What you all think??

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Guest
AC's 800's have been slower every year. Just ask Ezra. You might get a good one but they are a crapshoot. Same with belts. A lot of newer Cats are belt eaters. Expensive belts. Like 200 miles a belt. A lot of guys have dumped them just for this reason. A lot of this goes back to dealer set-up and AC doesn't have many user-friendly dealers left. Even Kip said so. They are just there to pump out new iron. After that you are on your own. The newer 600 with the super expensive oil is well liked. But it is not a cheap sled to buy. My own personal opinion of the Cat lineup is that they are building way too many models and varieties. AC has been this way for years going all the way back to the early 2000's. You can't be all things to everyone but you can go broke trying. No matter what you build somebody will want something different. Identify the market that you are good at and can make some money at and hammer on that. Maybe let Pol have the mountains and build the best trail sled on snow. Some kind of a plan like that. AC has limited resources and simply cannot afford to do every market right.
 

Hoosier

Well-known member
I find this thread interesting...as for millenials, I have a 19 yo that's in the process of F'ing up a pd for college education and only cares about his Acura RSX - lowered, gold/chrome rims, endless mods, and social media..don't give 2 sheets about TV, unless it's the Packers. Likes snowmobiling, but of course I have to pay for it. No concept of "trying hard" at anything, or really hard work. Super weird generation, with limited ability to pay for these toys. Times R changing. Banks...please sell me that ACE900/w Cudney. LOL

A big part of the fun for me for snowmobiling, fishing, etc. is getting away from everything. Social media is the exact opposite of that, and I think there's a different mindset now. One of the reasons I've enjoyed riding in Canada the past few years is because our phones don't get coverage up there - no one is checking them every time we stop.

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AC's 800's have been slower every year. Just ask Ezra. You might get a good one but they are a crapshoot. Same with belts. A lot of newer Cats are belt eaters. Expensive belts. Like 200 miles a belt. A lot of guys have dumped them just for this reason. A lot of this goes back to dealer set-up and AC doesn't have many user-friendly dealers left. Even Kip said so. They are just there to pump out new iron. After that you are on your own. The newer 600 with the super expensive oil is well liked. But it is not a cheap sled to buy. My own personal opinion of the Cat lineup is that they are building way too many models and varieties. AC has been this way for years going all the way back to the early 2000's. You can't be all things to everyone but you can go broke trying. No matter what you build somebody will want something different. Identify the market that you are good at and can make some money at and hammer on that. Maybe let Pol have the mountains and build the best trail sled on snow. Some kind of a plan like that. AC has limited resources and simply cannot afford to do every market right.

I think that's where they went wrong - they had what most considered the best mountain sled, and then tried to come out with one chassis that does everything, but that didn't work out and Poo killed them. I agree they have way too many models now. How do you keep track of all of that if you are a consumer. And if you are a dealer, hard to keep the right mix in stock. Hopefully things turn around for them.
 

dcsnomo

Moderator
Cat lived for years with a stock price in the single digits prior to its 2013 high of $60 ..... the stock today is still double the average it was throughout the 90's and the company survived........I don't think it's for sale yet.

It's a PUBLIC TRADED COMPANY! By definition it is for sale!

If you want to buy it tender an offer to the shareholders and if they like it they sell it.
 

dcsnomo

Moderator
like I said the dealer was a dealer I went to often back in the day who attempted to become a all in power sports / HD dealer and 1 I drove past from time to time . the 1 eventually branched in to 2 completely diff buildings in the same parking lot 2 totally diff atmospheres totally diff service centers . the other kept together less than 3 yrs and closed the power sports end completely. just not the same consumer at all . how many sons of arthritis really want to get off there lazy boy on wheels and head out on to a dirty bumpy trail when they can be rolling down a paved interstate on there 25k bike. the Yamaha and zuk dealers are totally diff consumer than HD. **** I know Polaris dealers that don't even have street bikes . and Indian dealers who have no sleds or atv.
poo is making way more on bikes than sleds. if HD wanted to sell a SXS they could very EZ contract it out with cat or poo or BRP or kymco and slap some underpowered loud v twin in it for way way way less money and risk than buying the company . kind of like Yamaha and cat or Ex Mark and cat the list goes on

Hi Ezra! You are forgetting about what brands mean. HD Is V twin road cruiser motorcycles. Darn good ones. And that's it. Not lawnmowers. Not speedboats, not sxs or sleds. Not cars or trucks. V Twin road cruiser motorcycles. An HD branded sxs, sled, lawnmower, weed eater or whatever else will fail. The brand, while being the dominant player in its segment (V Twin road cruisers) is not a leverageable brand name. It's not about production, you're correct, they could build an sxs, but they don't have a brand name to sell it.

And before you tell me "They sold snowmobiles in the 70's!", that was 40 years ago, and the marketing/branding business has changed a lot in 40 years. You can't sell a Chevrolet washer/dryer because Chevrolet stands for cars and trucks. Harley stands for V twin road cruiser motorcycles. That's it.

I'm not saying AC is right or wrong, but when you do the quarterly analyst calls with Wall Street analysts the question is not "How is your business running", growth forecasts and positive buy ratings come from the answer to "How are you going to grow your business?"

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How come the OME's cant just stick a carb motor in a simple chassis without all the fluff and puff and have a price point for a reliable fun affordable sled??

Not sure any OEM will stay positive if sleds keep pushing past $10K, $15K and up...... for 90days of fun..... My kids have all sledded from 2 yrs old and up...now college educated with good jobs, sleds are low on the priority list because so expensive......beware all 4.......

Why not? No margin. Why would you introduce a low margin product in a declining or stagnant category when you have the high fixed costs of a production facility? Recipe for out of business, and no, you won't make it up on volume.

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I find this thread interesting...as for millenials, I have a 19 yo that's in the process of F'ing up a pd for college education and only cares about his Acura RSX - lowered, gold/chrome rims, endless mods, and social media..don't give 2 sheets about TV, unless it's the Packers. Likes snowmobiling, but of course I have to pay for it. No concept of "trying hard" at anything, or really hard work. Super weird generation, with limited ability to pay for these toys. Times R changing. Banks...please sell me that ACE900/w Cudney. LOL

Interesting. Since I was a market research/marketing person I try not to make generalities, but the Millennial thing just bugs the crap outta me. Here's an example. I have recently started listing rooms on booking.com. Some of the people are just regular folk. But I never had much of a millennial/hipster business. Now I seem to attract them, it is like Wicker Park has emptied into my motel. What a bunch of whiners!! And what's worse, they will post a negative review saying "the shower head didn't work" after a three day stay. Wouldn't it make more sense to come down and tell me the shower head didn't work on day 1 so I can fix it?
 
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G

Guest
Good read. It also touched on wordwide sled sales. Something we maybe forget sometimes. We are just a piece of the pie. Our opinions really don't count any more than the average Russian sled head. On a TotallyYamaha thread a couple of years ago there was a long running thread with some Russian sledders. Very interesting. They run new tin just like here. Lots of Doos and Poos and Yamis. Not many AC's. Which makes me wonder if the wordwide efforts of AC are nowhere near the levels of the other 3 brands. For you Whitedust --- One of the Russians claimed his Yamaha Apex weighed more than his Yamaha baby grand piano.
 

zltim

Member
Lets face it, the leading edge Baby Boomers are starting to get rid of "stuff"(down sizing), cycles, sleds, jet ski's, etc. Our grand kids are not interested in their parents/grandparents powersport toys. Used Harleys are cheap and new inventory just sits on the dealer floors, unheard of 10-15 years ago.

$15000 for a snowmobile, a toy you can use for a month if you are lucky is not in the budget anymore. I know manufactures don't have any interest is selling low priced sleds but they can't see beyond the end of their noses.

With all due respect, the last place I would put cash is in a powersports business, manufacturing or dealership. The economy isn't there and with despite all the rhetoric coming out of DC, that isn't going to change. The Middle class is screwed and doesn't have the cash to buy all those expensive toys and don't have the equity in their homes to borrow against either.

In the past, I bought new distressed sleds, one or 2 years old, for $1000-2000. The last sled I bought was a new 2 year old $9200 Cat for $4900. Now the distressed sleds are $8000 or more and are out of the reach for me and most others. I'll run mine until it quits or I can't physically ride any more. My kids have in the past bought new sleds are not any more because the familys are for the most part not interested or only ride 1-2 times per year on sleds as old or older then my 2006. They can afford new sleds but choose not to because of the value returned for the money spent.
 

sjb

Member
I don't know if I agree the powersports industry is in trouble. A buddy of mine married into the industry of dealership. He pulls salary and bonus every year. Maybe he is full of crap, but don't think so with the house he is building, but stated between the two he cleared over $200K last year. He is one of 3 people in the family taking profit sharing. Their biggest sellers are motorcycles, followed by sxs, atv's, sleds and waverrunners/jetskis.
 

zltim

Member
I have talked to people in the industry and they are worried about the future and of course different parts of the country will be somewhat different but where I live in Northwestern Wi, the economy is not booming and the people are getting older. Big town/cities are doing better but small town America is hurting.

I am glad your friend is doing so well but I hope he is saving a big chunk of his 200K for the future.
 
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