If you're not the type that likes to know the hard facts, stop reading. Just flip over to a Blog that will fill you full of "warm-fuzzy" feelings, because not everything is peachy. Sorry, only "shoot from the hip" stuff here.
Motorcycles -
If you haven't already noticed, many of the big manufactures aren't coming out with new models this year. Lets face it, we're all watching our penny's, and the manufactures are being hit hard. I can't speak for the entire Country, but here in Arizona Dealerships are closing, and if they're still around, they're not making money.
What will you see? -
The Dealers - 2010 will be the time to buy a new bike. Dealers are doing everything they can to clear 2008 (yes, you can still find unsold 2008 bikes), and 2009 models off their showroom floors. The 2010 models have arrived, and older stuff needs a home. What they're finding is that even with heavy discounts, they aren't selling. You and I, even with a huge discount, can't bring ourselves to buy. It's a never ending circle. The Dealers need to sell, but fewer people are buying, and they go under. Many of these Dealers invested heavily (buildings, inventory, employee's) when times were good, and simply can't make their bills.
The Manufacturers - Fewer new models will come out, changes to existing models will be few, and plans for future models will be put on hold. Simply, less money is available to push forward, so the only other option is to hold fast, and hope things improve.
Simply, 2010 will be known as the year HUGE dealerships close. HUGE chains will close stores in an effort to ride out the storm, and you, the consumer, will have fewer places to see the latest and greatest.
Apparel Retailers -
Distributors - Simply, sales are WAY down on the retail front. Many have brought in way too much product, and they can't get rid of it without taking a huge loss. New product is arriving, and is sitting on the shelf. In order to save the bottom line, many are ordering smaller shipments from the manufacturers, hoping a smaller inventory will save the day. In the end, there's a wait involved because there's simply less product to go around. Everything rolls down hill, which leads me to the next point...
"Brick & Mortar" Stores - As I mention above, Dealers typically carry apparel as well. Fewer Dealers, less product locally to purchase. Fewer places to shop locally leads me to yet another link in the chain...
Online Stores - Here it gets interesting. I've mentioned it before, but with so many Americans out of work, new companies are popping up everyday. These new online stores are looked upon as a blessing by the apparel Distributors. They have lagging sales, so building a larger retail base makes perfect sense. The more companies selling their products, the better, right? A few have even "unofficially" tossed their "new dealer" requirements in the desk drawer so they can build this base. The end result, wow, you name it...
For those looking for that magical deal of a life time on gear, it seems like a positive. These younger companies need to stand out in the current crowd, and the easiest way to get the word out is to offer "too good to be true" pricing. Cut all the prices down to nothing, and hope to make it up in volume. The reality is, volume is WAY down, so after only a few months, they disappear. If you got your gear, and paid little, you're safe. If you're one of the customers who bought right before they go under, welcome to a mess.
In the meantime, those online companies (such as ours) that have been around a while, understand that in order to keep the doors open we need to make a profit. We cut where we can, offer the fairest price we can afford to offer, and streamline our operation to save money. The simple fact is, you can only do so much (and we're always looking for better ways) before customer service suffers. Walking this fine line puts us at a disadvantage, since these new companies could careless about providing anything other than the lowest price.
Again, it's a revolving door. The Distributors need to sell, and bring on new Dealers. These Dealers go under, don't pay the Distributors for the product, and leave the customers high and dry. The solid companies attempt to compete, but can't, and disappear. In the end, we all loose.
In 2010 you'll see many great online companies closing their doors (we're already seeing it), new shaky companies will come on-scene and fail, and those that remain will have taken a beating. Oh, don't forget all these new taxes that will create more wounds.
Personally - I personally look forward to 2010. I've always thrived on challenges, and what better way to see what you're made of, than to take on today's market with a smile. There's always a light at the end of the tunnel, only this time the tunnel isn't straight.
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