What's Wrong / Pelican Followup

[Wayne 962]

Ok, I had to start writing this response before finishing half-way through everyone's comments, because I knew that there would be something I would forget.

First of all, Pelican is not doing poorly - sorry if I gave that impression. Just because a company is not earning a profit doesn't mean that it's doing poorly. We're only 3 years old, and have seen sales go from zero to more than seven figures over that time. I guess we must be doing something right. However, to suceed, we need to make sure that we're correctly servicing our customers. Hence this post...

On the issue of mistakes and backorders, and other problems like that. We try our best to make sure that your order is perfect, and complete. We just installed a brand new computer system (written by yours truly), that will be able to accurately track and manage backorders. When you supply more than 20,000 parts - it's sometimes tough to keep track of things like that. You will be able to check the status of your order, and see if something is backordered as soon as someone here at Pelican checks in your order (should be first thing the next morning if placed overnight).

On the issue of price, a lot of you are saying that our prices are much higher than our competitors. However, most of the time Vertex is mentioned. Without going into too much detail, Vertex doesn't have a good website, doesn't have on-line ordering, charges you for credit cards, and doesn't have a toll-free number. As you might have guessed, all of this costs $$$. If I were to categorically match Vertex's prices, then it would be bye-bye website, bye-bye toll-free number, bye-bye tech support and all of the other things that Pelican stands for. I did not start this business to run it as a discount house - but instead to run it as a company for enthusiasts. And we've been successful at that. Vertex was around when Pelican was just an idea in my head, and I did not want to be 'just another.' Besides, I have a copy of Vertex's new printed catalog, and some of their prices in the catalog are higher than ours! (printed proof in my hand). If Vertex were so wonderful, then they would be the $30+ million company that Performance Products is. For some reason, they have been around for many years, and are still run out of the back of a garage. (Not really my goal, and destined to become a reality if I categorically match their prices).

Now, some of you mentioned that our prices were higher than Automotion and Performance Products on some items. That's most likely an error on our part. There are some items (such as Weltmeister stuff) that I have to buy from PerfProd because they manufacture it. They do not typically give me enough room to keep my prices lower than theirs, but these products are by far the exception, not the rule. Your feedback here has indicated to me that some of our prices are too high on some items. This is probably not on purpose, but more because we sometimes lack the resources to quickly adjust prices to increases and drops in our costs. We will be looking at adjusting our prices in the near future so that they don't seem wildly off...

As I suspected, it seems that we need to beef up our catalog again, and add pictures, pictures, pictures. I have always struggled with the choice of adding more product or adding more photos, and I usually have chosen product over photos. However, it seems like we'll have to balance that if we are to support everyone here. I would like to place parts diagrams in the catalogs, but for potential liability concerns, I am reluctant to do so. Perhaps there can be a bit of a compromise - stay tuned - I have a bunch of ideas on this subject.

As for BMW, it's here to stay. As our business expands, the economies of scale will help make everything better for both Porsche and BMW owners (new server for this BBS is coming soon). We see the BMW market as an important co-market along with the Porsche market.

Tech Support - most of you use the BBS for tech support, so you are unaware of our award-winning tech staff - Bob, James, and Dave, who answer email questions on a daily basis, and are considered experts in their field (Dave won the PCNA tech quiz at the Parade last year).

As for local events, this is a good idea, but very time-consuming for the amount of potential return. I can't help thinking that my time would be better spent writing more material for the website (which would attract people worldwide), versus attending a local event that may be attended by 200 or so people. Keep in mind that we get over 7000 unique visitors to the site each day.

Ok, I have to make our catalog more comprehensive (add everything including the kitchen sink to it) and more impulse-oriented (like the colorful front pages of Perf/Tweeks catalog). I still think that the Internet is the way to go - ordering on-line is soooo much easier than phoning in orders.

The Wish-list / Project List feature I wrote in about 12hrs - there are still some bugs, and I also need to convert it from flat-file to SQL. Look for that in about 2-3 weeks - it is a high priority. I'm also excited about our new order-delivery and tracking system. Nothing in the industry (not even Amazon) comes close. You'll be able to check the status of your order, see any changes, track backorders, and see who handled and packed and shipped your order, all from the web. This will be true for phone orders too. This will be up in about 2-3 weeks too.

Customer Service? That's what we're known for, so I can't help but hope that the one or two isolated incidents that people mentioned here are the exception.

Advertising on the web. I'm going to have to start selling advertising on the BBS and the website. There's a lot of potential there, but I have been reluctant to irritate my users by tossing ads their way. I have mulled this for a very long time - traffic is now finally to a point where we can be considered a large site by advertisers...

Advertising - We advertise in Excellence, Panorama, Grassroots, Bimmer, some local regions, 911 & Porsche World, etc. We sponsor 3 of the largest Rennlists. My ad budget is almost as large as PerfProds or Tweeks (Actually larger than Tweeks). I think that this has done well for us, although I overspent my budget by a lot (one of the reasons there's no profit). I'm now tapering down my advertising to save on costs - we'll see what the effect is. Local PCA advertising is not bad, but there are so many local regions, and all of these people receive Panorama, so I'm duplicating my efforts there.

Suppliers - I know this one, and ours need to get ready for some phone calls! We're big enough now to get better pricing from people...

Repeat, frequent-flyer programs. An excellent idea - builds brand loyalty. Maybe tie it into the number of posts that somone makes on the BBS? Tough technology questions there, but most likely doable without too much heartache.

Shipping costs? I've installed a formula-based system that queries UPS and gets standard rates from them, so our salespeople will charge the same exact amount that the website charges. Unfortunately, it does cost about $7 to send a 1 lbs package locally versus $15 for a 40 lbs. package locally. Doesn't seem to make sense, but if you want to complain -> www.ups.com. Perhaps I need to talk with Airborne...

The name Pelican is unique and very rememberable. No, it's not SUPER-GERMAN-PROS or AUTOMANIA, or SUPER-DUPER SUPERMACHINES. They all seem to blend into one after a while. Performance Products? How general can you get? You all have valid points about being related to the cars, but when we started, we literally spent 20+ hours coming up with the name (it wasn't picked out of the hat). No body thinks of Amazon as a dumb name, do they (besides me I guess). What has Amazon got to do with books? I think that the uniqueness is more important that whether it sounds like something German techy. Not defensive here, just our opinion...

Well, it's time for a nap. I'm depressed now. I'll have to go re-read the post from the other day asking people what was right with Pelican. Thanks everyone for all your comments. I realize that our typical customer may not be the person who reads this BBS, but the things that you have mentioned are indeed very important and very applicable to the site. (speaking of the site, it's very difficult to compress 2000 pages of tech-oriented text onto an easily viewable home page, I wish I knew how...). Keep a lookout for our new backend computer system to show up on the web (in the on-line ordering section), and also a new search engine that's SQL-based instead of the hokey flat-file one we have now. Got some new photo equipment that I'm anxious to try out as well!

I've deleted the original thread (saving a copy internally of course), because there is lots of info that I wouldn't want my competitors to see. If you have any additional comments, then let them fly here!

-Wayne

[scotty914]

so just one more question wayne .... when do we get our free coffee cup wraped around our new $ 58 catalogue ( free to us of course ) that has six stiles of kitchen sinks all in color as well as every part ever known to porsche and bmw all with the new sale prices of 75 to 95 % off for anybody who has ever seen you web site ( even if accidently )


------------------
scott thacher
75 1.8 under construction
75 under rust
(fine german rust)

[George Simmons]

Wayne, keep your head up! Your service, advice, and the help you and your staff provide is gracious and timely (not found elsewhere). And remember, the three things that make a good business work long term:
(1 )Service
(2) Service
(3) Service
Stay focussed. Success is your's for the taking. Good luck.

[HMeeder]

Wayne:

Chin up my friend!

Like many 914 owners, I bought my car because on my income it is the only Porsche I can afford to maintain. It sounds like you have some dollar signs dancing in your head when you should be sleeping. Those same signs are in my head every time something breaks on my car. So, while I have a great amount of affection for and loyalty to PP I'm still going to go where I can get the most value for my dollar. Sorry, but that's the reality.

It also sounds like you are pumping all your capital back into the business. You are investing in your future and "growing" your business. You can't make money if you are spending it and you can't expand without investing. Catch 22.

You have a hell of a lot on your plate but it sounds as if you are going in the right direction. Pay heed to the counsel in the previous thread for there is much truth in it and you can always use it to "ground" yourself should your reach exceed your grasp.

We will be watching and hoping for your success. Remember that you started Pelican because you loved the cars and wanted something you could have fun at. Never lose that focus and never stop having fun.

Motor On!

------------------
Herb
'72 1.7 Tangerine 'Teen
'74 2.0 Red Rustmobile

[72_914]

Complaints about the site? Sorry I guess I didn't catch the last thread. But I can tell you how I feel about Pelican Parts. I bought my 914 about two years ago from a friend really cheap. It was a wreck, and I had no clue how are what to do to fix it. So being the web surfer I am I started looking over the net to find out some info about the car. On eof the first pages I came to was pelicanparts.com. I need to look no more. Every thing I needed was right here. Parts, tech BBS, parts diagrams, elect. diagrams, and the best service staff of any business I have every bought anything from. Now after two years I have a running, driveable 914 that I can actually enjoy. Thanks Wayne, Tom, and all the other people at pelican for all you have helped me with over the last two years.

[Rouser]

Oh God, Wayne; don't fall for that "different name/tech name" ID complaint BS.

The only reason people get jazzed about some moronic Hi-Per name like EUROThud TekFarts is the thought of emblazing their windshield, limo-tinted side and back windows, and diagonal ¾ of their front left fender with it! Bunch of sophomoric, mind-numbing Honda-think.

Pelican is like IZOD, Polo, and Apple; not quite what you thought would be relative to the product, but an icon all its own. When are you offering Pelican Parts decals, T-shirts, Polo shirts, and coffee cups? And this "Vertex" site? What a dump; took me FOREVER to "easily" (?) negotiate it. And a 914 presence? Excuse me; but, like, WHERE?

My wallet isn't on a holster, either; but to assume that "the lower price of their item" is the bottom-line, without taking into account the porking you get elsewhere (shipping/handling/charge fees/phone sex) is just plain poor consumer savvy. And all the crying about "free" this and "free" that; for those of us STILL not living at home, I'm "expecting" good-to-excellent service & support as the main lure. Keep your shiny key fobs and trinkets.

excellence magazine is celebrating an anniversary of some sort (can't remember what it was), but the founder had an excellent article about their beginnings. When you read it, you'll know why I feel you're heading down the right, non-sellout direction.

[Bee Jay]

Hey Wayne, Be very proud of what you and Tom have accomplished here at Pelican Parts.I was reading my new grassroots mag yesterday, and Pelican Parts was referenced as a source for a couple of parts for their Project 944. Pelican Parts has been mentioned in Excellence, Porsche & 911 World, Panorama and I'm sure some BMW rags. I used your website just this week to figure out why my horns and fog lights weren't working. Pelican Parts is an excellent source for information, parts, and greeeaaaaaaaat!!!!! customer service. You can't find all three anywhere else. Some suggestions:
1.How about a project 914 series of tech articles? I volunteer my car. Your greatest work isn't your web sites (tho very good), not your parts distibution(very good too), but what you've accomplished (and documented with excellent pictures and write ups) in the garage.
2. Email or call some of your customers personally occasionally. I mail ordered something for my house a few years ago. A few weeks later the owner of the company called to see if I had received the part ok, and if I was happy with the part and thier service. I was a customer for life.
3. Keep an eye on your competitors. If you can call them that. Your relationship with GPR, Performance Products, and Otto's is so cool. But your competitors are doing some of the things mentioned here, limited time specials, AA is doing a 356 project car (but the updates are very slow)and attending Porsche events. I think you do this more than your competitors already though. Although your Web site is the best by far, they do have some cool ideas on thiers.
4. Remember that most of us, like you, are hobbyists. I don't need this 914. It's therapy. The time I spend in the garage fixing modifyin or upgrading the 914, and driving it is actually rewarding and relaxing. I could buy a Miata or MR2, and be one of a million, and probably never need to work on them. But then my life would be that much more boring.
Sorry for the long post, and I'll see you later today.
your friend Bee Jay

[Wayne 962]

With respect to the Pelican name - that's exactly what we were looking for. We're not a me-too company, and I didn't want a me-to name!



-Wayne

[Rob-O]

Well, all-in-all, aren't you doing with this thread exactly what PP and Autmotion and AA and all the other big names don't? I mean, the chick eyeballing the part the super cool SoCal stud had in his hand was mesmerizing, but other than that...

AA? I wouldn't buy a part from them if they cut the cost in half, shipped it for free and included the leggy woman on the cover of THEIR catalog.

I can't claim to have purchased anything from Pelican, but I got on your web-site about four hours ago and have yet to leave the 914 Tech Forum! It's...uh..pretty dang good.

However, there has got to be a way to figure out how to reach your customers. For every person reading "Excellence", four or five aren't. I have been playing with Porsches a long time and am familiar with the big players out there, but haven't really gotten to know you. Why is that? I think one thing that Vertex has is cheap prices. Yeah, we all get fooled by the expensive shipping/leggy models/etc.

I maintain my Porsche myself. I know when it needs a new cap and rotor. I look through a copy of "Excellence" to help me wade through the hundreds of advertisers out there. When I don't see the specific part I'm looking for, I move to the next page...past Pelican. Maybe I won't do that again, but it's taken me a long time to get to you already. Think of all the people you are missing. Vertex and some of these other places are advertising some of their parts in the magazine. Parts I may have been looking for, then I call, the price is good, I get what I need. I never ran across Pelican because I didn't see what I was looking for when I was looking for that fictitious cap and rotor. Maybe in your future advertising you could list some of the products that are what I would consider consumable on an automobile into your ads?

I've felt that for many years the service aspect of the Porsche industry has stunk...bad. If you can get people to call you, or get on your awesome web site, just once (like me!) you'll have 'em hooked. You don't have to be a discount house, you have other things to offer. But if people don't know that, it's not helping you out any.

As a customer (and I know this will sound bad) but once I find a place that had decent service and the price was good, I go back the next time I need something without even comparison shopping.

Good Luck!!

[DrEBerg]

After reading your post I realized why I bought a 914 in the first place, for fun and diversion from work and family. I think you NEED to get out and DRIVE, and I mean NOW. There will always people brow beating business owners over everything that you do, but you will have to srike a balance between what you can do and what you want to do. Follow your goal and make Pelican all it can be, but don't loose your appreciation for the RIDE.

Dr. Ed Berger

[Peter_Hinkle]

Wayne, I have three words for ya: Incomperable customer service. For providing me the option of picking up the phone or jumping on the puter and getting FREE tech help by someone who's sole purpose in life is NOT making me feel like the biggest ******* this side of the divide, you have instantly a long time customer.My first few years with my teener I dealt with arrogance anonymous and "the doctor"(heh) because I was naive enough to believe that I had no other choice. I actually would procrastinate projects just so I wouldn't have to make that trip to the proncipal's office. No matter how busy you guys are when I have called, you always made me feel like the ONLY customer that mattered to you. In my mind, that is more important than a few bucks + or -.It doesn't matter how good the food tasted once you see the dead roach. Keep up the damn fine work! peter

[Special K]

Wayne,

Peter "nailed" it! I couldn't agree more with him (arrogance anonymous, good one!). I've been an "aircooled" fan for along time, but only got my first 914 about a year ago, and it was in less than pristine condition to say the least. I purchased all the Porsche 914 and VW engine books I could get my hands on, but still ended up with questions none of the books could answer. "AA" was the first place I encountered on the Web (alphabetically listed), ordered one of their $6 catalogs, and read. All that I gleaned from the AA catalog is that "Dr. P" has a very high opinion of himself(my first impression of "Porsche" people). Pelican Parts, on the other hand, has shown me that there are plenty of knowledgeable people around that seem to be more than happy to help out with my dumb questions, and I think of a new one almost every time I work on my '73. Your Staff #1. Your Website (and CD) #1. Keep doing what you're doing!

Kevin
'73 2.0L
'75 2.0L

[Mike Kunz]

Hey Wayne,

Don't drive yourself nuts on this one...in my experience...your enterprise is still the best out there....a word of caution...keep your eyes on customer service...price can be secondary...in my transactions with Pelican, I always had the impression that your team very much understood our passion for an unloved car, the 914. This was, for me at least, very much more like a 914 club with an incredible resource on the backend for parts and information....and that was the difference that kept me coming back.

Despite some hiccups lately, Pelican is still by and far the best (wish you still had that graveyard out back tho! :-)

Mike

------------------
Real Porsches have their engines not only in the back, but in the middle, too!