Genuine Price Cuts Coming

[lipcrkr]

I'd love to support my local scooter dealer and Genuine...but the Blur 220i isn't available around here. And, there aren't any other sport scooters' in the same class as the Blur available here in the U.S. Everyone else in the world gets the good stuff, but not us. I think I'm starting to like using the little face in my postings...

I am a scooter virgin and decided to get a scooter rather than a car as my next mode of transportation. After months of deliberation i decided on 2 models....The new Blur 220 and Honda PCX. I like the look of these because it looks less Scooterish with the "step over" as opposed to "step through" design. I went to my local Genuine dealer yesterday and they didn't have any in stock but they expected them soon. But i've noticed that people in other parts of the country have had these for a while. Is this related to California? or trouble within the company? As a newbie, i don't know what the state of the scooter industry is in. I read that "letter" and i'm concerned. Would it be safer to purchase the Honda (and drop down in class) rather than the Genuine based on stability of the company? Does it matter? Would i still be able to service the Genuine for years to come no matter what happens? I really like Blur 220 but becoming increasingly apprehensive with Genuine, not because of the quality of the bike, but because of the nature of the business.....at least compared to Honda.

[Skootz Kabootz]

I'd love to support my local scooter dealer and Genuine...but the Blur 220i isn't available around here. And, there aren't any other sport scooters' in the same class as the Blur available here in the U.S. Everyone else in the world gets the good stuff, but not us. I think I'm starting to like using the little face in my postings...

I am a scooter virgin and decided to get a scooter rather than a car as my next mode of transportation. After months of deliberation i decided on 2 models....The new Blur 220 and Honda PCX. I like the look of these because it looks less Scooterish with the "step over" as opposed to "step through" design. I went to my local Genuine dealer yesterday and they didn't have any in stock but they expected them soon. But i've noticed that people in other parts of the country have had these for a while. Is this related to California? or trouble within the company? As a newbie, i don't know what the state of the scooter industry is in. I read that "letter" and i'm concerned. Would it be safer to purchase the Honda (and drop down in class) rather than the Genuine based on stability of the company? Does it matter? Would i still be able to service the Genuine for years to come no matter what happens? I really like Blur 220 but becoming increasingly apprehensive with Genuine, not because of the quality of the bike, but because of the nature of the business.....at least compared to Honda.

You have nothing to worry about with regards to Genuine's stability. Not even an issue. I am wondering who this "local" Genuine Scooter dealer is that you mention. Seems quite odd that they are 100% out of stock. That aside, the new Blurs are not in CA yet (and yes, we in CA do not get certain scooters because of our tougher air quality standards). But if you're in LA you should head over to NoHo Scooters and talk to Mike. They have a ton of scooters there (all makes) and could give you some good trustworthy advise too. The are also a great place for service and maintenance. I get all my work done there.

[Lovelandstella]

...Seems quite odd that they are 100% out of stock. ... .

didn't Phil Mc Caleb tweet that all the blurs were sold out? they only imported so many this year, I figure.

plus I thought the Bur 220i WAS in CA- so shows how well I pay attention ...

The way this probably works is that Genuine will give dealers a credit on their account for every bill of sale they submit on a qualifying scooter. As always it's up to the dealer to negotiate the final out-the-door price with the buyer, so how much the buyer saves depends on that. But since it's public information, most dealers will probably pass along most (if not all) of the savings to the buyer. This puts some pinch on the dealer, because I doubt Genuine is writing actual checks for the discount; the dealer has to buy new merchandise and use up that credit to actually "get" the missing $800 (or whatever). But unless the dealer is doing poorly enough that they're trying to stock less inventory (which any smart retailer wants to avoid if possible), they're almost certain to order a new scoot to replace what they sell. This is about clearing out Genuine's inventory and refreshing dealers'.

ah ha! this is very interesting- I wonder if the the dealers have to get the very same scoots or if they can mix it up: like sell a stella & get credit you can use on a buddy and some chrome? and as far a slow inventory -
I wonder how soon they "have" to order the "new" stock. (new meaning 2009 and such) - if I were a dealer- I wouldn't really think "fall" is the time to "stock up" (unless it's school supplies...)

[lipcrkr]

I'd love to support my local scooter dealer and Genuine...but the Blur 220i isn't available around here. And, there aren't any other sport scooters' in the same class as the Blur available here in the U.S. Everyone else in the world gets the good stuff, but not us. I think I'm starting to like using the little face in my postings...

I am a scooter virgin and decided to get a scooter rather than a car as my next mode of transportation. After months of deliberation i decided on 2 models....The new Blur 220 and Honda PCX. I like the look of these because it looks less Scooterish with the "step over" as opposed to "step through" design. I went to my local Genuine dealer yesterday and they didn't have any in stock but they expected them soon. But i've noticed that people in other parts of the country have had these for a while. Is this related to California? or trouble within the company? As a newbie, i don't know what the state of the scooter industry is in. I read that "letter" and i'm concerned. Would it be safer to purchase the Honda (and drop down in class) rather than the Genuine based on stability of the company? Does it matter? Would i still be able to service the Genuine for years to come no matter what happens? I really like Blur 220 but becoming increasingly apprehensive with Genuine, not because of the quality of the bike, but because of the nature of the business.....at least compared to Honda.

You have nothing to worry about with regards to Genuine's stability. Not even an issue. I am wondering who this "local" Genuine Scooter dealer is that you mention. Seems quite odd that they are 100% out of stock. That aside, the new Blurs are not in CA yet (and yes, we in CA do not get certain scooters because of our tougher air quality standards). But if you're in LA you should head over to NoHo Scooters and talk to Mike. They have a ton of scooters there (all makes) and could give you some good trustworthy advise too. The are also a great place for service and maintenance. I get all my work done there.

It's Route 66, in Marina Del Rey which is part of Harley Davidson: http://www.route66modernclassics.com/index.php

They weren't out of stock, they just haven't received them as of yet. Are you saying there's a possibility California won't be getting the Blur 220?

[MGM]

Based on my info, TVB is essentially correct. The dealer gets a reduced wholesale on a new scooter ordered from Genuine. The dealers are NOT reimbursed for the discount on existing inventory, even though that's what the "sale" is about. This is not necessarily a "loose" for the dealer. Either they own their inventory, and therefore have significant working capitol tied up, or they "floor plan" (finance) the inventory. If that is the case, there is usually a time limit, say one year, after which the inventory has to be paid for in full. this is especially true of anything that has a model year cycle. i would not be surprised if many 2009 Buddy's were coming due.

So, a dealer gets to move essentially last year's scoots a a low profit, but he frees up funds to get new scoots AT A DISCOUNT and forgets 2009/2010 ever happened. I hope that will enable many of the reputable but struggling dealers to make it until next season. My advice is, if you're thinking about a new scooter, the time will probably never be better. And it looks like you can get a good deal from you're LOCAL GUY who will be there next year.

[lipcrkr]

Based on my info, TVB is essentially correct. The dealer gets a reduced wholesale on a new scooter ordered from Genuine. The dealers are NOT reimbursed for the discount on existing inventory, even though that's what the "sale" is about. This is not necessarily a "loose" for the dealer. Either they own their inventory, and therefore have significant working capitol tied up, or they "floor plan" (finance) the inventory. If that is the case, there is usually a time limit, say one year, after which the inventory has to be paid for in full. this is especially true of anything that has a model year cycle. i would not be surprised if many 2009 Buddy's were coming due.

So, a dealer gets to move essentially last year's scoots a a low profit, but he frees up funds to get new scoots AT A DISCOUNT and forgets 2009/2010 ever happened. I hope that will enable many of the reputable but struggling dealers to make it until next season. My advice is, if you're thinking about a new scooter, the time will probably never be better. And it looks like you can get a good deal from you're LOCAL GUY who will be there next year.

Thanx. Keep in mind that i'm a new scooter customer. If i buy their scooter (Blur 220), i will also be their customer for the length of the bike, meaning i purchase a helmet, jacket, gloves, etc. as well as get my Blur serviced. I also put in a good word for them to other potential scooter buyers in the area. Would i be able to get them to drop the MSRP a little because of this? I've never been in the market for a vehicle other than a car.....if the MSRP on the Blur 220 is $3899, is that set in stone or can i negotiate a lower price based on my being their customer for the years ahead should i make the purchase?

[Skootz Kabootz]

They weren't out of stock, they just haven't received them as of yet. Are you saying there's a possibility California won't be getting the Blur 220?

No the Blur's are coming. They're just not here (in LA) yet. I thought you were talking about the dealer being out of Genuine Scooters in general. Sorry. Being out of all Genuine's would be definitely be weird.

[mattgordon]

The way this probably works is that Genuine will give dealers a credit on their account for every bill of sale they submit on a qualifying scooter. As always it's up to the dealer to negotiate the final out-the-door price with the buyer, so how much the buyer saves depends on that. But since it's public information, most dealers will probably pass along most (if not all) of the savings to the buyer. This puts some pinch on the dealer, because I doubt Genuine is writing actual checks for the discount; the dealer has to buy new merchandise and use up that credit to actually "get" the missing $800 (or whatever). But unless the dealer is doing poorly enough that they're trying to stock less inventory (which any smart retailer wants to avoid if possible), they're almost certain to order a new scoot to replace what they sell. This is about clearing out Genuine's inventory and refreshing dealers'.

Moving product is moving product. If its not leaving the dealers' floors, its sure not leaving anyone's warehouses.

There isn't a dealer anywhere who isn't anxious to free up some flooring dollars by selling scooters even at cost or a loss, just to get out from under.

Genuine is smart....trying to get things moving from the bottom of the supply chain by publicly lowering MSRP, in the hopes that dealers can free up their logjams. Then hopefully some replacement inventory can begin to trickle out of the distributor warehouses. Theres no point in keeping your price higher, if no one is showing any interest....it costs money to sit on this stuff too.

Suzuki was genius....act like 2010 never happened....sell off as much 2009 MY inventory and then slowly bring in 2011 stuff.

[TVB]

If i buy their scooter (Blur 220), i will also be their customer for the length of the bike, meaning i purchase a helmet, jacket, gloves, etc. as well as get my Blur serviced. I also put in a good word for them to other potential scooter buyers in the area. Would i be able to get them to drop the MSRP a little because of this? I've never been in the market for a vehicle other than a car.....if the MSRP on the Blur 220 is $3899, is that set in stone or can i negotiate a lower price based on my being their customer for the years ahead should i make the purchase?

The price is negotiable, but (except for the current discounts) there isn't usually a lot of room for scooter dealers to negotiate. The profit margins just aren't as big as for car dealers, and they're already counting on you to come back for service and accessories. You're more likely to get them to include discounted or free extras in the deal. For example, giving you $100 off would cost them $100, but including a free $100 helmet would probably only cost them $50.

[ericalm]

The way this probably works is that Genuine will give dealers a credit on their account for every bill of sale they submit on a qualifying scooter. As always it's up to the dealer to negotiate the final out-the-door price with the buyer, so how much the buyer saves depends on that. But since it's public information, most dealers will probably pass along most (if not all) of the savings to the buyer. This puts some pinch on the dealer, because I doubt Genuine is writing actual checks for the discount; the dealer has to buy new merchandise and use up that credit to actually "get" the missing $800 (or whatever). But unless the dealer is doing poorly enough that they're trying to stock less inventory (which any smart retailer wants to avoid if possible), they're almost certain to order a new scoot to replace what they sell. This is about clearing out Genuine's inventory and refreshing dealers'.

+1

It costs dealers, distributors and manufacturers to have unsold scooters sitting on floors or in storage. At this point, with sales volumes so low, circulating them through will actually have a pretty big benefit.

Also, despite no changes to '11 Buddys, '09 models will be harder to move next year. Buyers will fell like they're getting an older scooter. If a dealer across town had a '11 for the same price, they'd probably get that one.

Moving product is moving product. If its not leaving the dealers' floors, its sure not leaving anyone's warehouses.

There isn't a dealer anywhere who isn't anxious to free up some flooring dollars by selling scooters even at cost or a loss, just to get out from under.

Genuine is smart....trying to get things moving from the bottom of the supply chain by publicly lowering MSRP, in the hopes that dealers can free up their logjams. Then hopefully some replacement inventory can begin to trickle out of the distributor warehouses. Theres no point in keeping your price higher, if no one is showing any interest....it costs money to sit on this stuff too.

Suzuki was genius....act like 2010 never happened....sell off as much 2009 MY inventory and then slowly bring in 2011 stuff.

[EBee]

...on this topic, does anyone know if the tax deduction for buying a motorcycle/scooter is on for this year?

[pocphil]

On the Blur: I've had 4 Blur SS 220i 's on my floor for nearly a month now...I love them and if you want to see a quickie video go here....

http://www.youtube.com/watch?v=ZaVl2tKiK8s

On the discounts: Yep, you can get up to $500 off on a new Buddy if your dealer is participating in the program. The dealer gets a great price on the bike he replaces current inventory with. This works well to reduce existing inventory at Genuine. A customer of ours just saved $1000 yesterday by buying a pair of Buddy 150's.