Kill the Quads !

[shredjim]

Mountain Magic Sports closing is just one more example of how Cat's Quad line is killing one of the best sled manufacturers. Same thing happened to my dealer here in the Gorge. It sounds like many other dealers across the country and Canada can't sell AC quads. Supposedly the quad competition has AC beat by quite a margin, hense they don't sell very well - then the dealers can't affort the interest on the flooring charge. Then when they can't pay the bills, they close the dealership.

So - I just called Arctic Cat customer service and left a v-mail leaving my name and number suggesting that Arctic Cat Corporate drop their 4 wheeler line and focus on what they do best - SLEDS! Too many dealers dropping means Arctic Cat will have trouble, seems pretty simple, right?

Maybe a few calls will get some attention - Arctic Cat Corporate 218-681-8558

 

[mhanson]

AGREE 100%!!!!!!!!!!!!!!!!!

 

[backcountryislife]

They make a good sled, but it seems like the way they do business is killing their dealers.

 

[Bushpilot]

I like the quad that I got from AC and will buy another one down the road. I have not had any problems with it and put over 5k miles on it. I cant say that for the other brand of quad i bought and sold.

 

[Destroyer]

The guys riding quads around here don't have a problem with cat quads at all. Bombardier seems to kick ***. We never see new honda's around here anymore. Polaris is making a come back.

 

[JHG]

So - I just called Arctic Cat customer service and left a v-mail leaving my name and number suggesting that Arctic Cat Corporate drop their 4 wheeler line and focus on what they do best - SLEDS! Too many dealers dropping means Arctic Cat will have trouble, seems pretty simple, right?

I would guess that Arctic Cat's fourwheeler sales far exceed their sleds sales in certain regions. Ever seen a snowmobile in Alabama? Dropping the fourwheeler line would be one of the worst things cat could do. In your neighborhood sleds are probably the better seller, but you don't live in the only neighborhood in the world. It maybe beneficial for cat to change the rules and allow dealers in an area where snowmobiles are the better seller to scale back on fourwheeler sales.

Also keep in mind that Cat has had programs over the years to assist dealers with flooring charges. Especially in Montana, Cat has been sued numerous times over how they handle flooring and giving some dealers additional flooring. Currently in Montana, Cat legally can not offer additional flooring to a dealer to help them out....it's not because they don't want to, they can't because the dealers sued them over it. Some of the current corporate policy's that are currently in place are in place because the actions of dealers forced them to be put there. I'm not pointing at a particular dealer, any dealer going under sucks and I feel bad for them.

To call AC and demand they drop a profitable product line is just going to get you laughed at and any valid point you have disregarded.

 

[backcountryislife]

I would guess that Arctic Cat's fourwheeler sales far exceed their sleds sales in certain regions. Ever seen a snowmobile in Alabama? Dropping the fourwheeler line would be one of the worst things cat could do. In your neighborhood sleds are probably the better seller, but you don't live in the only neighborhood in the world. It maybe beneficial for cat to change the rules and allow dealers in an area where snowmobiles are the better seller to scale back on fourwheeler sales.

Also keep in mind that Cat has had programs over the years to assist dealers with flooring charges. Especially in Montana, Cat has been sued numerous times over how they handle flooring and giving some dealers additional flooring. Currently in Montana, Cat legally can not offer additional flooring to a dealer to help them out....it's not because they don't want to, they can't because the dealers sued them over it. Some of the current corporate policy's that are currently in place are in place because the actions of dealers forced them to be put there. I'm not pointing at a particular dealer, any dealer going under sucks and I feel bad for them.

To call AC and demand they drop a profitable product line is just going to get you laughed at and any valid point you have disregarded.

I totally see your point, and to suggest that they drop them completely seems a bit rash, but the way that AC forces them on their dealers whether they can sell them in their market or not is unfortunate. It just frustrates me that as consumers we have to lose a good snowmobile dealer because of something in the ATV market, that just doesn't seem right to me.

 

[JHG]

I totally see your point, and to suggest that they drop them completely seems a bit rash, but the way that AC forces them on their dealers whether they can sell them in their market or not is unfortunate. It just frustrates me that as consumers we have to lose a good snowmobile dealer because of something in the ATV market, that just doesn't seem right to me.

Oh. I totally agree. I guess I just look at it from a corporate point of view and I think that if Cat didn't have a sales quota for dealers, lots of dealers wouldn't even attempt to sell a fourwheeler, they would avoid the hassle and not order any. If they're not on dealer floors then the market share cannot grow. Maybe allowing dealers to slit the product lines and have one dealer sell snowmobiles and one sell ATV's. I can see both sides of the coin, Cat wants dealers to push fourwheelers so they require they take so many a year, dealers want to stay in business and and avoid taking the risk of purchasing a grip of fourwheelers. I really think it should fall on regional and district management at Cat to sit down with dealers and figure out realistic sales goals based on actual sales figures in the area. This seems to be where the problems are occurring.

 

[M8Chris]

I don't think they should drop the atv line but, what they should do is focus in areas that have better atv sales. And focus their atv line in that area. Like said you won't see a sled in Alabama but you would see atvs. Focus more of their sales in areas that atv use is more popular or where they see sales. Then they can focus their sled sales at dealers like mountain magic who are known for snowmobiling. I could understand maybe giving them 3-4 atvs I don't know how many they actually get but this is all back to supply and demand. Dealers are getting too many atvs and there isn't enough demand for arctic cat atvs around here.
At a concession stand say at a sporting event and they sell hot dogs and pizza and the hot dogs do great but they hardly sell any pizza well then they are or should stop sellin pizza because they are loosing money. The same goes for arctic cat and their dealers. If atv sales aren't doing good in certain areas they shouldn't force the dealer to have so many atvs. Arctic cat needs to take better care of their dealers.

 

[Dogmeat]

If I could afford an ATV right now I'd absolutley buy an Arctic Cat ATV.

I actually want an ATV that works and isn't a POS, so that would effectivley rule out Polaris. LOL.

The ATV market is MUCH MUCH MUCH tougher to compete in than the Sled market ... I mean you've got all the sled manufactureres making them + all the japanese dirt bike companies.

Given the market is a lot bigger, but still ...

 

[Stack]

What really hurts dealers are the auction sleds that get on the market from defunct ACAT dealers....There seems to be no lack in supply for these items because ACAT keeps closing the doors of the small dealers that helped grow the company. Some of this supply also came from ACAT just overproducing; There are still growing pains from the overproduction in 2007.

There are also many dealer only ordering a couple sleds and a couple ATV's then they use the internet to sell parts and accessories at drastically reduced prices. Tough to compete when the playing field is not level in your dealer network. That's why you may see a cap on discounts for online parts sales in the near future; or ACAT will be cutting down on these dealers which are just an internet front.

Cheap Sleds/ATV's/UTV's and parts are great for us consumers, but in the long run it is killing the dealer base. All these deals come at the expense of closing dealerships....

If the new CEO of ACAT runs this company like he did with Home Depot we are in serious trouble. The direction he is currently taking mimics turning the traditional dealership into a bunch of big box stores. Sorry ACAT, this is not going to work as none of us will drive 200 miles+ just to get our sled serviced.

John

 

[Thunder101]

from dealers I know or have spoke with about "the biz" of being a dealer. It is a hard racket to succeed in. We all know about manufactures stuffing old or poor selling products onto the dealers to deal with, but how about building **** and not standing behind them. Every company wants to sell a diff model for every *** . Times are not the best in most areas and most all dealers make little from sales. IMO a smaller company like AC should produce less models and give more dealer installed options, like M sled with no skids so it could be 153-162 , shock pk so the buyer can upgrade if waanted, same for quads base units with wheel upgrades and racks and so on. That way the dealers make a little for set up, and cut down on ALL the diff models they have to floor plan. just a idea??The dealers are in a lose lose situation right now. just internet babble but as a cat fan Im fairly sure they have lived off the M for a long time, before that the zr and Fcat. now with the 2012 needing to make emmissions they will prob sell there soul to brp for di and AC profits will go down. Will they have a chance to think about the dealers before that happens ?