<div class="FTQUOTE"><begin quote>Originally posted by: Rowe
These companys and dealers are making a killing no matter what you or they say.</end quote></div>

You do know that polaris doesn't have enough production demand to keep its employees working full 8 hour shifts? People get sent home after a few hours cuz they have nothing to produce, not enought orders, they are running part time shifts most of the time and people are quiting left and right because they want a steady 40 hour paycheck. Its been like this for a couple years, and unfortunatly, they did have to do a layoff.

Not directing this to you Rowe, but to all you people that think that every company is a money beast or out to get every penny you have, Polaris is one of the companies that made northern Minnesota what it is, and they are the main reason Roseau, mn is such a nice community, and they are just trying to make ends meet and do their duty to serve their community and hang in there like the founders promised everyone. Granted things have changed hands behind the scenes, but the managment is still hometown proud and have hockey pucks for *********.

 

Lets take a moment and look at this from the other side now...
Lets say YOU just spent several million in research and development, a year of testing, pre-produced 1400 units for testing that will never be sold, gave out in excess of 100 machines to sponsored teams, ramped up a new million $+ add campaign, hosted several media roll outs, paid for independent crash testing, paid for the independent CARB testing, and paid for the thousands of other related expenses to roll out two new models...

AND

You ended up with two of the most innovative and feature packed ATVs ever released on man kind with every publication with any interest in off road motor sports proclaiming their virtues! You have all the online forum buzzing at a fever pinch, the hype is about to go through the roof!

Now wouldn't you price these new products on the high side knowing...

1. You have a tremendous development expenditure to recoup
2. You have two machines that will obviously be in high demand
3. You will for some time have very limited production capacity for these units
4. You have two machines that will be superior to the competition for a limited time
5. You still have a value line of bikes that are clearly less appealing but you want to continue selling them to generate some revenue while you ramp up the new products
6. A somewhat higher price leaves room to offer cash back incentives to help out dealer sales
7. And Dealers are free to discount the MSRP if they feel it necessary

Now, if it was you, would you, or COULD YOU sell these machines for less then they are right now?! It is much easier to start the asking price high and lower it if necessary then to raise it later!

 

nice post jokout. This business costs alot of money, and if there are people that won't buy them based on the "displacement theory" thats too bad for them, there will be many that will, cuz its the latest and greatest.

 

Jokout and Koerbs covered most of what I was thinking and a whole lot I hadn't even thought of. Here's one more thing. I have to disagree with Rowe, "These companys and dealers are making a killing no matter what you or they say." They really aren't.

One of my riding buddies bought a Polaris dealership two years ago and sold it last year. Business was good but he wasn't making a killing. When I bought my new ATV this year another dealer said he "couldn't touch that price <u>because they sold it to me for less than what they paid for it</u>. They're losing money on it, not making money." When they get the $500 rebate from Polaris maybe they will have SOME profit on it, but right now they're the ones getting "killed".

Finding out details about dealer goings-on is nearly impossible, like they're sworn to secrecy. The best information I have is that they're lucky to make $400 profit on an $8,000 ATV. I remember when the banks gave you more money back on your investment. They have to use that little bit of profit to pay for the building, inventory, wages, tools, licenses, and all that other good stuff.

 

<div class="FTQUOTE"><begin quote>Originally posted by: jumbofrank

I have is that they're lucky to make $400 profit on an $8,000 ATV. I remember when the banks gave you more money back on your investment. They have to use that little bit of profit to pay for the building, inventory, wages, tools, licenses, and all that other good stuff.</end quote></div>

5-7% is about right, they make their money on volume of sales, not, high profit on individual sales.

 

5% sucks. The banks used to pay 5.25% on a regular savings account when I was in high school. I think CDs paid 7%. My dealer is always happy to see me because they make money on service, parts, and accessories. They weren't doing any high volume sales either when I bought mine. I was the only customer in the whole store. I think that's part of the reason I got such a great deal.

 

Yeah, they make most of their money on parts and labor.

 

Bravo jokout! Most intelligent post I have seen in this thread. Bottom line IMO, if you think it is too expensive don't buy it. Personally I have never paid MSRP for an ATV, but it may take that to get one of these machines anytime soon. Time will tell if they are overpriced. If they do not sell the price will come down. I have a feeling though that at least initially they are going to sell like hot cakes. Then if they are everything they are cracked up to be the sales will continue, if not they will taper off and the price will come down in the form of larger rebates/incentives.

 

When all is said and done I do wish Polaris well with the new XP series quads as they need a all new machine so bad to keep up with the Joanses but I honestly belive as of right now the best bang for the buck atv is the 700 GRIZZ!

 

I'll tell you what does tick me off...the Xp's are on the Polaris website, in all the magazines ect but NO ONE can give a straight answer about when they can be expected to hit the dealers. I mean come on, someone has to have a answer. If not they should have figured that out before they released them.