Originally Posted by RedRocket
I can't think of any racing program making money at the start, companies like Ferrari only sold road cars to finance their racing.
You should share your theories with Pagani, Koennigsegg, and a few Of the other idiots .
Seeing as you can manage to side with Single-carb Jerry I really have to wonder,,,,
I'm not talking about owning a profitable race team. I'm talking about selling race machines to other teams and running a support network for profit. Which is something both Pagani and Koennigsegg do. They make profit off the race cars and while doing so they're using the race track to market their brand by building reputation and brand recognition. The marketing alone is the reason why just about every car and bike manufacture participates in motor sports.
All that aside the car market is way bigger than motorcycles. In the US registered motorcycles don't even make up 3% of vehicles on the road. Yes car's cost much more money to build, but your selling on a market that's almost 100% larger therefore increasing your chance of success by that much.
I really don't care what the people on this forum think of this Jerry character, I simply quoted him because as a consumer he brings to light a few legitimate concerns.
For one dealer support. Lack of which is reason why some customers will stray away from brands like Moto Guzzi and MV Agusta. These are already well established brands with a good customer following and a proven product, but some people don't want to take there bike 200 miles to get it serviced. This affects sales. Now you want to sell a bike with no proven reliability with an even more dismal support network.
He states that Buell has history and heritage. This is certainly true, his brand name is now already 30 years old and his name is known from being involved in racing long before establishing his business. A motorcycle racer and engineer starts selling bikes using his own name. I'd say that's a solid marketing strategy for a start up company in this market.
Then he mentions resale value. You think such a thing is not important to consumers? Have you never heard or seen an add from Toyota or Honda mentioning this? Just think where this bike is priced. Who's target customer base is this going after? Who's out there selling $20k to $35K motorcycles right now? Harley Davidson is one of them, and what do we know about their product? They have some of if not the
best resale value in the motorcycle market place. The other is BMW, another company with a fiercely loyal customer base. So what I see is that Motus is tasked with trying to take the high dollar bike customer away from Harley Davidson and BMW. Both 100 year old household name companies selling well proven products one of which has outstanding resale values. Not to mention they're going after them in the dying sport touring market segment.
All this skepticism is brought about by the fact that success in this market has historically proven to be quite difficult so forgive me if I sound negative about all this. It's not my intention to sound like an armchair naysayer. I do believe in having hopes and dreams. History has proven that it is by no means impossible for a company to rise from nothing and compete with established greats. If enough smarts and hard work are applied a group of good business men can achieve the impossible. However it does need to be done with a sensible approach, which I don't believe Motus is doing. I could be wrong, maybe their investors know something I do not, but I myself am not convinced.