Zero expands into Canada

[Richard230]

I really have to give Zero credit for moving quickly into other markets. They have just signed up 9 dealers in Canada. That is half as many dealers as BMW have in that country. I hope their batteries like cold, rain and snow. Here is the article: 

http://www.ultimatemotorcycling.com/2011/zero-motorcycles-expands-into-canada

Thinking about Zero's rapid expansion of new dealers, I think it probably makes sense from a marketing and sales perspective. With electric motorcycles being such a new product, you are most likely to have a relatively few people in each market area who are willing to be early adopters and pay a premium (compared with a conventional IC motorcycle) for a new and untested vehicle with limited range and performance. By having a lot of market outlets you can maximize your sales, even if each dealer only sells a relatively few vehicles each year. That is a smart move by Zero. However, I just don't know how it will work out for an individual dealer, should the vehicle develop reliability or maintenance issues in the future. Dealing with parts, service and warranty claims could be more of a hassle than it is worth in sales profit. Plus, the backroom isn't going to make much from servicing an EV. I think it is going to be interesting to see how the Canadian EV market works out. Anyone for an electric snowmobile?   

I guess it all depends upon Zero's manufacturing and technical quality. One thing that will not endear the vehicle to their customers though, is their tendency of completely revamping their product each model year. Good for future buyers, but bad for existing customers and the resale value of their motorcycles.

[protomech]

It's a lot easier to test drive (and transport home) a vehicle from a dealership a hundred miles away than five hundred miles away.

[Richard230]

It's a lot easier to test drive (and transport home) a vehicle from a dealership a hundred miles away than five hundred miles away.

I agree, but I was just thinking that it is going to be tough for Zero to provide the necessary product and support in Canada, when I have yet to see a Zero on the street within 50 miles of their factory. I just think that their marketing and sales department may be biting off more than the factory can chew so quickly. They still have plenty of room in the U.S. to expand to. Besides, selling in Ontario means that they will have to translate their brochures and owner's manuals into French.   

[craigq]

Zero has been selling motorcycles for around 2 years now in Canada, so the concept isn't really that new. I don't have any numbers on the quantity sold or their distribution but a recent recall notice for the 2009/2010 Zero S/DS front brake shows 44 vehicles affected Canada-wide.  Some of the original dealerships are not listed anymore on their "find a dealer" map, but Mitchell Cycle has been there for a while.

Small correction: Selling their bikes in certain regions of Ontario might mean brochures and owner's manuals/documentation should be bilingual, but certainly not all of Ontario; the National Captial Region is bilingual, along with parts of Eastern and Northern Ontario, but definitely not Central/Southern Ontario are defined as bilingual for language of work purposes for the federal government. The only "official" bilingual province is New Brunswick. FWIW certain areas of Quebec are also mandated as bilingual for language of work purposes...

[HighlanderMWC]

I really have to give Zero credit for moving quickly into other markets. They have just signed up 9 dealers in Canada. That is half as many dealers as BMW have in that country. I hope their batteries like cold, rain and snow.

All the riders I knew in Ontario garaged (and winterized) their bikes as soon as snow started falling. In fact that's one reason I never seriously considered riding until I moved to the SF area. Maybe dirtbikers are different up there, I never knew any.

[Richard230]

Here is another report about Zero expanding their number of dealers. The report claims that Zero will have 50 dealers in the U.S. and Canada by the end of the year.

http://www.clutchandchrome.com/news/news/canadians-zero-in-on-electric-motorcycles

There have been internet rumors that Costco will be selling Zero products in their stores, but there is no hint of that in any press reports that I have read. Personally, I think that would be a mistake for both Costco and Zero. A motor vehicle is not a vacuum or TV. In any case, Zero certainly seems to be very aggressive when it comes to signing up dealers. I hope they are not just trying to block the expansion of Brammo's dealership plans.

It seems unlikely that most established IC motorsports dealers would want to take on more than one electric motorcycle brand in their shop and Zero might be signing up every dealer they can so as to keep Brammo out of the area market. I am not convinced that Zero can supply enough product at this time to fulfill demand from so many dealers. Most motorcycle buyers (present company excepted) want their motorcycle in their hands right away and are not willing to order one and wait months for it to arrive - in my opinion as a long-time motorcycle buyer.

[skuzzle]

Costco already has Kawasaki motorcycles in their web auto program (https://www.costcoauto.com/kawasaki/default.aspx).  Its just preset prices where you pick up the bike at some dealer.

[craigq]

Costco membership exclusive Zero offers http://www.costco.ca/service/featurepage.aspx?productno=10354718&sl=true&forcelang=en-CA&cm_re=1-_-SmallFence-_-Motorcycles

[Brammofan]

Thanks for the heads up, Craig. 

Looks like the "special deal" is an extended warranty and an LED headlight ($744!!) for the Zero S,
The extended warranty and "soft luggage" for the Zero XU.
The extended warranty and a FOX rear shock for the Zero MX.

But the special deal is only on bikes purchased through September 30, 2011.  And, just like the Kawasaki deal, they send you to one of the authorized dealerships. I wonder when the offer first appeared... I looked through the html and didn't see a "created on ....." tag.  If anyone is better with that sort of thing than me, please take a crack at it.

[Gavin]

So then does Brammo go through Sam's Club?

I go to Costco a couple of times a month...An extended warranty and maybe some soft side bags would be a nice exclusive...not worth losing my spot at #19, but having an Enertia Plus sitting in front of every Costco would be a good promotion and good publicity.

Gavin

[Vibetrippin]

We don't have Sam's Club in Canada. Well, at least not Western Canada.
As for the riding season, here in Vancouver I ride all year round, I below freezing in the winter just not when the road is covered in snow, which in Vancouver is about 2 days a year. Rain, that's a different story...

[Gavin]

i'm also a year round rider (though it is a bicycle most of May thru end of Sept)...

we also get about 2 days of snow covered roads here in New Mexico...of course we get almost no rain at all (less than 2 inches total this year so far...and summer is our "rainy" season)...

Gavin