Stopped at a Polaris dealer looking to buy a new sled. I asked if Polaris is back to full production and no more supply chain issues and if new sleds are not an issue for dealers. The guy told me Polaris is at full production capacity but the new normal is now half of what it was before COVID And won’t change. I asked why is that ? He said Polaris decided it is more profitable for the company to produce fewer sleds. Does this make sense ? Don’t you want YOUR BRAND to capture as much market share as possible and support your dealers? Any thoughts on this ? Cripes I can’t even buy the sled I want because there are so few available. The guy even said no two dealers get the exact same models or color sleds because they don’t want dealers competing against each other on same exact sleds ! WTF !
POLARIS FACTORY PRODUCTION
- Thread starter lazer103
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That works in the now but unsure how long Polaris can maintain that attitude. As much as sleds cost now days I want what I want and if I can’t get it I’m not buying. Said by a guy who has what he wants from skidoo only change if Yamaha comes up with a new 150 hp 4s sled with eps. Would I consider Polaris maybe but they have a long way to go on the 4s side to complete. And color is important.
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I say BS on him, all that he said.
Can't say I agree with any of this. Sounds like a lot of the new car salesman who are holding on to a covid market that is rapidly disintegrating! Just like anything that is mass produced, (cars, boats, atv's, trailers, sleds, etc), the last thing that gets shut down is the production line and that doesn't happen until every dealer has been forced to take an excess of units.
Controlling inventory is very real across a lot of different industries. It will last while demand is still high but eventually that will slow. Its the reversal of the "race to the bottom" theory on pricing that we have seen for the last decade.
Not everything you stated is true but certainly close.
Not everything you stated is true but certainly close.
pclark
Well-known member
What manufacturer, especially seasonal would want to have huge amounts of inventory on hand as the FED deliberatly slows the economy down? Higher prices and high interest rates (loans which are needed to make large purchases) are a recipe for disaster in my opinion. Every smart Economist will tell you that making energy affordable again is the key. Oil barrel price around $76 as of Friday but look at the spread between diesel and unleaded regular now......$2.00 gallon. WHY????
indy_500
Well-known member
It’s simple economics, the industry has been slowly moving toward this for awhile now. But, take it with a grain of salt, got to remember you are talking to a salesman, who wants to make money off of you. He is likely blowing it out of proportion. We all know selling new sleds isn’t the biggest profit margin for OEMs or dealers; parts, accessories, gear, and repair work is.
At the end of the day, common sense says yes, they are still behind. Plenty of boost and 9R models that won’t make it to the customer before 2023 new year. 5 years ago, most snowcheck customers had their sleds before Halloween, with thanksgiving being the absolute latest. My 2015 and my new chassis new motor new model 2016 that I snow checked both were ready for pickup around Labor Day.
At the end of the day, common sense says yes, they are still behind. Plenty of boost and 9R models that won’t make it to the customer before 2023 new year. 5 years ago, most snowcheck customers had their sleds before Halloween, with thanksgiving being the absolute latest. My 2015 and my new chassis new motor new model 2016 that I snow checked both were ready for pickup around Labor Day.
IMO.... fear mongering has gone way beyond covid itself, think about it.... haw can the supply chain be so screwed up still? by keeping inventory low will just keep prices high and as long as people keep buying them what's the incentive to build more? produce less make more, keep people's hands tied. And I agree, you make less isn't going to keep you at the top unless all manufacturers follow the same business model. However, in my business I have seen changes in floor plan terms, cost of financing to the dealership to provide finance promotions are through the roof, not to mention cost of product as well. Some of what we sell we have been told to sell for the 2024 season, wait...what about 2023? uuuugh!!
You ask why? World market set the price for 1 reason. And another is because they can, so they will!
pclark
Well-known member
Old Abe, good to have you back! So the world market set the diesel price at $5.00 gallon or higher because they can. I can believe that, but it just crushes the American people and the people all around the world as well. Is that the end goal?
I get what you are saying pclark. I'm still needing to fill 1/3 of my diesel storage so I'm watching the prices very closely. I've seen some
of this type BS before, however this time its more so world wide. Diesel is in High Demand world wide for multiple reasons! I don't want to say this, but the fuel price BS will end as the recession becomes real. It always does., as they don't want to cut their own dicks off with a dull knife! I don't see much difference between OPEC Plus, and our domestic producers, as they BOTH don't want to produce more that would destroy the EGREGIOUS PROFIT margins that they now enjoy. Our US Refining Capacity is all but maxed out, but the exporting of our refined fuels, such as Diesel, is keeping our US consumers hostage, as price/costs are exorbitantly high. Sad, but so it is!
Here's a tid bit for thought, when I first was able to help on my fathers farming operation, Diesel fuel was $0,04 to $0.05 per gallon. FACT! Also my father replaced all of our gas tractors and other machinery with Diesel powered as gas was 3 times, and more higher priced. Those were the days, eh!