Issue #240 Customer Incentive? | Models, Purchase, Flathead, Have, Price

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Issue #240 Customer Incentive?

Written by John Campbell
Thursday, 27 March 2008
Motorcycle dealers and their Canadian distributors came under heavy fire, especially late in 2007, as the Loonie soared to parity, then surpassed the American Greenback. “Where are our price cuts?” demanded an increasingly angry public voice, which would not be appeased by any argument regarding economies of scale or collective purchase agreements that predated the Loonie’s climb. The public simply wanted a pricing structure that was on a level comparable to the American market. Though their hands have often been tied, many dealers have tried to oblige and be creative in a business that doesn’t usually leave much vertical price movement. However, rebates are now seen across the board. In Kawasaki’s case: a cruiser customer can receive up to $2,100 through the “Good Times Instant Rebate” program, or $450 on dirtbike purchases. Your dealer has the details. Triumph North America’s monthly newsletter boasts there are “several cool promotions going on right now in the Great White North.” Specifically: $1,200 worth of free clothing and accessories on Americas and Speedmasters along with a coupon offer worth up to $500 on select models. Again, talk to your local dealer. In Toronto, there’s a new one as of 2008: Rev Cycles. Hyosung is offering 3.99 per cent financing or an equivalent cash rebate on all remaining 2007 models. Suzuki’s Fast Buy program offers the buyers of street legal motorcycles 400cc and over, 500 “Suzuki Dollars” to purchase accessories. From Yamaha comes a veritable banquet of incentives including a free scooter on the purchase of certain competition dirt bikes; rebates of up to $1,600 on heavyweight Star models; and Petro Canada cards through the “Cycle Cents” promo. At the Vancouver Motorcycle Show, any BC resident who slapped down a $500 deposit on a big-inch Star or elite sport bike was eligible to receive a $1,000 instant customer bonus. BMW Motorrad Canada has addressed the current controversy surrounding the Loonie’s rise against the Greenback with price reductions ranging from 4.3 to 11.6 per cent. Price adjustments offered on 2008 models will also apply to current 2007 models in stock, says BMW. And so on and so forth. While clothing, accessories, and clever bonus packages may not completely soften the heart of the hardbitten consumer—who may see initiatives such as “Suzuki Dollars” as nothing more than Funny Money—at least there’s evidence that the industry has heard the public and is doing something to respond. Personally, I wouldn’t mind $1,200 worth of new kit—maybe even a little something from that range of Steve McQueen clothing recently launched by Triumph. TURN TO PAGE 19 AND YOU’LL FIND AN INDUSTRY NEWS PIECE concerning the purchase of the Global MotorSport Group by an affiliate of Korean industrial parts builder, Dae-IL. GMG is the operator of importaant aftermarket suppliers such as Custom Chrome and Santee. Big news for sure, but also interesting was the recent purchase by S&S Cycles of Sweden’s Flathead Power, with which it has had a “longstanding customer-vendor relationship.” The deal closed with all of Flathead Power’s assets shipped to the S&S facility in Viola, Wisconsin. Flathead Power was a company that serviced vintage engine lines and components dating back to 1936. Michael Scaletta, who is the director of business development for S&S, said that the acquisition of Flathead Power’s assets and tradename will allow S&S to sell complete engine assemblies and aftermarket components from 1936 year groups through 2007. “Few—if any—companies worldwide have, or will have, the breadth of coverage for V-Twin performance aftermarket parts that we will following this deal,” opined Scaletta, who also believes that “the classic/vintage market has been underserved, with pent-up demand.” The acquisition is said to be the company’s first in nearly 50 years of business and S&S had made plans to reintroduce the Flathead Power product line at the V-Twin Expo in Cincinnati in early February. Comments (0) Subscribe to this comment's feed Write comment You must be logged in to a comment. Please register if you do not have an account yet.