So here’s the deal: In 2008, with the advent of the Great Recession, motorcycle sales in the US fell to half of what they had been (and up to that time, they had been steadily climbing).
Okay, that’s rough…a drop to 50% of prior sales is a major hit, but hey, these things happen and it’s logical to assume that sales would gradually rebound and the uptick would continue.
Except they didn’t. Post recession sales tanked to 50% of their prior levels and they never recovered. Oh, they came back a little bit, but not anywhere near where they had been. Based on this, it’s been sort of a national pastime in the two-wheeled world to put forth reasons why this happened (presumably, so the reasons could be addressed and we could get back to the good old days of taking second mortgages to buy overweight, oversized, and overpriced driveway jewelry). Here’s the problem with all of the explanations: With essentially no exceptions, they all came from motorcycle industry insiders. Motorcycle importers, motorcycle journalists, motorcycle dealers, and such. Wouldn’t these be the people to provide the big reveal?
In a word: No. Especially with motojournalists, who seem to pontificate a lot on this issue. Hell, these folks couldn’t even keep their magazines afloat. But it’s also the case for the manufacturers, the importers, and the dealers. They’re the ones who got us here. If they had the answers, they would have fixed things already.
I’ve been a consultant for more than 30 years helping companies with delinquent deliveries, poor quality, and behind-schedule performance, and when I was hired by any of my clients, it would always be by the chief executive (I quickly learned not to waste my time marketing to underlings). I’d always tell the chief execs during my first meeting that improving performance would involve replacing at least some of their key staff members. “They’re the folks who got you here,” I’d say, “and expecting them to be the ones to fix the problems is not the answer.” I think it’s the same situation when addressing the US motorcycle sales slump. The folks who called the shots (cabals of industry execs and motojournalists) prior to, during, and after the recession don’t have the answers. Repeatedly having meetings to discuss the issue with these same folks fits the classic definition of insanity: Doing the same thing again and expecting a different result.
So who has the answer?
You do. You are the folks who actually buy motorcycles. You’re the ones who created that heady rampup prior to the recession, and you’re the ones keeping your wallets closed now. We need your help. Tell us. Why? What’s holding you back? Please, leave your comments. We want to hear from you.
1. The ‘Industry’ is building stuff we don’t want.
2. We bought a lot of stuff that didn’t fulfill our fantasies, so we stopped looking to motorcycles for gratification.
3. When we decide to buy our next fantasy motorcycle, it is not in stock… but if you want a 4-wheeler, they can hook you up.
4. We are addicted to price negotiation and the dealer can’t afford to do it.
5. Customer service is a thing of the past. Got an issue that should be a recall? ‘Industry’ doesn’t care. All your metal parts rusting? Too bad… trade it in on a new one.
6. Price point is now too high.
7. The ‘Industry’ is building stuff we don’t want.
8. The ‘Industry’ is building stuff we don’t want.
9. The ‘Industry’ is building stuff we don’t want.
10. The ‘Industry’ will not listen to us when we tell them what we want.
Thanks, Deet. All good inputs. Especially Points 1, 6, and 7 through 9.
Yeah, Deet nailed it. And for me, after buying 40 different motorcycles over the last 50 years I have THE PERFECT MOTORCYCLE now….my ’07 Tiger 1050!
We’ve talked about this before, Deet. Does it run on YooHoo?
I agree with your assessment of DEETS reply.
I’m just one guy with one opinion BUT (there’s always a but around somewhere) when I look at the stuff available today for dirt and on/off road, I think the magazines were a part of bringing us to this point. Bikes always seemed to be tested and critiqued for the highest performance expectations possible. They would, in effect, tell the manufacturers, “If you want to sell us bikes, they need to be factory racers.” Now everything is too tall, too powerful, too expensive, too everything for us mere mortals to simply hit the woods and enjoy a ride.
It’s been said many times before: there’s a reason (actually several) for why the vintage stuff has made a resurgence. True, nostalgia plays a big factor, but tractable, easy to ride bikes that can go pretty much anywhere a sane person would want to go AND have both feet on the ground at a stop are popular for a reason. The kind of bikes new riders can easily and safely learn to ride on. The kind of bikes we grew up with and transitioned from.
Or to put it another way, DEET’s #’s 1 and 6-10.
But that’s just one guy’s opinion
Hard to argue with this. Why can’t the manufacturers see it?
Let’s address the 600 lb gorilla in the room… motorcycling isn’t a cheap thing. The cost of a bike, the cost of proper riding gear (I don’t need any special clothing to drive my car), maintenance, farkles, etc. For the vast majority of us, it’s a hobby… very few of us rely exclusively on a bike for transportation. The younger generations don’t have the disposable income that boomers had/have. And I think that the 2008 recession was a wake up call for a lot of boomers… maybe we shouldn’t be so frivolous with our spending, especially with retirement (hopefully) being on the horizon. Being a Boomer age cruiser rider, I tend to watch that segment. Of course it’s dominated by the big 2 “American” made bikes. But think about it… in today’s world when young people are trying to deal with finding a secure job, paying life’s expenses, paying off crazy student debt, maybe trying to get married, buy a home and start a family… if the choice comes down to spending $20k on a motorcycle or a car, which would you purchase? Even the prices of used bikes can be daunting (used bike @ used car prices). Industry greed and the need to pay dividends to stockholders has made motorcycles a luxury items that most young people can’t afford.
I also think that it’s perceived as just being “too dangerous”. We boomers have raised our kids to be afraid of everything… we are constantly warning them to “be careful”. The internet is rife with stories and photos and videos of the aftermath of idiot riders. 4 wheeled vehicle drivers are portrayed as “cagers that are out to get us”. In today’s scary world, why subject themselves to something as dangerous as riding a motorcycle?
Lastly, think about this… when was the last time you saw kids riding bicycles around your neighborhood? For whatever reason (stay outta the street or you’ll get hit by a car!), kids don’t even seem to ride bicycles anymore. And I think that it’s a little bit of a stepping stone to want to go from pedal power to “hmmm, I love my bicycle… if it only had a motor”.
Well reasoned, Arnie. Thanks.
1. Quantity: the market is saturated. There are so many good bikes (see #2) out there that everyone who wants one has one, or two or three.
2. Quality: the modern bikes well designed, well built, and reliable. Riders say “I’m happy with this bike, why should I spend money that 1. I don’t really have, or 2. I want to spend on something else.” A common refrain I hear from Moto Guzzi dealers who have trouble staying in business is “I sell a guy a Moto Guzzi and he loves it and rides it forever. He never comes back for another motorcycle.”
Question: How is the used bike market? Are there any stats on it? Private sales would be hard to track but DVM new registrations might provide answers.
Good inputs, Dan. Regarding the used market, I don’t know. Anybody out there know?
I don’t know what the stats are on used bikes……but so far, I have only bought “used” bikes with low miles and lower price to buy.
But that is just me……everyone knows I’m cheap (aka frugal)
The world is filled today with things that don’t seem to make sense…..
For YEARS we have begged Yamaha to make a street-legal 450 enduro with a reasonable seat height and gobs of low end torque….. the results? 15 years of the WR250r.
I would love to have a Yamaha TW (the one with big, fat tires) in a 450 or 650cc version. Leave the 200 for the kids, but provide more grunt for the adults. Your feet can reach the ground and the big tires help the novice
But back to what is screwed up with manufacturers… who told GM “if you reintroduce the Blazer as a generic SUV they will fly off the lots”? Probably the same guy who said “Discontinue the Camaro…. we have the Monte Carlo to compete against Mustang”. Thankfully someone woke up and brought it back. (Or was it the plan all along?).
The Mustang and Challenger are success stories.
We have money…..well, reasonable money.
Manufacture what we want and we will buy it.
The motorcycle boom days are over for the same reason cigars and golf are no longer in vogue. The fad is over and folks are looking for the next really cool thing they can throw money at. In the meantime, those of us who ride becausenthat’s what we’ve always done, will have their choice of a plethora of new-used bikes to own.
I don’t smoke and I don’t play golf (I could never get past that little windmill), so I can’t comment on those interests. I don’t know that the fad is over, but even it was and there are folks looking for the “next really cool thing they can throw money at” why couldn’t it be motorcycles?
They are making bikes that cost too much, have too much displacement and are too tall.
Amen, brother, Amen.
More than likely because people couldn’t get credit or get a loan again after having to foreclose on a home in 2008
I think you’re on to something, Kenny.
The financial meltdown of 2008 severely put the hurt on middle and working class folks and additionally their teenage sons and daughters who were then trying to move into the workforce. All these working folks, for the most part, have not recovered financially and MAY NEVER recover despite what obsolete economic data may say. It may take another generation or two (if all goes well) for recovery to take place. The motorcycle mfgs. need to build what their potential customers want to buy, and quickly! I owned a nice Suzuki DRZ400 for a few years. It was too tall, handicapped with a 5 speed trans despite years of customers pleading for a 6 speed. The fuel tank was ridiculously small, the seat ridiculously painful. I sold it wondering how it is that bike has been being produced for decades like that. I would have been a much happier Suzuki customer if they made a DR400 with shorter suspension, same motor but with a six speed or at least a wide ratio 5 speed, a bigger fuel capacity, and a real seat. This bike just described is what many want, but NO ONE MAKES. Why, I cannot fathom… it seems totally doable at the factory level. Instead Suzuki and others bring out weird shit that no one wants and has to be heavily discounted to be sold. Honda is FAMOUS for this approach i.e. CB400f, CB1, GB500, PC800, NX250 and 650, VF1200, etc etc.
For this industry to recover in the United States personal income must rise in the working and middle classes and manufacturers must give us what we will buy. Sorry if I offended anyone!
Good inputs; thanks, Fred.
If you know of any one who wants to sell a CB400F, a GB500, or a PC800 at a heavily discounted price, let me know before you tell anyone else!
There’s no doubt it’s tougher for young people today. I entered the work force with an engineering degree when I was a young, and jobs were easy to come by. It’s just not the same any more, and that no doubt is playing a role.
So, what do we do?
Everything changed after the recession. Those of us of a certain age have decided not to go into debt for our hobbies. There are tons of interesting used bikes available for us to enjoy without borrowing money. All we have to do is sell our current ride. Basically it is a ride share program for geezers. Sport bike this year, adventure bike next….etc, etc.
Young people are not Being motorcycles at all……well maybe, commuter bikes with electric motors. If they want a motorcycle adventure they will just book the trip and skip the trouble of owning and maintaining the machine.
The recession changed a lot of things. The RV industry (an area I know a little bit about) tanked during the recession because credit dried up, but it came back. Why not motorcycles?
In addition to the astute observations made so far, I’ll add the fleecing that comes with a purchase. I’ll remind you Joe of your explanation of why you didn’t buy an Enfield 650 after the Baja ride.
Uppermost in my mind, Marty. Dealer gouging is a huge issue. $1500 freight and setup charges. Right.
On the topic of motorcycles being too dangerous for the new generations. Gen X isn’t imagining it: motorcycles are dangerous. No getting around it. Street riding is extra dangerous to the degree that I never encourage non-riders to become riders.
If a person decides to become a Street motorcyclist it has to be their own decision.
Good points, Terry. I think the cool factor (the desire to be like McQueen, etc.) is a good point. I haven’t seen a good movie lately with a realistic motorcycle scene. There’s no question that shows like The Great Escape, Then Came Bronson, and other helped the industry. We just don’t have that now.
It’s always about the money and being cool… Motorcycling used to a reasonable and cheap way to go fast have a good time without spending your life saving or going into massive debt. I rode a bike when I was young because it was fast and cheap…I learned to have fun and as my “where with all”, grew I bought faster and more expensive motorcycles, and that was the way of the world. In the 1990’s motorcycles became a fashion accessory and lots of Boomers bought their mid-life crisis dream. Perhaps the increase motorcycle sales in the 1990’s lasting to the recession in 2008 was an aberration. A backlog of want to be Marlon Brando’s and Steve McQueen’s wanting to be bad boys and living out the “Dream”. The fashion then changed and went away, and those people are not buying bikes anymore, either they are too old or is just not fashionable to have bike these days. Therefore the decrease in sales…
Because of the decrease in demand and the increase in prices people pay for bikes then our hobby or lifestyle is not as desirable as is used to be. People stayed away in droves…it is too expensive and not fashionable anymore seems to be the feeling. Hey want to buy a Hulu hoop or a Nehru Jacket?
So to get things going again, we need more of guys like Keanu Reeves owning and riding bikes and more motorcycles in movies, and in the news with cool people riding them. Then make the product the cool people are riding accessible to the great unwashed (me and you) at price they can have fun and afford it. If this is done then even the most risk adverse Millennial or Gen Z will jump in start riding. It is fashionable and affordable once again.
My thoughts….along with the others points already made and commented on my you and others.
Yup,,, to many good used bikes for sale out there and the new ones don’t offer enough to make it worth the price difference.
A couple years ago I was hunting for a Road Glide. I test rode the new M8 and a ‘15 Road Glide and compared the two.
The suspension was not any better on the M8 than it was on the ‘15 and the 103 twin cam had more than enough power to pull the bride and I.
I ended up buying a ‘15 with very low miles for half the price of a new one that had already had upgraded exhaust and seat.
I had more than enough money left over for a better suspension.
Now if they put a mono shock on a tour or a fixed fairing on the new softail frame I might be tempted to trade in my trusty twin cam for a sketchy M8.
You can nearly always buy used at a significant discount. On big ticket items it makes a lot of sense. On lower cost items, maybe not so much.
Oh,,,, and on the camper growth,,,
I think their continued success is because both old man and old woman can still use them. Even with a walker.
Heck,,, some have hot tubs to ease the weary bones.
Plus the old ones leak.
Just my $.02.
When I worked in the RV industry, about 75% of the folks who bought motor homes were retirees. Surprisingly, folks in their 40s and 50s who were still working bought them, too. I thought they were cool, but I never thought seriously about owning an RV. Just not my style, I guess. I rather travel in a car or on a motorcycle and then get a hotel at my destination.
I’ve considered the toy hauler RV thing but the thought of getting 8 miles per gallon and then paying for lot rent just does not seem worth the cost when I get 40 miles per gallon on a bike and can get a cheap hotel for $50-$100.
A bikes more fun anyway.
I’m 53 now and grew up on a farm. Growing up, I had dirt bikes, as did my friends. You’d be hard pressed to find a dirt bike on today’s farms. It’s all quads, side by sides, gators, etc. They’re more utilitarian than bikes and money can be justified for their expense.
I live in the city now and the majority of the millennials I see are one vintage bikes. They typically have a man bun, tattoos and parked at a coffee shop. It’s the new “lifestyle”.
I don’t have enough hair for a man bun. No tattoos, either. I do enjoy a good cup of coffee in the morning.
For me it’s the high price of new vs the inevitable depreciation on the trade. I used to be able to trade a 2-4 year old bike on a new one for $4-$6000. Now the cash outlay is double that. New bikes are much more expensive but the depreciation on the trade seems to fall faster than before? Once you buy new the countdown starts to a future value of 0. Some brands hold value better but it still seems like a lot of money to give away on what is a luxury item. Same situation with cars but to most of us they are a necessity.
Thanks for your inputs, John.