Thursday, December 9, 2010

Get Your New Bike at CostCo?

From Dealer News - Kawasaki Motors Corp., is the first OEM to sign on with Costco Wholesale for a pilot program in Southern California’s Los Angeles, Orange and San Diego counties. The trial effort involves a select number of dealerships that are served by 15 Costco warehouse stores, each of which have a display consisting of a motorcycle on a stand and promotional fliers. The program kicked off with KX motocross bikes, but will be expanded to include more models as it progresses.

Here’s how the program works. An interested Costco member contacts the store either by phone or online, registers with Costco and is referred to the nearest participating Kawasaki dealer to his home, or place of business. The member goes to the dealership, presents his membership card, is provided with a copy of the member-only price sheet, and selects his motorcycle. Costco serves only as a referral point. All transactions take place at the participating Kawasaki dealership. Full Story here.

A BROto reader sent me this yesterday, and upon scanning the title, I thought "Wow, as if dealers weren't already fucked". Of course, after reading that second paragraph, you'll find that dealers actually supposedly stand to benefit from this, as CostCo is basically the motorcycle pimp in this transaction (that's the technical term, right?). People who are members of CostCo basically just get a discount on bikes. What I don't understand is what is the purpose of this for CostCo? Like, you don't even have to go to the store. There is no need to even have the goddamn bike on display, unless you actually think that the average CostCo customer is just going to say "Of course, I've been meaning to buy a KX450". All these points raise the suspicion that CostCo is going to pull the reach around and totally screw over the dealers. It couldn't be more obvious. I'll bet this first phase is just the recon phase of the project. Figure out how many CostCo members actually buy the bikes, then BAM, start selling at the store, totally cutting out the dealers. It's going to happen, you mark my words. So don't be fooled, dealers, you might get a couple more sales out of this now, but in the long run, you're boned. I don't see why a dealer would even want this, unless CostCo is footing some of the cost for the bikes, because it's a pretty widely known fact that dealers make shit on motorcycles. And honestly, if you want cheaper bikes, work on your negotiating techniques, chief, because it might be the easiest thing in the world to get 5-10% off on a brand new bike. Just say you'll buy two air filters and that pretty much makes up the difference in the profit margins. Don't be retarded, buy from your local dealers, not from fucking CostCo, unless you want to buy a dozen-pack of KX450s.

1 comment:

  1. With the way you have been blowin' through your motors lately you could use a dozen.

    I'm just sayin'