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Random thoughts

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Random thoughts

Postby RoyM » Fri Nov 18, 2022 6:37 pm

I just completed the Briggs update seminar so I can keep access to the Power Portal and stay in the loop. Almost forgot about it, had to be done by Dec 1. Not a lot to it this year, some new batteries coming out and the number of models and types of engines are shrinking. They have dropped power washers and portable generators, probably can't compete with offshore products plus reduced markets here in North America due to the emissions hysteria.
I am sure glad I am out of the service side of the OPE industry. I can't see how anybody can make money changing components, so little can be repaired anymore. When was the last time we ground valves or rebored a block? Ok, rant over. :)
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Re: Random thoughts

Postby bgsengine » Fri Nov 18, 2022 10:10 pm

See now, that's exactly why I have pretty much retired from the business. Just no money in it any more, it's all in wholegoods sales, and with the razor thin margins (as little as 8 percent!?) only the larger mega-dealers can really make much money at it. Many other shops are diversifying to survive - Chainsaw shops going to selling & installing wood stoves, coal stoves, etc (and/or firewood / coal sales) Mower shops going into ATV and even Automotive repair, whatever makes a buck... I just closed up outright, and sold off my entire inventory (over 120K worth at retail) for less than $5K, and converted my shop into woodworking hobby. :) I'm so much more stress-free and much happier than I have been in a very long time.
How poor are they who have not patience. What wound did ever heal, but by degrees? - Iago (Othello Act II, Scene 3)
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Re: Random thoughts

Postby KE4AVB » Sat Nov 19, 2022 9:00 am

Sorry you took such a loss on the parts...

I reckon I am lucky that I only have 80K in retail parts. Yes the margins can be very tight but with good procurement channels it can be still managed. I have been lucky this year as Stens upgraded my discount. Last year Gardner made a mistake of not switching me over ACH payment when they started charging 2.5% for credit/debit card use. That gave RBI a foot hold so now both are competing against each. It depends on the product line as to which I use. I trying to reduce my in stock items as I now getting one to two days delivery windows.

RBI is lower on MTD, Kohler, and Oregon but Gardner is lower on Husqvarna, Hydro Gear, and Tuff Torq. Should be doing more in the Hydro Gear line this coming year as I just became an Authorized HG service dealer. Plus Gardner had me stuck on a $1000 credit line which I hit last week. They have refused to setup Codis to accept electronic checks so my CU is having to send them paper checks which takes two weeks to get processed. I need something while thing are locked up I just have use another distributor for the parts. I think I got thru to them this week as they raise my credit line to $4000. I definitely can work with that as I always pay when I get the parts. IT just the check delay that was causing me a lot problems. But now maybe I can buy and sell a few Kohler engines. Just got find what the warranty policy is. I may have to sign up with Kohler too.

Had sign with HG just to get my parts and whole goods warrantied. I just install a new EZT and I made a fair profit on it; although, I will need to more time the next time when doing a Bad Boy MZ as to change the drive belt you have lower the transaxles and drive idler arm. Just no clearance to get the belt pass the pulleys.

I have dumped A&I this Summer due to the problems I was having with them. Plus many of the pulleys I was ordering were from Rotary. Now the XTH blades I will miss. When I quit I ended up signing with Rotary last month. Between them, Stens, and Oregon I should have access to most of the common after market parts.

Anyways I only purchase half of what I sold this year. And many of the purchases I did are for restocking.
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Re: Random thoughts

Postby bertsmobilerepairs » Mon Dec 12, 2022 4:54 pm

I know just how you feel
I spend more time sourcing parts than I do working on mowers.
Finding about Mouser for electrical connectors was a massive bonus because down here the only terminals available were Lucar style which won't lock into the mower plugs.
USA techs are blessed being able to buy direct from Oregon, Stens Rotary or Prime line plus a lot of wholesalers
Down here we have only 1 direct supplier, Stens
Plus 2 wholesalers neither of which keeps a full inventory of the suppliers they represent.
RGS ( Walbro , Rotary & Prime Line + limited B & S , Kohler & Kawasaki )
JacMax ( Apart from Pix belts & Farmer Tech all junk sourced from the lowest possible priced factory in China )
I was going to try & open a B & S account but to do that I had to go to Melbourne ( 1000 km away ) for a week long course at over $ 1000 then sign up to a contract that requires me to keep a minimum inventory of $ 20,000 + do annual update courses
On top of that B & S Australia refuse to stock most of the parts I need so they come from B & S USA via Jacks usually .
Kohler are little more reasonable as I can get Kohler certified for free via an online test but they demand an inventory of $ 30,000 and have minimum order restriction to above $ 1000 .
The loss of DC spares in HK for carburettor parts has really crippled me as now I have to source the same parts via "Made in China " and as that portal is direct supply outlet from factories they all have minimum order quantities way above my requirement .
Alibaba is my biggest $ value parts source now and because they hold onto my payment till I confirm the goods have both arrived and are of the quality advertised there has been zero problems with parts bought from there where as 75% of everything bought via Amazon Aust has been defective so I no longer even look there .
Aliexpress seems to be going the way of Amazon and the prices are now way too high
I have been trying to find a couple of other freelance techs to form a buying group so we can get a wholesale account with Farmer Tech as Wholesale orders, while being 1/4 their retail price have a minimum value of $ 20,000 or greater and that is near 1/2 my gross annual turnover
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Re: Random thoughts

Postby KE4AVB » Mon Dec 12, 2022 5:28 pm

Bert, Yes being an independent shop is a pain at times but as you becoming a dealer is too restrictive financially. I don't have a brick and mortar setup nor very deep pockets to stock things that simply don't sell. I made that mistake when I started back in 2009 and I still got all the starters the first vendor required to sign up for parts except one.

I have manage over the years to get both Briggs and Kohler dealer websites access. And just got Hydro Gear dealer access. Currently I have two main distributors Gardner and RBI for most OEM parts with Stens, Rotary, and Oregon after market parts too. Most of the other parts I buy from which source has the best price at the time I am needing the parts. Briggs is a dying OEM here since they filed bankruptcy and a financial investment brought them out. Now it seems all the older parts are going NLA fast.

Yes Mouser is good for electrical components which I manage to figure most of the mower connector housing and terminals. I also use Del City for electrical wire. I also buy a lot of my hardware from McMaster-Carr and Grainger.

As handheld two carburetor kits I use CTS when OEM is not available. And yes I miss DC Spares too. I knew something was up with them when I didn't replies to my emails then I heard China was causing problems in Hong Kong.

As procurement manager here has really taught me some very good skills in finding parts.
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