MAtt CNW
While I am not exactly sure what John is planning to do as far as heads and barrels and who will sell them, getting wholesalers into the mix will typically force a higher retail price. In other words, put a middleman in there and the margins will have to be longer and that will mean that the consumer pays. For a wholesaler to go in and invest in a good size inventory, they will demand a price that will allow then to in turn sell it to the smaller shops that just need one or two but still wants to have a cushion to work with.
Fact is, the Commando market is only so big and it's not a growing market either. While I definitely think more heads will sell if the price ends up where John wants it to be, it is still somewhat limited. By having a few retailers in every market, this will allow plenty of supply and ensure that the price can be kept reasonable and customers can choose who to buy them from. Add wholesalers and there will be no additional value but the price will definitely go up
If a shop that will only by one or two per year, wants one, they can get one at retail and since the head still needs to be built, that's where they can get some income to make sense out of offering it. Typically in our industry, it's the end customer that wants a certain product. In other words, if Bob drops his bike off to get worked on at a shop, he will let them know he wants a Fullauto head.....it's not necessarily the shop 'selling' him on the idea to get one. These days with the internet as powerful as it is, consumers are typically well informed about what is available. In a specialized market like ours, even more so.
I have to agree with what has been said before, that this is really a great time to own these Commandos since there are more and more great parts becoming available. When larger high quality manufacturers like Johns STS enter the market, its something that benefits all of us. Also worth mentioning is that while not everyone will be ready to put down 2K for a new head, the fact they they are available will also put more used product back on the market so those that want to spend less will have more to choose from as well.
Matt
Matt this statement could also be seen as a retailer protecting his own business
John has already shown his thoughts noting some products are often marked up too much by dealers by a factor of 3-5 times the actual cost
if wholesalers were sitting on inventory which has been bulk ordered to help facilitate production and reduce manufacturing costs , independent dealers can then order for next day delivery from a wholesaler and work for slimmer margins as there is no investment in stock by the retailer it works both ways some one has to commit to order production ?
if i were a manufacturer i would have a structured price where retailers would pay a premium over a wholesale cost +30- 35 % for ordering in small volume
this would ensure i got a more paletable margin for facilitating smaller orders , by limiting your number of stockists to a few retailers you also limit market penetration and increase costs
Economical Shipping U.S.A to the Uk / Europe would need a player with deeper pockets to step up and order quantiy
