Is this how Fox does business?

Cancerman
Posts
757
Joined
7/16/2011
Location
In Hell, FL US
1/7/2016 4:00pm
Steadman, is/was your account a protected territory account? Sometimes, if you are the account in a territory and you are slow, somebody larger with a bigger demography will get your territory. It's that way in a lot of industries.
Steadman
Posts
680
Joined
11/23/2014
Location
CA
1/7/2016 4:29pm
Cancerman wrote:
Steadman, is/was your account a protected territory account? Sometimes, if you are the account in a territory and you are slow, somebody larger with a bigger...
Steadman, is/was your account a protected territory account? Sometimes, if you are the account in a territory and you are slow, somebody larger with a bigger demography will get your territory. It's that way in a lot of industries.
No it was not a protected account. They would set up an account across the road if there was another dealer opening up. It just all came down to $$. 15+ years as a customer does not satisfy their needs. I wonder if my cell company is going to drop me for the measly $45 a month I give them haha.
I know as a Kawasaki dealer we have some territory protection and it is a common practice in many industries.
jndmx
Posts
9689
Joined
1/20/2008
Location
South Kingston, RI US
1/7/2016 4:39pm
jndmx wrote:
The cost to Fox is not my point but I do not believe that dealers pay for the demo line up front, it is a financed...
The cost to Fox is not my point but I do not believe that dealers pay for the demo line up front, it is a financed thing.

My thoughts are that sending product which is in a finite supply to someone that is not moving it is not helping your business.
FGR01 wrote:
We've been a dealer for probably over 50 brands/suppliers in this business for almost 30 years. Never have we had any of them send us any...
We've been a dealer for probably over 50 brands/suppliers in this business for almost 30 years. Never have we had any of them send us any initial batch of promotional product of any substantial amount at their cost or allowed it to be financed. The bill was due when the invoice came at the end of the month. We have always had to pay for all product. The risk is on us, not the supplier, if it doesn't sell.

We are very low-volume for some of the brands we carry and we have never had any of them drop us. Admittedly, we have never been a Fox dealer so I cannot speak specifically about their practices. I don't think it's an ROI thing for them. Sounds more like a marketing/brand image thing.

Steadman, I feel ya on the loyalty thing. Many of these companies will get built up to huge proportions on the backs of small dealers and once they reach the top they might not drop you but they will force you to submit to dealer agreements that essentially force you out. Don't want to point the finger at any action camera companies or anything like that, though !
Well I guess I was wrong about that....lol
I was basing my thought on standard retail stuff that I worked with.
Damn.
bob567
Posts
767
Joined
7/9/2015
Location
Los Angeles, CA US
1/7/2016 4:57pm
I have stayed loyal to Fox for over 30 years and always will because it's where I started in this sport. Of course everything I buy is online since there is no possible way a dealership can offer me anything at this point to warrant me walking in their doors. The motocross market is microscopic. The local dealers focus on street bikes, side by sides, quads and lawnmowers. I don't blame them one bit. This sport is dying from the inside and nobody is doing anything about it.

The Shop

Steadman
Posts
680
Joined
11/23/2014
Location
CA
1/7/2016 5:03pm Edited Date/Time 1/11/2016 7:33pm
EXCELLENT collection sir! I didn't get into it until 2009 (around the time I was quitting trying to be a pro mxer lol) and we bought...
EXCELLENT collection sir! I didn't get into it until 2009 (around the time I was quitting trying to be a pro mxer lol) and we bought a shop and I ran that right after my race career ended.
Talk about a wake up call as a human being! I wish everyone could run a shop or retail outlet for just a week to see some of the struggles and how hard it really is.

Keep fighting the good fight!

PS can I order parts through your shop sometime? I'd love to send you a little business and help out fellow good folks.

Got a website I can check out?

Wow, that is generous offer (to possibly purchase from us) Incredible!! We just can't sell Fox anymore….lol
With where the American and Canadian dollar is it might be advantageous to buy out of Canada on certain things anyway.
Again, appreciate the support!

bad juju
Posts
514
Joined
12/15/2014
Location
Riverside, CA US
1/7/2016 5:21pm
I have zero loyalty to any of these companys period. we are all no bodys to them, they even do there own people dirty. I buy what works best for me and not real worried if I'm not flying my fox or whoever flag. but know this after reading this post I wont ever purchase anything fox ever. fox thanks for your support to the small guys. I did the same thing to Honda when they killed the contindecy programs in 97" so Honda do you know how many bike I bought from you since? ZERO!
dedi684
Posts
1385
Joined
8/21/2009
Location
Ravena, NY US
1/7/2016 5:52pm
bad juju wrote:
I have zero loyalty to any of these companys period. we are all no bodys to them, they even do there own people dirty. I buy...
I have zero loyalty to any of these companys period. we are all no bodys to them, they even do there own people dirty. I buy what works best for me and not real worried if I'm not flying my fox or whoever flag. but know this after reading this post I wont ever purchase anything fox ever. fox thanks for your support to the small guys. I did the same thing to Honda when they killed the contindecy programs in 97" so Honda do you know how many bike I bought from you since? ZERO!
Hell yeah thats what i say too!
RJMX834
Posts
378
Joined
1/17/2014
Location
Marietta, OH US
1/7/2016 6:11pm
Spooner wrote:
In the US their minimum is $5k a year in gear alone. Lots of smaller dealers can't do that so they are losing a ton of...
In the US their minimum is $5k a year in gear alone. Lots of smaller dealers can't do that so they are losing a ton of accounts.
+1 I work at a dealer. Spooner Is correct.
Jack mehoff
Posts
808
Joined
8/28/2012
Location
Westminster, MD US
1/7/2016 6:39pm
Steadman wrote:
We receive two print catalogues per year. one Fox, one Shift. Heck my local bicycle shop hands me a Cannondale catolgue that is bigger than the...
We receive two print catalogues per year. one Fox, one Shift. Heck my local bicycle shop hands me a Cannondale catolgue that is bigger than the two combined for free haha.

I'm with you FGR01. What is it costing them to keep us on? So let's say they close off even 10 accounts a year at an average of $2000. Were I come from $20,000 is a lot of money. They must be doing so well they don't need it.
They sold out a long time ago they have tee shirts in just about every kids shop in the malls , your right MX probably a loss leader for them ,just to keep cranking out $20 tees that probably cost $2.00 to make
1/7/2016 6:41pm
My local shop carried thor when I was a kid, so I ran thor gear, to support my local shop while I was a fan of Fox gear personally.

I think more of this mentality will help out those who need it, the local shops, small town dealers and independent businesses trying to get by.

brand loyalty does no one good but the people selling the products.
Hcallz5
Posts
3277
Joined
8/20/2013
Location
UT US
1/7/2016 6:47pm
Hell with them, they are obviously turning into a money grab company anyways. Getting a new set of gear is a financial decision these days if you go out and buy current gear. They don't put out a bad product but you should just speak with your money and give it to someone else.
CRF505
Posts
528
Joined
11/24/2011
Location
Clarkston, MI US
1/7/2016 7:24pm
rubarb wrote:
Their marlet audience is trendy poser kooks
Let me guess... You think 4 strokes are the devil too?
Steadman
Posts
680
Joined
11/23/2014
Location
CA
1/7/2016 7:43pm
My local shop carried thor when I was a kid, so I ran thor gear, to support my local shop while I was a fan of...
My local shop carried thor when I was a kid, so I ran thor gear, to support my local shop while I was a fan of Fox gear personally.

I think more of this mentality will help out those who need it, the local shops, small town dealers and independent businesses trying to get by.

brand loyalty does no one good but the people selling the products.
Faith in humanity up a level after reading that! That was a cool thing to do, especially as a kid. I'm a huge fan of local stores and independent shops and such, and I'm talking everything from coffee shops to music stores.
Steadman
Posts
680
Joined
11/23/2014
Location
CA
1/7/2016 7:51pm
Hcallz5 wrote:
Hell with them, they are obviously turning into a money grab company anyways. Getting a new set of gear is a financial decision these days if...
Hell with them, they are obviously turning into a money grab company anyways. Getting a new set of gear is a financial decision these days if you go out and buy current gear. They don't put out a bad product but you should just speak with your money and give it to someone else.
To hell with them indeed. It makes me sick though to think of how much money I have given Fox (personally) over the years, and now, we as a shop don't meet their requirements anymore. I guess I don't need you either Fox.
Rooster
Posts
4432
Joined
4/1/2008
Location
Edmonton CA
1/7/2016 11:37pm
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're making or less than $100 per month.

If I was dealing product that sold that poorly I'd be dumping them.

At that level you're not a dealer. Hell you're not even a 4 kid family consumer that rides. They can't offer wholesale rates to people who buy so little. It takes away from the dealers who actually stock and sell product.
Steadman
Posts
680
Joined
11/23/2014
Location
CA
1/8/2016 6:23am
Rooster wrote:
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're...
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're making or less than $100 per month.

If I was dealing product that sold that poorly I'd be dumping them.

At that level you're not a dealer. Hell you're not even a 4 kid family consumer that rides. They can't offer wholesale rates to people who buy so little. It takes away from the dealers who actually stock and sell product.
Oh man, 50% margins?! A dealer could only dream haha! It's more like 30% on apparel (if you are lucky)

All your points are valid, but it's nice to have that option and courtesy for customers wanting Fox product. Turning away business no matter how small is painful.

Like I mentioned in another post, and I'm trying to give perspective, not start an argument, but what if I emailed you....

'I'm sorry Rooster, after reviewing your account with our dealership you have only spent $1800 with us this year we feel it's not enough to continue doing business' The dealer you have dealt with for over 15 years just told you to beat it? You are not worthy of their business? How insane would that be? This is in fact what has happened and I as the dealer, am the customer.
Roscoe33
Posts
942
Joined
12/10/2009
Location
London CA
1/8/2016 6:39am Edited Date/Time 1/8/2016 8:07am
Rooster wrote:
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're...
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're making or less than $100 per month.

If I was dealing product that sold that poorly I'd be dumping them.

At that level you're not a dealer. Hell you're not even a 4 kid family consumer that rides. They can't offer wholesale rates to people who buy so little. It takes away from the dealers who actually stock and sell product.
Steadman wrote:
Oh man, 50% margins?! A dealer could only dream haha! It's more like 30% on apparel (if you are lucky) All your points are valid, but...
Oh man, 50% margins?! A dealer could only dream haha! It's more like 30% on apparel (if you are lucky)

All your points are valid, but it's nice to have that option and courtesy for customers wanting Fox product. Turning away business no matter how small is painful.

Like I mentioned in another post, and I'm trying to give perspective, not start an argument, but what if I emailed you....

'I'm sorry Rooster, after reviewing your account with our dealership you have only spent $1800 with us this year we feel it's not enough to continue doing business' The dealer you have dealt with for over 15 years just told you to beat it? You are not worthy of their business? How insane would that be? This is in fact what has happened and I as the dealer, am the customer.
FOX is the leading brand no question, but now FOX in Canada is now run and owned by FOX, sold direct with a 5k minimum in Canada and no protected territory.

Great gear bad investment.

it's hard to justify that kind of investment thinking your going to get a 30 % return when it's closer to 3%.
Krazyk2774
Posts
378
Joined
12/20/2010
Location
Alberta CA
1/8/2016 7:20am
Big business is ruining our country. All that matters is money, that's it end of story. There is no loyalty. No pride in doing a good job anymore. It's all about the paycheck. I make the effort to support my local dealerships. Do I pay a little bit more? Sure, but if we don't support them they will be gone. Then instead of running down town for a part. You order it online and your bike sits for a week. It's unfortunate, but this sport is dieing at the grassroots level, it has been for years! The number one cause is loss of riding areas followed by big business and their greed. You can't just make a comfortable living anymore, you got to be rich and flaunt it. problem is very few get extremely wealthy, and the rest slip deeper in towards poverty. It's just going to get worse unless we do something to control it. You bight think the government would step on to help, but they work for the conglomerates now, bought and paid for!
mauidex
Posts
2069
Joined
9/12/2011
Location
Haiku, HI US
1/8/2016 8:34am Edited Date/Time 1/8/2016 8:34am
there is so much wrong in most thinking here..........just one thing to think about if you "put the shoe on the other foot"......do you think when FOX needs to buy jerseys or pants or gloves or boots or helmets that the manufacturer is OK if they order 2 or 3 at a time............or better yet, just call them to make one when they need it.........hmmmmm Wink Wink
piscokid
Posts
320
Joined
10/22/2013
Location
OH US
1/8/2016 10:13am
Rooster wrote:
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're...
Honestly if you're buying fox products at less than 2K per year wholesale and marking it up what say 50%? That's ~$1000 per year that you're making or less than $100 per month.

If I was dealing product that sold that poorly I'd be dumping them.

At that level you're not a dealer. Hell you're not even a 4 kid family consumer that rides. They can't offer wholesale rates to people who buy so little. It takes away from the dealers who actually stock and sell product.
Really Dude. Get over it. What customers are you pissing off if you only sold $2000 worth of stuff? If you got the FOX stuff for free you only made $2000.00 Squirt of piss in the financial pool of the shop (I hope). If this causes you to lose more business, you have more problems than losing the Fox line.
TW85
Posts
125
Joined
4/1/2015
Location
CA
1/8/2016 11:04am
Honestly I wouldn't really worry about it too much. $2000 a year in sales is nothing and really at those numbers you guys should of probably been looking at dropping Fox and using that display space for something that sells better.

The truth is I don't think motorcycle shops in southern Ontario should be stocking much of any MX/Off road gear. The problem isn't lack of riders (I can think of 5 race series or riding clubs off the top of my head), the problem is consumers have the option to go to a shop like Royal Distributing. I live in Hamilton so not far from you guys at all and I deal with 3 local dealers for OEM parts and consumables but almost never will I buy gear there. The reason is simple and it's a lack of options. I've got zero interest in driving 20-30 minutes to a Motorcycle shop to have maybe one set of gear that's my size on the wall when I can drive 50 minutes to Royal and have around 20 options in gear sets in my size plus a full range of helmets, boots, googles, body protection etc. It's real hard to compete with that and we haven't got to pricing. On the flip side I'll almost never buy parts there because they usually only have lower end aftermarket replacements and I tend to use oem.

With that said I'll buy some parts from you guys next time I need to order Kawi stuff. Stuff that I always end up buying even if I don't need or am looking for at the local bike shops is oils, grease, contact cleaner, chain brushes, stands, fuel jugs that kind of stuff. So maybe see how you guys are stocked up in that regard and try not to worry about the whole Fox thing.
SweetDaddy
Posts
654
Joined
11/21/2006
Location
Orlando, FL US
1/8/2016 12:32pm
Fox gear prices are out-of-control; they are the Nike of MX



kkawboy14
Posts
11486
Joined
6/5/2015
Location
TX US
1/8/2016 12:41pm
All companies expand and contract.....this is normal for products
ML512
Posts
16853
Joined
12/28/2008
Location
Wildomar, CA US
Fantasy
1/8/2016 12:41pm
SweetDaddy wrote:
Fox gear prices are out-of-control; they are the Nike of MX [img]https://p.vitalmx.com/photos/forums/2016/01/08/118969/s1200_FOX.jpg[/img]
Fox gear prices are out-of-control; they are the Nike of MX



They also make gear combos around $120-130 bucks, helmets starting at $160, and a boot at $199.

You're using a limited edition, extremely high-end raceway as an example. This isn't targeting the masses, it's targeting the guys that want and can afford the cream-of-the-crop.
mx510
Posts
1992
Joined
2/26/2011
Location
Gig Harbor, WA US
1/8/2016 2:20pm
SweetDaddy wrote:
Fox gear prices are out-of-control; they are the Nike of MX [img]https://p.vitalmx.com/photos/forums/2016/01/08/118969/s1200_FOX.jpg[/img]
Fox gear prices are out-of-control; they are the Nike of MX





Don't leave out Seven and Troy Lee for out of control gear pricing as well then. Are you going to post about these as well?
HenryA
Posts
3785
Joined
12/29/2011
Location
Stockholm SE
1/8/2016 2:39pm
SweetDaddy wrote:
Fox gear prices are out-of-control; they are the Nike of MX [img]https://p.vitalmx.com/photos/forums/2016/01/08/118969/s1200_FOX.jpg[/img]
Fox gear prices are out-of-control; they are the Nike of MX



All I know is that I wouldn't want to crash wearing a gear like that. If ya know what I mean.
BAMX
Posts
2890
Joined
1/22/2012
Location
Fallbrook, CA US
1/8/2016 3:07pm
mx510 wrote:
[img]https://p.vitalmx.com/photos/forums/2016/01/08/119019/s1200_image.jpg[/img] Don't leave out Seven and Troy Lee for out of control gear pricing as well then. Are you going to post about these as well?


Don't leave out Seven and Troy Lee for out of control gear pricing as well then. Are you going to post about these as well?
Didn't Troy lee and Seven part ways? Troy Lee SE pants are like $175 retail. That is expensive but the stuff does last. I haven't bought FOX gear in a long time but their old gear fell apart. At least, that was my experience.
Pdub
Posts
1477
Joined
8/2/2006
Location
Wheaton, MD US
1/8/2016 3:25pm Edited Date/Time 1/8/2016 3:58pm
Kind of disengenious for a business owner who claims to have done business with a company for 15 years, post a question on a popular consumer forum asking (rhetorically, obviously) how that company does business. Basically, he came here to throw them under the bus (and take a couple of shots at his local rep, too).

Which actually begs the next question: is this how this business owner does business?
mx510
Posts
1992
Joined
2/26/2011
Location
Gig Harbor, WA US
1/8/2016 3:31pm
BAMX wrote:
Didn't Troy lee and Seven part ways? Troy Lee SE pants are like $175 retail. That is expensive but the stuff does last. I haven't bought...
Didn't Troy lee and Seven part ways? Troy Lee SE pants are like $175 retail. That is expensive but the stuff does last. I haven't bought FOX gear in a long time but their old gear fell apart. At least, that was my experience.
Yes they did. My point was that Fox isn't doing anything other brands are. Funny you mention Troy Lee lasting, I have had the exact opposite experience with Troy Lee, and is the reason why I wear Fox. The 360 line of Fox gear has been absolutely indestructible for me. I had two different pairs of Troy Lee that tore one the second ride. Not on seams, properly fitted gear. It is what it is.
1/8/2016 3:39pm
If you cant do the minimum order per year then face it you are not a Fox dealer. Believe me Fox takes good care of dealers who stock their line of Fox gear and casual wear and stand behind their products.Cool

Post a reply to: Is this how Fox does business?

The Latest