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Yamaha to LIMIT WR450F sales in No America


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I just got back from visiting 2 seperate dealers in my area, one of them sponsors my road racing efforts and the owner is a very good friend of mine, they placed orders for 30 WR450F's immediately after the dealer show in Vegas, they received their confirmation Friday and were SHOCKED to find Yamah will only be delivering 3 yes thats right let me say it again 3 units for the whole year! this is a fairly high volume Yamaha dealer and the owner is FURIOUS. I called another dealer today where my friend is the general sales manager, they are MUCH larger and sell probably 5-7 times as many Yamaha's per year than does the shop I previously mentioned, they ordered over 100 units for the year and are slated to get 11 of them, yes let me say it again 11 of them for the entire year!

Needles to say I immediatly placed a deposit for one and I am first on the list (thank god) but I am very suprised that Yamaha would do this. Any thoughts on this matter?

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Supply and demand. It's not as though they are introducing an all-new model, and don't know what the demand will be. But they command a higher per-unit price from the dealer if they limit production in the first year with significant improvements (or, at least, perceived ones). Then if they release more units in the second year to satisfy the demand they didn't in the first year, their profits are huge because they have established a higher value in the customer's mind.

Marketing 101.

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I assumed that because of either a limited number of 2003 WR's and a high demand for the new models that it would be wise to get my money down early. I called the Yami dealer when they opened the morning after the announcement of the new models. First on the list....makes me especially glad too now that I see the info in this thread. If this limited production actually turns out to be true, any bets on seeing some new WR's on EBay for a $1,000 or more higher than list price? ?

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On a semi related note I had my local medium sized dealer, who I purchased my wr from, how many bikes they sell a month, and they told me they have 3 sales men you sell approx 60-80 units per month each, so approx. 200 plus or minus bikes per month, and this does include street and dirt, So in my opinion 100 wr's sold in a year is reasonable, less then 10 a month. Plus I assume dealers sell to other dealers too.

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You won't have to look to Ebay for $1000 over cost. If you don't think the Yamaha dealers are going to be taking you for every dime they can then you haven't been paying attention to the short supplied KTMs and the Hondas. With a short supply of bikes, those dealers will be able to get what they want. If you won't pay the extra bucks there is always someone who will. I read some horror stories about some of the guys waiting for the first 450 Fs. I would get the price in writing. Some of the KTM and Honda dealers would give out the retale price for the bike but they had RIDICULOUS set up fees to bump up the price. I don't mean to sound like such a downer ( the price gouging never happened to me - good dealer) but I have just read and heard too many stories of gouging. ?

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So does someone who has a pre-order know for sure WHEN are the new Yamaha WRs or KTM EXCs are going to be available? I read from a lot of posts that they are going to be on December, others say on August or September, others November etc. etc. So does anyone know for sure? ? Thanx

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I remember a few years back, Yamaha RAN OUT of YZ250's 2-strokes) early in the season. They made a SECOND run of bikes that year. ?

I personally would not count on that to happen. I'd get my money down ASAP and just wait.

This will not be a Cannondale issue where those poor saps waited 2+ years after their downpayment, AND that first run production was plagued w/ problems/shortcomings.

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All you folks in search of the WR start calling California dealers now. If the new WR is a red sticker bike the demand will be low here in CA. Nobody will shell out the bike bucks for a bike that can't be ridden all summer long.

The local dealer here in Huntington Beach always has a couple of WR's on the floor.

The other reason is simiply production capacity at the factory. The YZ will have the highest priority to get out first since racing sells the brand. The WR will appear in limited numbers at first. The YZ demand will determine if the second production run is WR or YZ.

All this can be screwed if some critical part is in short supply like starter motors or suspension components.

A total produciton run for a motorcross bike can be less than 3000 units per year.

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Yeah here in SoCal places like Berts Mega Mall and Chapparal are bigger than most Walmarts or Costco's (not a joke) you walk into these places and it's bikes of every make for miles!

So 100 WR's over the course of a year is average sales to them...maybe even a bit low, I think they still had requests for 2001 models after they were gone just bout everywhere.

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Definately get your deal in writing, even if at retail. I had placed my name on the list for a 01 YZ250F in August 01, 4 months before they were due out and the mags hadn't tested them yet. I was quoted $5200 OTD, wanted it in writing, was told don't worry I've got it all right here. I'll call when it is due here, you're first on the list.

Went to pick it up in December. Full retail $5499 plus the BS. I asked about the $5299 OTD price. Why would we sell the hottest bike less than retail? After much discussion over several days, I said screw the 250f, and got a 01 YZ426F with a rippen price. No regrets.

Ironically, a coworker that has known the shop owners for years helped set up the initial deal and was realy upset with what occurred.

The point is get it in writing with details about price, setup, shipping, etc. Give a deposit and get a receipt showing the price. Worst you do is get stuff while picking up your new bike to effectivly pay less.

PK

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Japanese companies are very conservative. They will avoid over-producing under any circumstances. They can make profit by under-producing by using the method I described above. They cannot make profit by over-producing and getting stuck with large overstocks at the end of the year that have to be clearance priced.

For what it's worth, they learned the lesson well from the Harvard MBA's that taught them in the late 60's. It's just a method that assures they will make money instead of the alternative.

Dan

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If thats the case and they are as smart as you say, then what are they producing from now until December when the WR450 is claimed to be shipped? Thats a whole 6 months. Are they continuing to produce the 426 that they KNOW they will have to have deep discounts on to move? Is that a wise decision? It seems to me they would have been smarter to have their factories ready to manufacture the 450 shortly after the press release. I am in the market for a new bike and would have to get a really good deal to take the 426 vs. waiting for the 450, hence they lose money to continue producing the 426. And the longer they make me wait, the more chance I may come upon a really good "used" bike deal, my financial picture may change or even worse, the wife may find another use for my "bike" money. Under any of those scenarios, they lose me as a customer. I think the smartest move would be for them to get the 450's to market asap. If they weren't ready to manufacture until December, then they should have wainted longer to release the info. on the new bikes, IMHO....

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Thumper 36,

They typically produce dirt bikes on some of the same assembly lines as street bikes, or dual sports. They have a window for production that represents only a small portion of the year. Then that's it. They switch the line to another model and don't produce that dirt bike until next model year.

They have to take an educated guess at what to produce during that window. Sometimes, there is pressure to produce fewer dirt models when their marketing wants more of one of the street models (which earn higher profit margins). In that case, they get less production time to produce all the dirt bikes they can.

So, they are likely producing no WR's at all until some time shortly before their target availability date. They are likely busy with some street models.

Doesn't help us at all, but maybe we can understand why.

Dan

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