by bgsengine » Wed Aug 22, 2018 1:39 pm
It isn't a surprise to me I'm working on plans to follow in their footsteps.. All you really need to know can be summed up in 3 things.
1) have a look on ebay and amazon and see the HUNDREDS of sellers selling knock-off chinese parts of all the more popular and fast moving components (Example, briggs plastic float carb for the new models , dealer cost $25-$30 , chinese vendors (and people that know nothing about this business and buy in bulk off alibaba from those chinese vendors) selling them (often with plug,air filter,fuel filter and stuff thrown in to a bundle) for $19.95 a pop.. common briggs air filter, OEM dealer cost $2.40 or so, and they are selling knock-off aftermarket filters in packs of 10 for $5.99 with free shipping..
2) Trade wars - tariffs hitting many OPE manufacturers (aluminum, steel, components,etc) we got a notice recently from Briggs distributor warning that annual parts increases may potentially be much greater than normal.
and 3) ever increasing costs of labor (employees) , insurance, shipping, packaging, on top of declining margins , lots of shops (their customers) closing down too (again have a look on ebay at all the sellers selling off closeout buys from closed dealerships) - razor-thin margins on new product causing many dealers to close down, (and distributors and manufacturers requiring dealers to book and order more and more,while less and less is being sold in stores,because everybody buys the cheap junk from Home Depot and Wal-Mart and Amazon) - a group I am in for professional landscapers, etc -constant posts in there for pros looking for best price on common consumables, rather than going to their local dealer.. It is no wonder so many shops are giving up on this industry.
The small one-person repair shop that runs a lean inventory and does repairs only looks to be the future of the OPE business.. just wait and see,eventually manufacturers and big box retailers give up with repairs and just give replacement units for warranty claims, and liquidate the old ones as "customer returns" for online vendors to fix up (or not, in many cases) and re-sell the units. Only the big (multi store, multi-million dollar) dealerships will see much luck.. Manufacturers will have to resort to selling their equipment in factory outlets, otherwise..
I'll tell anybody that asks, if someone came by the shop here with a couple big u-haul trucks (or a 53 foot tractor trailer) and a good bank check for $185,000.00 I'll help em box up and load the whole nine yards (almost a half million at retail including storage and tools) that very day, and call it a good deal all around.
How poor are they who have not patience. What wound did ever heal, but by degrees? - Iago (Othello Act II, Scene 3)