Why are sleds so expensive?

[kyzer]

You have to remember that there is alot of factories that manufacture car parts, they compete for business and have to give a decent price to the manufactures due to the volume they would be selling. There is not a lot of places that manufacture snowmobile parts so the competion is less so they charge more. GM might be looking for someone to manufacture 400,000 tie rods for there trucks. But Yamaha is looking for someone to manufacture 25,000 spindles. Big difference in volume.

 

[dnj1965]

More food for thought:

Above is a sticky where the author notes purchasing a "1974 GPX433 which retailed at $1499.00".

Since 1974 inflation has averaged (roughly) 4.33% per year (based on U.S. consumer price index). Depending upon which inflation calculator I use, that sled should cost between $7,000 and $8,000 dollars in 2010. Anyone know if the GPX433 was a middle-of-the-road or top-of-the-line sled in 1974?

Also worth noting... Average U.S. income in 1974 was $13,900, and I'm guessing there were far fewer two-income families.

An average new car in 1974 cost $3,750 and in 2009 about $28,000. Assuming increased costs are not just inflation, but increased costs associated with emissions, technology, litigation, etc., the new-car to new-car increase is (roughly) 750%, suggesting the equivalent of a GPX433 should cost about $11,200... Awfully close!

While a fun intellectual exercise, I don't doubt I'll get a TON of fun out of a new Apex (or Apex XTX - tough decision). I want Yamaha to make a healthy (but fair) profit, and I want my dealer to be able to cover his overhead, pay everyone a fair wage, and send his kids to college. Their long-term success is necessary for me to continue enjoying our sport.

Thanks all for helping shed light on all of the issues here. It is a bit of a miro-snapshot of national and world economics. I hope my kids, and their kids, have the opportunity to consider buying a $13k toy, and I hope your kids, and their kids, do too.

 

[stevewithOCD]

I paid $8500 in 1995 for ZRT-800 & $8800 in 2006 for my APEX. Maybe pricing & exchange rate was favoring us for a long time...

 

[whitedust1]

From everything I read in this Post snowmobile costs are out of control in run away mode for all involved to make a profit. There is a dollar threshold where a hobby is just too darn expensive when compared to family interests. With rising healthcare costs, educational, housing, other cost of living considerations climbing higher & higher we will need to pull back from hobby costs. Family priorities are much more important & for many there is just not enough money to do all you have done in the past. Nobody NEEDS a new snowmobile it is a luxury discretionary spending toy. If you don't have the bucks it just is not going to happen. All new sleds @ $12K + are bumping the top of what people can afford on this hobby. I talked to my buds ages 30 to 65 & no one is buying a new sled any brand just too darn expensive. Their thinking is buy any rider forward used sled & then keep that used sled in top condition. This is a big change from buying a new sled inexpensively in a product glutted market. Things are changing quickly & price is important. The highest priced new sleds will sell the least units....people just don't have the money.

 

[srvfan]

On the point of profit at the dealers i would disagree that they are netting very much when all is said and done. In N.E we have lost most of our sled centered dealerships in the last 10 years. Many of the remaining ones focus on bikes and sleds are a small part of the deal. Their knowledge of sleds,set up etc typically stinks too.

In one popular riding area there was dealer for all 4 brands and they where all pretty busy on weekends. Now there is just 1 left and your looking at an hr ride if you don't own that brand and want a part. if those guys where raking it in then how come they all closed?

sleds price increases have outpaced my own personal income increases esp. with the lousy economy. Tow vehicles are also crazy money. Trailers on the other hand seem pretty cheap,granted not big design cost there but all other costs have gone up for those guys as well

 

[Maxout01]

I'll put it plain and simple. Doesn't really matter what the price rising reasoning is HERES THE BOTTOM LINE: sleds are getting to expensive for its biggest demographic to afford. Our pay is going down, as is job rates. Food, registrations, gas, oil, heating/cooling of homes, cars and trucks, health care, home /property taxes and much more everyday life necessities are ski-rocketing. If pricing keeps going up, then sleds may be non existent to begin with as the higher they get the less they build and eventually they wont be built at all. Just like dealers go out, so can sled divisions. For example if yamaha sells a ton of bikes a year, and ends up losing money to build sleds, then they will stop building sleds, and put more $ into bikes. Same goes for all manufacturers.
Everyday I read complaining on snowmobile forums about how "we need this better and that better" when are we all going to shut up and just enjoy a snowmobile for the joy of owning a snowmobile. How much do we really need a sled to do. My 01 vmax is just as fun to ride and enjoy the sport as my rev's and apex are. Is there more thrill in the newer sleds, hell yea. But not enough to end up with a 15-20k sled price.
Another thing that is over looked here is the fact that winters are getting shorter and shorter, some places non existent. How long do you think the manufacturers will make sleds when less and less sales happen due to people simply not buying because they cant ride them.
Sled pricing is getting higher due to many things, and frankly the more we want and the more they give, the more expensive they are on top of natural rising cost for production.
I think its high time we ask them to build a new sled we can buy thats affordable, and for us all to realize we are going to have to man up with some cold hand warmers, rougher riding, less power and just go out an enjoy the damn ride before one day we all wake up to a sport thats simply to government regulated, too expensive, with little trail systems to even ride.

 

[morg]

They do have entry level sleds available. at reasonable prices. Some even come with crappy handwarmers and crappy rides. They are called USED. I for one am happy the manufacturers put out new stuff every year so guys trade up and trade in and others can get a good sled at a good price. Then they can spend the money they saved adding a clutch kit top end mods different skis etc. And they can do it when they have some extra cash laying around or like some choose not to do anything but ride. Awesome I've gone this route. Sometimes it works other times you spend your winter wrenching to fix someone elses junk. Either way it helps pass the time lol
I've also had new. A bit more expensive in the long run but the dealer did the wrenching. And the paying wasn't done by me. Personally I like the idea of warranty. And lots of it. If I can get 4 or 5 years that's worth something.
I'm not peeing in anyones cornflakes here. I've been both routes. And will probaby pass down both paths again. But we need to stick together as sledders to ensure the future of the sport. So if your buddy buys a new 15000 sled be happy for him. And be happy for the guy that got his trade for 7000. And for the guy that bought his old sled for 2000 maybe for his kid. His first sled.
Sorry for the long post but remember one thing. There are many paths we may take. Which ever one you choose enjoy it. And when we meet along they way let's hoist a pint and cheer. For we are all sledders.

 

[Maxout01]

But we need to stick together as sledders to ensure the future of the sport.

I was just trying to get this point along. I dont agree with you for what we have now. When before new sleds were cheaper you thoughts are indeed correct, but not with whats on our plates now. This is something that is adding to the ending of our sport, not adding to it to stay.


Cars will more then likely always be around somehow, sleds dont need to be, we have to fight for that. We can't support companies new sleds sale to ensure they keep making enough profit to make sleds when sleds are too expensive to afford.

 

[whitedust1]

Morg the first part of your plan is not happening with new sleds at $12 to $15K USD. It would be nice if it did & many of us could then pick up used state of the art sleds at discounted pricing. This is what happened in the past at $10K but I think this is the end of the line & NOT part of our new future. Yamaha shorted 2010 sled market to force 2011 market to pay or pass....that simple. Yamaha does not want to be in the snowmobile biz if no profit also simple. We have heard endless price objections at $12 to $15K USD so is everyone yelling wolf when there is no wolf. I think NOT. I don't know anyone that is buying a new sled any brand this year all brands too expensive. If you have a good used sled hang on to it, take care of it & ride it. The market has changed & now takes big bucks to buy a new snowmobile & that new sled purchase is competing with other family dollar priorities not to mention the short snow season as well.

 

[Maxout01]

Morg the first part of your plan is not happening with new sleds at $12 to $15K USD. It would be nice if it did & many of us could then pick up used state of the art sleds at discounted pricing. This is what happened in the past at $10K but I think this is the end of the line & NOT part of our new future. Yamaha shorted 2010 sled market to force 2011 market to pay or pass....that simple. Yamaha does not want to be in the snowmobile biz if no profit also simple. We have heard endless price objections at $12 to $15K USD so is everyone yelling wolf when there is no wolf. I think NOT. I don't know anyone that is buying a new sled any brand this year all brands too expensive. If you have a good used sled hang on to it, take care of it & ride it. The market has changed & now takes big bucks to buy a new snowmobile & that new sled purchase is competing with other family dollar priorities not to mention the short snow season as well.

Exactly what im trying to say here!

 

[Honk]

I'd say you guys got part of it down pat. But theres another way to look at the end of snowmobiling, besides the cost of sleds. The clubs that do the work are being forced to do more with less money, and less volenteirs. I see many volentiers quiting already. We are tired! When the state steals millions of dedicated funds, and continues to push for more everything. You can't even cut a limb out of a trail without a state approved course on chainsaw saftey. I groomed trails for 6 years, all of a sudden we gotta go to an approved course. Theres a course for everything. cutting,grooming,signing,funding,grants to name a few. Then you have to go kiss up to the landowners, cause some idiot with loud pipes blew through his yard at 3 in the mornin. It all gets old real quick! The trails are there now, but will they stay open without the Volentiers. Our club lost many miles of trails this year, cause nobody in that area could help maintain them. State will close more if not up to their standards, so they tell us anyway? who knows, its the state?

 

[Maxout01]

I'd say you guys got part of it down pat. But theres another way to look at the end of snowmobiling, besides the cost of sleds. The clubs that do the work are being forced to do more with less money, and less volenteirs. I see many volentiers quiting already. We are tired! When the state steals millions of dedicated funds, and continues to push for more everything. You can't even cut a limb out of a trail without a state approved course on chainsaw saftey. I groomed trails for 6 years, all of a sudden we gotta go to an approved course. Theres a course for everything. cutting,grooming,signing,funding,grants to name a few. Then you have to go kiss up to the landowners, cause some idiot with loud pipes blew through his yard at 3 in the mornin. It all gets old real quick! The trails are there now, but will they stay open without the Volentiers. Our club lost many miles of trails this year, cause nobody in that area could help maintain them. State will close more if not up to their standards, so they tell us anyway? who knows, its the state?

Good ol' ny right. Make us pay out the azz and then steal it. Plus we dont get enough snow here to even bother. I probably wont even register either of mine next year. Its just pissing my money away.
Up near speculator they want to close trails that have been open for over 70+ years that were used for logging back in the day, then became sled trails as time progressed. Makes no sense to me.
Meanwhile greenies are crying cause sleds destroy the earth. The logging companies up in the adirondacks have completely destroyed even around the trails, its terrible. But yet thats fine, but us sledders man we destroy everything.. why is it everything is half azz backwards nowadays? Its like i was transported to backwards planet where all that is good is actually bad and such...

 

[Bad Attitude]

Can you say worthless US dollar.

 

[whitedust1]

None of this is the Armageddon of snowmobiling as all these land problems have been biz as usual for a long time & are resolvable with hard work. The high cost of snowmobiling may not be resolvable unless OEMs start making cookie cutter sleds with good shocks, one color & one 130HP engine at reasonable prices. The ultra high HP state of the art snowmobile can still be available but to those that are willing to pay big bucks. To me this is the sustainable future of snowmobiling & how things will change. We are witnessing the cusp of change now.

 

[YammyRX1]

Part of the problem with low-volume production is that companies always want their tooling to pay for itself within a year or two of launch. So for instance, if they build a $50,000 mold to make 5000 parts per year, they will add $10 to the cost of the part to pay off the tool in one year. That price doesn't go down after the first year, it just becomes more profit. If they were making 50000 parts per year the tooling cost would only be $1 per part.