Got a call from the Irish KTM Dealer/Distributor on the weekend to say he's been forced to pull out of the KTM dealership. (He was ringing all his customers to show them the courtesy of letting them know of his decision and his reasons why.)
Basically KTM are not adapting to current market conditions. With the current GBP v EUR exchange rates it is more attractive to buy directly in the UK then to buy in the Irish showrooms.
A Superduke in Ireland sits @ €13k where as the same bike costs £8.5K in the UK or Northern Ireland.
Even when taking into account the VAT & Registration Tax it is still cheaper to buy brand new in the UK and import it to Ireland.
The local dealer has been trying to match the sterling prices for a while and tried to set up a structure where KTM UK could deliver directly to them in order to sell at sterling equivalent. But KTM is not open to this and wants to hold firm on their pricing strategy and are telling him to maintain the set Euro prices. Obviously he is losing money with every sale and he's now decided to pull the plug.
Meanwhile BMW have set up an initiative which they call the 'Sterling Collection' in order to remain competitive. (i.e. bring UK bikes to Ireland and sell at £ prices) Other brands are also adapting their prices. A Speed Triple costs €11.200 standard, €11.800 R version.
With no dealer or distributor anyone who bought a brand new KTM bike in Ireland in recent times will now be forced to go across the border for any warranty work.
Needless to say the Irish customers are pissed off and we feel KTM unwilling to adapt to market conditions and want they Irish punter to make up for it. By not supporting their distributor and allowing their network to fold it signals that they do not care about their Irish clients...
It's a real shame as KTM bikes were really making a name for themselves in Ireland and more and more lads were warming up to the 'new' brand. But with no dealership they are staying well clear from the brand...
KTM seem to be in the habit of seeing problems where there is an opportunity (i.e. Long Way Round).
I'm seriously pissed off with this situation!
Basically KTM are not adapting to current market conditions. With the current GBP v EUR exchange rates it is more attractive to buy directly in the UK then to buy in the Irish showrooms.
A Superduke in Ireland sits @ €13k where as the same bike costs £8.5K in the UK or Northern Ireland.
Even when taking into account the VAT & Registration Tax it is still cheaper to buy brand new in the UK and import it to Ireland.
The local dealer has been trying to match the sterling prices for a while and tried to set up a structure where KTM UK could deliver directly to them in order to sell at sterling equivalent. But KTM is not open to this and wants to hold firm on their pricing strategy and are telling him to maintain the set Euro prices. Obviously he is losing money with every sale and he's now decided to pull the plug.
Meanwhile BMW have set up an initiative which they call the 'Sterling Collection' in order to remain competitive. (i.e. bring UK bikes to Ireland and sell at £ prices) Other brands are also adapting their prices. A Speed Triple costs €11.200 standard, €11.800 R version.
With no dealer or distributor anyone who bought a brand new KTM bike in Ireland in recent times will now be forced to go across the border for any warranty work.
Needless to say the Irish customers are pissed off and we feel KTM unwilling to adapt to market conditions and want they Irish punter to make up for it. By not supporting their distributor and allowing their network to fold it signals that they do not care about their Irish clients...
It's a real shame as KTM bikes were really making a name for themselves in Ireland and more and more lads were warming up to the 'new' brand. But with no dealership they are staying well clear from the brand...
KTM seem to be in the habit of seeing problems where there is an opportunity (i.e. Long Way Round).
I'm seriously pissed off with this situation!