Yamaha Rumor - 75% Production decrease in 2018

kip

Well-known member
There's always highs and lows in sales and that's the way it will always be. In my opinion Ski Doo and Polaris have pushed the market so hard trying to beat up each other that it's hitting a wall because of it. It's the Walmart scenario. Small dealers that were once profitable no longer are because we have a few big dealers with each manny getting bigger and bigger yet their service just plain old sucks. If all the manny's want a couple big dealers to cover hundreds of miles that's what they're going to get and it's the customers that will get hurt. Service means nothing anymore. I get it all the time here. Calls come in daily that go something like this: I just bought a new sled and I was wondering how to change the belt? How much oil does it take? Where are the fuses? This is just the tip of the iceberg. So a dealer can sell you a sled but not tell you anything about it? All I can say is wow!!!! It's the ultimate slap in the face as far as I'm concerned. If a dealer is good enough to buy from they should be good enough to properly answer questions, teach the consumer, and service the sled! Sorry for venting but it sure is tough to take sometimes.
 

old abe

Well-known member
There's always highs and lows in sales and that's the way it will always be. In my opinion Ski Doo and Polaris have pushed the market so hard trying to beat up each other that it's hitting a wall because of it. It's the Walmart scenario. Small dealers that were once profitable no longer are because we have a few big dealers with each manny getting bigger and bigger yet their service just plain old sucks. If all the manny's want a couple big dealers to cover hundreds of miles that's what they're going to get and it's the customers that will get hurt. Service means nothing anymore. I get it all the time here. Calls come in daily that go something like this: I just bought a new sled and I was wondering how to change the belt? How much oil does it take? Where are the fuses? This is just the tip of the iceberg. So a dealer can sell you a sled but not tell you anything about it? All I can say is wow!!!! It's the ultimate slap in the face as far as I'm concerned. If a dealer is good enough to buy from they should be good enough to properly answer questions, teach the consumer, and service the sled! Sorry for venting but it sure is tough to take sometimes.

Very well put Kip!!! You could not of said it any better!!! The poor winter seasons have not helped the smaller/good dealers either. Perhaps that has played somewhat into your hands at times???
 
G

G

Guest
Are you in Cost Accounting? Longer production runs don't reduce variable costs, it amortizes the setup of various machinery and assembly over higher volume, which lowers the incremental cost of manufactured parts.
The nature of variable cost is, it increases or decreases proportionate to volume. We strive for longer production runs in machining, because 4-6 hr. setups on Swiss CNC's lower the manufacturing cost of parts.
We like VOLUME, but if we can't increase volume due to sales market limitations, we like longer runs, to the extent we can handle the increased inventory hold, due to lower turns.
It's all about adequate sales market forecast for the next budget year. In the snowmo biz....good luck with that.
My guess is they are going to run an entire product line at once before switching over tooling, and doing new setups on machines. This means potential delays in shipping some models before others.

When I went to TRF to see my sled get built I had to get there at a precise time because they were only building 40 of that model that day. Then they switched over to another model of Sidewinder. I believe there were 3 separate runs of RTX 50th anniversary models. I thought that was kind of dumb. Snowchecks have to be in by April something so they should have it all figured out how many of each model they are going to make so they could do them all at once. They have to switch all kinds of things around to change models. Color panels, seats, tunnels - all kinds of things. Jumping back and forth between models every day seems stupid and would seem to me to invite mistakes. Maybe there is some supply issue. I have no idea. But I will say that I was impressed with the workforce they had at TRF. There has been much bashing of AC workmanship on this forum and others.There is a lot more automation than there used to be. I would be inclined to fault engineering more than the assembly process. There are a lot of wonderful little details on the Sidewinder. And then there are some really dumb head scratcher things. The room for improvement is more in engineering than assembly. IMO.
 

snobuilder

Well-known member
When I went to TRF to see my sled get built I had to get there at a precise time because they were only building 40 of that model that day. Then they switched over to another model of Sidewinder. I believe there were 3 separate runs of RTX 50th anniversary models. I thought that was kind of dumb. Snowchecks have to be in by April something so they should have it all figured out how many of each model they are going to make so they could do them all at once. They have to switch all kinds of things around to change models. Color panels, seats, tunnels - all kinds of things. Jumping back and forth between models every day seems stupid and would seem to me to invite mistakes. Maybe there is some supply issue. I have no idea. But I will say that I was impressed with the workforce they had at TRF. There has been much bashing of AC workmanship on this forum and others.There is a lot more automation than there used to be. I would be inclined to fault engineering more than the assembly process. There are a lot of wonderful little details on the Sidewinder. And then there are some really dumb head scratcher things. The room for improvement is more in engineering than assembly. IMO.

Wasn't there a loose coolant hose clamp on some of the vipers?
 

kip

Well-known member
Yes some were found to be loose. We checked them ahead of time after realizing some were found to be loose. Fit finish is much better now from when they first started building them. It's been good for both sides:)
 

ICT Sledder

Active member
There's always highs and lows in sales and that's the way it will always be. In my opinion Ski Doo and Polaris have pushed the market so hard trying to beat up each other that it's hitting a wall because of it. It's the Walmart scenario. Small dealers that were once profitable no longer are because we have a few big dealers with each manny getting bigger and bigger yet their service just plain old sucks. If all the manny's want a couple big dealers to cover hundreds of miles that's what they're going to get and it's the customers that will get hurt. Service means nothing anymore. I get it all the time here. Calls come in daily that go something like this: I just bought a new sled and I was wondering how to change the belt? How much oil does it take? Where are the fuses? This is just the tip of the iceberg. So a dealer can sell you a sled but not tell you anything about it? All I can say is wow!!!! It's the ultimate slap in the face as far as I'm concerned. If a dealer is good enough to buy from they should be good enough to properly answer questions, teach the consumer, and service the sled! Sorry for venting but it sure is tough to take sometimes.

And sometimes the big dealers are big BECAUSE of their customer service models, coupled with the economies of scale they enjoy because of their size and scope.

Country Cat in MN is either the biggest cat dealer in the US, or one of them, and I've found them to be a joy to work with, both buying sleds and parts. They're successful because they are good at what the do.

It's the chicken and the egg metaphor. What comes first: a big dealership, or taking care of customers?
 

byr 13

Member
Are you in Cost Accounting? Longer production runs don't reduce variable costs, it amortizes the setup of various machinery and assembly over higher volume, which lowers the incremental cost of manufactured parts.
The nature of variable cost is, it increases or decreases proportionate to volume. We strive for longer production runs in machining, because 4-6 hr. setups on Swiss CNC's lower the manufacturing cost of parts.
We like VOLUME, but if we can't increase volume due to sales market limitations, we like longer runs, to the extent we can handle the increased inventory hold, due to lower turns.
It's all about adequate sales market forecast for the next budget year. In the snowmo biz....good luck with that.
My guess is they are going to run an entire product line at once before switching over tooling, and doing new setups on machines. This means potential delays in shipping some models before others.

yep
 

dothedoo

Member
There's always highs and lows in sales and that's the way it will always be. In my opinion Ski Doo and Polaris have pushed the market so hard trying to beat up each other that it's hitting a wall because of it. It's the Walmart scenario. Small dealers that were once profitable no longer are because we have a few big dealers with each manny getting bigger and bigger yet their service just plain old sucks. If all the manny's want a couple big dealers to cover hundreds of miles that's what they're going to get and it's the customers that will get hurt. Service means nothing anymore. I get it all the time here. Calls come in daily that go something like this: I just bought a new sled and I was wondering how to change the belt? How much oil does it take? Where are the fuses? This is just the tip of the iceberg. So a dealer can sell you a sled but not tell you anything about it? All I can say is wow!!!! It's the ultimate slap in the face as far as I'm concerned. If a dealer is good enough to buy from they should be good enough to properly answer questions, teach the consumer, and service the sled! Sorry for venting but it sure is tough to take sometimes.

Ski Doo and Polaris are the "Walmart" of the snomo biz? That's some serious sour grapes.

I can't comment on the declining level of service, since I ride Doo 4 strokes and well....they never need service. lol
 

kip

Well-known member
LOL dothedoo:) I was referring to the industry not POO and DOO on their own as far as that scenario. I'm a fan of the big 4 all being in business and being successful. I just would like to see them put more efforts into all dealerships and what it takes to help the industry become healthy again. Sometimes a cut back is needed to refocus and make a industry healthy again. I could be wrong. I don't claim to be a master of any market or exactly how it works. Just explaining what I'm seeing.
 

dfattack

Well-known member
Doesn’t Yamaha put unrealistic requirements on dealers to carry certain amounts of inventory on hand? If so, wouldn’t backing off these requirements help some of the smaller dealers?

This might be the case for other manufacturers too??
 

DooZ

Active member
Doesn’t Yamaha put unrealistic requirements on dealers to carry certain amounts of inventory on hand? If so, wouldn’t backing off these requirements help some of the smaller dealers?

This might be the case for other manufacturers too??

Trust me...All manufacturers are pushing the dealers to take more sleds, atv/utv's, etc., etc..than they're comfortable with.
 

kip

Well-known member
Yamaha is pretty laid back as are most of the Japanese Companies. Of course they would like you to order more product and grow but they by no means push you to do that. If you tell them you're only ordering so much then they're good about it, however if you do not represent or put out effort they will most likely find someone who will which isn't too much to ask. Let's say you sell 10 sleds a year. They will expect at least that if not more if they come out with a new model. If you sell 70 a year, that's the number they'll want to see from you. Does this help?
 

euphoric1

Well-known member
Kip, You are very correct on some of the points you have brought up in this thread especially on the fact on how important it is that the dealer believe in the product they sell or represent, and the service and support the dealer provides the customer after the sale, that is truly what sets one dealer apart from the next. I was just curious.... of the sleds you sell, do you sell more to the local community or to travelers that come to the U.P. to sled each year or is it a mixed bag, if you would rather not say I understand, just through observation on this site you have quite a following and that says a lot.
 

dfattack

Well-known member
Yamaha is pretty laid back as are most of the Japanese Companies. Of course they would like you to order more product and grow but they by no means push you to do that. If you tell them you're only ordering so much then they're good about it, however if you do not represent or put out effort they will most likely find someone who will which isn't too much to ask. Let's say you sell 10 sleds a year. They will expect at least that if not more if they come out with a new model. If you sell 70 a year, that's the number they'll want to see from you. Does this help?

i know someone who sells Yamaha outboards and boats. They were considering Snowmobiles and ATVs but were told they needed a certain amount of square feet dedicated to a show room and that you needed a minimum amount of inventory to start. I think the amount was over $250,000.

I may be off on the actual dollar amount needed as inventory, but does this sound correct to you?
 

kip

Well-known member
That's a good question and I"m comfortable answering it. I like to shed light where I can. In 2013 I took all of my warranty registrations and found that 67% of our sales at Pat's came from out of state. We are in a remote location so it's a bit unique here. I should check it again because I was Yamaha only at that time. Dfattack, you're correct, there are many new regulations when it comes to being a dealer nowadays. When my parents signed up in the 80's the Yamaha rep came in and said do you want to become a Yamaha dealer. My dad and mom sold used cars only at the time. Sometimes in the winter no one would come through the door for a week at a time! LOL!!! My mom and dad said why not, can't hurt. My dad drove to Coon Rapids, MN and picked up six new Yamaha's and all were non currents. 10 days later my dad called and told Yamaha he was out of sleds, they said are you kidding me! I think we had one Phazer, SRV, Exciter, Ovation, and I can't remember the other two. LOL! The rest is history:) Thanks to all for your support BTW.
 

timo

Well-known member
ha,,,,that's a pretty cool story.
gotta start somewhere living out the American dream.




That's a good question and I"m comfortable answering it. I like to shed light where I can. In 2013 I took all of my warranty registrations and found that 67% of our sales at Pat's came from out of state. We are in a remote location so it's a bit unique here. I should check it again because I was Yamaha only at that time. Dfattack, you're correct, there are many new regulations when it comes to being a dealer nowadays. When my parents signed up in the 80's the Yamaha rep came in and said do you want to become a Yamaha dealer. My dad and mom sold used cars only at the time. Sometimes in the winter no one would come through the door for a week at a time! LOL!!! My mom and dad said why not, can't hurt. My dad drove to Coon Rapids, MN and picked up six new Yamaha's and all were non currents. 10 days later my dad called and told Yamaha he was out of sleds, they said are you kidding me! I think we had one Phazer, SRV, Exciter, Ovation, and I can't remember the other two. LOL! The rest is history:) Thanks to all for your support BTW.
 

old abe

Well-known member
Kip; you have said that they, as Yamaha, are not going anywhere. That sounds good, and bad to me??? Does that mean just standing still, and reducing production??? And, that they have a 2 year plan, then they will reassess after that??? Hows that work??? A 2 year plan does not sound like a solid platform for going forward with anything "new"??? If there was to be a "grand new snowmo project" either jointly with A/C, or by Yamaha alone, it would surly seem to be more than a 2 plan forwaard??? We've heard of these Yami year plans before in various time frames. I don't want to sound pessimistic, but it's not very encouraging. I have always thought Yami could push the snowmobile envelope, if they really wanted to. There just doesn't seem to be any serious want to. It has been that way for some time now. The snomo business is not the best now anyway you look at it. It's bad enough now, we just can't loose another manny. My fear is Yamaha will just slowly get out of the sled business, and remain as a engine/power supplier only. Probably better returns on the investment that way also. This would give A/C time to get positioned to capture that share of the market. I hope this is not the real picture Yamaha is painting.
 

indy_500

Well-known member
Not a surprise. Apple doesnt sell the same iphone for 10 years because why the he11 would someone want old tech? Not rocket science
 
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