Quote:
Originally Posted by Judge
We shall see…..
I have seen this cycle play out in the snowmobile industry multiple times. Granted a $15K - $20K vehicle but when winters are bad a couple years in a row, inventory builds up and dealers have to cut prices (with some help from the manufacturers).
In the snowmobile (and a few other recreational industries), manufactures also require a minimum annual order of inventory to carry their product line. I can’t speak to the agreements between RV manufacturers and dealers but a snowmobike dealer, SXS dealer, etc. can’t just cancel orders for inventory they have ordered. They have to order a minimum value if units each year and the amount increases every year.
The same demand and pricing surge has been occurring in the snowmobile, boat and other similar industries as well. Prices will go down when inventory stops moving. You can take that to the bank.
|
Software license sales can be the same way. Dealers are bound to sell "X" amount of licenses per year, and when demand drops the dealers are holding the excess inventory cost and be quite costly if they they don't turn the inventory before year end reporting. To remedy they have to cut the prices. A good Software company will offer rebates to the dealer to help out, because they need they want those licenses sold, because it impact other financials flows such as maintenance contracts.
Thor Forums
