Trials
Well-known member
Do they at least put it in a nice bag and carry it out to the car for you.
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Anyone know how to fix motorcycle parts retail in Canada?
- Thread starter Priller
- Start date
No idea. I needed G4 for my Golf so I went to the left. Asked how much it was on the right while I was buying it. I do know you get treated better on the Audi side if your car is getting serviced. Took mine in (Brampton) for a couple of recall/fix it issues. Car get's washed afterwards, that sort of stuff. Service manager came out and explained that there was an updated ECU version that they were supposed to flash but didn't and smiled (my ECU was chipped).
I'm looking forward to the day we'll be able to 3D print any part for any model bike, perhaps from home or a local resource. You essentially wait for the time it takes the machine to fabricate the required part. The whole idea of centralized warehouses "stocking" and shipping parts across the country is an archaic idea.
Sent from my SGH-M919V using GTAMotorcycle.com mobile app
Sent from my SGH-M919V using GTAMotorcycle.com mobile app
And Revzilla’s “set rate” shipping to Canada is a joke. I think it was $25 USD, but they ship UPS and you know what that means. Brokerage fees out the wazoo.
Never again.
racerschool
Active member
Dealers need to wake up to the fact that parts retail is just better for the consumer if they buy online. Usually the parts guy just looks it up (hopefully gets it right) and orders it from their distributor. You're just paying someone to do the look up and for accepting packages for you. I'd rather look it up my self and have it arrive at my house and save money. They need to focus on sales and service. In 2019 I estimate I've saved over $1000 buying parts online vs buying local. There has never been an industry that survived on good will alone, if the business model doesn't make sense there will never be enough people willing to spend more just to support dealers. The real solution is to rethink the model.
I think Parts Canada and Motovan play a huge role here as expensive middle men for non OEM parts. When you order from Pete's or Fortnine much of what they sell comes from a Motovan or Parts Canada warehouse so you have 2 middlemen in the equation, each taking their cut. I've heard that Motovan is in financial trouble re declining sales. Pre internet / online purchasing these companies locked up distribution rights for thousands of manufacturers of non oem parts, they owned the market and you paid what they asked, no one had a choice.
Honda Canada OEM parts fiches available now and I check them vs. US pricing. Given the exchange rate I've actually found some Honda Canada parts to be less expensive and Milton Powersports takes orders over the phone and part(s) are in next day, so great service. Other than oil filters and a few generic type supplies absolutely everything for my 18 year old bike has to be ordered in.
Given the number of models the OEM's have and relatively low sales volume per unit I understand why local dealers carry nothing in stock, they simply can't afford to.
Honda Canada OEM parts fiches available now and I check them vs. US pricing. Given the exchange rate I've actually found some Honda Canada parts to be less expensive and Milton Powersports takes orders over the phone and part(s) are in next day, so great service. Other than oil filters and a few generic type supplies absolutely everything for my 18 year old bike has to be ordered in.
Given the number of models the OEM's have and relatively low sales volume per unit I understand why local dealers carry nothing in stock, they simply can't afford to.
Trials
Well-known member
The best place to have an inventory of parts for sale is at a race event.
It can make the difference between a win and a DNF, plus the guy that sells the most tires, levers, boots, helmets and handlebars next season, will be the dealer that arrives with a big stack of new tires and common required parts in the back of their truck.
Priller
Well-known member
Motovan nearly went bankrupt last winter and had to file for creditor protection. I was told only the biggest suppliers (Shoei, for example) got paid while the little guys got screwed, but that's second hand info. There's a thread here that gives more info:
Motovan files for bankruptcy.
It's not straightforward to just get rid of distributors, though. If dealerships want to sell aftermarket parts, they need wholesale pricing to compete with online and international sellers. Distributors would negotiate Canadian pricing for a multitude of companies, which is unworkable for each dealership to do on their own.
The problem that I can see (and maybe someone more familiar with the ins and outs of motorcycle retail can correct me) that instead of moving with the times and simply setting prices, they stuck with the old model of inventory and pricing. Use my example of a front sprocket: I wanted a Sunstar brand, 520 conversion, 15 tooth (1 down from stock) front sprocket for an RC51. The definition of a small volume item. Instead of offering a connection directly to the manufacturers inventory, the distributor only works with their own stock. For them to stock this item would be extremely unprofitable. So they sell the one or two they do bring in, and that's the end of availability in Canada for the year. It's so stupid. I can go online, order from a seller who pulls directly from Sunstar's stock (or a much deeper US pool), and have it in a week. It's not like it's more efficient to ship stock to Quebec, hold it for a while, then ship to buyers. Just ship directly from the source.
If it weren't such a small industry, I could see an opening for a new model of distribution where the distributor sets up an online portal for dealers where the prenegotiated pricing for suppliers is set and adjusted for exchange on a regular basis. The dealer needs part x, logs in, sees price, hits order. Big volume items (tires, helmets, etc.) may come from the distributor to speed up delivery, but small volume items (say an RC51 front sprocket) get sent directly by the supplier to either the dealer or the customer. No need to stock a million things for a thousand bikes, saving cost, and doesn't limit availablility.
It feels like they're still applying a pre-internet business model, and it's not working for anybody at this point. I'm sure it's not as simple as all that, but there has to be a better way...
Yeah, OEM is a separate issue, and Canada will always struggle to match US stock volumes. I think in my case again, the issue is volume. RC51 bits aren't exactly hot movers, so the US is always going to have more of a part. Shipping from there to here will always be faster than from Japan to the dealer.
I think the issue is finding ways to streamline the supply chain and reduce the need for inventory in multiple places. Dealers don't need stock if they can access parts directly, with fewer middlemen and stops along the way. Freight and shipping have changed dramatically ove the past 10 years, so it's much more efficient to ship individual bits than it used to be. Economies of scale etc.
As an example of this when you shop Pete's for tires they check inventory online, confirm availability and then you can order. Based on how fast the tires arrive I'm 99% certain that the tire distributor, whoever that is, has enabled Pete's to check their inventory and they ship the tires direct to the customer on Pete's behalf. Works for everyone; I get the tires sooner, Pete's carries minimal inventory (or maybe none) and the distributor does not have to ship to Pete's, they just send it to me directly.
Contrast this where Parts Canada inventories products, they actually assign their own part number and inventory label vs. just using the GS1 barcode and they ship to the retailer and the retailer then ships to you upon receipt of an order. Couldn't think of a more expense way to manage parts. You need an Amazon type vendor / disruptor to change this. Keep in mind that the non OEM manufacturers have distribution agreements with Parts Canada and Motovan that have been in effect for decades, how to you motivate these manufacturers to change their distribution method?
By the middlemen failing.
If the description above of Motovan not paying their smaller suppliers is true, do you think those suppliers will sign up for that business model again? Suppliers screwed in that transaction likely moved on to different/better distribution models so they won't get burned again. The upside to the drop ship model for the supplier is they aren't way in the hole if a customer doesn't pay. Instead of one big yearly order (and associated large A/R) you get a stream of smaller transactions.
I know there are a number of dropship stores operating in Canada. I am ok with the idea in theory but I would really appreciate if they are honest and upfront about their model. Buying something that is "In-stock" in Canada and then waiting four weeks as it gets shipped from the states is not cool. If they went with "In-stock/In-stock at supplier (in Canada, in US, in Europe)/Back ordered" I would be much happier.
Mad Mike
Well-known member
I think the current distribution model will fundamentally change in the next few years, I think Amazon is setting this up now.
I see warehousing moving to a cloud model,manufacturers warehouse parts at Amazon or Fedex warehouses instead of their own. From there, inventory is easily accessed by distys, dealers, manufacturers and consumers.
The existing consolidation and delivery systems are already in place.
In a perfect world we lose the paywall (border) between Canada and the US.
I see warehousing moving to a cloud model,manufacturers warehouse parts at Amazon or Fedex warehouses instead of their own. From there, inventory is easily accessed by distys, dealers, manufacturers and consumers.
The existing consolidation and delivery systems are already in place.
In a perfect world we lose the paywall (border) between Canada and the US.
Mad Mike
Well-known member
The don’t really have a choice. The existing 2 tier distribution system is necessary. Manufacturers do not have the sales force or clerical force to cover thousands of mom and pop shops.
You might look at a disty like Motovan or Parts Canada as a pig at the trough, they are not. Without them availability, delivery time, and pricing would be terrible.
I think the whole point of this thread is that those things are already terrible
Mad Mike
Well-known member
Terrible-er?
Priller
Well-known member
The Canadian motorcycle market isn't big enough for the change to come from suppliers. If you're a mid-tier maker like Vortex (best known for budget aluminum sprockets), for example, you're worried about the US and Europe first, then secondary markets like Canada and Australia. (I use Vortex as an example because apparently they're one of the companies that got the shaft in the Motovan debacle, and no longer have Canadian distribution, or so I was told when I tried to order a steering head paddock lift pin.)
If I'm Vortex, of course I want Canadian distribution. Small sales are better than no sales, but not at the risk of supplying inventory to an uncertain buyer. If someone were to offer some form of distribution that eliminated that risk, kept costs down, but still offered access to dealership customers, I think they'd prefer that. I'm sure there's logistical and financial issues to work out, but the existing system seems so flawed that there has to be better way...
Mad Mike
Well-known member
Companies like that could use Amazon to access the Canadian market. Better, cheaper and faster than a local disty. Problem is tha Amazon is mostly B to C , they in the early stage B to B, one that’s rolling it could be a game changer.
Trials
Well-known member
I'm on hold with Honda Canada right now trying to locate anybody that even knows what a Honda Montesa is 
... it's not going well, I think they might all be stupid.
... it's not going well, I think they might all be stupid.
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