Ducati pushing for dealer exclusivity?

Hi there is only one dealer in Melbourne, Australia now and the service is very poor.
I wish we had a second dealer like the passed.
Cheers

anthem said:

and seriously - whats wrong with that ? If you aren't growing, your losing market share. . its as simple as that.

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I could write you a book about what's wrong with that.

I'll try to break it down into small pieces for you to digest.
But clearly you've never been on the receiving end of the final outcome where your dealer support disappears overnight.

Firstly, in life sometimes it doesn't pay to ask for more.
That equally applies to you and I, as well as large multinational corporations.
If you squeeze too hard they can slip through your fingers.
Remember a bird in the hand is worth 2 in the bush.
Any of that ring any bells for you.

Or do you dogmatically subscribe to the economic philosophy of ever increasing expansion and ever increasing percentages as being the only way forward.
Try living on an island mate, and see how far your hot shot ways will get you.

You've got to understand that there are limits to everything.
When you get old enough, and have enough life experience you'll come to fully understand that as a fact of life.

For example lets say you're DUCATI.
And you had a provincial dealer that was punching well above his weight in terms of sales. He actually often makes it into the top three positions in the country in terms of sales, and has made it to the very top on a couple of occasions to become the dealer of the year. (An outstanding feat in itself)
His customer satisfaction rating is very high, and often has to take on warranty work as a carry over from other dealers in the region, because their techs have screwed up and the customers (out of desperation) have to travel to get the job done by a dealer who's reputed to be honest and reliable.
(Note this type of work is nowhere near as profitable as normal w/shop servicing when performing small tasks, and is compounded by large jobs.
In fact, if a dealer had to rely upon warranty work alone through the w/shop, with the pittance DUCATI and all the others pays for the hourly rate, the dealer would go under.)
This dealer often sells bikes around the state, and even interstate.
The dealer also supports the motor cycling community in many and various ways that other dealers in the region don't, can't or won't do because of his passion and commitment to motorcycling and the industry.

Lets say the economy took a downturn, but was slow to recover to normal levels for the basic consumer goods.
But for luxury goods it's still in the doldrums due to a lack of positive consumer sentiment.
This is compounded by the fact that a motorcycle is not regarded as a basic form of transport like a car is.
A car is a necessity for all families. Unlike a motorcycle which is a discretionary/emotional purchase, let alone with the brand being regarded as a luxury brand like DUCATI, which is $.
And the normal unemployment rate for the region was naturally higher than the national base line level. Let alone in a depressed economy.
And the average wage for the area is lower than the national average, despite a higher proportion of supposedly wealthy(at least on paper) people in the local area.
And property values are seriously depressed which affects the "supposedly wealthy people" more than the average wage/salary earner.
And due to the areas' naturally low levels of passing trade to capture.
The dealer has done all he can to increase his market share/customer base through the internet, and strategic application of radio advertising(unlike any other dealers in the state).

So now you're DUCATI, and you look at the sales figures for this dealer and start to put pressure on the national distributor from some office in Italy to boost sales because your globalised based sales KPI's are not being met to the satisfaction of your new parent company in Germany.

Then some native hot shot like yourself with a university degree in economics, who has never been to the dealer and set foot in the door, or barely spoken with the man over the phone to introduce yourself when you started a couple of months ago, let alone to ask "what can we do to help".
Determines that the sales figures aren't high enough at this dealership, in comparison with the areas that naturally have more passing trade. (but you wouldn't know about that because you've never even set foot in the door at this historically high performing dealer in the couple of months you've been working at the new job).
Eager to make your mark on the world and climb up the greasy pole.
Your having meeting after meeting with all and sundry and you're all dressed for success, and driving around in your leased prestige car that you wouldn't normally put your hand in your own pocket to purchase in your own right.
Just so you can good-sort yourself and put yourself forward in the hope of getting a boost up over everybody else whilst climbing the greasy pole.

You and your mates are all shuffling pieces of paper around at the meetings, and reading your reports(which have no bearing on reality) are presented.
Other reports are also complied by other people(like yourself) who have never had to do the hard yards and run a dealership efficiently. With all that entails.
Let alone have a passion for the past time or own a bike yourself.

And so the consensus at the meeting among the salaried shiney ....., is that the dealer is "not performing".
What are we going to do about this dealer?
Ah ha we have to put pressure on him. And all are in agreement.
So the importer starts to look upon the dealer in not such a favourable light, and by extension all dealings with the dealer are through the perspective of a set of numbers printed out off a computer screen.

This pressure comes in many different forms.
One form is to push the dealer to upgrade his workshop facility to reflect the modern swish/exclusive image with logos and flash colours on the walls and viewing windows so people can see their bike being worked on by the techs while dressed in their new corporate uniform.
It's all that DUCATI want to portray.
Fair enough I suppose.

Then then the dealer asks what and how do you want it to look like?
Do you have a format?
Can you consult and help us to pull it together the way you would like it to be?

.... me, the importer says to himself.
That wasn't in the reports on the sales figures
And it never came up in the meetings when we decided to exert some pressure on this dealer
So ultimately the response from the importer is silence.
In effect there's no support and the dealer muddles through right or wrong, and soldiers on regardless as before.

Then all you shiny ..... get together again and have another meeting as before, with the consensus being to keep putting pressure on this dealer because the KPI's still indicate he's underperforming.
And economic rationalism dictates that he continually increase the percentages of his turnover. Or he's a looser and should be cast aside like a ...... w/shop rag.

So the area manager starts to put pressure on some more.
This time he starts going on about upgrading the display format in the showroom to the new corporate style of displays/racks etc, etc.

So the dealer asks what is it?
How soon can you supply?
Can you advise accordingly?
Lets do it.

Lo and behold. At the next shiney ass meeting at the importers HQ, nobody verbalises it. But.
.... me. That's another thing that wasn't in the sales figures reports.
But we've had a decree from on high that it shall be so.
What do we tell this dealer?
He's asking for support, and information and guidance

So weeks go by.
And still there's silence from the importer.

So the dealer asks the questions again.
Still silence from the importer, or maybe there's a bit of mumbling and feet shuffling, but nothing concrete to go forward with.
Except maybe something to the effect of "leave it with me and i'll get back to you". They've got to say something that's a cut above the previous silence, right?

After a number of weeks the dealer asks the same questions again.
Still silence from the importers.
Now the dealer is starting to become a problem, simply because he's asking questions that can't be answered by the shiney ......

That's another black mark against the dealer

But never the less, the dealer carries on regardless and under pressure to conform, and get them off his back otherwise he may loose his franchise.
And he takes the initiative by making preparations for the changes by reconfiguring his display areas in preparation for the new corporate display format.
But he can't finish it because the importer can't commit to supplying the shelving etc, etc.

Now the dealer has an area in his showroom where has to tart up the best he can with the old display stuff to cover his partly finished mods to the showroom the best he can, in order to hide the alterations he's made in preparation for the new corporate .....
All of which may or may not improve sales let alone profitability.
And he's out of pocket for the lot so far.
Just wait until the new corporate .... turns up.
Then he'll have to pay for that as well, because it goes onto his account.
And still no increased sales figures, because the economy isn't doing all that well.

That's the reality of your economic growth "theories" mate

I put it to you.
An ounce of practice, is worth a ton of theory.

It's all very well and good to be standing in the middle, and pointing around the place and telling everybody how it's got to be.
All talk and no action.

It's another to be able to lead by example.

The problem is you don't see the shiney ..... roll their sleeves up and be leaders.

And that is just the tip of the iceberg.

What if the dealer ultimately gets squeezed out of existence by the clenched corporate fist, and he shuts up shop.
The result is the importers have killed the goose that laid the golden egg.

Then the importer has no one to step in and fill those shoes in terms of good will/customer relations, high sales figures, warranty work and support for the customer base, that the dealer has worked hard to build up over a number of years, and in ways that aren't given due acknowledgement in economic theories.

Agibbs996 said:

There's something else going one between that dealer and Ducati. No "exclusivity" issues with any of the dealers I'm familiar with in Arizona or Southern Cal. The fact the owner is venting about Ducati "politics" is a sign in itself. Most likely, it's about the money (either sales or warranty).

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It's never one reason alone.
These dealers just buckle under the weight of the corporate machine which is driven by numbers.
Either you get big or get out.
And to hell with the people on the receiving end.

Don't get me wrong.
Profitability is vital.
But there are limits to what's right and just.

akdave8 said:

I went in to pick up my panigale from winter storage and found of that my local dealer, TT motorcycles, and Ducati are at an 'impasse' and they've stopped selling Ducatis due to this new exclusivity rule. The dealer's been around for 9 years selling them and its very unusual to hear this. They sell Aprillia, MV, and couple other scooter brands and the owner's like michigan is not a good market for exclusivity. I guess they'll still service all ducatis, but no more warranty work. Anyone has heard of something similar story?


A brand new dealer exclusive Ducati dealer opened up in last fall quite a distance away, so I guess I'll have to drive the distance to check out any new ducatis in the future.

On a side note, the owner was also venting about Claudio Domenicali and Ducati politics, when he sat down with him few times in last couple years. Apparently, the atmosphere is not nice when bring up problems like the our panigale's heat as well as prior Ducatis' tank expansion problems. He also thinks Ducati's failures in motogp and wsbk also rise from similar issues.

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I just wanted to add that although it's a longer drive for you, Ducati Detroit is a MUCH better dealer in basically every way than TT. From what I have heard they pulled the license for 2 reasons, the first being the exclusivity Ducati is going for that you mentioned, and the second being the large number of complaints from customers of TT. I dealt with both myself and Ducati Detroit has better sales service, better facilities, better prices on maintenance, more inventory, allows more test rides, does more promotions and customer events, and just has overall a better attitude IMO. My 2 other Ducati riding buddies and I rejoiced when they pulled Ducati out of TT. Obviously your experience may vary and you may be one of the lucky ones that had a good experience with TT, but if you can handle the longer drive you'll be very happy with the new dealer. The owner Charlie is usually there and does most bike sales himself.

akdave8 said:

I went in to pick up my panigale from winter storage and found of that my local dealer, TT motorcycles, and Ducati are at an 'impasse' and they've stopped selling Ducatis due to this new exclusivity rule. The dealer's been around for 9 years selling them and its very unusual to hear this. They sell Aprillia, MV, and couple other scooter brands and the owner's like michigan is not a good market for exclusivity. I guess they'll still service all ducatis, but no more warranty work. Anyone has heard of something similar story?


A brand new dealer exclusive Ducati dealer opened up in last fall quite a distance away, so I guess I'll have to drive the distance to check out any new ducatis in the future.

On a side note, the owner was also venting about Claudio Domenicali and Ducati politics, when he sat down with him few times in last couple years. Apparently, the atmosphere is not nice when bring up problems like the our panigale's heat as well as prior Ducatis' tank expansion problems. He also thinks Ducati's failures in motogp and wsbk also rise from similar issues.

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I can say for a fact that the TT issue was NOT in fact a result of anything exclusive. I cannot comment on the real reasons, but understand that there are SEVERAL dealers that are new to the Ducati family and are NOT exclusive. In the Midwest alone, the newest dealer is a multi line and the next two new dealers will be multi line as well. Not a single exclusive is on the horizon for the Midwest region.
The new dealer in Detroit was exclusive, but had nothing to do with TT not carrying Ducati. In fact, the new dealer was online before TT no longer carried Ducati.

TwiztedRabbit said:

I would tend to agree but my ducati dealer in indy has been around for almost 10 years now.. I know int he grand scheme of things that not a long time.. but in the motosports world it really is... they deal specifically with ducati and a focus on racing.. just last year they had their best year ever. as far as I have heard..

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And were the second highest selling dealer in the region. The status for exclusive is dependent on the amount of potential sales. Like any business decision, there is no crystal ball, but in some areas like Detroit, there is a potential to sell more than enough Ducatis to stand alone. The brand isn't in the business to open up dealers and then see them close shortly after. There is a formula and if not good enough, the suggestion is to add additional brands that compliment the brand to make the dealer stronger.

Indy is a great example of what can happen.

esmirna8261980 said:

Actually MV agusta is doing better than ducati as far taking care their dealer if you are a dealer you can order MV every month depending how you doing not like Ducati that force you to order the bike almost a years in advanced. MV it getting ready to go face to face again ducati they are expanding they bike line up and the most important part is that they are going to stock part in the USA.

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And how many bikes does MV sell in the US and worldwide? I can tell you if you wish. The issue here is that if small enough, you can make the feeling of doing business more intimate. They have great product, but the reality is that they are so small and sell so few bikes that they can afford that kind of attention. A typical dealer will sell 10-12 units a year vs. 75-80 Ducatis... There isn't a single brand that does everything right. But, sometimes the small guy can stand out because they have to in order to stay alive... They will get bigger. And when they do, it will be the same thing said.

I bought my bike from TT as well, though I'm somewhat happy about Ducati Detroit because it's much closer for me.

I don't know anything about exclusivity, but I heard Ducati wasn't happy with their outdated and cramped showroom, and after many times warning them they finally pulled their license.

Ducati Detroit is a great place as well if you get a chance to visit. I've found that waiting on stuff (parts, info, ect) hasn't necessarily gotten a lot better, but overall the atmosphere is nicer and the staff are a bunch of great guys to get to know.

transdesigner said:

I just wanted to add that although it's a longer drive for you, Ducati Detroit is a MUCH better dealer in basically every way than TT. From what I have heard they pulled the license for 2 reasons, the first being the exclusivity Ducati is going for that you mentioned, and the second being the large number of complaints from customers of TT.

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This is also inaccurate. There was no "License Pulled" moves due to anything to do with exclusivity. Not any bit of that is true. You cannot push a dealer to exclusive and if they do not do it, terminate them. States in the US are PRO dealer and that is essentially impossible to do. So, this talk of reason for pulling due to exclusivity is totally false and inaccurate.

Complaints are at every level of ownership. The best dealers get complaints. Sure, a ton of complaints can lead to issues, but again when a state is pro owner, this is unlikely to happen. You cannot simply pull brands out of a dealership because you feel like it.

The bottom line is that Ducati is no longer at TT. Simple. If they want to tell the true reasons, that's their call. But it had nothing to do with what has been mentioned thus far. What needs to happen is that everyone moves on. There is still Ducati in the Detroit market and you have an avenue to buy and be a part of the brand. What has happened, what the reasons were for that? Doesn't really matter.

But do NOT place blame on a manufacturer if you don't know the truth. The issue with forums is exactly what this thread represents and even shows with the other stories being told. That issue is that people take such a SMALL portion of reality and blow it up into the big company is the bad guy. Ducati has gained market share, has been growing. They have been building better machines and getting things as far as processes better every year. Are there issues? Sure. Any company is going to be far from perfect. And forums are typically avenues for people to complain and vent. You don't see threads from dealers saying how much they enjoy what Ducati is doing. You only hear people bitch typically.

My suggestion is that unless you want the company to build old technology, be behind the eight ball on every aspect of the industry, then they could slow their roll, stop adding dealers and stop being concerned with growth and progress... We all would be riding 851s while our friends ride what is available now... That would be fun... Although I really do want an 851...

Point is this. Look at Triumph. Look at how many dealers are in your town and how many of those have been added in the last two years. It's substantial. They are pushing for growth. The Euro brands are carrying increases in market share here in the US. There are several reasons I feel are why and that's a topic for another thread. But, the Japanese are losing market share every quarter... There is a reason.

This BS about economy and changes in choices of buyers? Yes... It is different. Yes, it has changed. BUT... The dealers that adapt and make the correct changes are enjoying success. It's happening more than it is not.

This has been a very funny thread to read... Jarel gets it. He is the guy dead in the middle of it all. He knows Ducati makes mistakes. He knows they are far from perfect. But, he also knows what they are doing right. Where they are headed... I don't see a long rant about them being a corporate juggernaut looking to take over the world and saying "F you, Mr. Customer"...

There are PLENTY of small dealers out there. The real fact is this. They are NOT growing and advancing alongside the brands they carry. As they continue to operate as if they are still in the past, they will be lost and will not be able to continue along the way and will drop off. That's called progress. Some die and some find ways to survive.

zaster said:

Says the dealer. Speak up already

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Now way, that would RUIN it! Especially the part about MV being such a great brand for dealers to work with, since none of my friends who own other dealerships that carry MV would agree. Maybe we should bring Triumph in to the discussion too???

i can only speak for touringsport here in Greenville, SC

not that i know any interna or brand strategies, it got to my ears that at least one of their 3 carried brands (DUC, BMW, triumph) is massively pushing for the corporate identity BS ... (means showroom layout, appearance, brand split, blah blah ...)

and they totally miss out on what the customers really focus on.


bikes and a good relationship with the dealer.

(that brand also pulled out of its successful motorsport activities recently ... )

im hearing (dont know how true it is) that audi will sell them and eventually phase out ducati dealers as a whole. everything done at audi

Red Dawn said:

This is also inaccurate. There was no "License Pulled" moves due to anything to do with exclusivity. Not any bit of that is true. You cannot push a dealer to exclusive and if they do not do it, terminate them. States in the US are PRO dealer and that is essentially impossible to do. So, this talk of reason for pulling due to exclusivity is totally false and inaccurate.

Complaints are at every level of ownership. The best dealers get complaints. Sure, a ton of complaints can lead to issues, but again when a state is pro owner, this is unlikely to happen. You cannot simply pull brands out of a dealership because you feel like it.
.

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I don't mean to argue, I was just stating what I was told by John H, who was the Dyno Manager and service advisor at TT. So I have a real source I wasn't making it up. How accurate his statements are I can't comment on. His statement to me was that Ducati pulled from them because they "wanted an exclusive dealer"... quote unquote. This may have more to do with the cramped and outdated showroom and other factors but that's just guessing.

mark419ny said:

im hearing (dont know how true it is) that audi will sell them and eventually phase out ducati dealers as a whole. everything done at audi

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Mark stop reading the Inquirer. April Fools was well over a week ago.

mark419ny said:

im hearing (dont know how true it is) that audi will sell them and eventually phase out ducati dealers as a whole. everything done at audi

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They should wait and see how it works out for Triumph first before making a decision on that.....

transdesigner said:

I don't mean to argue, I was just stating what I was told by John H, who was the Dyno Manager and service advisor at TT. So I have a real source I wasn't making it up. How accurate his statements are I can't comment on. His statement to me was that Ducati pulled from them because they "wanted an exclusive dealer"... quote unquote. This may have more to do with the cramped and outdated showroom and other factors but that's just guessing.

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yea, thats the same message I got from Bob, who's always in mood to talk..lol. it sounded like they were having problems getting paid for warranty stuff as well.
regardless, I think if Ducati's really going for corporate branding and exclusivity way then we might see more of this in the future.

I'll check out Ducati Detroit sometimes when I get a chance and riding that way.

Btw, I'm not sure if this happened last year, but we should all set up southeast michigan panigale meet and ride as the weather is becoming nice. It'll be nice to meet other owners from the area. I basically go on leisure rides along m-59 and m-53. you guys have any particular routes?

MacaveliMC said:

I bought my bike from TT as well, though I'm somewhat happy about Ducati Detroit because it's much closer for me.

I don't know anything about exclusivity, but I heard Ducati wasn't happy with their outdated and cramped showroom, and after many times warning them they finally pulled their license.

Ducati Detroit is a great place as well if you get a chance to visit. I've found that waiting on stuff (parts, info, ect) hasn't necessarily gotten a lot better, but overall the atmosphere is nicer and the staff are a bunch of great guys to get to know.

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can't agree with you more on that one. The TT showroom needs an update big time. I'm sure it was one of the problems Ducati may have brought-up. I think I might stick around with TT for servicing for now as they're only few miles from me and the guys really did a nice job on adding LED headlight unit on my 1199.

btw, i mentioned above that panigale owners here in the area should have a startbucks meet sometimes

In my area, Honda has tried to implement the "Superstores" with bikes, cars, lawnmowers and whatever else they make all under the same roof. Countless small motorcycle dealers have lost the brand.

Within 5 years they have been basically swept from the map. The cars are going soso, bikes and small motors have disappeared. To buy a Fireblade I would have to travel 80km where five years ago there were 3 pretty good dealers within a 30km radius.

akdave8 said:

yea, thats the same message I got from Bob, who's always in mood to talk..lol. it sounded like they were having problems getting paid for warranty stuff as well.
regardless, I think if Ducati's really going for corporate branding and exclusivity way then we might see more of this in the future.

I'll check out Ducati Detroit sometimes when I get a chance and riding that way.

Btw, I'm not sure if this happened last year, but we should all set up southeast michigan panigale meet and ride as the weather is becoming nice. It'll be nice to meet other owners from the area. I basically go on leisure rides along m-59 and m-53. you guys have any particular routes?

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Well I'm currently trying to sell mine lol, I have a guy interested right now, but if he doesn't buy it I'll be giving it to Ducati Detroit to sell for me.....unless you have any buddies interested

But there's still a possibility to meet up when I get my brand new 2014 1290 Super Duke R!!!

I think in terms of a tiny company (sold like 8500 bikes worldwide last year). MV is doing an incredible job. They still are no where near as well run as ducati in terms of warranty and such, and in the US still saddled with some really poor dealers. Additionally, they initially were rushing bikes to market (the 675 f3) without solving the fueling issues.

BUT, they've improved tremendously. I don't see them being a huge threat to ducati ever. They're also losing money by the ton by coming out with so many different bikes in relatively short period

Stw said:

Its going to take me a while to be convinced MV have their act together...

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