Re: [ST] Arai policy change for Phone and internet sales

[Lex Offer <reffoxel@xxxxxxxxxxx>]

Paul, Actually the overhead markup is still true.  Helmet Harbor doesn't require the same kind of space and insurance that a normal dealer requires,bike dealers have to have property and liability coverage that far excedes what Helmet Harbor would have to carry.  Most dealers are mainly motorcycle dealerships which have to have space and insurance for the motorcycles, accessories, and repair services.  The cost of this overhead is spread across all sales items be it accessories or bikes or repairs.  Since most bike shops are limited in space that is devouted to accessories,of which they have to carry a little bit of everything, they have to limit the amount of helmets, clothing, sadlebags, chrome pieces, tires, grips, etc.  Helmet Harbor on the other hand is devoted to helmets, clothing and clothing accessories. So they are able to buy and stock in larger quantities giving them better volume discounts. 


At 04:57 PM 12/16/01 -0800, you wrote:
>Lex,
> This is true but, the Helmet Harbor also has a store and employees and
>lots of stock in there showroom. Yet there prices are still low. If you
>want go the there site and read his profile. So the overhead markup
>theory is not completely right. Remember what happened in the midwest
>with gas after 9/11. I know that is not the same as overhead but a good
>example of price gouging by an industry.
>
> Paul Reyes
> 99 ST Blk
>
>Lex Offer wrote:
>> 
>> Al,
>> 
>> Reasons for markup at a local dealer are Overhead, property rental in good location, employee salaries and benifits, insurance, electricity, etc.  Also lower volume of sales due to smaller market.
>> 
>> Internet dealer.  Can be run from anywhere so cost of property rental/lease can be minimized, ie no need for a show room with lotsa lights and stuff that runs of the various bills.  Minimal staff, you only need a few to take the internet orders and ship them out.  and the big reason, larger volume of sales cause the whole world is your market.
>> 
>> At 08:29 AM 12/15/01 -0800, you wrote:
>> >Why is there such a large difference in the cost of helments. They all must
>> >meet the same standards, after that it looks like you are paying for paint
>> >and padding and vents. Why can someone sell the helment on the net for $200
>> >dollars less than in the store. Sounds like a pretty stiff markup to me.
>> >Al
>> 
>> Lex "Digital Dawg" Offer
>> reffoxel@xxxxxxxxxxx
>> 2000 Lucifer Orange Sprint ST
>> 1986 VF1000 F-2 Bol d'Or
>> 
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Lex "Digital Dawg" Offer
reffoxel@xxxxxxxxxxx
2000 Lucifer Orange Sprint ST
1986 VF1000 F-2 Bol d'Or

     *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *
      The ST/RS Mailing list is sponsored by Jack Lilley Ltd.
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