So .... when a manufacturer says they've sold 20,000 bikes this year ...

[ohiorider]

... does that mean nothing other than they've been able to floor plan 20,000 bikes to their dealers?

I suppose selling is selling ..... and if dealers take 20,000 bikes off the hands of the manufacturer, to the mfg, that is 20,000 units sold.

But if many of the bikes gather dust as they are under (and after) floor plan financing, are the sales figures that come from the manufacturers an accurate representation of how well their bikes are really selling?

Just asking.

Bob

[Kev m]

I think it depends on the manufacture, their franchise agreements, and their accounting practices.

But I suspect it usually means floor planned and not sold to customers and registered.

[grebmrof]

I think everyone's standard accounting practice would be to record a sale when the bike ships from the factory, dependent on shipping terms.  The financing of bikes on the floor may or may not be done by a factory finance arm, but that probably is a separate entity from the manufacturer.  When a dealer returns a bike to the finance arm, I am sure it is at a steep discount where the dealer is hurt once again.  Perhaps a dealer gets better financing terms through a local bank, but may not have the financial strength to swing a loan with them...this is just me supposing, it would be good to hear from someone that has actually been in the business and knows how it really works today.

[pyoungbl]

I recall when Guzzi had a mandate to produce 10,000 bikes, the factory did so and thus met the goal.  Those same bikes sat for a few years unsold until there was a fire sale to get rid of the old stock.  What the factory claims is usually what they manufactured, not what was actually sold to the retail customers.

[rocker59]

I recall when Guzzi had a mandate to produce 10,000 bikes, the factory did so and thus met the goal.  Those same bikes sat for a few years unsold until there was a fire sale to get rid of the old stock.  What the factory claims is usually what they manufactured, not what was actually sold to the retail customers.

2006 was the big Piaggio push to produce 10,000 units.

[canuguzzi]

Factories really don't have retail customers. You buy from a dealer and in many cases the factory does not own the dealership.

[canuguzzi]

Don't think the companies own any dealers .

  Dusty

Yes. Tesla is trying the direct to customer sales so in their case they can't book sales until someone walks in the door and buys one.

Manufacturers book sales (often how it is done) when they can invoice the recipient for the goods. Terms can vary as to when payment is due and in that there are many variables.

If the dealer doesn't or can't sell the goods the factory might take the goods back but things rarely go back to as it was before the dealer took receipt of the goods (as far as debt goes).

MI sells a lot of bikes it seems, that come from dealers who can't sell their inventory and they offer some super deals, not just on Guzzi but Aprilia too. Someone before MI got hurt I bet but MI and you the customer wins.

Car dealers do some of the same things.

One thing for sure, Guzzi dealers deserve a lot more understanding and sympathy than does the factory.

[bad Chad]

2006 was the big Piaggio push to produce 10,000 units.

I'm pretty sure it was 2008.  I recall the pic of some of the factory workers posing with a sign that read 10,000 in front of a 1200 Sport.

[GearheadGrrrl]

A couple decades back Mack Trucks owned most of their high volume dealerships... And would overstock them with new trucks whenever they felt a need to inflate their "sales" numbers. The big 3 automakers for years have used fleet sales, employee sales, etc. to build volume and inflate their sales numbers too. But overflowing the distribution channel with unsold vehicles has become unfashionable ever since General Mills got caught booking sales for cereal that wouldn't be delivered for months and caught hell for it.

[ohiorider]

I'm pretty sure it was 2008.  I recall the pic of some of the factory workers posing with a sign that read 10,000 in front of a 1200 Sport.

I am so glad they built a few 1200 Sports in 2007-08.  I love mine.  Maybe that's mine in the pic, but doubtful.

[pauldaytona]

know your history



 next to what manufacturers claim, we have the stats of the number of  new vehicles what has gotten a plate. That is more precise.

[rocker59]

thanks for digging up the pic, Paul.  I couldn't find it.

[bad Chad]

I couldn't find either, but there it is in all it's 2006 glory!

[Mark West]

If the ownership of the bike transfers to the dealer then its a sale regardless of whether or not the dealer ever sells it. From an accounting standpoint, there isn't much wiggle room there.

If on the other hand, there is some kind of consignment arrangement with the dealers and the manufacturer stills has title till the dealer sells it, then that would  not be a sale.

[canuguzzi]

If the factory gets any kind if compensation for the contingency, say a percentage regardless if whether or hit the bike goes to a retail customer, the manufacturer can book a sale. Granted, the sale might not reflect the usual unit revenue hut they can still claim a sale.

Why would they do this? Numbers before model year end. The bike will eventually sell, it isn't going back to Moto Guzzi. It might end up at another dealer like MI who sells excess inventory other dealers can't.

[oldbike54]

  Uh , NP , didn't understand any of that 

  Dusty

[ITSec]

At least at the dealer I worked at, once the bike arrived it was the property of the flooring company and/or the dealer - the manufacturer might claim it as sold for marketing purposes, but it was definitely sold from an accounting point of view. Warranty registration (start date) is a different question. It might be a more 'honest' report to state the number of bikes warranty registered by consumers, but that would give some really bizarre numbers throughout the vehicle industry...