Jump to content

Royal Distributing and Kimpex in a dispute


04nightfire

Recommended Posts

12 hours ago, ArcticCrusher said:

Royal's website really needs a revamp.  I see no reason why they shouldn't be able to display the distributors price and then their sale price.  BS.

I second that, unbelievable how a company that does as much business as royal has such a garbage website. 

If they had a proper site they could just show the msrp then discount it to whatever they feel like on checkout. 

Either way from what I hear a number of other brands are going to cut royal off also. 

Link to comment
Share on other sites

Exactly.  Royal is hardly a "speed bump".  Remember when Coffey's tried the same business model with a catalogue?  Where are they today? 

Clearly, other vendors were bitching.  And if Royal didn''t have significant market share, those vendors wouldn't be bitching.  Of course, it's hard to believe their only issue is "advertised" prices.  Pretty hard to be a mail order catalogue company, and not have accurate pricing in your publication/website. 

I buy everything I can out of the U.S. online, and judging from the number of couriers I see in the neighbourhood lately..... everybody else is too.  But I still use Royal from time to time, when I need aftermarket parts in a day or two. 

And like Stevie said..... the other retailers are free to match or beat Royal's prices.  That's capitalism.  The days of the mom & pop shops are over, and we're all to blame.  Even some bigger players are dying.

Want to beat Royal?  Start a competitor with better pricing, one day delivery, and free shipping on any order (think - Amazon).  With no storefronts and only warehousing...... could destroy them.  Oh, and accept returns no questions asked.... (looks at the battleaxe in the Innisfil store)..... :)

 

 

Of course it's price fixing , if you buy a product from a supplier or wholesaler you should be able to sell it for one dollar over cost of you choose to , catalog or not . 

When a supplier dictates what everyone should sell for to make it "fair"  for everyone it takes away "fair competition " . 

If royal was nothing more than a speed bump , why is everyone complaining how they take away sales from dealers . Dealers saying ," we can't compete with Royal ".

 

sure they can , if the dealers are paying Kimpex the same price as Royal , all they have to do is say .

 

"We Will Match All Royal's Prices "

 

wait a second , that makes too much sense . 

Lets go back to trashing Royal . 

Edited by Puzzleboy
  • Like 1
Link to comment
Share on other sites

Which brands, and where did you hear that? 

Seems odd that other manufacturers/distributors would have the identical issue at the exact same time. 

I avoid Royal too, but I've never had any issues with their website, and I like that you can enter part numbers right from their homepage- super fast if you've already done your list from the catalogue.  It's also not resource-heavy with useless animation, etc. 

5 minutes ago, Sedz said:

I second that, unbelievable how a company that does as much business as royal has such a garbage website. 

If they had a proper site they could just show the msrp then discount it to whatever they feel like on checkout. 

Either way from what I hear a number of other brands are going to cut royal off also. 

Edited by Puzzleboy
  • Like 1
Link to comment
Share on other sites

  • Platinum Contributing Member
23 hours ago, Bigfish said:

Thanks for the explanation

Having never had anything to do with retail sales, I am amazed and disturbed that a distributor can exert that much control over an independent retailer.

so much for free enterprise!

 

And it can work both ways.

Example. I couple of years ago I scored a good deal on some pool heaters throw a warehouse. I threw an ad up on Kijiji and sold 6-8 of them out of my house (I don't have a retail space). I had people driving an hour or more to get them.

A year later, the manufacturer brought out a MAP on that same heater (as well as other product) to "protect" the small retail stores. Well, the online guys moved to that price and include free shipping. Why drive all the way to my house and lug this heater home when you can have it dropped at your door in 2 days?

We used to make $3000-4000 profit off our little ads on Kijiji. Now we don't bother.

 

Royal may or may not be paying Kimpex the same price as dealers. I would suspect they have some incentive plan in place based on volume. (Buy $X worth of product and get X% back at end of year). 

Fact is, Royal needs to sell those Kimpex parts because they bring the customer to the store. Then they can sell them the jacket or helmet or a pair of gloves where the big margins are made.That parts counter is lined up 10-15 people deep on any weekend with snow. And how many of those guys lining up bring the wife or kids to the store?

I understand Kimpex's point on MAP but I see Royals side as well.

  • Like 1
Link to comment
Share on other sites

9 hours ago, Puzzleboy said:

Exactly.  Royal is hardly a "speed bump".  Remember when Coffey's tried the same business model with a catalogue?  Where are they today? 

Clearly, other vendors were bitching.  And if Royal didn''t have significant market share, those vendors wouldn't be bitching.  Of course, it's hard to believe their only issue is "advertised" prices.  Pretty hard to be a mail order catalogue company, and not have accurate pricing in your publication/website. 

I buy everything I can out of the U.S. online, and judging from the number of couriers I see in the neighbourhood lately..... everybody else is too.  But I still use Royal from time to time, when I need aftermarket parts in a day or two. 

And like Stevie said..... the other retailers are free to match or beat Royal's prices.  That's capitalism.  The days of the mom & pop shops are over, and we're all to blame.  Even some bigger players are dying.

Want to beat Royal?  Start a competitor with better pricing, one day delivery, and free shipping on any order (think - Amazon).  With no storefronts and only warehousing...... could destroy them.  Oh, and accept returns no questions asked.... (looks at the battleaxe in the Innisfil store)..... :)

 

To date the returns and the battle axe in Innisfil have been my only problem with Royal. They had a sale on carbides so I bought some for my wife's sled and mine. That was late in the season. The carbides on the sleds would see us through to the end of the season and I would put the new ones on for the start of the next season. I replaced the carbides on my wife's sled no problem. When I went to do mine they were the wrong carbides and would not fit. They gave me the wrong ones. When I went back in the fall I had the original receipt and told them they were the wrong ones. She gave me all kinds of BS. They weren't in the business of providing me a no cost parts inventory that could be returned when I no longer needed them. I didn't want a return.... I wanted an exchange. I guess when she realized I wasn't going to just go away and eat a loss of something I couldn't use due to their mistake she relented and exchanged them. I shouldn't have had to go through such BS though.

All in all though they must have way more satisfied customers than they have dissatisified customers or they wouldn't still be in business or as large as they are.   

Link to comment
Share on other sites

12 minutes ago, 02sled said:

To date the returns and the battle axe in Innisfil have been my only problem with Royal. They had a sale on carbides so I bought some for my wife's sled and mine. That was late in the season. The carbides on the sleds would see us through to the end of the season and I would put the new ones on for the start of the next season. I replaced the carbides on my wife's sled no problem. When I went to do mine they were the wrong carbides and would not fit. They gave me the wrong ones. When I went back in the fall I had the original receipt and told them they were the wrong ones. She gave me all kinds of BS. They weren't in the business of providing me a no cost parts inventory that could be returned when I no longer needed them. I didn't want a return.... I wanted an exchange. I guess when she realized I wasn't going to just go away and eat a loss of something I couldn't use due to their mistake she relented and exchanged them. I shouldn't have had to go through such BS though.

All in all though they must have way more satisfied customers than they have dissatisified customers or they wouldn't still be in business or as large as they are.   

They are open 7 days a week and have competitive pricing for the most part which makes it work for them. I don't use them much anymore but knowing they're open on a Sunday if I need or want something I can go there. There is a bit of a stigma with the staff 

Link to comment
Share on other sites

17 hours ago, Puzzleboy said:

 

Want to beat Royal?  Start a competitor with better pricing, one day delivery, and free shipping on any order (think - Amazon).  With no storefronts and only warehousing...... could destroy them.  Oh, and accept returns no questions asked.... (looks at the battleaxe in the Innisfil 

In order to do that you would have to avoid Canadian distributors out of the gate as that is one requirement. Must have a store front to get setup. 

But that is also part of this issue. Royal has been using the last part of their name to bypass Canadian distributors.

Link to comment
Share on other sites

8 minutes ago, atc said:

In order to do that you would have to avoid Canadian distributors out of the gate as that is one requirement. Must have a store front to get setup. 

But that is also part of this issue. Royal has been using the last part of their name to bypass Canadian distributors.

There is an increasing number of retailers that simply don't have a store front. The online world is increasing. You don't need a store front to get setup. Some retail operations don't do anything other than pass an order through to the distributor for shipping and handling with the product being shipped directly from the distributor.

If I recall correctly Royal began operating out of the owners garage.  

Link to comment
Share on other sites

35 minutes ago, atc said:

In order to do that you would have to avoid Canadian distributors out of the gate as that is one requirement. Must have a store front to get setup. 

But that is also part of this issue. Royal has been using the last part of their name to bypass Canadian distributors.

The store front model is a thing of the past unless you are providing value add services.  The consumers will beat it to death to get the lowest prices.

Link to comment
Share on other sites

28 minutes ago, 02sled said:

There is an increasing number of retailers that simply don't have a store front. The online world is increasing. You don't need a store front to get setup. Some retail operations don't do anything other than pass an order through to the distributor for shipping and handling with the product being shipped directly from the distributor.

If I recall correctly Royal began operating out of the owners garage.  

That is very true for the many servers we order.  Shipped directly from the distributor.

Link to comment
Share on other sites

1 hour ago, ArcticCrusher said:

The store front model is a thing of the past unless you are providing value add services.  The consumers will beat it to death to get the lowest prices.

I am not so sure about that.....Jim at ORPS started out of his house, gradually got into larger stores along the way and increased the business along the way. I believe prices are on par with Royal, but far better to deal with, however I do not believe they have the same hours as Royal or does he have the same store front as Royal.

Guys are mostly impulse buyers, which is a big percentage of the power sports industry, they will buy what the store has in stock, even if it is cheaper elsewhere but need to wait a couple of days. Online is/has built a lot of steam, but I think going into a store has its appeal for many still, especially if it is a pleasant experience.

 

Link to comment
Share on other sites

8 minutes ago, Stoney said:

I am not so sure about that.....Jim at ORPS started out of his house, gradually got into larger stores along the way and increased the business along the way. I believe prices are on par with Royal, but far better to deal with, however I do not believe they have the same hours as Royal or does he have the same store front as Royal.

Guys are mostly impulse buyers, which is a big percentage of the power sports industry, they will buy what the store has in stock, even if it is cheaper elsewhere but need to wait a couple of days. Online is/has built a lot of steam, but I think going into a store has its appeal for many still, especially if it is a pleasant experience.

 

Sure but the new buyers like my son etc wont want to step inside a store unless they have to.  Impulse like you said is finding what you want in real time and executing an order.  What is the value add?  

Link to comment
Share on other sites

21 minutes ago, ArcticCrusher said:

Sure but the new buyers like my son etc wont want to step inside a store unless they have to.  Impulse like you said is finding what you want in real time and executing an order.  What is the value add?  

Now you are bringing the younger crowd into the equation.....do many young kids even care for the power sports, thinking the age of those into it are least 30's and up, and that might even be pushing it:lol:

Pretty sure you have stated your son has maybe one friend that is interested in snowmobiling, most youth will not continue with an activity if none of their friends are interested.....as many know, the nails are slowly being driven into the coffin :flush:

There is absolutely no doubt online shopping is huge, just look at amazon's growth, but I still think the power sports industry still benefits from the "stores", for now. 

Edited by Stoney
Link to comment
Share on other sites

11 minutes ago, Stoney said:

Now you are bringing the younger crowd into the equation.....do many young kids even care for the power sports, thinking the age of those into it are least 30's and up, and that might even be pushing it:lol:

Pretty sure you have stated your son has maybe one friend that is interested in snowmobiling, most youth will not continue with an activity if none of their friends are interested.....as many know, the nails are slowly being driven into the coffin :flush:

There is absolutely no doubt online shopping is huge, just look at amazon's growth, but I still think the power sports industry still benefits from the "stores", for now. 

He actually has a bunch who are planning to meet up this year and ride and one buddy is pretty active with sledding and quading.  None of these kids want to buy things from stores direct.  So adapt.

Link to comment
Share on other sites

2 minutes ago, ArcticCrusher said:

He actually has a bunch who are planning to meet up this year and ride and one buddy is pretty active with sledding and quading.  None of these kids want to buy things from stores direct.  So adapt.

Well that is good to hear! 

Who needs to adapt....

Link to comment
Share on other sites

8 minutes ago, Stoney said:

Well that is good to hear! 

Who needs to adapt....

Unfortunately the stores need to adapt to the new shoppers.  So much info out there no longer need to go into a store to get it.  Value add will be the driving differentiator in the near future.

Link to comment
Share on other sites

3 minutes ago, bladefever said:

Always thought Royal started out as a Yamaha dealer. Think it was Royal City Cycle in Guelph. At that time it was strictly cheap Soucy parts. Great for fixing the old Snow Prince or Ski Whiz.....

Wasn't it Royal City Cycle ? 

  • Like 1
Link to comment
Share on other sites

26 minutes ago, bladefever said:

Always thought Royal started out as a Yamaha dealer. Think it was Royal City Cycle in Guelph. At that time it was strictly cheap Soucy parts. Great for fixing the old Snow Prince or Ski Whiz.....

Yup. I bought my 1988 Exciter off them. 

They rebuilt it twice. :lol: 

Edited by The Rocket
Link to comment
Share on other sites

1 hour ago, ArcticCrusher said:

Unfortunately the stores need to adapt to the new shoppers.  So much info out there no longer need to go into a store to get it.  Value add will be the driving differentiator in the near future.

Royal has an online tool, perhaps could use some work based on the comments, but they are catering to both demographics.

ORPS does too, likely not many places now a days that do not in order to adapt to the times!

I wonder how well these two business' in this industry would do in todays market with only an online presence...

 

Link to comment
Share on other sites

11 minutes ago, Stoney said:

Royal has an online tool, perhaps could use some work based on the comments, but they are catering to both demographics.

ORPS does too, likely not many places now a days that do not in order to adapt to the times!

I wonder how well these two business' in this industry would do in todays market with only an online presence...

 

Today is today, tomorrow is tomorrow.  Thr stats should clearly show the trends for sales via traditional retail vs online.  No doubt where the shift will be.  Just look at places like Best Buy where more than half there stuff is only available online

Link to comment
Share on other sites

9 hours ago, bladefever said:

You were lucky..... Most didn't make the weekend without burning down..... 

Oh it went “pop” the first weekend at the cottage!  Every time I go past the spot where it blew I think about it. :lol:  I was so pissed. I was 16 and bought the damn thing myself. It was my last Yamaha. 

Link to comment
Share on other sites

14 hours ago, 02sled said:

There is an increasing number of retailers that simply don't have a store front. The online world is increasing. You don't need a store front to get setup. Some retail operations don't do anything other than pass an order through to the distributor for shipping and handling with the product being shipped directly from the distributor.

If I recall correctly Royal began operating out of the owners garage.  

Might want to read what wrote again. 

To get setup with a Canadian distributor you must have a store front. Sure there are some ways around it by going to the states. But even then alot of the big distributors down there first thing they ask is pics of your operation.  Fort9 has been a bit of an exception but apparently they had a store front at some point.

Link to comment
Share on other sites

  • Platinum Contributing Member
11 hours ago, bladefever said:

Always thought Royal started out as a Yamaha dealer. Think it was Royal City Cycle in Guelph. At that time it was strictly cheap Soucy parts. Great for fixing the old Snow Prince or Ski Whiz.....

He did start out as a Yamaha dealer, Royal City Cycle. That's where he first got in to the clothing/accessories game. My parents bought me a knock off Yamaha SRX jacket there in '79. Looked identical to the Yamaha coat but without Yamaha on it.

The dealership got big into motorcycles handling multiple lines (Yamaha, Suzuki, Honda) then they sold it off.

Royal Distributing was started soon after out of the owners barn.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Trying to pay the bills, lol

×
×
  • Create New...