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Local HD dealer laying off

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  #41  
Old 01-02-2009, 11:11 AM
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Originally Posted by EGlideKid
I wish I'd listened more in my economics classes years ago. I also wish I knew what to believe when it comes to dealers and the MOCO and their motives.
There is some truth to what the dealer told me regarding the MOCO cutting production. I majored in economics, but won't bore anyone with a lot of details. Below is a link to a discussion of pricing, supply, and demand from Wikipedia (for anyone wanting some info). The bottom line, shifts in supply (such as cutting production and reducing the available supply of bikes) does have a direct impact on price. If demand remains the same, the price of bikes will rise. If demand is also reduced (people buying less bikes) the price could remain the same. Of course, it depends on the correlation of these shifts in supply and demand. If nothing else, what the dealer told me does hold some truth. For my sake, I hope to find a dealer that isn't concerned about the laws of supply and demand, and is willing to give me a sweet deal on a new FLTR!!!

http://en.wikipedia.org/wiki/Supply_and_demand
 
  #42  
Old 01-02-2009, 11:15 AM
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I think it's part of MOCOs overall plan to "allow" a thinning of the herd (of dealers) and to be content with some going away. That's a guess on my part but you are seeing similar take place in the AUTO Industry right now too. Too many dealers makes for more competition between them and thus, lower prices because of it. MOCO will maintain profits and sales via fewer Dealers.
 
  #43  
Old 01-02-2009, 11:22 AM
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Originally Posted by Saturday Night Special
I think it's part of MOCOs overall plan to "allow" a thinning of the herd (of dealers) and to be content with some going away. That's a guess on my part but you are seeing similar take place in the AUTO Industry right now too. Too many dealers makes for more competition between them and thus, lower prices because of it. MOCO will maintain profits and sales via fewer Dealers.
I don't think they have a choice. The economy is going to dictate that some sink while others MAY swim. The MoCo is not above the economy no matter what people may think.
 
  #44  
Old 01-02-2009, 11:48 AM
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Originally Posted by 1FLTRI4ME
Is this the one in Jackson?
Yes, but it is actually in Martell
 
  #45  
Old 01-02-2009, 11:53 AM
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Dealers in Arkansas are giving "incentives" on 2009 models, Pig Trail in Rogers is offering free 4 year extended warranty and free maintenance for 10,000 miles or $2009 gift card good for moto clothes, parts and acc.

Old Fort is offering free tires for life but told me they would match anything Pig Trail is offering.
 
  #46  
Old 01-02-2009, 11:57 AM
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Our dealership told their wrenches just before Christmas that they had to take a pay cut. Some of them were cut as much as $4.00 an hour. This can make for some very disgruntled employees. Hope that the unhappy wrenches don't let it filter down into their work. Come Spring they will probably be looking for a new dealership to work for.
 
  #47  
Old 01-02-2009, 12:00 PM
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Originally Posted by ajpuck
Our dealership told their wrenches just before Christmas that they had to take a pay cut. Some of them were cut as much as $4.00 an hour. This can make for some very disgruntled employees. Hope that the unhappy wrenches don't let it filter down into their work. Come Spring they will probably be looking for a new dealership to work for.
That ain't good! They'll be looking to drum up extra business and sales with each bike they work on. Glad I am capable (and planned on) doing all of my routine maintenance. You'll either get shoddy repairs or unnecessary ones...
 
  #48  
Old 01-02-2009, 01:21 PM
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Originally Posted by teqsand
ANd I'm sure to lose friends here for this...But why is everyone complaining that the prices are not down? I don;t plan to buy a new bike soon, sure I'd love an 09, but my 08 is awsome...

The reason I say this is that if the prices fall dramatically, so does the value of my bike... If you want cheap bikes, japan makes a bunch of them...and the resale that goes along with it..

MOCO has done a lot lately to kill the value of bikes already bought, 6 gal, 96ci, new frame, etc...

I love my bike but I don't want it to go the way of my house in this market...
No I didn;t buy it as an investment, I ride the crap out of it. I'd just like have it be worth something....

That said, how much does a stealer pay for a bike below MSRP?
Approx $3500 per bike
 
  #49  
Old 01-02-2009, 01:29 PM
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Originally Posted by hotpursuit
bingo..... no reason to devalue and destroy the used market also

But they can't let their dealers die, they are going to have to figure something out or you won't have investers in the future building or buying dealerships b/c the company through there dealers under the bus
 
  #50  
Old 01-02-2009, 01:35 PM
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Originally Posted by wi.st.rod
This is precisely what one the dealers in my area told me. The sales manager said they will not sell a bike under MSRP, because it they started doing that, it would lower the value of the bikes already sold, and hurt the used market. He said this is why HD cut production levels, so that there are less bikes to sell, enabling dealers to hold on pricing. He also suggested a shortage of certain models come spring/summer. I'm in the market for an '09 FLTR -- there are a few other nearby dealers; it will be interesting to see what their position is.

That doesn't really hold water with me b/c when the 09's come out you can easily find 08's at 2K below MSRP. That is what dealers like to say to keep the price up but if they can sell a leftover 2K off and not devalue the market why can't they sell 09's for the same to keep their business open?

I have seen screaming eagles the past 2yrs as leftovers withas much as $4500 off MSRP
 

Last edited by scasey; 01-02-2009 at 01:42 PM.


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