Tuesday, August 9, 2011

Scooter Sales still growing in a slower US Motorcycle Market

Scooters are the bottom of the food pyramid in the US Powersports Word. Seems like the only time Parts Unlimited - Lamans, Honda, Yamaha, or any of the big guys in the biz care to look at the segment its because gas prices are up and there's a bunch of press. This has happened every other summer for the last decade.

So right now none of the major distributors have any scooters in stock. My friend at the MIC says that sales are closer to a 30% spike. So no scooters, a scooter spike, and an America that has no idea what to invest in when the S&P is falling on a daily basis.

The truth is The Scooter Maven has always spoken about the fact that most growth in the developed market like the US is now at the bottom of the transportation pyramid. Nobody likes to talk about scooters at MIC gatherings or when meeting with the magazines. It's the "fat girl" joke about scooters that everyone talks about, everyone has fun riding them etc... this has been prevalent in this immature industry for ages.

The truth is there is money to be made. Now when the US economy is tanking you see a surge in scooter sales. People are buying scooters cash and repairing older bikes. The real question is why? and Who benefits? We live in the world's richest country yet consumers are running to Mc Donalds not to Whole Foods. You see consumers buying pre-paid phones not buying the latest Apply 5G Iphone. For every luxury phone there are 10 new ones being sold by MetroPCS. The average American household has seen its income drop in the last ten years. I know this for a fact for I started in this business selling $4,000 Ben Bostrom Ducati replicas and now make a living selling $599 parts to riders that sometimes can't afford to fix them when they break. Now I'm not saying this is a horrible thing, I'm saying this is reality. We will always have the guy that wants the best Vespa money can buy and Malossi parts. My contention is that some 44 million Americans are living below the poverty line and many of them still have jobs and when public transportation isn't available many of them are now taking scooters to work. We here at MRP understand this so we have more CHINESE parts for scooters than any company in the USA. Period. Our company is primed to take advantage of this segment and we want to help you make money doing this.

Repair shops need to take advantage of this new market reality. Read my previous articles on building a destination and being more than just a JUST in Time Guy.  The way to make money in this market is to repair everything that comes your way be it a TNG scooter ( MRP HAS TNG parts, a CPI Scooter (MRP HAS CPI Parts), a Malaguti ( MRP has Malaguti Parts), from generic GY6 to 40QMB we have it all you get my point. So now is the time to market this growing need. Your store can take advantage of this growing segment. The bottom of the pyramid for the first time ever is more profitable and growing in the USA. Our sales charts have more in common with India or Argentina than a developed country.

This bottom is getting wider and growing when the rest of the industry is shrinking. 28% growth is finally here the turnaround is upon us.

MIC update
includes estimates of non-reporting companies but really doesn't count the Chinese in any way or form.

 2011          2010          Change     %Change
DUAL 15,876 14,045 1831 13.0%
OFF-HWY 37,123 44,673 -7550 -16.9% 
ON-HWY 187,565 181,5426023 3.3% 
SCOOTER 18,198 14,122 4076 28.9% 
MC TOTAL 258,762 254,3824380 1.7% 
ATV 103,730 125,414-21684 -17.3%

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