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Old 01-30-2013, 10:57 AM   #2051
Carter Pewterschmidt
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Joined: Nov 2010
Location: Milwaukee
Oddometer: 948
Quote:
Originally Posted by JerryH View Post
At $20K the Motus would be a decent deal, that is if you could be pretty sure parts and support would be available well into the future, but over $30K, and close to $40K for the top of the line model puts it out of contention. I think the EBR 1190RS is also too expensive, but it is a very limited production model which is likely to become a collectors item, and actually appreciate in value. Buell at least has some history and heritage. Has anyone considered what the depreciation on the Motus will be?
This is what I'm saying. Building a new bike AND a new engine is a very expensive endeavor. I would like to know how start up companies even get funding for these sorts of efforts. This is just like the countless new sports car companies that pop up every couple of years. They come and go like downtown night clubs. Selling a premium product requires a premium name. Think of premium brand names like Rolex, TAG Heuer, Gucci, Versace, Rolls Royce, Ferrari, Ducati, Harley, etc. Those companies didn't just pop up 5 years ago. Those companies worked long and hard to get to where they are. You think you're just gonna walk into that market all Johnny-come-lately and get a piece of the pie? Come on now.

What they need to do is start with building a cheaper, much more basic bike, maybe race the thing, get some customers, build some rep, figure out how to turn a profit, then start coming out with wild $30k, 1200cc, Ohlins equipped bikes. Not to mention they're designing a bike for a dying market. Sport touring sales are currently one of the worst performing segments. They could work the niche angle, but with that price you have to wonder just how bad do sport touring guys need to scratch the itch?

As JerryH stated, even Erik Buell has a name and a customer base. Plus he markets his brand through his racing program, which is already established as well. The race bike and program support money he's making alone might be enough to keep the doors open. So as far as I'm concerned he's already miles ahead of Motus plus he's not spending money on R&D for building completely new engines.

Much like Buell the dirt bike companies like ATK and Husaberg all had racing programs which in turn generates revenue and builds reputation.

I am aware that Indian did the same thing recently by coming out with a $35k or whatever bike, but they used the Indian name, which is still well known. So in turn Polaris found them to be worth buying. Even so it still took a few attempts to get the Indian name in such hands. Do you think companies like Polaris or Harley would ever buy Motus, because without a parent company, shy of a miracle, this operation could never survive on it's own. Although Chinese and Indian companies seem to be buying whatever they can get their hands on...

If you still don't see my point just look through the product history of all the motorcycle companies that are standing today. Did any of them start out selling bikes like this?



TL;DR If Motus was selling penny stocks I still would not buy.
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