Chris Elworthy Posted April 21, 2007 Share Posted April 21, 2007 Reducing prices if that is what Julian said, is not the same as discounting against RRP. Anyhow I hope the position is clarified in the next couple of days as I need to spend a penny or two at the factory. Quote Link to comment Share on other sites More sharing options...
Norman Verona Posted April 22, 2007 Share Posted April 22, 2007 MHC, the reason for discounting is simple. It sells more parts. As, I guess, about 90% of the mechanical bits can be sourced elsewhere Westfield have competition. They should discount to members to retain their business. Even if the parts are still dearer most members wouldn't shop around as it's easier to go to the one-stop shop. But by stopping the discount they put everyone into the market place looking to save money. And Westfield lose. In my experience, over 40 years in the motor trade, the next thing that happens is their parts go up in price. The body parts, which are unique to them, get so expensive the car becomes much dearer to insure and run. So expensive, in fact, that Westie owners start buying Catering Vans! Quote Link to comment Share on other sites More sharing options...
jak Posted April 22, 2007 Share Posted April 22, 2007 Reducing prices if that is what Julian said, is not the same as discounting against RRP. Anyhow I hope the position is clarified in the next couple of days as I need to spend a penny or two at the factory. Yes, but if they can't provide a discount for club memebers where does this leave the chances of price reductions? I'll reserve judgement on this until I have heard what Westfield have to say. Maybe the discouint was never an offiical offerand as now been removed. *Sits back and awaits Julians' response* John Quote Link to comment Share on other sites More sharing options...
mhc Posted April 22, 2007 Share Posted April 22, 2007 Any price thats includes a built in discount to selected customers only implies that the price is inflated to enable this to take place. With reference to selling more products: I give you Tesco as an example, no discounts, lots of competitors, and they outsell everyone. Its always about costs. Westfield know what their margins should be,So they price accordingly. Its their overheads thats the problem. In reality the kits are cheap, therefore the additional parts required to complete your car have to be more expensive. The tea leaves are telling me that there are more changes to come. my last words on the subject. Regards. Quote Link to comment Share on other sites More sharing options...
mhc Posted April 22, 2007 Share Posted April 22, 2007 Sorry but Jan tells me that Tesco's sometimes give 2 for 1. But its the supplier who has had to trim their prices to enable this discount to be given. If you buy cheap , you can sell cheap. Regards Quote Link to comment Share on other sites More sharing options...
Nick M Posted April 22, 2007 Share Posted April 22, 2007 What mhc said Plus, if you don't like the prices and parts can be sourced elsewhere for less money then why go to the factory for them in the first place ? Discount or no discount. I have a few 'preferred' suppliers based on my experience of their cost and service. Sadly the factory has never been high on that list. I only go to them for parts I really can't get elsewhere. Quote Link to comment Share on other sites More sharing options...
Paul M Posted April 22, 2007 Share Posted April 22, 2007 MHC, the reason for discounting is simple. It sells more parts. And stops owners going elsewhere, as I did for my seats, reduced profit is surely better than zero sales. I was quoted £250 for a pair of/glass seats inc mounts by Mac1 in sheffield, they buy these seats in but Westfield make theirs in house and want £400 for them. If Mac1 can make a profit at their prices just reselling stock surely Westfield are vastly overcharging for some items Quote Link to comment Share on other sites More sharing options...
Norman Verona Posted April 22, 2007 Share Posted April 22, 2007 Pricing of parts has nothing to do with cost. It's what the manufacturer feels the market will bear. If the competition dictates too low a price then let someone else make it. Well thats the way it should be. Quote Link to comment Share on other sites More sharing options...
Darkspeed Posted April 22, 2007 Share Posted April 22, 2007 Removing discounts and reducing terms with customers and extending terms with suppliers is standard practice for optimising profits and improving cash flow, next will be the cancellation of non essential shows, sponsorship and advertising. If standard current UK business practice is followed it wont be too long before most manufacturing is outsourced and the factory is de-skilled for assembly service and repair functions similar to Caterham. Makes clear business sense as far as profitability is concerned but upsets the purist and enthusiasts. Andrew Quote Link to comment Share on other sites More sharing options...
rgs_laverda Posted April 22, 2007 Share Posted April 22, 2007 If the increased prices are accompanied by better quality and eventually new exciting products than the trade-off may be worth it. It will be up to each customer to decide if it makes economic sense for their own situation. I suspect that the more affluent will stick with the convenience of factory direct shopping, while others will still make the effort to shop for the best price. One thing we have all known since December '06: a change is coming!! On the day Chris Smith put the cheque in his pocket and walked away from Potenza's new factory the changes began....... Quote Link to comment Share on other sites More sharing options...
Norman Verona Posted April 22, 2007 Share Posted April 22, 2007 Andrew, it may make sense to some but it doesn't to me (removing discounts). I'm not sure how many members there are as a per-centage of the total Westfiled ownership who would spend money on repair and upgrade parts. One things for sure though everyone who now knows there is no more discount available will be looking elswhere. Reality is they may pay more with 10% off somewhere else but they will still buy because it's percieved to be cheaper. It's short term view and can cause enormous damage to a company with a captive, group base. Quote Link to comment Share on other sites More sharing options...
JohnCh Posted April 22, 2007 Share Posted April 22, 2007 I have never seen the data, but I suspect that a very large percentage of Westfield’s new business comes from people who have done some level of research on the Internet. WSCC is an obvious source for that information, so I would think the factory would make efforts to align itself more closely with the club. If I was in Julian’s shoes, I would stick with some level of discount as a goodwill gesture (BMW & Porsche both do it with their clubs) and provide new buyers with a 1 year membership to WSCC. This way all customers receive the discount for their first year, and if the club offers sufficient value, then a large percentage of those customers will renew the membership after the one year trial is over. WSCC wins because the membership base is expanded, Westfield wins because they foster a community that creates demand through its enthusiasm for the marque, and the customer wins because a stronger WSCC means more value to them provided they remain a member. -John Quote Link to comment Share on other sites More sharing options...
Darkspeed Posted April 22, 2007 Share Posted April 22, 2007 Norm, I don't think it's a particularly sensible move either but it is a standard practice and not at all suprising in a company when enthusiasts leave and accountants take over. Removing the discount to members of the marque owners club is penny pinching in the extreme and just looks like a desperate measure to show profitability improvements on the balance sheet. Short term gain - long term pain..... Andrew Quote Link to comment Share on other sites More sharing options...
scott beeland Posted April 22, 2007 Share Posted April 22, 2007 Before any more "expert analysis" is made on Westfields/Mr Turners reasonings for cessation of discount structure... I think it would be fair (not to mention polite) to allow Mr Turner/Westfield to announce their intentions; as they see pertinant in a public forum; either drirectly or via the committee. In business; everything is done for a reason....before we all start decrying Mr Tuner/Potenza/Westfield as "penny pinching" and insinuating that they are betraying the wscc/ members/drivers/builders; should we not give fair opportunity for comment?? Quote Link to comment Share on other sites More sharing options...
stu999 Posted April 22, 2007 Share Posted April 22, 2007 Chin the barsteward... Oops, sorry - wrong thread Quote Link to comment Share on other sites More sharing options...
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