ROG100..where we at on..
05-31-2011, 03:42 PM
#16
Bilstein is about 10 miles away from me. Would you guys like me to go over there and have a conversation with them? 
Last edited by BC; 05-31-2011 at 04:12 PM.
05-31-2011, 03:45 PM
#17
Burning Brakes
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Simple economics 101.
Note: I don't sell shocks to people other than those which I install, so I'm not one of those vendors...but it was easy to see this coming. I therefore "put" enough shocks into inventory to take care of my customer's needs...seeing the "coming problem". (BTW....I asked Roger if he actually thought this was a good idea....more than once.)
When Roger "wholesaled" at very low profit margin" Bilsteins, it certainly helped all the people who were going to buy shocks get a good shock at a really cheap price. However, whenever something like this happens, there are going to be severe "ripples" in the market.
Bilstein sold more shocks than they had sold, in years. They ran out of shocks. They couldn't supply SSF or IMC with shocks....even if they could get them...they couldn't sell them at Roger's price and keep the "doors" open. (I'm not sure they will ever re-order Bilsteins for 928s...they claim they have no information about them.)
Boge sold less shocks than they normally would...so they probably looked at the sales volume and stopped production, thinking there were not enough 928s left to continue production.
The result?
"Artificial shortage" (caused by dumping) of shocks. The prices on shocks should go up significantly.
Classic ecconomic model.
Note: I don't sell shocks to people other than those which I install, so I'm not one of those vendors...but it was easy to see this coming. I therefore "put" enough shocks into inventory to take care of my customer's needs...seeing the "coming problem". (BTW....I asked Roger if he actually thought this was a good idea....more than once.)
When Roger "wholesaled" at very low profit margin" Bilsteins, it certainly helped all the people who were going to buy shocks get a good shock at a really cheap price. However, whenever something like this happens, there are going to be severe "ripples" in the market.
Bilstein sold more shocks than they had sold, in years. They ran out of shocks. They couldn't supply SSF or IMC with shocks....even if they could get them...they couldn't sell them at Roger's price and keep the "doors" open. (I'm not sure they will ever re-order Bilsteins for 928s...they claim they have no information about them.)
Boge sold less shocks than they normally would...so they probably looked at the sales volume and stopped production, thinking there were not enough 928s left to continue production.
The result?
"Artificial shortage" (caused by dumping) of shocks. The prices on shocks should go up significantly.
Classic ecconomic model.
I guess I will be looking into the rebuild option this winter.
05-31-2011, 04:36 PM
#18
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Greg,
Very interesting comments that I have read from you before - maybe in a PM.
With respect, I just wanted to let you know how wrong you are, and make sure the record is set right.
I sell at a very good profit margin thank you and made a lot of money selling sets of Bilstein shocks to customers who wanted them. I bought at a great price and sold at a great price to a market that wanted shocks at a great price. Sorry if that made it difficult for you or anybody else.
Buying from the wholesalers like you do is not really the best way to make money. Buying direct with larger quantities (if you can) is the way to do it. Where ever I can, I cut out the middle man (wholesalers).
Look at Pelican, they do the same as I do – they are my real competition, I do not even consider the other 928 centric vendors as competitors any more in the true sense (no disrespect intended).
Luckily with my large business revenue I can do that.
As an example that is why I sell Gates TB for $29.50. You will probably pay that buying it from the wholesaler. And yes I sell lots and lots of them and make a good profit doing it. It’s called good business.
I work in a volume based parts market and supply work shops like yours. Totally different businesses.
Not trying to be confrontational just wanted the right facts out there.
Roger
Very interesting comments that I have read from you before - maybe in a PM.
With respect, I just wanted to let you know how wrong you are, and make sure the record is set right.
I sell at a very good profit margin thank you and made a lot of money selling sets of Bilstein shocks to customers who wanted them. I bought at a great price and sold at a great price to a market that wanted shocks at a great price. Sorry if that made it difficult for you or anybody else.
Buying from the wholesalers like you do is not really the best way to make money. Buying direct with larger quantities (if you can) is the way to do it. Where ever I can, I cut out the middle man (wholesalers).
Look at Pelican, they do the same as I do – they are my real competition, I do not even consider the other 928 centric vendors as competitors any more in the true sense (no disrespect intended).
Luckily with my large business revenue I can do that.
As an example that is why I sell Gates TB for $29.50. You will probably pay that buying it from the wholesaler. And yes I sell lots and lots of them and make a good profit doing it. It’s called good business.
I work in a volume based parts market and supply work shops like yours. Totally different businesses.
Not trying to be confrontational just wanted the right facts out there.
Roger
__________________
Does it have the "Do It Yourself" manual transmission, or the superior "Fully Equipped by Porsche" Automatic Transmission?
George Layton March 2014
928 Owners are ".....a secret sect of quietly assured Porsche pragmatists who in near anonymity appreciate the prodigious, easy going prowess of the 928."
Does it have the "Do It Yourself" manual transmission, or the superior "Fully Equipped by Porsche" Automatic Transmission?
George Layton March 2014928 Owners are ".....a secret sect of quietly assured Porsche pragmatists who in near anonymity appreciate the prodigious, easy going prowess of the 928."
05-31-2011, 04:49 PM
#19
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On the subject of Boge shocks - they were in very short supply long before the current stock of Bilstein's ran out. ZF decided to cut low volume parts from their inventory as part of a general cost cutting exercise. It has hit parts for many cars and not just 928's.
In March I had a "one on one" meeting with John Edwards - President of ZF NA - he is listening to my comments regarding bringing back some of the Sachs products. I am biased towards the 928 but others are doing the same for their Marques.
Time will tell.
In March I had a "one on one" meeting with John Edwards - President of ZF NA - he is listening to my comments regarding bringing back some of the Sachs products. I am biased towards the 928 but others are doing the same for their Marques.
Time will tell.
05-31-2011, 04:57 PM
#20
Rennlist Member
On the subject of Boge shocks - they were in very short supply long before the current stock of Bilstein's ran out. ZF decided to cut low volume parts from their inventory as part of a general cost cutting exercise. It has hit parts for many cars and not just 928's.
In March I had a "one on one" meeting with John Edwards - President of ZF NA - he is listening to my comments regarding bringing back some of the Sachs products. I am biased towards the 928 but others are doing the same for their Marques.
Time will tell.
In March I had a "one on one" meeting with John Edwards - President of ZF NA - he is listening to my comments regarding bringing back some of the Sachs products. I am biased towards the 928 but others are doing the same for their Marques.
Time will tell.
05-31-2011, 04:59 PM
#21
Chronic Tool Dropper
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I think Greg was pointing to the ebbs and flows of demand as tracked by the manufacturers.
A few years ago, I bought up all (eight total) of the FET's used in the cooling fan "final stages" module that were available from the two local Fry's. Their computer showed that they normally stock four in each store, and that they are a very slow item. Two weeks later, there are dozens of them in the local store. SAP inventory software showed the spike in demand, ordered up a bunch thinking there was a run on them. Some manufacturer someplace is using something similar, and may or may not decide to fill the channel again. As smart as computer decision-making can be, it would help a lot if the end-purchaser could share back their demand profile. It works extremely well in JIT manufacturing, but obviously stumbles with out-of-pattern demand "surges".
A few years ago, I bought up all (eight total) of the FET's used in the cooling fan "final stages" module that were available from the two local Fry's. Their computer showed that they normally stock four in each store, and that they are a very slow item. Two weeks later, there are dozens of them in the local store. SAP inventory software showed the spike in demand, ordered up a bunch thinking there was a run on them. Some manufacturer someplace is using something similar, and may or may not decide to fill the channel again. As smart as computer decision-making can be, it would help a lot if the end-purchaser could share back their demand profile. It works extremely well in JIT manufacturing, but obviously stumbles with out-of-pattern demand "surges".
05-31-2011, 05:19 PM
#23
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Thread Starter
...I cant accept that Biletein..is so small, that Roger "hurt" them, and they're now all panty-tied wondering what to do about a part number thats clearly in demand, thats been out of stock for...8mo?
05-31-2011, 05:45 PM
#25
Nordschleife Master
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05-31-2011, 06:16 PM
#28
Instructor
05-31-2011, 06:39 PM
#29
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Greg,
Very interesting comments that I have read from you before - maybe in a PM.
With respect, I just wanted to let you know how wrong you are, and make sure the record is set right.
I sell at a very good profit margin thank you and made a lot of money selling sets of Bilstein shocks to customers who wanted them. I bought at a great price and sold at a great price to a market that wanted shocks at a great price. Sorry if that made it difficult for you or anybody else.
Buying from the wholesalers like you do is not really the best way to make money. Buying direct with larger quantities (if you can) is the way to do it. Where ever I can, I cut out the middle man (wholesalers).
Look at Pelican, they do the same as I do – they are my real competition, I do not even consider the other 928 centric vendors as competitors any more in the true sense (no disrespect intended).
Luckily with my large business revenue I can do that.
As an example that is why I sell Gates TB for $29.50. You will probably pay that buying it from the wholesaler. And yes I sell lots and lots of them and make a good profit doing it. It’s called good business.
I work in a volume based parts market and supply work shops like yours. Totally different businesses.
Not trying to be confrontational just wanted the right facts out there.
Roger
Very interesting comments that I have read from you before - maybe in a PM.
With respect, I just wanted to let you know how wrong you are, and make sure the record is set right.
I sell at a very good profit margin thank you and made a lot of money selling sets of Bilstein shocks to customers who wanted them. I bought at a great price and sold at a great price to a market that wanted shocks at a great price. Sorry if that made it difficult for you or anybody else.
Buying from the wholesalers like you do is not really the best way to make money. Buying direct with larger quantities (if you can) is the way to do it. Where ever I can, I cut out the middle man (wholesalers).
Look at Pelican, they do the same as I do – they are my real competition, I do not even consider the other 928 centric vendors as competitors any more in the true sense (no disrespect intended).
Luckily with my large business revenue I can do that.
As an example that is why I sell Gates TB for $29.50. You will probably pay that buying it from the wholesaler. And yes I sell lots and lots of them and make a good profit doing it. It’s called good business.
I work in a volume based parts market and supply work shops like yours. Totally different businesses.
Not trying to be confrontational just wanted the right facts out there.
Roger
Sorry if you took it that way.
I'm happy you could sell the shocks and make a great profit by "cutting " out the middleman. There are many factors involved there. I'm sure that your "business location" reduces the margin required for you to operate. I expect that 928 International could sell pieces much cheaper, if Mark Anderson operated out of his garage and didn't have to pay for his shop, insurance, and all his employees. Getting "our" local cities to approve of that, would be very difficult, however. Texas is a great place to allow you to do this....not a snowball's chance in hell of it happening, here.
Again, not being critical, just pointing out the facts of operating a business.
No matter how you slice up this loaf of bread, the "dumping" of the Bilsteins at a very low price, caused the current "ripples" we are seeing. Due to the relatively low volumes of 928 shocks required, it will be a "classic study" in ecconomics to see what happens next. Bilstein is out of shocks...Boge is "spotty". I expect that Boge will "quit" making 928 shocks, in the near future. Bilstein will see that, of course, and will then have some "interesting" decisions to make. Since, it appears that you might be their "only" buyer...it will be interesting to see how they proceed with that market. I expect them to either significantly raise their price or stop making the shocks altogether.
This would make a great doctorate thesis for someone in ecconomics...although the outcome should follow "classic" models and be very predictable.
Some things help keep us "supplied" in pieces for our cars and some things don't.
I predict (and have, since the very first day you started selling shocks) that this one is going to be a problem.
Time will tell.
__________________
greg brown
714 879 9072
GregBBRD@aol.com
Semi-retired, as of Feb 1, 2023.
The days of free technical advice are over.
Free consultations will no longer be available.
Will still be in the shop, isolated and exclusively working on project cars, developmental work and products, engines and transmissions.
Have fun with your 928's people!
greg brown
714 879 9072
GregBBRD@aol.com
Semi-retired, as of Feb 1, 2023.
The days of free technical advice are over.
Free consultations will no longer be available.
Will still be in the shop, isolated and exclusively working on project cars, developmental work and products, engines and transmissions.
Have fun with your 928's people!
05-31-2011, 06:44 PM
#30
Rennlist Member
The MBA supply manager game de jour is discontinuation of sku's with long term average movement that is slow. Sometimes they convince companies to run deals to accomplish it. Maybe somewhere a colorful power point presentation is bragging. Good news is good people with good cars have good shocks at a fair price and didn't get taken in the process.
Porsche did it recently, jetisoning 40 foot containers of rare but slow moving parts. All in the name of reducing skus and lowering inventory asset value.
Porsche did it recently, jetisoning 40 foot containers of rare but slow moving parts. All in the name of reducing skus and lowering inventory asset value.