Author Topic: RE:wrecker closing down  (Read 22450 times)

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Offline Lozza

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Re: RE:wrecker closing down
« Reply #45 on: March 10, 2011, 02:59:26 pm »

Which is a unique difference between retail and wreckers.

Wreckers are expected to have that '63 A100 side cover 'sitting around'. Yeah it cost him virtually nothing to acquire but he has paid rental and other costs for 30 years on this little gem. Now after 30 years of storage this little biddy bit of stock is expected to make it's contribution to the 30 year financial burden.
Retail is retail, no different supermarket to car yard. The buying routine may be a little different from the consumer but the principals are the same.
Wreckers would have to learn that even after 30yrs they ain't going to make a killing on the sidecover anyway, far better to shift the stock, get some turn over and what does not sell goes to scrap or gets sold in 1 lot.
Newest stock sells for a best profit margin ;)
Jesus only loves two strokes

Offline Nathan S

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Re: RE:wrecker closing down
« Reply #46 on: March 10, 2011, 03:39:27 pm »
Indeed.
Any business that holds onto stock for 30+ years, in anticipation of it suddenly & significantly increasing in value, doomed to failure.

Apologies for the repetition, but I'd love to hear how these wrecker's actions could be justified as good business snese:

1. How much for the axles out of the Capella, mate?
Ah, gee... It's a good car, I don't want to wreck it.
OK - how much for the whole car?
Ah, gee... its worth a whole lot more as parts, so I wouldn't want to sell it whole.
We later saw the car, completely intact, on its way to the scrapper...

2. Reasonable DT250A at the local bike wrecker, sitting outside, rapidly dying.
How much for the whole lot?
$600, its worth that in parts, easy.
Give you $300 cash, and its gone.
No way! We'll make that from it easily!
OK, fair enough - its your bike.

A fortnight late, the complete bike had been scrapped.

3. Dug through a pile of bike bits that clearly hadn't been touched in years, and found a few little treasures (mostly labeled wrongly, BTW). Took 'em to the counter and asked How Much?
$300.
Jebus! I was thinking more like $100 ~150!
Nah, mate, couldn't let them go for that!
OK, I'll give you $180 cash and you've got a deal.
Look mate, people think we're rich [recites well-worn story about his missus getting sick of eating rabbit that he's shot all the time]
OK, so it's better that you leave these parts sitting on the shelf for another 25 years, than have me give you enough money to shout your missus a meal at the best restraunt in town?
Yeah.
I walked out empty handed, and proceded to buy all of the bits for under $100. At least this guy was good natured about it - that was the price he wanted and he stuck to it (even if it was unrealistic)...

For all the talk of marginal businesses and struggling to pay the bills, it is hard to believe when they turn away customers who are waving cash at them.



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firko

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Re: RE:wrecker closing down
« Reply #47 on: March 10, 2011, 03:49:56 pm »
I could add a number of similar anecdotes to Nathans experiences (above so these days I avoid the wrecking yard mind games and go direct to eBay. In most cases wrecking yards aren't worth the effort.

Offline shorelinemc

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Re: RE:wrecker closing down
« Reply #48 on: March 10, 2011, 05:48:53 pm »
do you haggle at coles too :D

Offline Nathan S

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Re: RE:wrecker closing down
« Reply #49 on: March 10, 2011, 09:22:56 pm »
YZ125D barrel with rusty bore (and on unknown oversize).
YZ125D head that had looked like the surface of the moon.
Mouldy, torn TS125 manual (mostly grabbed it to rescue it).
Twinshock DT125 head.

If anyone thinks I'm just a tight-arse, and that lot is worth $300, I can tell them were to go and get it...

A lot of businesses forget that if you drop the price to close the sale, you are miles ahead of sticking to your guns and letting the customer walk out. I know all the arguments about high demand items and mark-ups to remain viable and all the rest.
But a sale with (say) 30% mark-up is far better than a non-sale when you demand 60% mark-up.

Its not hard, but a lot of Australian retailers completely forget this.

I bought some pedals for my pushie a couple of years back - SPDs with a retail price of around $190. I was in a bit of a hurry because there was a race on that weekend. The bike shop down the road from work was asking $200.
I offered $185 with the sweetener of cash right now.
"No, I can't do that".
I pushed a bit for them to match everyone else's asking price, and was bluntly told "No, they're $200 and that's that" (as is entirely the store's perogative).
I then drove 15 minutes to another store that had them on the shelf for $185, and they happily took another $10 off when I told them that I was racing that weekend.

No prizes for guessing which shop I always go to first, and which shop I've never set foot in since.



The good thing about telling the truth is that you don't have to remember what you said.

Offline oldskool

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Re: RE:wrecker closing down
« Reply #50 on: March 10, 2011, 09:51:45 pm »
i bought a brand new 15 tooth front sprocket for my daughters xr100 last saturday its actually excatly the same as a tgb110 china bike.honda slacks creek didn't have one went to a china bike store his was $20 told him i could get one from honda for $12 dollars so he matched the price and he reckons that was $3 under his cost.also bought my 02 kx125 from the same shop he showed me over $2700 in receipts he had spent on the bike he wanted $3000 for the bike it sat there for about 2 and a half months went in waved $2500 in front of him and drove away with it on my ute.cheers gary

mainline

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Re: RE:wrecker closing down
« Reply #51 on: March 10, 2011, 09:52:54 pm »
From what I can hear out of Nathans quote , the seller just tried politely to move him on

It doesn't read like that to me at all. It sounds like the seller/s had stuff that they wanted to charge exorbitant amounts for. We're not talking about rare or special parts like the suspension components you mentioned.

A mate of mine spent about 6+ wks recently trying to get some info out of a wrecker as to the availability and cost of a late 70's yz250 engine. After repeated emails and phone calls he was told that this engine (sans electrics/kickstarter/piston) of completely unknown internal condition, which had literally sat on the shelf for 20 yrs, was available for $800 cash. Despite the fact no-one had needed it to date it was apparently worth over $1000 in parts ::)

Offline frostype400

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Re: RE:wrecker closing down
« Reply #52 on: March 10, 2011, 09:58:07 pm »
Our wreckers are fine they want top dollar fair enough but I am the kind of guy that walks into a shop to buy what I am after not just look for what I might like I go in and buy it.
1971 tm400 and PE's

Offline b490

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Re: RE:wrecker closing down
« Reply #53 on: March 10, 2011, 11:24:10 pm »
I could add a number of similar anecdotes to Nathans experiences (above so these days I avoid the wrecking yard mind games and go direct to eBay. In most cases wrecking yards aren't worth the effort.


Exactly what I do nowdays .....avoid wreckers .
  Wreckers had  reasonable /realistic pricing  a few years ago , first place I would go .
Not any more .
   

Regards,
          Steve
 
 

Offline Marc.com

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Re: RE:wrecker closing down
« Reply #54 on: March 10, 2011, 11:37:13 pm »
Actually my home town wrecker is full on VMXer, supports the sport with prize money and always has most of what I need and lets me scavenge in his boxes of stuff for odd length bolts and other things that might fit.

So shop at Baileys Motorcycles in Hawera always been great wreckers and bike shop  ;D ;D Actually Hawera also has Action Suzuki run by former Aussie MX champ so we are spoilt for choice, bugger Hawaii take your holidays in Hawera.
formerly Marc.com

Offline shorelinemc

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Re: RE:wrecker closing down
« Reply #55 on: March 11, 2011, 09:17:01 am »
i will haggle over prices with customers on some things,work shop rate is not one of them tho,but when you get someone offering you half of what you want,well it is a bit insulting really.2 wrecker stories
1st a car mechanic where amate of mine would always send him to a wrecker with less than what he was quoted,saying they will take ,dont worry about it boy ,just do what i say,so my mate goes off to the wreckers to get a side window for a pontiac paresienne,fairly rare item at the time.gets to the wreckers wrecker said that will be 80.00,mate says but my boss says you will take 60.00,wrecker then said i have had a gut full that wanker doing this every time he gets parts here,how desparate is he for the window?reply was oh you have the only one in the country,and we told the customer he would have his car back today,even better the wrecker said and with that hammer straight thru the window,here no problem he can have it for free now.
2nd bike wrecker,mate of mine bloke rings up for a price on a fuel gs1000 good nick good paint quoted 150.00 pretty good price,gets tank down out of the rack,bloke turns up and says i ll give you 90.00.without batting an eyelid tank gets put under the counter my mate then continues the conversation he was having with some other people there,completely ignoring this wanker who has just made a completely insulting offer ,this bloke is standing saying but i want the tank,but was just left standing there.point is haggling is fine but dont be insulting about or get the shits when your offer is turned down

Offline lukeb1961

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Re: RE:wrecker closing down
« Reply #56 on: March 11, 2011, 09:28:25 am »
do you haggle at coles too :D
No. But equally, I do not GO there anymore. 
Crap Retailer: A local Bing Lee, I was up to my armpits with stuff, a baby in a pram, etc. and the guy kept waving me over to a part of the counter where I just wasn't going to get to without a headache. I just suggested he learn about customer satisfaction and departed. NEVER been to a Bing Lee again. That fat dope just lost them tens of thousands in business by that action.

A wrecker is a tight-rope, but the idiocy of some I knew in the past is astounding. eBay makes it simple. Some wreckers still do well.

Offline Nathan S

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Re: RE:wrecker closing down
« Reply #57 on: March 11, 2011, 10:12:07 am »
I guess if he wanted you to com back , he would have perhaps lowered his price  ;)
Giving discount to a friend , a dealer , a sponsored person ,a run out model , YES . But somebody marching in the shop and demanding discount ....... Nathan , we must be living in a different world .

I think so Walter, I really do.

In both my examples, the asking price was above the market price and I was giving them the opportunity to actually make a sale - plenty of previous times, I've been in that situation and simply shut my mouth and walked out... Maybe this makes me a jerk for “demanding a discount”, but its really about me offering to spend my money with them, rather than elsewhere.

Look at it another way:
Imagine you've got some old parts sitting under the bench - let's say that they're old fork seals.
You haven't opened the box in ten years and you really don't know what's in there. Nobody's asked you for them, so you haven't even felt the need to open the box up.
Now, someone walks in and asks for some old fork seals that you know you don't have in stock. You say "there might be some in the box" so you drag it out and let the customer rummage through.
He finds a couple of pairs that he wants. They're seals that you can still easily buy from a number of suppliers and would retail for $30/pair.

Now tell me which is the most sensible option:
A) "Mate, they're old and rare and I've been holding onto them for years - gotta be worth $50 per pair, easy" - and the customer walks out without giving you any money and you have a box of old fork seals sitting under your bench for another ten years. They then get the seals from a local bike shop for $60 for two pairs and have no reason to darken your doorstep again.
B) "Ah look, they're dead stock. Gimme $50 for the two pairs and we're sweet" - and the customer happily takes the $10 discount compared to retail and walks out happy. And you have $50 in the till that you wouldn't otherwise have.

If you chose A), then I'd love to hear an explaination of why it makes more sense.

------------------------------------------


More generally, customers can be seperated into three broad groups:

Group #1 is people who have planned the purchase, saved the cash, and are ready to buy. They'll generally shop around for the most suitable product at the best price, but they are usually easy people to sell to;
#2 are people who have suddenly discovered a need for a part - like a dead shock a week before a race meet. They'll be less motivated by price and quality and more motivated by getting it here, soon;
The final group is the one that most Aussie retailers generally ignore: People who see something at a price that they think is good and jump on the 'bargain'.

SuperCheap Auto and Bunnings are good at appealling to the third group of people - they get these people into their stores using loss-leaders (usually resulting in the punter buying other stuff at full mark-up) and they build the perception that they offer good value. The fact that the perception is often incorrect, is irrelevant - particularly if you're a competitor to these chains.

The first group is increasingly flocking to the internet to buy stuff, particularly if local retailers won't even try to price match.

So, I wonder how many businesses can survive on the second group alone? (Especially with quick freight from OS). This thread would suggest that the answer is "not many"...
Unless Aussie retailers recognise this and adapt, then they will find their businesses going backwards. Wreckers are (broadly speaking) the clearest example of a business that has ignored the first and third groups, and they're the clearest example of an industry that is failing, despite consumer demand.
Bike shops are keen to follow, although at least some of them are realising this before its too late.
The good thing about telling the truth is that you don't have to remember what you said.

firko

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Re: RE:wrecker closing down
« Reply #58 on: March 11, 2011, 10:25:33 am »
Nathan's got my take on this in a nutshell. I've got no qualms with wreckers need to make a quid but in the end I'm in the 'business' of doing up old bikes and being a self funded retiree I don't posess a fluid cash fund. In my world my need to save a quid overrides their need to make a quid so for that reason I rarely bother with the drama of hassling with wreckers or bikes shops any more and go directly to eBay or other online outlets these days.

firko

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Re: RE:wrecker closing down
« Reply #59 on: March 11, 2011, 11:14:39 am »
Quote
But at this stage the bargain hunting  keyboard jokeys are a small minority and the majority still prefers good old fashioned service.
You're kidding right Walter? ;D I think you're grossly underestimating the impact eBay's had on our sport. I'd be very surprised (shocked) if the bike shop/wreckers still tops eBay for sourcing our vintage bits.
« Last Edit: March 11, 2011, 11:41:02 am by firko »