GROUP BUYING POWER

[OB_Dirty Pete]

We are a group. 500 riders here.

One of the advantages a group has but does not always realize that it has is Buying Power.

Example: If H.org sent a note to Schnitz saying that 25 Members of our group are prepared to place an order today for the clutch mod in exchange for a 25% discount from retail, would they go for it?

Well yeah, or some small compromise on the discount.

Tires, flat side carbs, turbos, Corbin seats, chains, maybe even machine shop work.

All we would have to do is post a thread "Who wants Mich Pilots?" 20 guys sign up. That's a $6,000 order for some lucky dealer/wholesaler who's willing to ship UPS.
he's going to cut his price.

The guy who wants the item and who's willing to do the negotiation starts the thread.

We could also negotiate flat rate discounts from catalogues on the basis of our group's size. i.e. All H.org Members get 15% off the top in Dennis Kirk. This is a zero-brainer.

Not a revolutionary idea here...just WALMART economics.

 

[OB_speed]

We did this on a Firebird/Camaro list I was on for my performance parts. Maybe we could start a new TOPIC for "Group Purchases" Anyone who wants to setup a group purchase would post there and take names.

But it takes people(individuals not Chase) to coordinate the purchase through a company. There is a specific date range to get in on it and then the company would ship straight to the individuals. It worked great and they had a section on the web page to to show past & current group purchases in the works.

Thats how I got my borla exhaust cheap. Very good idea .. What do you need ?

I'm with ya


[This message has been edited by speed (edited 07 October 1999).]

 

[Guest]

If we want to do something like this, it needs to be done through a particular person that has some sort of knowledge of the parts industry or something. I don't want just anyone throwing around the site's name (or mine) in trying to get things cheaper.

This is an idea I was already thinking about...it is a good idea, I think, but the execution of it would not be a simple thing.

 

[OB_KawAbuser]

Sounds good Dirty Pete.

I wonder if the companies would go for it, but that is a lot of drop shipping.

Yoshimura has YRC a pay for membership club($35) that offers price breaks and a news bulletin.

Some members are offering machined parts, speedo controls, part list CD's and some have offered the members discounts.

Most of these special parts are produced in small numbers for a niche market(Busa).

Remember this some in this group of people still owe for T-Shirts. A lousy $20, your bike could be an antique before some paid for a $200 rear tire.

Great idea the *Hayabusa Co-op*, but you couldn't get that many people to do it right.

Better yet the Hayabusa.org Visa/Mastercard which earns points. Beemer riders don't even have that!

 

[OB_speed]

I hear that.. I have never seen a bunch to sign up for something and not pay for it. Oh well it work for our car parts it should work for our bike parts... I got one in minded that I will call on either tomorrow or monday

 

[OB_BullDog]

Pete, it is a good idea. I believe Best Cycle Parts is the only dealer that frequents this board (is that the dealer in Vegas? sorry if I got the shop name wrong). Maybe you can give him a crack at this idea.

I work for Parts Canada (canadian sister company to Parts Unlimited) and can advise you that if you find a dealer willing to do a large prepaid order, tires, chains, etc, they would get a better deal from the distributor for that one time purchase that they could forward on to you. Shipping can really hurt this idea though. Especially if you have canadian and american busa riders interested in a group purchase.

Maybe if you find a good sized dealer with buying power in each quadrant of the country. Say 2 or 3 in Canada and maybe 5 in USA.

It'll be tough, but if you need anymore input or info, let me know, I'll help out where I can.. Unfortunately I cannot sell direct, only to dealers.

Also, I am pretty sure any dealer will want visa/MC prepaid orders, not deposits, or just their word. Nothing like getting stuck with a surplus of parts.

 

[Guest]

Like speed I also got a good deal on my Borla cat back for the Z through the Fbody group purchase. They usually have a minimum number of people needed in order to receive the discounted price. They set a deadline and if the minimum number of people pre-pay for the item then the order is placed with the funds already collected. Those that didn't pay in time get left out. No one gets stuck paying for anyone else's merchandise and owners are motivated to pay in time or miss out.

 

[OB_speed]

Bingo !! Good to see another F-Body on the list That is exactly what I was gonna post until i refreshed. And when I call Factory Pro I wont use your name BigDog.

I understand your concerns.

 

[OB_Dirty Pete]

Chase I think you could set up a separate forum on the site for it..."Group Purchases" or whatever (it might even become a way to make the site pay for your efforts somewhat).

Members who want an item or service for their Busa or other bike could post with the part/service being the Topic Name. As soon as a signicant number of people said they would commit, the Topic Poster calls the vendor at his own expense and negotiates a volume deal. The deal would always be for product FOB and the buyer would have to pay UPS extra. Each purchaser would call/e-mail/fax the vendor, present proof of membership in .org and place their order at the agreed discount and supply a credit card # then and there.

Kawabuser's point about drop shipping is worthwhile. There's no point in expecting a vendor to pay shipping, so the Group Purchase would only make sense in cases where the purchasing Members would have had to pay shipping anyway. Schnitz is again a case in point.

These days thanks to the web, many many manufacturers sell and ship direct. We could concentrate on those operations.

Vendors reliant on a retail sales network will always have a problem with this kind of idea. But then, they're all about to be made Dodos by e-commerce anyway.

Let's keep talking and making suggestions. It'll work out neatly I'm sure.

Perhaps Speed could outline how the logistics worked for his Camaro/Firebird group. That would be a model that's been proven to work.

 

[OB_Best Cycle Parts]

Your right Bulldog, on the purchases...It would be hard to cordinate the sales of everyone, or for the matter, just committing....I thank all of you who have ordered tires from me, and we all appreciate the business...If I do run across any good deals for you guys, I will let VegasDude know immediately....Since he always seems to post them before I can...Paul

 

[OB_Dirty Pete]

It would be tough for any retailer like Best Cycle Parts to partner in a discount deal like this, since their margins are much thinner than manufacturers.

This really is for situations where we can buy something right from the maker or first tier wholesaler, like Genmar Risers, Schitz parts, Bagster products, head work and like that.

Retailers don't give volume discounts except under rare circumstances and even then they can't be very good discounts...the economics just aren't there.

Here's my suggestion: Next time I or one of you wants to make a fairly major purchase ($100 or more) on a product that CAN be bought and shipped direct from a catalogue warehouse, manufacturer or distributor, ask the supplier what sort of discount schedule they'll give you...15% off for 5 units, 20% off for 10 units, etc.

Then post the unit you want and the discounts available and see how many express a will to buy at the discounted rate.

We don't need a formal Hayabusa Owners Buying Group to to this. It can be done on a totally informal basis, and it WILL work.

I wish we'd done this on the Genmar Risers...how many units have been bought by us? 40 I'll bet. That would've been good for 20% off.