What Will Happen to the Unsold Scooters?

Well, some are apparently starting to clear out their inventory on eBay.

What's more interesting to me is what will happen to their inventory of parts. If the company assets are liquidated, someone's going to end up with a warehouse full of Vectrix parts and I'd like to think that we might still be able to purchase them. We can always cannibalize parts from other scooters, of course, but we should at least try to work through the existing inventory first.

Chad

It seems they're just giving them away on fleaBay. $5,000 Buy It Now prices, and less than $5,000 auction prices. I guess we now know who was making the real profits @ $12,500 prices, don't we?

Not really. The bike's value (as a high-end model with long warranty, etc) is greatly reduced without the dealer network/company behind it. $5000 is just what they are now worth.

I purchased my silver 2008 Vectrix recently after seeing them on Ebay for $5,500 buy it now prices. I called the local dealer and asked him if he would match that price. He quickly called me back and agreed on that price. Just 6 months ago that same dealer wanted to sell them for 8995 plus delivery and other charges. It would have cost me more than 10 grand if purchased at that time. I see it as a deal even if the company probably will never honor the warranty. I just could not pass up $5,500 on this great machine. The dealer apparently had a whole warehouse of them and at this point they are just trying to sell them for whatever people are willing to pay given the state of the Vectrix company.

Well, some are apparently starting to clear out their inventory on eBay.

What's more interesting to me is what will happen to their inventory of parts. If the company assets are liquidated, someone's going to end up with a warehouse full of Vectrix parts and I'd like to think that we might still be able to purchase them. We can always cannibalize parts from other scooters, of course, but we should at least try to work through the existing inventory first.

Chad

I suppose the answer lies with who owns the remaining stock and spares. If the dealer has paid for the stock, they are his to dispose of as he wishes, but if he still owes Vcorp, then by the terms of his agreement, title would rest with Vcorp, and the Vectrix liquidator/receiver/administrator would own the stock. In due process this stock will be sold to interested partie(s). This will not be an easy process, since Vcorp operated a very complicated corporate structure over at least three jurisdictions, and ownership of various may be disputed. If Vcop could achieve an intact sale for the business assets, that would be simpler and more desirable, but this hope may be overly optimistic in view of the complications.

More will become aparrent, when the US company finally confirms what type of bankruptcy relief it will seek.

In the meantime, please read (and support) Mik's excellent thread "Proposition for a Vectrix Rescue Fund"

I purchased my silver 2008 Vectrix recently after seeing them on Ebay for $5,500 buy it now prices. I called the local dealer and asked him if he would match that price. He quickly called me back and agreed on that price. Just 6 months ago that same dealer wanted to sell them for 8995 plus delivery and other charges. It would have cost me more than 10 grand if purchased at that time. I see it as a deal even if the company probably will never honor the warranty. I just could not pass up $5,500 on this great machine. The dealer apparently had a whole warehouse of them and at this point they are just trying to sell them for whatever people are willing to pay given the state of the Vectrix company.

I wish that I could get those prices in Europe...

The dealers paid for the bikes in full. All vehicle dealers work that way. Every car/truck/cycle/boat/etc is paid for before the dealer receives it. The cost is often financed by a bank or finance company on what is known as their "floorplan".

The dealer cost for the Vectrix was $7500 plus shipping (About $300 for our distance). In addition to the bikes, each dealer was required to purchase tools, promotional materials and spare parts inventory that added up to about another $4000.

We have been selling the remaining bikes on eBay for +/- $5000 each. We are down to our last bike. A 2008 in silver. It is not currently on eBay.

We have been loosing close to $3000 per bike at $5000. I saw a few dealers selling 2007s on eBay for as low as $3600. I'll keep the damn thing before I sell it for that. It is a great bike. A lot of fun to ride.

We have been negotiating selling our remaining parts inventory and tools to Bob Curry (MDBOB). So in the future you may be able to buy some individual parts from him. At this point, we are selling the parts and tools as a package. If you are interested in the parts and tools, or the last 2008 bike please email me at fleet-man [at] msn.com.

So you paid $7,750 each for them, huh? So, it really was the dealer's greed that kept Vectrix from selling like they should have. I wonder how many you would have sold, if you had been selling them for ~$9,500 each, instead of ~$13,000 each.

So you paid $7,750 each for them, huh? So, it really was the dealer's greed that kept Vectrix from selling like they should have. I wonder how many you would have sold, if you had been selling them for ~$9,500 each, instead of ~$13,000 each.

That is a very interesting response. The price of a Vectrix actually varied widely, and fluctuated with the price of the batteries, (nickel prices). Overseas, the price of a Vectrix varied widely depending on trade with US dollar. (Except in UK, where VUK was company owned).

Of course, it is really silly and offencive to claim that the dealers markup was excessive. Be realistic, a dealer has to carry spare parts inventory, market and educate a new product, employ sales staff, maintain the overheads of a premises, pay taxs, registration, cover each week the high financing cost of the unsold stock, warranties, shipping, etc, etc .. and try to make a profit.

All this for a very limited demand product. Now, its true a dealer with a very popular item, can reduce profit margins in favour of volume sales, Vectrix never would have qualified as a mass seller and regardless, it's really the job of a factory rebate scheme to compete for floor space in a dealership.

I think it is great to have a dealer, post here and explain his experience. He certainly doesn't deserve being called the greedy culprit who destroyed Vectrix! His experience is fairly typical, Italian, Australian, and South African dealers found themselves paying very high prices, for a product that was uncompetitive and unsupported by the factory, most report they couldn't sell vectrix even at a substantial loss.

The dealer is in business to make money, think he's greedy? The answers simple! Just invest YOUR money in a dearship and hand out non-factory supported discounts.

Marcopolo, I've long realized that you were a Vectrix dealer, but thanks for finally "coming out of the closet", as is said here in the US about secrets. As far as a response to your response, I only have these things to say:

1) This dealer isn't located in Europe, so the majority of your rant doesn't even apply.
2) Yes, almost every Vectrix customer (or near customer, in my case) feels that trying to make more than $5,000 profit on a scooter is excessive. Very excessive, in my opinion.<<--This was supposed to have started out with "as far as I know"
3) I called Scott nothing at all. I called Scott's boss greedy, along with every other Vectrix dealer I've ever heard about. Scott is nothing more than an employee, and had no say in the price at which his boss was trying to sell Vectrix products.
4) I never said you or his boss were solely responsible for the downfall of Vectrix, although I do feel that the ultra-high asking prices were a factor. Might you be feeling somewhat guilty now that it's too late to lower your prices???

Marcopolo, I've long realized that you were a Vectrix dealer, but thanks for finally "coming out of the closet", as is said here in the US about secrets. As far as a response to your response, I only have these things to say:

1) This dealer isn't located in Europe, so the majority of your rant doesn't even apply
2) Yes, almost every Vectrix customer (or near customer, in my case) feels that trying to make more than $5,000 profit on a scooter is excessive. Very excessive, in my opinion.<<--This was supposed to have started out with "as far as I know"
3) I called Scott nothing at all. I called Scott's boss greedy, along with every other Vectrix dealer I've ever heard about. Scott is nothing more than an employee, and had no say in the price at which his boss was trying to sell Vectrix products.
4) I never said you or his boss were solely responsible for the downfall of Vectrix, although I do feel that the ultra-high asking prices were a factor. Might you be feeling somewhat guilty now that it's too late to lower your prices???

I refute your, as usual, erroneous assumptions, 1) I am not, nor have I ever been, a Vectrix dealer !! What I wrote is simply very common business, and in particular, automotive business practise and knowledge.

2) I am perfectly aware that the dealer is located in the USA, my comments were to widen the understanding of Vectrix marketing practises and difficulties.

3) Scott was writing as an executive of his dealer, and my understanding, unlike yours, he was defending his employer, or why would he write? Do you really think he is saying his boss is greedy?

As to the rest of your poorly thought out response? Well, it would be difficult to lower my price since I don't have one!! Guilty? Ultra High prices? Not really, any product will seem very highly priced if you delight in a complete ignorance of overhead costs. In fact the major failure of business start ups, is people who don't realise or allow for the huge cost of bringing a product to market, as opposed to simply making the product! Indignant, inaccurate, and abusive rants are not much of a substitute for reasoning and learning.

(A common socialist philosophy type hatred, is the fact that each customer pays a higher price for all the customers who didn't buy! Sadly, although this seems unfair for the few loyal customers paying a high price, this is just a fact of commerce!that's why the more exclusive an item, the higher the price. The trader doesn't make a greedy profit, that's more likely to be Wal-Mart)

Vectrix was actually brought down for exactly this reason, the management, particularly the CEO, just had no concept of costing policy expenditure!

But, hey, Like I said invest your own money before you call others greedy!

...
...
We have been negotiating selling our remaining parts inventory and tools to Bob Curry (MDBOB). So in the future you may be able to buy some individual parts from him. At this point, we are selling the parts and tools as a package. If you are interested in the parts and tools, or the last 2008 bike please email me at fleet-man [at] msn.com.

Do these tools include the software tools?

If yes, then we might be able to get some decent funds together to buy them!

So you paid $7,750 each for them, huh? So, it really was the dealer's greed that kept Vectrix from selling like they should have. I wonder how many you would have sold, if you had been selling them for ~$9,500 each, instead of ~$13,000 each.
...
3) I called Scott nothing at all. I called Scott's boss greedy, along with every other Vectrix dealer I've ever heard about. Scott is nothing more than an employee, and had no say in the price at which his boss was trying to sell Vectrix products.

Uh, Criswell didn't even become a Vectrix dealer until Fall 2008, months after the price point dropped to 9K in the US. I don't think they ever came anywhere close to 5K profit per bike. And Scott has always been extremely helpful and professional. I have gone to them for parts and service and certainly would not call Scott or Criswell greedy.

Doron

...
...
We have been negotiating selling our remaining parts inventory and tools to Bob Curry (MDBOB). So in the future you may be able to buy some individual parts from him. At this point, we are selling the parts and tools as a package. If you are interested in the parts and tools, or the last 2008 bike please email me at fleet-man [at] msn.com.

Do these tools include the software tools?

If yes, then we might be able to get some decent funds together to buy them!

Good thinking!, I would be interested to join this initiative.

Norman

So you paid $7,750 each for them, huh? So, it really was the dealer's greed that kept Vectrix from selling like they should have. I wonder how many you would have sold, if you had been selling them for ~$9,500 each, instead of ~$13,000 each.

Assuming the $7,750 price is for the "current" $10,495 MSRP then that's about a 35% dealer margin which seems reasonable to me. Margins in the scooter industry seem to range all the way from 15% to 50%. And anyway - it's Vectrix, not the dealer, who sets the MSRP (that's what the M stands for). The manufacturer also usually set rules on the MAP (minimum advertised price) to stop dealer pricing wars souring the market.

Sorry myocardia - but I think you're a little off-base with this one.

I wonder what the COGs (cost of goods) is for a VX-1? As marcopolo points out Nickle is expensive.

My impression isn't that the VX-1 was priced to give too large of a profit but that the cost of producing it was too high to begin with.

Assuming the $7,750 price is for the "current" $10,495 MSRP then that's about a 35% dealer margin which seems reasonable to me. Margins in the scooter industry seem to range all the way from 15% to 50%. And anyway - it's Vectrix, not the dealer, who sets the MSRP (that's what the M stands for). The manufacturer also usually set rules on the MAP (minimum advertised price) to stop dealer pricing wars souring the market.

My impression isn't that the VX-1 was priced to give too large of a profit but that the cost of producing it was too high to begin with.

This is correct. The costing on the VX1 was inaccurately low, the manufacturing costs were based on unrealistically high output figures, and no one had calculated for the fluctuating cost of the batteries or impractical world wide servicing policies.

The dealers also had difficulty with a product marketed on the Internet, that favoured certain dealers and allowed market confusion with others. This is one of the problems, when you deal in todays world and Vectrix just ignored these lessons.

The