream of selling the V7 Scrambler for over 11K?And legal certification seems iffy.
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It is obvious to me that there is some part of the MG/Piaggio business that leverages Guzzi bike manufacturing for something other than selling bikes, something we are all unaware of because selling bikes doesn't seem to be the goal, supporting owners sure isn't.
I'm not a conspiracy theorist, but, yeah, there just may be something aside from making profits from Guzzi sales that lurks in the background. NP, you're absolutely right ..... selling bikes to the end user doesn't seem to be the goal. It is disappointing to see a company do so much from the engineering side of things to make the bikes 'right', but then do so little follow through. It's almost like they (Guzzi) believe in the axiom of 'build a better mouse trap and they will come.'
There's some truth in that, but a large part of the better mousetrap is service, support, and warranty.
Opinion ...... the USA market makes up approximately 10% of Guzzi sales. Is it worth it for them to continue selling bikes in America? That's 'like' 500-600 bikes a year, which is almost nothing.
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It is sad to read about the current state of guzzi. It does seem to be a marque that doesn't keep dealers very long. Other than Moto international and rose farm I wonder how many dealers have been around for 10 years.
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I'm not a conspiracy theorist, but, yeah, there just may be something aside from making profits from Guzzi sales that lurks in the background. NP, you're absolutely right ..... selling bikes to the end user doesn't seem to be the goal. It is disappointing to see a company do so much from the engineering side of things to make the bikes 'right', but then do so little follow through. It's almost like they (Guzzi) believe in the axiom of 'build a better mouse trap and they will come.'
There's some truth in that, but a large part of the better mousetrap is service, support, and warranty.
Opinion .. .... the USA market makes up approximately 10% of Guzzi sales. Is it worth it for them to continue selling bikes in America? That's 'like' 500-600 bikes a year, which is almost nothing.
Most businesses aren't what they appear to be . Take McDonald's , the parent corp isn't really in the food business , it is really a real estate business , making the largest profit from leasing the land and building to the franchisee . Actually sub leasing is more accurate , they normally don't own the property , but lease it long term . Harley Davidson makes huge sums of real cash profit from their finance arm , as do most other car companies . GM sold off 51 % of GMAC a few years back , and have desperately trying to get it back .
Oh , and the manufacturer does register a sale as soon as the dealer pays .
Dusty
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It is sad to read about the current state of guzzi. It does seem to be a marque that doesn't keep dealers very long. Other than Moto international and rose farm I wonder how many dealers have been around for 10 years.
Really?
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Really?
Pretty sure that's it Mike, dontcha think? :shocked:
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Pretty sure that's it Mike, dontcha think? :shocked:
[/quote
EuroSport in Ft. Worth, TX since 1982?, Harpers since 1970?, Les Caswell in MN 30 plus years. There are more, but I've only had 4 cups of coffee and my mind is only at 60%.
Tex
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Not one single person I spoke to at any of the IMS shows I worked, both here and the one in Dallas ever resulted in a warm body walking in my door.
I test road a Norge at Daytona when Guzzi was there with the test fleet and I ended up buying a Norge from you guys. Not the same as IMS show but it does help to have them going around with that fleet or it did in my case.
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becoming successful in the market place isn't that hard. just a few simple rules that MOST manufactures fail to follow.
first you have to want to be #1 and set it as a long term goal. I'm talking 20 years out not next year or next week. then you work towards that goal every day. I bought my first new Guzzi in late 1972. a 850 Eldorado. I have owned 10 total (out of 35) and my 2001 EV is still the favorite. it amazes me that so many of the old problems still exist in the new products like the 2010 Stelvio I sold this spring.
two you have to realize you can't do it with low quality dealers. one great one who loves the product is better than 10 who don't care.
three you need to start at the things that are most important to a dealer and a retail customer. parts, you need to have all of them in inventory and ship the order out to your dealers the day it comes to you. yes it can be done. next stand behind your warranty and make it a fair one. if it breaks fix it right now and make it a priority. when things are breaking have a fix to the dealer within 6 months. hard for a factory but doable. never leave a customer hanging with a piece of junk.
let the dealer make a fair margin on the product. discourage discounting and for the sake of everybody don't dump inventory and cut the dealers throat. don't demand the dealer to inventory all of the brands / products you sell. some markets just can't take some of those products.
I could go on and on but you see the idea.
shameless plug just look at Stihl hand held power equipment. in 1973 it wasn't even 1/2% of the US market. today it owns it. They are committed to full service dealers, no mass merchants and believe me that was no accident. even though it is German like BMW it's run totally opposite. there are no stock holders or board of directors to appease. it is owned by the two sons and two daughters of the founder. it is their name on the product and they do care about what the market and the final customer thinks. they spend a lot of time in the field seeing what is needed to make it keep going forward.
teach the dealer how to sell the product through. then advertise it for him in a common sense manor.
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So, does this mean I can still bring my V7C from Louisiana to get worked on at MPH? A few weeks ago the dealer in Baton Rouge dropped Guzzi 'cause no one brought them in for service. Was not going to pay for his mechanic to get up to speed on latest models for nothing. His 'Guzzi mechanic has since left. Houston is now the closest to me for service. Have ordered what few parts from Harper's, MGcycle, and AF1. Don't have much problem with that as I have a 1976 Suzuki GT500, no dealer here anyway, so making or ordering parts is the only way to fly!
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You guys are way ahead of me in understanding all this dealer dilemma issue. I buy a new motorcycle every two years and ride what ever pleases me at that particular time. So, this is my first MG. But from what I can see young men and women are interested in other things than motorcycles or cars in the US. Many don't even drive or delay getting a driver's license now. The economy is still staggering. America is the least of the motorcycle markets for the big four in terms of volume. The Japanese cruisers are American focused and don't sell well else where. Volume?? The Gold wing is uniquely American. HD is home grown and most sales are here in the US. So, I get the point of making things in and for America. But in reality how much of any motorcycle company's overall production or stock (other than HD) is sold in the US? How much can we as a market force influence them? The local dealer which sells all big four and Triumph, says; "not too much". Is he/she right? Most of the kids seems to move from bicycle to car.
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So, does this mean I can still bring my V7C from Louisiana to get worked on at MPH? A few weeks ago the dealer in Baton Rouge dropped Guzzi 'cause no one brought them in for service. Was not going to pay for his mechanic to get up to speed on latest models for nothing. His 'Guzzi mechanic has since left. Houston is now the closest to me for service. Have ordered what few parts from Harper's, MGcycle, and AF1. Don't have much problem with that as I have a 1976 Suzuki GT500, no dealer here anyway, so making or ordering parts is the only way to fly!
Yes we will continue to service Guzzi and BMW for as long as we want to. Larry has been trained at Guzzi tech and is quite happy to continue. We are only ceasing the sale of new bikes.
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You guys are way ahead of me in understanding all this dealer dilemma issue. I buy a new motorcycle every two years and ride what ever pleases me at that particular time. So, this is my first MG. But from what I can see young men and women are interested in other things than motorcycles or cars in the US. Many don't even drive or delay getting a driver's license now. The economy is still staggering. America is the least of the motorcycle markets for the big four in terms of volume. The Japanese cruisers are American focused and don't sell well else where. Volume?? The Gold wing is uniquely American. HD is home grown and most sales are here in the US. So, I get the point of making things in and for America. But in reality how much of any motorcycle company's overall production or stock (other than HD) is sold in the US? How much can we as a market force influence them? The local dealer which sells all big four and Triumph, says; "not too much". Is he/she right? Most of the kids seems to move from bicycle to car.
People want convenience and a lot if that means reliability and no fuss. Ease of maintenance is fine unless you end up doing it all the time. For example, easy valve adjustments are intrusive if half way through a riding season you have to do it, even if it takes just an hour. First, a lot of people don't want to do it, they want a simple drop off at a dealer and pick up. Second, if it isn't a once a year thing, it is too often.
Most people don't like quirky either, they want efficient and hassle free enjoyment. If you enjoy fiddling with engines and such, OK but realize that isn't most people.
Today, the youngsters don't want to pay money for something that sits around so if a bike is going to be ridden often and miles racked up, what do you choose, the bike that needs maintenance once a year or one that needs it quarterly or semi annually?
A bike you can ride for 12k miles with perhaps just an oil change is something you can easily deal with. The oil change is inexpensive and on most bikes, very easy to do. There are some that are a pita but not most.
HD gave customers what they demanded, a fantastic dealer network, nearly immediate parts availability and the confidence to buy and know that even on a Sunday, their shops are open. There is an entire industry making accessories.
Don't forget, HD almost went bellyup so it isn't as if they were always a huge operation, they just put effort into the business and gave people what they wanted.
You can either tell people to buy what you make and tough if they don't like it or make what they ask for and sell a lot of stuff. Both HD and Apple sell what people want and look at their success. It wasn't by chance, it was by design.
I don't own either an Apple product or a HD but there is no arguing that people buy huge numbers of their products. It isn't magic.
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Motorcycle sales are like farming...you can do both successfully until you are broke :grin:
Mike, I've been a big supporter of you and MPH since you have always done great by me & will continue to support you for your superior service. Honestly I would not have considered purchase of a NG if you had not been nearby and frankly it will probably be my only one.
My biggest disappointment with the brand is their continued dumping of unsold units so as to dilute the value of the resale of bikes....I know, nobody buys MG's to make money but still :thewife:
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Makes sense what you guys say. Sadly, it makes sense. Instant gratification with no hassles.
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It is not just MG. The local dealer sells BMW, MG and Aprilia. The big V4 sport bikes sells OK maybe three or four. One Shiver, one Dorsoduro, one Manna and one CapoNord and that's it in a year. The MG V7s out sell the Aprilia's. Maybe fifteen to eighteen bikes a year. But the BMWs go by the dozens. Nine-Ts near the day they come in. On reading and reflecting on this thread. I would not want any part of this business as my livelihood. Very grateful for those who do it. But what headache. The Big Block MGs linger a while as well. You never pay MSRP as there are always a deal of some kind as the inventory sits. I wonder what the margin is??
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Mike,
All of us understand your business decision, we just feel bad that Piaggio did not create business processes that would allow great folks like you to survive selling Guzzi's. Your service is legendary, as many have noted, and I still give thanks to dear Todd for the warranty work he was able to get done on my Breva 1100 in California. I have owned many bikes, but no one ever gave the level of service and concern that you folks did. It is truly a shame that this has happened, I also realize you will be just fine with the business that MPH has, I am just saddened that after all of your efforts over the years MPH was not given proper consideration by Piaggio. I would buy a Yugo from you guys!!! :grin:
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Disappointing to read this post just now. I don't live anywhere near MPH, but bought a "Roper plate" from Todd a while back. There are so few Guzzi dealers around period, so it is a double shame when a good one drops out. I have bought from MPH, Moto International, Harpers and Rider's Hill, and all were good experiences and knowledgeable dealers. Now MPH won't be a Guzzi dealer and Rider's Hill is closing all together, so a bit sad. I think the Guzzi brand has a market niche, but I am not sure they can be sold and serviced effectively by generic dealers that don't appreciate the product. Spec/price-wise, Guzzi often doesn't compare well to competition for under-informed consumers...I hope Piaggio wakes up and realizes that. In the US auto industry, I think there were similar blind spots with how GM and Chrysler treated many smaller dealers.
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Disappointing to read this post just now. I don't live anywhere near MPH, but bought a "Roper plate" from Todd a while back. There are so few Guzzi dealers around period, so it is a double shame when a good one drops out. I have bought from MPH, Moto International, Harpers and Rider's Hill, and all were good experiences and knowledgeable dealers. Now MPH won't be a Guzzi dealer and Rider's Hill is closing all together, so a bit sad. I think the Guzzi brand has a market niche, but I am not sure they can be sold and serviced effectively by generic dealers that don't appreciate the product. Spec/price-wise, Guzzi often doesn't compare well to competition for under-informed consumers...I hope Piaggio wakes up and realizes that. In the US auto industry, I think there were similar blind spots with how GM and Chrysler treated many smaller dealers.
we can hope, as I have for 16 years that someone who can put 2 brain cells next to each other can, that they need some simple fixes applied. They dont care. End of story."here is our bike , you should make people want to buy it from your store." No its not what they asked for, and if it is its priced at a ridiculous level. So F- You is what they are saying to the US market. And we are saying it back.
and BTW MPH Cycles has been in the top 5 of US Guzzi dealers since we started in 2000. The pain they place on a small dealer must be inscrutable.
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4 dealers in MN, 3 with over 10 years. 1 in South Dakota with over 10 years.
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Seems to be an Italian business model to pull support from local motorcycle and car dealers. The local Fiat studio, Kearny Mesa Fiat, is closing. Sold tons of the 500's. Great people, honest dealers that really seems to care about you...after the sale. I asked one of the managers and he told me they just didn't get a lot of support from Fiat... And they couldn't compete with the giant multi brand dealers. He said Fiat deliberately licensed too many dealerships.
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Mike,
Thanks for helping many of us acquire the bikes we love. Looking forward to doing business with you as long as you stay with it. You guys have always been a class act, and a shop I always appreciated immensely to be able to come to.
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Pretty sure that's it Mike, dontcha think? :shocked:
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EuroSport in Ft. Worth, TX since 1982?, Harpers since 1970?, Les Caswell in MN 30 plus years. There are more, but I've only had 4 cups of coffee and my mind is only at 60%.
Tex
Forgot about caswell and the shop in SD. I didn't think harpers sold bikes anymore.
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Could be that they have old franchise agreeements that give them a bit more independence, also Minnesota's franchise laws may protect dealers here a bit more.
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Judson cycles in MN been selling Guzzi for decades!
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Perhaps because Minnesota has one of the stronger franchise regulation laws... Minnesota prohibits a manufacturer from changing the terms of a franchise agreement without the agreement of the dealer. That means that if the manufacturer only required stocking a single model of bike in a shared showroom a half century ago, those terms still stand. The weak point in these laws is enforcement- the dealer generally has to hire their own lawyer to take on the manufacturer's whole bloated legal department.