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  1. #1 Develand City 
    Senior C-Moto Guru MJH's Avatar
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    I believe this forum gets a high level of exposure and that Chinese motorcycle manufactures visit the site.

    So I am posting this information for the consideration of those in the industry.



    It’s interesting because the department stores all have loading docks, they can be used as warehouses. Then the stores in the mall could be used for displays showrooms. All the brand could be stored in a central warehouse and even parts support managed as a managed service. Then each brand would or could get its own display in a mall store.

    It could be a power sports exposition center, dealers could come in and view the products on a permanent display. Then also the site could have a virtual replication online allowing each brand to be connected with its own online support interface and virtual product showroom.

    Anyone ordering would be able to get the product shipped direct to a dealer for preparation. That would be all dealers could sign up and have contractual rights to sales in assigned areas that they are licensed in.

    So the concept is that of a single distribution center and permanent display, much like a trade show just it never closes its always open.

    It would have managed services that would offer inventory and part management, marketing and distributing services as well. This offer each the advantage of unit costs of such services in flat rates each unit that enters the system would get assigned a flat fee or set of fees. The actual space for display included all service fees included and incurred on unit of sale basis so it would drive the rotation of inventory. That being no revenue is actually received until the units sell.

    It is Devland Holdings that have acquired this location, it is currently the site of a PSI Power Sport Institute.
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  2. #2 Re: Develand City 
    Senior C-Moto Guru MJH's Avatar
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    I am being forward thinking, the location of propsed Devland city consists of primarily low cost square footage that happens to be highly adaptable. The mall itself is ideal exhibit space, the vacant departments stores are basically large open spaces, that have loading docks. The key to the success would be in the offering of managed services; as in inventory management and documentation services as well as technical support and training. The PSI is technical support; it is what they do, they train mechanics. They also offer curriculum in inventory management software applications.

    Trade shows are annual event for the industry the concept would be for a permanent year round exhibit space. That space would also be replicated in virtual showrooms online. That being the lease of space could include managed services, a website and also a interactive support interface all individually branded. The support interface would be online parts and access to all digital technical documents as a managed service package. The inventory could be managed on site and at satellite warehouses.

    It may be possible to set up an EPA testing center as well at the location and potentially a free trade zone. The later allows the deferral of tariffs until final sales occur.

    Item that enter the system could be charged unit fees, flat fees and the managed services would escalate sales. Since revenue would be on sold units then moving inventory would be imperative. Then doing that intelligently as not to flood the market would insure profit. Prices could be set in advance under contract through the value chain as percentages or flat fees.

    The managed services would include global logistics, from the factory to the dealers, basically dealer would not need to hold inventory. They could but they would not be required to, they would simply be support/service centers. Visiting the center they could also send technician for training or even interview for new technicians.

    The model would require manufacturers to float inventory through the system, that being holding costs until final sale, that stops flooding of the market. They compete on price quality and designs on or in a level system. The support systems would benefit on rotations of inventory so they balance.

    What is interesting is that all the functional support aspects can be utilized in and for other applications. The development of the system and its entity would have the ability to address other business processes. It creates a global logistics company, a software application development company and market and marketing research company…data warehouse and actual physical warehouses.

    LOL

    Comment, questions, criticisms?
    Last edited by MJH; 01-28-2012 at 07:00 AM.
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  3. #3 Re: Develand City 
    Senior C-Moto Guru MJH's Avatar
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    “Neill Bernstein hosted a news conference Monday in the vacant theaters at the sprawling, empty mall. The developer, who has much of the property under contract, identified two likely tenants for a business enterprise zone: MedAdherence, a business that helps keep patients compliant with their medications; and C.E.S., an Israeli company that has developed energy-management systems for residential and commercial buildings.”




    The existing manufactures of power sports products coming out of china are an existing market segment in the USA, consolidations of distribution through one entity would bring about a positive economy of scale. That being multiple manufacturer and one system to manage their distribution. Brand names retained and products advertised independently but supported through a common shared system.

    It’s interesting because that allows even or a leveling of the market to all that offer goods for distribution. Revenue realization on final sales and unit fees would perpetuate rotations of inventory based on efficiency and actual demand. If manufacturers held cost until sales occurred then they would only offer what they know would sell, then if marketers only received fees once units sell then they would be motivated to sell that inventory. Price would be a control function obviously raising and lowering controls the demand. Once the costs exceed price sales stop, quality and control maintain reputations.

    Each unit tagged with an ID and in that ID having embedded links to full sets of parts and related digital documentation. Items or units entering the system tracked throughout the products life cycle. Each carrying a cost and all related obligations and dispersion of both those costs and revenue streams from the final sale. The products would have performance metrics. Nothing more then a character string and then sections of that string represent separate sets of data. Then in those they can contain more sets, it is all relational data and linked on one primary unique ID number. One manufacturer cannot see the others, they only would see those that contain their prefix and that’s their WMI. That itself could be a link to a data set in the NHSTA.

    Such a facility could offer many slots maybe as many as fifty? Then fifty different manufacturers would have a well defined access to the market. They could compete and introduce as the pleased to gain a share. If not competitive they would drop out and others could come in to replace them. Only those that are not or do not have their own distribution systems already would be interested. So it would allow easy access and a managed system to monitor the performance in the market as well as durability and reliability of the product they offer.

    Manufacturer costs + managed services costs+ dealer costs = price
    The manufacturer would set the price and on the sale allocation of contractual fees would be dispersed to accounts.

    Each sale would be assigned to a regional dealer regardless to were the purchase was made, the zip code of the consumer/customer would define the rights to the sale.

    Dealer would take delivery and be that technical support center for that purchase. There fees would be to take delivery and process any services incurred by the owner.

    The service would be through one online linked parts store all indexed and managed on the individual vehicle ID. Each products introduced would have sets of criteria making it conforming to the common system. Basically fully documented with parts support and the technical college could supply certification and trained mechanics.

    Customers and dealers could visit the center, it would have a permanent exhibit space. It could even offer test riding tracks and rider training courses.
    Last edited by MJH; 01-28-2012 at 07:06 AM.
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  4. #4 Re: Develand City 
    grumpy old sod jape's Avatar
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    Not many takers MJH!
    I have read this a couple of times and I am not qualified in any way to comment except generally. Such a business model has many positive suggestions for the consumer and if applied would seem to also offer obvious rewards for the businesses involved. My comments would be that in most of the businesses I have worked or had contact with in different capacities over decades, management and forward planning is by human beings! Varying from cold, calculating individuals with bottom-line in mind and little real idea of how people operate as staff or as customers, to idealists with wonderful dreams and no practical sense.

    But overall, most I have met are, to put it simply, uninterested or stupid or scared. That sounds like an arrogant statement but just look at politics and large businesses like Telcos. The odd individual like Branson makes a difference I guess.

    But then some corrupt or ignorant fool obtains power and makes decisions that lead to total world financial crisis, war and terrorism.

    Also, wider factors should be considered like massive Internet growth as a sales vehicle and Malls running down it seems all over the place - and why would Chinese Manufacturers even bother with ANY western models of business (old or new) just to sell a few tens of thousands of units and make a profit of a million or so when they can steal, copy, implement, license, borrow, alter, or improve existing designs and sell millions more to their own growing home and local markets and make MUCH easier tens of millions of dollars?

    We do get the benefit of that as relatively rich westerners but our consumer society in general is fixed on targets usually involving criteria such as flashest, blingiest, fastest, biggest - and accompanied by greed, one-upmanship and sefishness, That does not tend toward commonsense business models, it trends toward advertising, Formula 1 car racing and such expensive useless nonsense, Top Gear being watched by a quarter billion souls, and practical simple machines being slagged off and laughed at.
    Well, you did ask.
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  5. #5 Re: Develand City 
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    Hey! What's wrong with Formula 1? ;-)
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  6. #6 Re: Develand City 
    Senior C-Moto Guru MJH's Avatar
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    I cannot disagree with any of that…..

    I do not think the Chinese are interested in selling cheap in the USA, they actually would like to sell in parity to the higher priced goods already selling in the USA.

    That takes years to get to, it takes decades.

    It is built on brand name recognition and in the demonstrated due diligence.

    The cost and time required to do it correctly is always related to economics in feasibility. Certain factors as components weigh in that as a total cost and in business that is referred to as a cost function.

    http://www2.econ.iastate.edu/faculty...xamplecost.pdf

    The unit costs fall proportionally with increases in units sold that is the economy of scale. So sharing costs across common functions that are the same like logistic and inventory management reduces the component costs per unit. It is a sustaining systems because it would baseline on covering costs and the cost all inclusive. That allows entrance into the big market by multiple manufacturers.

    It is all very basic and in economics the basic laws have to be valid first before the complexities can even be considered.

    Supply and demand is also a function.

    http://www.investopedia.com/universi...economics3.asp

    The highest price is on a limited supply, the competition can come in to the market at that point forcing the price down.


    Main point is that in order to compete its not just on price, it in this market is full set of services. Collectivism offers the economy of scale to afford the required service level to gain the markets respect.

    Entering the market is very much like a resume it cannot have mistakes in it, it cannot have spelling errors or grammatical inaccuracies. Coming soon or we will eventually have that or offer that is a deal breaker.

    To me it would be like what the RDW does in the Netherlands, it’s a linked relational data based system. To enter the market you have to meet criteria and then once in it a matter of market economics. It would be like a sub government paid to police the system at a flat per unit fee.

    If the factory held costs and the distributor was paid on units sold then it would self regulate. The costs per units fall for distributing them as its a matter of economy of scale.

    Its not gaming the system its actually de-gaming it. It would force market economic on it, if you cost too much then maybe you are overvalued as others are doing it for less?

    As for the financial crisis that’s a matter of many fools that assumed letting it ride would only bring more and ever increasing gains? Logic would have or should have appeared but never did, taking the gain and renting would have left many with cash in the bank, but no they sold and moved up, the higher the monkey climbs. Funny as in monkey see and then monkey do? So gleeful to take a gain but so reluctant to take the loss, its fascinating mathematically they are identical actions as in are the same thing, nobody cried about the ever increasing and related falsities did they?
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  7. #7 Re: Develand City 
    Senior C-Moto Guru MJH's Avatar
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    It’s kind of odd….The developer Neil Bernstein is or shares investments with Donald Trump?
    Also the horse track across from the mall was sold to Hara for about 90M last year.

    Cleveland has some larger project going and this may have attracted this developer, that mall sold for near nothing.

    One of his intentions is to attract a global logistics company?

    My proposal is not way off in left field, it would not be difficult to find Chinese manufacturers interested. There are hundreds of them, the larger ones may not be interested or they may? They would have to be approached directly.

    The people that run the trade school will likely develop something related to mechanics, they are considering an operation that restores vintage cars and motorcycles.

    It has some motor heads in it at the onset….that is what makes me think about the importation of power sports. Indian, Chinese and Korean….

    We like the copies and if the copies are of models that sold in volume they share common parts. They could copy CB Hondas 200-550cc they were very popular. I am sure that many that restore them would like to have access to new parts. The vintage bikes only need the frame and title….they could be totally built around that actually even totally rebuilt as in actually only the title is needed.

    I am fairly sure anything over 15 years is no longer rights protected. Why reinvent the wheel? They can say shares a brand H, S or Y part, they cannot use the brand name but they can copy anything not right protected.

    No takers that is funny its only a corner of the internet, it only has two links embedded that can bring back readers. Actually three now….

    that face book account is not a hit magnet either is it?
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  8. #8 Re: Develand City 
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    Are these ideas you have of simple academic interest or do you have real business aspirations? If you are in a jail cell or bedridden with time on your hands then that is fine too! It is as you say just a small forum in a dark corner of the Internet. But your ideas are not stupid and you could find a better place to voice them perhaps, or using your intelligence and research skills you could find ways to drop a fully-fledged, research and development and business plan in front of the red-headed ego-tripper (successful) you mentioned. But unless you can find out what the side deals are, what is the main game that you suspect is going on and even perhaps unless you find out which lobby group/senator/government agency is involved in the larger strategy you could be throwing a good idea at a lost cause because it is already divvied up and decided.

    Or even learn some Mandarin for politeness sake and then aim at a few generals/business/triad people in mainland China, see if they want a front for anything? The model could be applied in any first/second world country. Might cost you a blood oath however or marriage to ugly daughter number five.

    I keep away from facebook, fullstop. For me these conversations are just a step beyond idle chatter between working outside on fire danger clearance, or going to the shops for supplies! But you do often intrigue me, I like your thinking, your intelligence and what I perceive is your humour so don't take offense at my responses. Surely your ideas have more value to you then one or two vague responses on a quiet m/c forum?
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  9. #9 Re: Develand City 
    Senior C-Moto Guru euphonius's Avatar
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    It's an open question whether the Chinese manufacturers have the interest or the vision or the discipline to crack the US market the way the Japanese did, starting with Honda way back in the early 1970s. Frankly I doubt it.

    MJH, you've invested a lot of time and insight launching this Develand thread, assuming that C-level execs and marketing types in the Chinese industry are avid readers of this forum, hoovering up insights and tips and leads. To be frank, I really sincerely and regrettably doubt that is the case. When I picked up my JH600 from Jialing headquarters in Chongqing -- and, mind you, this is one of the world's biggest motorcycle companies, if not the biggest, purportedly/reportedly making 2 MILLION bikes a year -- they did not know what MyChinaMoto was, and it was I who showed them. OK, one guy knew -- an "international marketing" guy named Li Shilin -- but he does not himself ride a motorcycle, has little or no interest in motorcycles, and was not in the habit of browsing MCM at all. I got the service manager Zhou interested, and we spun through a bunch of posts about the JH600, but he complained that it was in English.

    People like to think of China as having business in its blood, but when it comes to giant state-owned manufacturers, and even most of the private makers, you can see they do a lot better as OEM suppliers, taking their production cues from incoming orders on the fax machine, rather than actually getting out and understanding customers and their needs, particularly if those customers are overseas and speak that vexing thing called a foreign language.

    On the other hand, you are wise to air these ideas in this forum for the simple reason that many of us here in China DO have regular contact with various manufacturers, and do raise these ideas with them. We all have a vested interest, wanting China to provide better bikes and better service than what we get now. I could name at least a dozen MCM members who have visited major Chinese bike makers at least once, and we're always generous with our encouragement and suggestions for how to raise their game. Bikerdoc is meeting with CFMoto this week, for example. And you can browse through the archives and find many reports about various members' factory visits. So don't give up hope. But neither should you expect the industry to elegantly understand and embrace your grand vision!

    cheers, I think...
    jkp
    Shanghai
    2010 JH600 "Merkin Muffley" (in Shanghai)
    2000 KLR650 "Feezer Ablanalp" (in California)
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  10. #10 Re: Develand City 
    Senior C-Moto Guru MJH's Avatar
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    I am very good at the motives, that man got that land very cheap and in a distressed market.

    The paper the Plain dealer is a Newhouse publication they present him and lets see where they take it?


    The parties also have agreed that Harrah's will contribute its recently acquired Cleveland-area Thistledown Racetrack into the pending joint venture.




    Last edited by MJH; 01-26-2012 at 05:24 AM.
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