Galvin Marketing and my fav tyre shop

I am pretty dissapointed that Galvin Marketing are refusing to supply
Pirelli and Metzeler tyres to my fav tyre shop in Brisbane

From what im told its because he sells tyres way cheaper than RRP, doesnt
have a huge shopfront with signage, yada yada yada.........

I fail to understand why someone would cease to supply tyres for this
reason. He is providing a no bullshit low cost service to the motorcycling
community

The shop owners knowledge about motorcycle tyres is second to no-one. Well
maybe a motogp tyre tech, but who has access to one of them??

There isnt too many shops where you can get front and rear hoops less then
$400
I purchased his last Metzeler Rennsport for the sum of $165 (on special) and
a Bridgestone BT012SS front for $145 (on special also). I might add that
this is the best tyre combo ive ever put on the bike.

Im boycotting any products supplied by Galvin Marketing in future. If they
arent interested in supplying the little guy, they can get rooted.

Looks like ill be trying the Bridgestone SS rear next


Chris

 

They will be hurting greatly because of this.

 

So where is this great shop?

Is it the one near the Esk turnoff from the Toowoomba Road?

Boxer

 

No, you are thinking about Two Wheel Tyres.



Motor Trade Machinists
79 Church St
Goodna

Michael Brace is the blokes name.

He had a similar problem with Dunlop many years ago.
He took them to court and won. It was a front page story in the Courier
Mail

 

Ahh the legendary Mick from Goodna. KSRC has countless threads about him.
This guy knows more about tyres than paulh does about smartarse responses.
Cheap as chips, knows his stuff. Only problem is you need to bring a cut
lunch because he has more stories than Grandpa Simpson.

I'm off to buy some new rubber tomorrow, I look forward to meeting this
legend.

--
Cheers
Dave (Mojo67)
FZR600 >> ZX6R >> ZX9R Brisbane
http://users.bigpond.net.au/mojo67/mojo67.htm
I used to never be able to finish anything but now I

 

But I only wanted two One Wheel Tyres!

-----sharks

 

I remember him, the Dunlop case was a long time ago, I purchased some tyres
from him in the mid 1980's.

Boxer

 

Well that's your answer isn't it. If you were the distributor, and one
of your retailers wasn't toeing the line and therefore having an
advantage over all your other retailers, wouldn't you cut them off?

On the other hand, one could view this as price fixing or cartel
behavior (a stretch), which would be qutie topical given recent
legislation changes.

Anyone know why "RRP" isn't considered anti-competitive, or labeled
price fixing?

Jules

 

So did Will. They're almost due for replacement

Nev..
'03 ZX12R

 

The motogp tyre techs only know about their own tyres, not their competitors,
and since tyre choice can be the deciding factor in a race outcome, and some
of the top riders, Valentino included, make poor tyre choices on occasions,
this can only mean that the riders are stupid and don't listen to the tech's
advice, or the techs inadvertently give the riders poor advice, or the techs
don't even fully disclose their intimate knowledge of tyres to the best motogp
teams in the world.

As for bike/tyre shop staff, in my experience they don't know much about the
tyres they sell from first hand experience because they don't get much
opportunity to ride with various tyres, or because they only ever use the OEM
tyres which come fitted at factory. They also rely on the marketing blurb the
manufacturers spin if they're fortunate enough to be invited along to a new
product launch and on feedback they receive from customers about the tyres
they have sold.

Nev..
'03 ZX12R

 

It could be, and is, illegal under the trade practises act to penalise
any distributor for selling below the RRP (proving it is of course the
hard part)

Recent ? TPA was 1974 IIRC.

It's a suggested (recommended) price, it can't be forced by the supplier
as the minimum price - penalties are severe.

JL

 

Well if the guy was buying the tyres of the supplier Id be inclined to
agree with your assertions.

If the guy was taking the tyres on consignment - which probably more
likely, then he deserves to be told to **** off. Consignment means the
supplier gets absolutely nothing until the tyres are sold, now if this
guy is selling them barely above the the wholesale price - the
manufacturer wears the cost of owning the tyres and then gets stiffed
when he doesnt get the money he should

So how about you find out from this guy whether he actually owns the
stock he sells, or whether its someone elses and hes just burning them.
It would go a long way to helping all of us form a more rounded opinion
of the situation.

 

In aus.motorcycles on Fri, 04 Feb 2005 12:01:31 +1100

Eh? "wholesale price" is the price the manufacturer charges. He gets
that no matter what the shop sells it for. So what's this "doesn't get
the money he should"?

Either this guy is not making much money on his sales, but making it
up with volume or something else, or he's able to buy them cheap in some
way. From said manufacturer.

Either way, the manufacturer gets what they have asked for. The usual
reason they jump on this sort of thing is because of complaints from
other dealers.

Zebee

 

From what you're told........

Perhaps he doesn't pay his accounts on time? He wouldn't mention that to
his customers, though.

If he is doing a satisfactory volume and paying his bills, a supplier woud
be silly to drop him, unless of course that other tyre retailers have said
to Galvin "supply him and you won't supply us", but that would surely be
collusion.

 

Not without witnesses.

Theo

 

Pegasus

 

Hi Zebee,

Wholesale and consignment are often interchanged. Wholesale price
implies the retailer BUYS the stock say within 60 days, hence he owns it.


Consignment on the other hand, the supplier owns the stock until its
sold by the shop. Consignment price is usually higher than the wholesale
price to reflect the time value of money. When a retailer sells things
at rock bottom price he is usually eroding the money the supplier could
have received and since the supplier is hanging for their cash since the
stock has sat there for a while - they are usually powerless to say no

Its almost like real estate agents conditioning sellers.

 

and that means horse

 

Baron Von Rotter is of the opinion:

WTF? If the supplier says "here are some tyres. I own them. When you sell
them, you will pay me $X for them", the shop has two choices -- sell them at
$X+$Y and make a profit of $Y, or sell them for $X-$Z and make a loss of $Z.
Either way, the supplier gets $X, as contracted. The fact that $X is higher
than the regular wholesale price is irrelevant.

If, of course, the shop isn't giving $X to the supplier (for whatever
reason) then the supplier is going to be rightfully pissed, but I don't see
how a shop would say "well, I sold these tyres for less than you
recommended, so I'm going to give you less".

If the supplier is saying "here's some tyres, sell them for whatever and
give us 90%" then they're mad, but it's the only way I can see the retail
price affecting the amount of money the supplier gets, without the retailer
telling the wholesaler to stick it, and the wholesaler not getting done for
price-fixing...

- Matt

 

I can understand your reaction but it does happen. Supplier wants X -
supplier only gets X if shops sell it for X + Y. Shop wont run a loss
unless forced into it. -------> fast forward six months and the shop
still hasnt sold say - $4000 worth of stock and the supplier is sort of
keen for their money. Retailer senses this and says to them - how about
a sale ? supplier agrees because they are desperate AND because over the
period of the six months, the supplier has kept the cost of those tyres
on his account - which he is probably paying interest on. At some stage
the cost of the interest and the lack of money will equal the profit the
supplier was expecting to get. From there as time passes, so does the
profit until he reaches a loss situation. Then he will take anything he
can get for the tyres because he is losing money

Lets use an example, loan me $4000 - I promise you that in six months I
will give you $6000.

Six months passes - sorry Matt - I dont have the money can you wait
another 6 months for it please? Next six months passes - ooh shit sorry
matt all I have left is this $3000 - best I can do.

At that stage you would consider the cost of debt recovery, legal action
etc etc, in the end you would come to the realisation that the cost of
recovering the full $4000 would exceed the expected return if you just
took the $3000 now.

Alternatively you could take the $3000 and give it my brother in the
hope that he will turn it into $5000. But it may take 12 months as well,
could be sooner - who knows, lets hope its sooner.

Why do you think shops have sales? Because its better to get some money
than none at all. And if you think about it - their overheads dont go
away, and theres no point running a loss on your overheads just because
you are being stubborn about a price. Same situation applies for
suppliers. If your retailer consistently sells very little - or
undersells them so you dont get any money - you are soon going to decide
its not worth it and tell them to stick it.

Seen it happen many times. I think I'll have a beer now. You want one?


BVR