yamadoo
Yamadoo is a snowmobile ' aholic'.
- Joined
- Jun 3, 2003
- Messages
- 3,645
- Country
- USA
- Snowmobile
- 15 Viper STX DX red/white- GPS and KING AIR suspension 4kmiles
13 Apex XTX 45 anniversary RED/WHITE/BLACK 3K miles
10 Vector LTX Blue 9kmiles
11 Venture GT 4k miles
86 SnoScoot(2) for grand kids
I see all this discussion about market share. I wonder how directly related that is to Profit. Remember profit is the point of bussiness /capitalism, money in the share holders pocket or portfolio.
I think Yamaha is smart and maybe doing well with less risk than the small companies with larger market share. I do not know. I wonder what some of you bussiness types know or think.
Thinking about snowmobiles is not as fun as riding BUT it is better than thinking about work.
Yamadoo
I think Yamaha is smart and maybe doing well with less risk than the small companies with larger market share. I do not know. I wonder what some of you bussiness types know or think.
Thinking about snowmobiles is not as fun as riding BUT it is better than thinking about work.
Yamadoo
Market Share and Profit are not directly related.
A company can have 100% market share and still not be profitable because of poor pricing strategy, poor cost and overhead control, extended warehousing time, or simply a change in the market of consumers who are willing and able to buy at the price a product is offered at.
Many companies have experienced a decline in market share while having increased profits. This is not to say that companies should not pursue a gain in market share as it does provide opportunities for lowering costs and consistent share holder return.
A company can have 100% market share and still not be profitable because of poor pricing strategy, poor cost and overhead control, extended warehousing time, or simply a change in the market of consumers who are willing and able to buy at the price a product is offered at.
Many companies have experienced a decline in market share while having increased profits. This is not to say that companies should not pursue a gain in market share as it does provide opportunities for lowering costs and consistent share holder return.
Bakemono
TY 4 Stroke Guru
I dont think that market share and profit are related.
Look at Toyota vs. Ford and GM. Toyota has about half the marketshare that GM has but they have much higher profit.
The thing that is killing GM and Ford right now is the rebates. Ford and GM are offering such heavy rebates that they really arent making money selling cars. However, if they stop offering the huge rebates they wont sell nearly as many cars, so they would lose money there too.
Toyota offers 1/3 the rebates that Ford/GM do, yet their sales last month were up 21% (from the previous year), whereas GM has down 8% and Ford was down 5%.
Lets apply this to snowmobiles. BRP has a much bigger marketshare than Yamaha does, yet BRP reported a HUGE loss this past year. Where as Yamaha is still doing very well.
Of course, the argument could be made that the reason Yamaha is doing so well is because they have bikes, quads, waverunner and the marine divisions that can soften the blow if the sled market is down one particular year. However, I think that even just in the snowmobile market Yamaha did very well last year and most experts would say that it appears they will do very well in the near future as well.
Cap'n
Look at Toyota vs. Ford and GM. Toyota has about half the marketshare that GM has but they have much higher profit.
The thing that is killing GM and Ford right now is the rebates. Ford and GM are offering such heavy rebates that they really arent making money selling cars. However, if they stop offering the huge rebates they wont sell nearly as many cars, so they would lose money there too.
Toyota offers 1/3 the rebates that Ford/GM do, yet their sales last month were up 21% (from the previous year), whereas GM has down 8% and Ford was down 5%.
Lets apply this to snowmobiles. BRP has a much bigger marketshare than Yamaha does, yet BRP reported a HUGE loss this past year. Where as Yamaha is still doing very well.
Of course, the argument could be made that the reason Yamaha is doing so well is because they have bikes, quads, waverunner and the marine divisions that can soften the blow if the sled market is down one particular year. However, I think that even just in the snowmobile market Yamaha did very well last year and most experts would say that it appears they will do very well in the near future as well.
Cap'n
Tork
TY 4 Stroke God
In recent years at a Yamaha showing I'd overhear someone ask a rep "why not 440/500 or entry level sled" The answer is they do not want to compete in the bottom end of the market.
Yamaha will jump in sales this year from 10% to 14-17% so say their marketing people. This is gain with their premium 4 cyl 4 stroke product which starts at $10,000.00 list which will likely sell out leaving their dealers and themselves in a great position for 07.
This is a huge gain all without dropping their shorts on pricing and they are able to do it because the competition does not offer anything similar.
Combine that with fairly low engineering and manufacturing costs (because of the shared factories and technology with watercraft and motorcycles) and Yamaha is likely reaping huge profits.
Snowmobiles are not a "oh by the way we also make......" product for Yamaha anymore, no, this is huge growth possibly greater growth than any other product they make
Yamaha will jump in sales this year from 10% to 14-17% so say their marketing people. This is gain with their premium 4 cyl 4 stroke product which starts at $10,000.00 list which will likely sell out leaving their dealers and themselves in a great position for 07.
This is a huge gain all without dropping their shorts on pricing and they are able to do it because the competition does not offer anything similar.
Combine that with fairly low engineering and manufacturing costs (because of the shared factories and technology with watercraft and motorcycles) and Yamaha is likely reaping huge profits.
Snowmobiles are not a "oh by the way we also make......" product for Yamaha anymore, no, this is huge growth possibly greater growth than any other product they make
Manto
Newbie
So who is buying stock? And what is the correct ticker symbol. I tried to look it up but there are just so many! I be confused :?
Bakemono
TY 4 Stroke Guru
I dont think that Yamaha is listed on the NYSE. Ive tried to look them up but have never found them listed.
Im sure you could find them on the NIKKEI (Japanese stock market) but unless your computer is set up to accept Japanese letters, it wont do you much good.
While we are on this topic of marketshare, Id like to bring something up. I think that if Yamaha wants to move up from # 4, they really need to start making entry-level sleds again. Not everyone can afford to spend $8,000-$10,000 on a sled. Myself, I REFUSE to spend that much. I usually wait untill a sled is 3-5 years old and then buy it for under $5000.
Yamaha should make an 80 hp entry-level sled. I cannot tell you how many people Ive met at Yamaha dealerships who have told me, "You know, Yamaha should NEVER have quit making the Phazer." I thought it was a dumb move back when they killed the 500 liquid and the Phazer and I still think its a dumb move today.
Cap'n
Im sure you could find them on the NIKKEI (Japanese stock market) but unless your computer is set up to accept Japanese letters, it wont do you much good.
While we are on this topic of marketshare, Id like to bring something up. I think that if Yamaha wants to move up from # 4, they really need to start making entry-level sleds again. Not everyone can afford to spend $8,000-$10,000 on a sled. Myself, I REFUSE to spend that much. I usually wait untill a sled is 3-5 years old and then buy it for under $5000.
Yamaha should make an 80 hp entry-level sled. I cannot tell you how many people Ive met at Yamaha dealerships who have told me, "You know, Yamaha should NEVER have quit making the Phazer." I thought it was a dumb move back when they killed the 500 liquid and the Phazer and I still think its a dumb move today.
Cap'n
MR.HAPPY
TY 4 Stroke Master
- Joined
- Sep 30, 2003
- Messages
- 1,159
- Location
- GREAT NORTH OF... ILLINOIS?
- Country
- USA
- Snowmobile
- YAMAHA
I agree, they need something for the kids or even the wifes that don't want or need 120 hp!
My wife is 110-120 lbs & needs her Rage like she needs another hole!!!
She rode 500 Vmaxs before & that was all she needs & thats all I'd like to spend too!!!
If they came out with a 75-85 hp sled they would sell!!!!!!!!!!!!!!!!!!!!!!!
The big problem would be the mpg, who would want 25+ mpg?! hehe!
BR
My wife is 110-120 lbs & needs her Rage like she needs another hole!!!
She rode 500 Vmaxs before & that was all she needs & thats all I'd like to spend too!!!
If they came out with a 75-85 hp sled they would sell!!!!!!!!!!!!!!!!!!!!!!!
The big problem would be the mpg, who would want 25+ mpg?! hehe!
BR
If I was in the machinery building business I'd be more concerned about profit than market share.
But then I guess I just like to eat, go on trips, have cool toys, that kind of stuff. :wink:
But then I guess I just like to eat, go on trips, have cool toys, that kind of stuff. :wink:
MELROSEMAFIA
Extreme
EXAMPLE
ARCTIC CAT INC.
ATV=49.5% OF TOTAL SALES
SLEDS= 36%OF TOTAL SALES
CLOTHES& ACC= 14.5% OF TOTAL SALES
ARCTIC CAT ONLY HOLDS A 6%SHARE OF THE DOMESTIC ATV MARKET, YET IT ACCOUNTS FOR ALMOST 50% OF THEIR TOTAL SALES. WHEN THEY GET MORE OF THE ATV MARKET SHARE, AND THEIR ATV PERCENTAGE OF TOTAL SALES INCREASES. THE SLED LINE BECOMES LESS APPEALING TO THEM FROM A DOLLAR&CENTS VIEW
ARCTIC CAT INC.
ATV=49.5% OF TOTAL SALES
SLEDS= 36%OF TOTAL SALES
CLOTHES& ACC= 14.5% OF TOTAL SALES
ARCTIC CAT ONLY HOLDS A 6%SHARE OF THE DOMESTIC ATV MARKET, YET IT ACCOUNTS FOR ALMOST 50% OF THEIR TOTAL SALES. WHEN THEY GET MORE OF THE ATV MARKET SHARE, AND THEIR ATV PERCENTAGE OF TOTAL SALES INCREASES. THE SLED LINE BECOMES LESS APPEALING TO THEM FROM A DOLLAR&CENTS VIEW
impalapower
TY 4 Stroke God
Captain_Toyota said:
I think the new stuff Japan is offering is taking some of the big three's business, therefore, no need to offer big rebates.
The thing killing GM and Ford right now. Is cost of operating. Companies in japan are not paying out benifits the big three are . This being working and retired. The other thing that is killing GM and Ford. Is they refused to cut the fat. Now they are being forced to do so. Not to mention the suv market is hurting there sales. Who can to afford to buy a suv with fule prices the way they are? Also I would not count on yamaha making a entry level sled. The entry levle seld is not profitable. Not to mention snowmobiles are the smallest part of Yamaha's business. One other thing to mention about the big three is the UAW. They do not have a Union in japan. In fact they don't have a union in southern car plant's.
