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Old 05-26-2009, 01:42 PM
GTA1 GTA1 is offline
Motorized Bicycle Newbie
Join Date: May 2009
Location: GTA
Posts: 4
Default Chinese build quality

Not everyone want cheap.

Look at the profit margins being made on e Bikes now by the retailers and distributors.

The CAD $500 e bike cost no more than CAD $150 x factory from China.

Those margins are just ridiculous because it is a niche product with a limited market.

You can buy the exact same e bike in China for hardly more than $200 at retail.

Chinese suppliers get squeezed to the last micro penny, and most of them just don't have the margins to do more.

What they need to do (and they haven't figured it out yet) is to recognize that the margins are in distribution, service, and support, things that they either not do now, or don't do well.

People do pay, and pay well for these services --- look at Hyundai, Yamaha, Toyota, Honda....

All of them make premium priced products... and sell them and make money.

The Chinese got to get out of their rut.
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Old 05-26-2009, 05:48 PM
fasteddy fasteddy is offline
Motorized Bicycle Elite Member
Join Date: Feb 2009
Location: British Columbia Canada
Posts: 4,864
Default Re: Hi from Canada

When you talk about CAD I trust you are talking about Canadian dollars.

Most of the companies you mention are Multi National companies. As I said if you have a sale for 10.000 motor bike motors you may get thier attention. Depends how soon the next order for that amount is comming.

The companies making the motors that are sold are for the most part small companies.
One casts the parts. The next company does the machine work,then mabey the company that sells them puts them together but the better chance is they pick them up and deliver them to the dock to be shipped.

Hyundai is Korean and the rest are Japanese and since I have to assume you not as old as I am ,You do not remember the term ***. Cr*p that was applied to thier goods after the war.
Yes,you are right, they caught on that good business was smart business and tightend quality control.

Assuming you are right that a bike in China costs $150 at the factory door.
Now Cost to wrap,load on a container $15.00 a bike
Now cost of dock fees, loading fees
container fees,shipping fees $50.00 Landed on the East Coast. Del. Ont
Total $215.00 in your store.

Now you have bikes to prep,repair parts to repair bikes not right from factory, returns from customers, store over head, advertising to sell these fine bikes you have, trips to China to check on quality control or hire someone to do it over there. Still with me GTA1.Employees to cover you while you are gone, insurance because the first person hurt on your bike is suing you for at least a million, Lawyer on retainer because you are going to be sued, sure as you get up every morning, the accounting firm to handle the books because you are honest and with the windfall profits you are making as an E-bike dealer the government has you in thier sights.
Oh yes storage for all the parts that are no good because you can't return them and you can't fix them because you can't afford too.

The only thing I would ask is that when you open up your e-bike store to cash it on the big money, please let me know. I'd like to come to the Grand Opening and shake the hand of a very brave man!

Last edited by fasteddy; 05-26-2009 at 05:51 PM.
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