What is Piaggio Group Doing to its Dealers?

[mhershon]

On RideApart this morning:
https://www.rideapart.com/news/494799/aprilia-piaggio-group-americas-strategy-question/

[guzzisteve]

Definitely not good press.

[jwinwi]

The beatings will continue until sales improve.

[pebra]

 

[Perazzimx14]

Piaggio is doing to dealers what Piaggio has always done to dealers.

Most new dealerships picking up any of the Piaggio line don't last a year or two putting up with the mothership before dropping them like a hot potato and the cycle starts a new with another shop. 

[Murray]

If you read the article Piaggio wants dealers to stock full range of their products, while this may not suit a lot of dealers its not out of range for most manufacturers I guess the problem with this is their full range is likely to be a much greater range (multiple brands and niches), what I don't get is the dealers pushing back on actually stocking parts, for a European brand that's got probably a 6-8week lead in time or a couple days cross continent, it will cost them money. Yes although the most successful US dealer stocks parts makes them easy to find and ships quickly something about supporting the product you actually sell. Locally we have two official dealers and one independent shop, the independent shop stocks parts has them on the shelf readily available, take a wild stab in the dark the most successful one for Guzzi based business.

So I'm not saying its all good but some of that article is a dealer whining about having to do something over and above collecting a sales commission.

[Milosh]

I don't understand what autoship is.

[guzzisteve]

They ship the dealer a model to replenish the stock at dealers.

[guzzisteve]

AND the customers ARE the problem!!

[Mayor_of_BBQ]

This is crazy, and the reason 80% of us don't have a MG dealership within a 2hr drive. A friend of mine owns a VERY successful BMW/KTM dealership. For the first three years they also carried Vespa, plus a few lower-tier Piaggio scooters to flesh out the offerings..  I really hoped that would open the door to MG, since the entire shop is euro-centric. MG and Aprilia would be perfect fits in there. They had the KTM line for dirt/dual sport, BMW for adventure bikes/touring. Adding Aprilia for sport bikes and MG for retro/standard seems like a match made in heaven!

No dice. Owner says that Piaggio was the biggest pain in the ass he had ever dealt with. Shite warranty support, incredible lead times for parts, terrible communication from corporate, and unrealistic expectations around stocking floor models. Not to mention being practically closed all of August during peak riding season. He had no problem selling the vespas, he said they only kept the line so long because he was able to sell them so easily. They finally got fed up and dropped Piaggio altogether. Now that floorspace is filled with used and consignment BMWs, KTMs, and the odd trade-in V-strom or Honda.

It is insane that so many of us own 3,5,7+ Moto Guzzis and yet have never bought a new one (and probably never will) due to the lack of good dealers. Why would I pay the new bike premium when the warranty is essentially worthless? By worthless I mean requiring a truck and a 6hr round trip driving into ATL to have my bike seen.. Plus a return 6hr round trip to pick it up.

[decotriumph]

It is insane that so many of us own 3,5,7+ Moto Guzzis and yet have never bought a new one (and probably never will) due to the lack of good dealers. Why would I pay the new bike premium when the warranty is essentially worthless? By worthless I mean requiring a truck and a 6hr round trip driving into ATL to have my bike seen.. Plus a return 6hr round trip to pick it up.

Isn't the dealer in Charlotte closer to you?

[Mayor_of_BBQ]

The dealer in CLT is a powersports dealer that bought Matthews Fun Machines and the guzzi stock with it. I dont think they have any experience or dedication in the brand, I expect them to drop any time... 
There was a dealer in Greensboro briefly as well, the jumped ship after barely a year.

[Perazzimx14]

The dealer in CLT is a powersports dealer that bought Matthews Fun Machines and the guzzi stock with it. I dont think they have any experience or dedication in the brand, I expect them to drop any time... 
There was a dealer in Greensboro briefly as well, the jumped ship after barely a year.

Just because they sell them doesn't mean they can service or repair them. Also they are selling them today is no guarantee they will sell be selling them tomorrow.

We had a Guzzi shop about 60 miles from here. I called to inquire about a bike and they didn't know the differences between the models. I can only imagine how good their "factory trained" tech was as turning a wrench.

[bad Chad]

It would be really informative to hear from dealers like Cadre and Hamlin and others.   It appears on the surface that those dealers are making it work, how are they doing that?   I don't really expect any of them to chime in on an open forum like this, but it would be interesting.

[lucky phil]

You all need to read Dave Richardsons book "my life in bikes". A large part of the book is all about running Moto-international for 35 years and the frustrations dealing with The American distributors of Guzzi over that time as well as the factory.

Ciao

[bad Chad]

Right, but dealing with Italy has been a thing for the last 50 plus years, what, if anything is different now?

[lucky phil]

Right, but dealing with Italy has been a thing for the last 50 plus years, what, if anything is different now?

Not sure but Richardsons book is just a good insight into the dealer distributor dynamic and to a lesser extent the distributor Manufacturer dynamic as well. In addition to that there is also his dealings with the factory directly and the way Guzzi/Piaggio react to and view their product in the market and an insight into the way local politics and relationships influence the design and model strategy. It's quite a fascinating education into the hard world of retailing motorcycles. I've had peripheral experience with the trade for 40 years through friends at the dealership and distributor level and it gave me even more sympathy for the dealer experience. Its a hard way to earn a buck for the most part I think.

Ciao       

[LowRyter]

This seems to be a common theme.  Additionally, we've noted a few unacceptable warranty issues with this brand.

[kingoffleece]

Hamlin dropped Aprilia.

[LowRyter]

Right, but dealing with Italy has been a thing for the last 50 plus years, what, if anything is different now?

Funny, when I damaged my Ducati running over debris, my local dealer got the pieces from Italy within a couple of weeks.  I was shocked that the parts had to come from Italy and they were actually delivered as promised.

[lucky phil]

Funny, when I damaged my Ducati running over debris, my local dealer got the pieces from Italy within a couple of weeks.  I was shocked that the parts had to come from Italy and they were actually delivered as promised.

The efficiency improvements in international freight are good for everyone. Dealers and distributors need to carry less inventory and the wait times for the customer are reduced on some items. In theory the costs should be less as well with reduced stocking levels at the dealer and distributor level.

Ciao

[PhilB]

My experience with the parts for my Ducatis has been mixed.

I've had good luck with good dealers, who stock most parts that ordinarily get replaced, or can find them easily.

But occasionally there's a flyer.  Fairly early on, on my first Monster M900, the block that the kickstand bolts to broke.  It took *5 months* for Ducati to send a new one.  Which was a big PITA, since that bike was my primary transportation.  After a couple weeks, my dealer actually designed for me, and machined from billet himself, a better and stronger block, and put it on the bike (and didn't charge me for it).  When the actual part came in finally, I put it on a shelf in the garage, since the one Sonny made was better anyway.

Later in its life, when I was past 200K miles, and wearing out parts that did not normally wear out, I had trouble getting some of those bits, and usually just got used parts.  Two of the dealers I had over the years each actually bought a parts bike to supply my machine from.

PhilB

[DougG]

Hi Mayor,                                                                                      3-17-21

I assume that you are referring to Eurosport in A'ville.  I've had tires changed on my Cali 1400 there twice.   When I called to make the appointments, the service manager said, "We have a Moto Guzzi specialist in house.  He knows those bikes." 
After the tire replacements, the mechanic said,  "The front was easy, but replacing that rear tire was really hard." You are right...the place is successful and I've had similar conversations about MG with the owners.  They keep asking me,  "Why don't you buy a BMW?"  To which I reply  "Why doesn't BMW make a low seat version?  Everything is 32"+ height."   The response, of course is,  "We can lower the BMW height right here...for only $1,600."

Now here is my issue...if the bike performed up to BMW specs with a 29" or 30" height from the factory, it would be offered from the factory. 

Anyway, I doubt that they are willing to stick their neck out for Piaggio.  Life do go on...

Be well, stay well,
DougG

[Two Checks]

If Piaggio wants dealers (and customers) to support Piaggio then Piaggio needs to support the dealers.

[mondtster]

Unfortunately, it isn't just Piaggio that plays these games with their dealers. A friend of mine had an Arctic Cat dealership and it was the same thing - sell the entire product line. He played the game for a while but eventually refused to stock snowmobiles because there isn't enough demand for them here. Within a year of the snowmobile fiasco AC told them they weren't a dealer anymore. They sold plenty of UTVs because the farmers love them here but that didn't cut it. The strong UTV sales didn't net enough profit to really make it worthwhile anyway, they made more money per unit selling commercial grade lawn mowers.

[LowRyter]

OK,  if you want bad treatment to dealers, think about those Victory dealer denied an Indian franchise and instead told to purchase additional Victory marketing materials and inventory. 

I know a local fellow that sold quite a few Suzukis and Triumphs until the economic downturn 10 years ago but gave it up when the manufacturer wanted to dump him with slow selling inventory and require additional marketing equipment purchases.  The Triumph guy totally pissed him off during the dealer meetings; Triumph apparently had visions of rivaling Harley if only the dealers bought more stuff.

It's not a pretty business.

[lucky phil]

OK,  if you want bad treatment to dealers, think about those Victory dealer denied an Indian franchise and instead told to purchase additional Victory marketing materials and inventory. 

I know a local fellow that sold quite a few Suzukis and Triumphs until the economic downturn 10 years ago but gave it up when the manufacturer wanted to dump him with slow selling inventory and require additional marketing equipment purchases.  The Triumph guy totally pissed him off during the dealer meetings; Triumph apparently had visions of rivaling Harley if only the dealers bought more stuff.

It's not a pretty business.

From what I've read about and experienced in a peripheral way via friends in the industry the distributor and dealer relationship seems heavily weighted on the side of the distributor. It's a dynamic where in some cases the distributor sets itself up to sell to a captive market defined as the dealer network and they keep the actual customer at arms length. Their interest stops at the dealer as if the customer is some mystical figment of the imagination out there in the ether. They then go on to dictate the supply, the image and promotion of the product to the dealer at the dealers own expense, the shipping costs and parts supply and pricing, the tooling they stock the servicing equipment they must buy the training of technicians. They also dictate what product the dealer has to put on the floor at the dealers cost. No wonder they by and large come and go at an alarming rate. Seems like a mugs game to me and one of the reasons I was never tempted to get involved professionally despite how much I've loved motorcycling over the last 50 years. I always felt kind of sorry for my friends in the industry and nothing has caused me to re evaluate that perception.

Ciao 

[Luap McKeever]

They're hosing the dealers and the customers at the same time. Funny true story, I was this > < close to investing with a friend of mine who is in hoping to open an all European motorcycle dealership in Little Rock. A lot of the brands would have been the only ones carried and serviced in the entire state.

But, after the way Piaggio treated me a couple years ago with the botched warranty repair for the MGX I had and now someone else is having the same exact problems with, he decided to pass on Guzzi. I told the "customer care" guy on the phone that they'd better get it together or they'll all be unemployed soon. Here's the problems with Piaggio as seen from my chair:

• Basically 1 dealer per state is not anywhere near enough
• Parts availability is a joke
• Aftermarket parts do not really exist
• Warranty claims can take forever (7 months alone in my case)
• Their customer care agents don't really "care"
• Piaggio offers no incentive for dealers whatsoever
• Where is the marketing campaign?
• They do not support those that support them the most

But most of this list is not a new development. I know it's been this way since I started riding them in 1996 or so. But the one thing that has changed is the customer care. There was a time when they actually gave a care. There was a time you called the number and got a voice instead of a machine. Now, no.

I will likely never buy another new Guzzi for the rest of my life and tell everyone I know (in person) about "the story of my MGX".

Just my $.02

[sdcr]

I would agree that, “There was a time when they actually gave a care. There was a time you called the number and got a voice instead of a machine. Now, no.”.

When the distributor was in South Carolina, there was a much better connection to the actual customer base.

They're hosing the dealers and the customers at the same time. Funny true story, I was this > < close to investing with a friend of mine who is in hoping to open an all European motorcycle dealership in Little Rock. A lot of the brands would have been the only ones carried and serviced in the entire state.

But, after the way Piaggio treated me a couple years ago with the botched warranty repair for the MGX I had and now someone else is having the same exact problems with, he decided to pass on Guzzi. I told the "customer care" guy on the phone that they'd better get it together or they'll all be unemployed soon. Here's the problems with Piaggio as seen from my chair:

• Basically 1 dealer per state is not anywhere near enough
• Parts availability is a joke
• Aftermarket parts do not really exist
• Warranty claims can take forever (7 months alone in my case)
• Their customer care agents don't really "care"
• Piaggio offers no incentive for dealers whatsoever
• Where is the marketing campaign?
• They do not support those that support them the most

But most of this list is not a new development. I know it's been this way since I started riding them in 1996 or so. But the one thing that has changed is the customer care. There was a time when they actually gave a care. There was a time you called the number and got a voice instead of a machine. Now, no.

I will likely never buy another new Guzzi for the rest of my life and tell everyone I know (in person) about "the story of my MGX".

Just my $.02

[LowRyter]

They're hosing the dealers and the customers at the same time. Funny true story, I was this > < close to investing with a friend of mine who is in hoping to open an all European motorcycle dealership in Little Rock. A lot of the brands would have been the only ones carried and serviced in the entire state.

But, after the way Piaggio treated me a couple years ago with the botched warranty repair for the MGX I had and now someone else is having the same exact problems with, he decided to pass on Guzzi. I told the "customer care" guy on the phone that they'd better get it together or they'll all be unemployed soon. Here's the problems with Piaggio as seen from my chair:

• Basically 1 dealer per state is not anywhere near enough
• Parts availability is a joke
• Aftermarket parts do not really exist
• Warranty claims can take forever (7 months alone in my case)
• Their customer care agents don't really "care"
• Piaggio offers no incentive for dealers whatsoever
• Where is the marketing campaign?
• They do not support those that support them the most

But most of this list is not a new development. I know it's been this way since I started riding them in 1996 or so. But the one thing that has changed is the customer care. There was a time when they actually gave a care. There was a time you called the number and got a voice instead of a machine. Now, no.

I will likely never buy another new Guzzi for the rest of my life and tell everyone I know (in person) about "the story of my MGX".

Just my $.02

Let me agree with Luap on the MGX.  They guy working on the bike would call Piaggio (whomever) and ask when the back ordered parts would be delivered to repair the bike.  The next day the guy working on the bike would get a call from Piaggio (whomever else) and ask why the bike wasn't repaired.