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buttlint


Joined: Oct 14, 2002
Points: 791

Chinese Clones
Original Message   Nov 11, 2005 8:32 pm
Let's try this again.
There is a new buzzword that is currently making the rounds on internet forums, OPE dealerships, (and even some OPE manufacturers have let it slip from thier lips)...."Chinese Clones".
What are these "clones"?..... They are "reversed engineered" copys of equipment that have been proven products on the world market and sell for a fraction of what the originals sell for.

Has anyone had any experience with these products?

I ask because I got service bulletin from a well known engine manufacturer that basically said: "If we find that you are selling any of these "clones" in your stores....or that you take them in for service....or that you have anything too do with them whatsoever....then you shall no longer be a dealer for us."

I mean: "EGADS!" That puts me between a rock and a hard place.
Should I take these engines and equipment in for service and risk the ire of our largest supplier?
Or go with consumer demand for lower prices?
TIA....'lint.

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Drillertoo


Joined: Nov 12, 2005
Points: 17

Re: Chinese Clones
Reply #2   Nov 12, 2005 8:28 am
Stupid question, obvious answer.
buttlint


Joined: Oct 14, 2002
Points: 791

Re: Chinese Clones
Reply #3   Nov 12, 2005 10:24 am
Why would the Chinese want too partner with anyone? If they are producing basically the same product, for a much lower cost, wouldnt that give them the upper hand in the market place? Why take on a partner that is weaker than you. Just take them over and be done with it. It's not like you need them for any of thier designs or products......just copy whatever you please and sell it for less. Let the competitor pour his money into the research and delvelopemnt, let him do the market research, see what works and doesnt work....then just cherry pick the good stuff. Heck...just change your name too "Beijing and Shanghai" motorworks, and I am sure you could design a nice B&S trademark for yourself. At least 50% of the average consumers wouldnt know the difference.

Yes, I do get the stuff in for service. There isn't much I can do for the customer.
I cant do warrenty because I'm not authorized. I cant fix anything because I dont have parts access. I cant bring it into the shop because a rep might walk in.
The buisness that I do lose not servicing them isnt that much of a killer...... right now. What I do get are irrate customers that just want something fixed and dont understand why I send them down the road too another place that cant do anything about thier problem.
The problem in the service end of it is.......How much is a customer willing too spend having something repaired, when the cost of a replacement is so low.
You can justify a $100.00 repair bill on $400.00 piece of equipment, but a $100.00 bill on a $200.00 unit? Most people would opt for pitching it and starting over.

The quality of the stuff ???? It's junk too me...... But that's why I ask if anyone owns any of it. If they do.....and they are happy with it.....then who am I too judge?
Its a consumer driven market and it really doesnt matter in the end how I may look at it.
drumsonly2002


Joined: Oct 27, 2005
Points: 42

Re: Chinese Clones
Reply #4   Nov 12, 2005 11:14 am

The tempting thing about clones is the price. Powerfist sells a 11hp motor (should fit on a snowblower) OHV and looks EXACTLY like the Honda, except the case color and finish. What's inside is what one doesn't see. Honda puts top quality parts inside but does the clone have the same quality? Maybe Honda makes the clone to grab the lower end market share. I asked the sales guy and all he said is they sell well and not one came back with any problems.  For me it's like buying a replica of a Rolex watch. (I never buy anything that is involved with copyright infringement). The replica watch is ok until it's wet or shaken. Not saying this is the case with the Powerfist Honda clone, that motor may be top notch. If it is, then that's a great deal, but if it's a lower quality knock off, the Honda is what I would buy though more expensive. I wonder if that 11hp OHV motor would work on the 20 year old 10hp L head Tecumseh. At least I know where to get parts for the old Tecumseh and just ordered a new carb. Going to get more info on the clone. I know Honda puts cast iron sleeves in their motors. I think the question to ask is, who makes them, where can I get parts, and who services them. If they cannot reply to that, no good buying something that has no service infrastructure. The last post got me thinking more about the service aspects rather than price.

drumsonly2002


Joined: Oct 27, 2005
Points: 42

Re: Chinese Clones
Reply #5   Nov 12, 2005 11:18 am
I should proof read my posts. I said "I wonder if that 11hp OHV motor would work on the 20 year old 10hp L head Tecumseh." but ment, would the 11hp unit work on the 20 year old Snowblower that is currently using the 10hp Tecumseh. Thinking of getting a new Toro for next winter,  the steerable one.
AZinOH


Those who accept self-deception will perish by it.
Shakespeare said "to thine own self be true".


Joined: Nov 25, 2004
Points: 189

Re: Chinese Clones
Reply #6   Nov 12, 2005 1:06 pm
"Why would the Chinese want too partner with anyone? If they are producing basically the same product, for a much lower cost"

Because achieving brand name recognition for their product, buying into an already established dealer network with parts support in place is a lot easier and faster than trying to label yourself as Beijing & Shanghai small engines and building it all from scratch.

AZ

Snowblower...Toro Power Max 726te 2004

Lawn tractor...AYP w/ 14.5 Briggs-42in 2000

buttlint


Joined: Oct 14, 2002
Points: 791

Re: Chinese Clones
Reply #7   Nov 12, 2005 4:03 pm
AZ.
You make a good point.
The problem might be that Briggs could be the eaten instead of the eater with an alliance with the Chinese.
I'm sure they drool when they see the cheap labor force making engines and parts for them...but at the same time that labor force is going too want a piece of the pie too. They arent going too just give it away.
Although a Briggs/ China relationship sounds like a win-win for Briggs.....I think they are smart enough too see how that worked out with Homelites dealers network matched with the Chinese manufacturing system.
TTI has that North American dealer network with Homelite....(and other American brand names.)
Homelite once had stong relationship with its dealers and TTI certainly has done nothing too improve things. North American dealers are dumping them left and right. There used too be a Homelite dealer on every corner, now its getting real tough too resign current dealers and sign up any new ones. There goes easy warrenty service....There goes readily available parts...there goes a dealer sales network. You buy it and if you have a problem.....you throw it in the recycling bin.
The Chinese manufacturing system, although cheap, certainly doesnt seem do it very well.
They had Murray for what....a year (?) and managed too screw that deal up so bad....they sold at a bargain basement price too Briggs.
Either way it all pans out....I dont see it doing much good for the consumer, the dealers or the American economy.
Junk is junk no matter who's name is on it. (A biased opinion for sure.)

drumsonly2002


Joined: Oct 27, 2005
Points: 42

Re: Chinese Clones
Reply #8   Nov 12, 2005 5:34 pm

The sad thing about the clone business they get market share on price not quality. People not educated about product  "x" that looks like product "a" think they are getting a good deal when in reality the cheap junky version ends up costing more due to a higher failure rate. Cloned car parts, like front end parts or brake parts made with cheap materials cost life and limb let alone wearing out faster. I sell industrial warewash equipment and every time a customer buys a cheap unit, they pay more in the end, let alone the frustrations of owing it. I like a good deal as well as the next guy but I also think of supporting what's being made in country as it helps the local economy. When I buy multi tools or knives for example, I always get U.S.A brand names and assured of quality. Good steel equals good tools. I don't even consider cheap cloned tools in my work as it costs too much when it breaks in the middle of a job. Though I am in Canada, I sell Canadian made (thought the company is US owned) equipment. I know the quality, and my customers get what they pay for.

spottedpony


Joined: Aug 23, 2004
Points: 301

Re: Chinese Clones
Reply #9   Nov 12, 2005 5:41 pm
As far as the quality of "clones" goes, i think the adage, "if it sounds too good to be true it usually is" makes a valid point.

The real issue i see here though is the legality of the statement "If we find that you are selling any of these "clones" in your stores....or that you take them in for service....or that you have anything too do with them whatsoever....then you shall no longer be a dealer for us."
While i certainly could understand a manufacturer not wanting a dealer to handle his brand lookalikes,and a dealer being hesitant to sell a copycat brand, there is no legal base i'm aware of, that allows any supplier the right to dictate what a repair shop may or may not service.and particularly the statement "or that you have anything to do with them whatsoever" Does this mean if a customer comes in to buy a spark plug you have to ask what brand of equipment they are installing it in? i can see it now, "im sorry sir, i cant sell you a spark plug for your import equipment."

 my initial thought is this has the potential for a class action suit unless its contracturally agreed upon. Threatening established dealers, with removal of they're name brand dealership, isnt going to make the copycat problem go away, its going to take action by the manufacturers themselves based on legal action along the lines of copyright infringement to put a stop to problems of this nature. And ultimately, its not the dealers responsibility to do so. but thats just my opinion.

your right though, your in between a really big rock, and a really hard place. keep us posted?
buttlint


Joined: Oct 14, 2002
Points: 791

Re: Chinese Clones
Reply #10   Nov 12, 2005 7:41 pm
SP.....right on the mark.
About 12 years ago Briggs sent out an almost identical "nasty note" regarding selling aftermarket parts.
Any dealer that sold them was going too loose thier franchise.....and they were going too die a slow and painful death.
They talked about the sacred alliance between the dealer and the company.....and how they were going too take care of the dealer....blah, blah, blah!
The courts said....nope, not going too happen that way, you dealer guys go ahead and sell whatever you please!
So Briggs says.....because you guy wont play the game our way.....we're not gonna give you guys exclusive rights too selling our parts! So there!
So today Briggs is all big and grinnie because they can sell their air filters and the best selling parts too any bigbox with some shelvespace....and the dealer is stuck with the slow moving crap and the freight and handling charges too boot.
Briggs is going too do whatever benefits Briggs.
Thier concern for thier dealers...or thier customers, doesn't run very deep.
And the clones care even less.
Combine the two...... with one making the junk and the other selling it....and I'm stuck wasting my day waiting for parts too come from Yangtang Province....while the consumer is standing  butt deep in snow, with a coal shovel in thier hands,  wishing they had spent the extra cash too clear thier driveway.
(Just a rant ...sorry, guys.)
spottedpony


Joined: Aug 23, 2004
Points: 301

Re: Chinese Clones
Reply #11   Nov 12, 2005 11:32 pm
Lint

"Briggs is going too do whatever benefits Briggs. Thier concern for thier dealers...or thier customers, doesn't run very deep."

This is typical of any large corporation, (case in point look at the oil companies. trace quarterly net earnings reports over the last 25 years, always larger profits reported, but never any losses) and your exactly right about the statement ".....because you guy wont play the game our way....." and why does industry do this? because they can. the large corporations know the little guy, be it an individual customer, or dealer, cant afford the time let alone money to battle over such a dispute so what do they have to lose? its not about building a quality product and backing up these products for dealer or the consumer anymore its all about the allmighty dollar no matter what the expense is to the consumer population, dealers included.

Funny you should mention the dealer/customer concern issue though, i  was involved in just such a discussion with someone the other day.Capitalism at its best (or worst?) dont get me wrong, i dont deny anyone the chance to make a fair profit, but when i look at commodity prices over the last 30 years my income hasnt increased commesurately with the increase of the majority of commodities. for example, fuel and machinery costs in the farming industry have increased anywhere from 500 to 1000 percent yet farm products have not increased by any measurable amount. wheat for example is still in the 3.00 average price range on the markets. it boils down to the fact, Industry can not afford to pay the workforce (consumer market) a decent wage, not because the dollars arnt there, but if they keep you in debt, there is a guarenteed work force, you have to take what ever morsels offered to survive. so based on the wage scale/commodity price relationship, who can blame many consumers for addressing low cost alternatives regardless of quality issues. couple that with manufacturing procedures that make repairs to many things difficult if not impossible, its no wonder we've become a "replace not repair" society, whether we like it or not. anyone who doubts this, try getting a repair part for a 3 year old toaster, or attemt to have a 2 year old, solid state tv repaired..(and thats MY rant for the evening, LOL)

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