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Author Topic: Inventory is all out?  (Read 966 times)

valnar

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Inventory is all out?
« on: May 30, 2019, 04:44:04 AM »

So my local dealer had a 2019 FX in stock but couldn't get any more FXS.  "They are all allocated for the summer."  Is that a true statement?  Nobody can get any more once Spring hits and the dealers have their allotted inventory?
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Jarrett

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Re: Inventory is all out?
« Reply #1 on: May 30, 2019, 04:57:52 AM »

Apparently, I ordered the very last DSR to be built in 2019.  Only dealer stock left they said.

Guessing they had a good run on sales this year.  There are probably plenty of FXS bikes in stock at various dealers.  Shouldn't be too much to have one shipped.
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flattetyre

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Re: Inventory is all out?
« Reply #2 on: May 30, 2019, 05:19:31 AM »

"we're setup to make 10K SR/F right off the bat, but damn it if we can't crank out a single FXS or DS for the second 6 months of the year"
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domingo3

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Re: Inventory is all out?
« Reply #3 on: May 30, 2019, 06:36:36 AM »

   I could very well be wrong, but I thought there were only a handful of dealers that switched over to the model where they have bikes in stock to sell and the rest of the dealers only keep demo bikes and order from the factory when they make a sale. 
   I find it hard to believe that they (your dealer or the Zero factory) are not willing to take your money.  Maybe the dealer wants to sell you their in stock FX?  Maybe the FX(S) platform is less profitable and they really aren't making more this year?  Maybe the FX(S) platform is going to see a bigger change for 2020 and they've used up the stock of parts for the current (soon to be old) version?  Only guesses/speculation.
 
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Curt

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Re: Inventory is all out?
« Reply #4 on: May 30, 2019, 01:13:52 PM »

I've worked for too many companies that focused on higher and higher end products until most buyers were priced out, volumes were decimated, and they were eaten from the bottom up. They do this because it's the easy way forward, but it always fails.

Zero's existing models are awesome. They can't neglect them. SR/F only fills one more niche market at the high end. To remain healthy, Zero needs to continue to build and hard-sell all of their models.
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Richard230

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Re: Inventory is all out?
« Reply #5 on: May 30, 2019, 08:14:51 PM »

I think one big problem that Zero has is that their garage-like factory assembly line seemed pretty limited to me when I saw it during their 10th anniversary open house.  It looked like they only had six workstations and assembly was being performed manually. It did not look like a high production operation to me. My guess is that the SR/F production has sucked up their entire factory output, leaving people who want to buy the older models out in the cold - at least until the SR/F demand has been satisfied.  ???
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Jarrett

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Re: Inventory is all out?
« Reply #6 on: May 30, 2019, 08:20:56 PM »

I wonder if that is the case as well.  I understand they have two production lines.  One for SR/F and one for everything else. 

Wondering if they are going to convert the everything else line into a second SR/F for the remainder of the year.

Starting wonder how that is going to impact my order and if I should have just bought a demo. 
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DonTom

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Re: Inventory is all out?
« Reply #7 on: May 30, 2019, 10:27:55 PM »

I think one big problem that Zero has is that their garage-like factory assembly line seemed pretty limited to me when I saw it during their 10th anniversary open house.  It looked like they only had six workstations and assembly was being performed manually. It did not look like a high production operation to me. My guess is that the SR/F production has sucked up their entire factory output, leaving people who want to buy the older models out in the cold - at least until the SR/F demand has been satisfied.  ???
Yep. I too am thinking that. It's beginning to look like this new SR/F could make Zero a larger company. I wonder how many orders they already have. 

I am thinking about adding myself to the list--as if I need to have ten motorcycles.  I will not trade any in. I have the room for all ten in my three houses combined. The main  reason I own three houses is to make room for my motorcycles--to keep them all garaged!

I always keep all my motor vehicles until they are junk that nobody will want. And it's always been that way with me and I am glad I still have my 1971 BMW R75/5 purchased new in 1971. I still ride it often.

You probably recognize where this photo was taken--parking lot at Pulgas Water Temple.

-Don-  Reno, NV
« Last Edit: May 30, 2019, 10:31:08 PM by DonTom »
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Richard230

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Re: Inventory is all out?
« Reply #8 on: May 31, 2019, 03:47:31 AM »

I think one big problem that Zero has is that their garage-like factory assembly line seemed pretty limited to me when I saw it during their 10th anniversary open house.  It looked like they only had six workstations and assembly was being performed manually. It did not look like a high production operation to me. My guess is that the SR/F production has sucked up their entire factory output, leaving people who want to buy the older models out in the cold - at least until the SR/F demand has been satisfied.  ???
Yep. I too am thinking that. It's beginning to look like this new SR/F could make Zero a larger company. I wonder how many orders they already have. 

I am thinking about adding myself to the list--as if I need to have ten motorcycles.  I will not trade any in. I have the room for all ten in my three houses combined. The main  reason I own three houses is to make room for my motorcycles--to keep them all garaged!

I always keep all my motor vehicles until they are junk that nobody will want. And it's always been that way with me and I am glad I still have my 1971 BMW R75/5 purchased new in 1971. I still ride it often.

You probably recognize where this photo was taken--parking lot at Pulgas Water Temple.

-Don-  Reno, NV

If you hadn't told me, I would never have known.   ;)
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Richard's motorcycle collection:  2018 16.6 kWh Zero S, 2020 KTM 390 Duke, 2002 Yamaha FZ1 (FZS1000N) and a 1978 Honda Kick 'N Go Senior.

MostlyBonkers

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Re: Inventory is all out?
« Reply #9 on: June 01, 2019, 02:26:40 AM »

"we're setup to make 10K SR/F right off the bat, but damn it if we can't crank out a single FXS or DS for the second 6 months of the year"

I remember reading this a few weeks ago in an interview with Abe Askenazi.  I was surprised by the statement and remembered to enquire about it recently.  It seems the real number is closer to 8,000 units a year but includes all models. 

Therefore Zero's entire production capacity is around 8,000 motorcycles a year and they have to meet the demand for all models with that number.

I've been told by at least three Zero dealers here in the UK that just about all 2019 stock has sold through.  As Richard speculated above, the vast majority of their manufacturing capacity has been given to building as many SRFs as they can to provide demo bikes to dealers and fulfill the existing customer orders.  They just can't seem to make them quickly enough! 

My guess is that Zero have banked on selling a lot of SRFs and ordered a healthy amount of parts to be able to build them throughout the next 12-15 months before the 2021 lineup is ready to go into production.  I doubt they have extra parts available to continue making a significant number of 2019 models.  They must be focusing on preparing the production line for 2020 versions of all the other models.

From what I've gathered, the only stock available is what can be found in dealers' showrooms.  Some dealers are reluctant to sell their 2019 demo models because it will leave them nothing to offer prospective customers to test ride. Other dealers are happy to make a sale and would rather clear their stock and wait for the next model year to come through.  A lot depends on how successful they've been selling bikes this year.

Forgive me for reiterating many of the comments already made above.  I simply do this because they also chime with what I've learnt.  It also helps me get it straight in my head.

Good for Zero as they're selling everything they make. Hopefully good for customers in the long term as they will be able to expand production and get better economies of scale.
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domingo3

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Re: Inventory is all out?
« Reply #10 on: June 01, 2019, 02:48:01 AM »

There must be a reason other than Zero is selling so many SR/Fs that they can't make other models.  I would wager that Zero will make less than 500 SR/Fs this year.  That's just about pure speculation on my part, but there's no way that Zero is cranking out 8000 bikes.

I doubt we'll get a solid answer for why people can't buy other models or how many SR/Fs actually get sold.
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MostlyBonkers

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Re: Inventory is all out?
« Reply #11 on: June 01, 2019, 03:14:08 AM »

There must be a reason other than Zero is selling so many SR/Fs that they can't make other models.  I would wager that Zero will make less than 500 SR/Fs this year.  That's just about pure speculation on my part, but there's no way that Zero is cranking out 8000 bikes.

I doubt we'll get a solid answer for why people can't buy other models or how many SR/Fs actually get sold.

I think they used up all the parts they ordered for the 2019 model range. Well not all, because they have to keep spares for warranty claims etc.  They're probably just ordering all the parts they need for next year's range.

I'm inclined to agree that there's no way they are cranking out 8000 bikes a year at the moment. I think the article that the 10,000 figure came from mentioned they were expanding their production line.  It might have the potential to make that many units a year in the future, proving Zero buy enough parts and hire enough people.  No doubt they will be increasing volume for next year and using more is that production capacity.

So if they have spare production capacity, even with building SRFs at the moment, then I can only assume they don't have the bits to build any other models.  Maybe they're just building as many SRFs as they can at the moment so they've got plenty in stock when they have to turn production over to the 2020 range.
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Richard230

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Re: Inventory is all out?
« Reply #12 on: June 01, 2019, 03:34:44 AM »

There must be a reason other than Zero is selling so many SR/Fs that they can't make other models.  I would wager that Zero will make less than 500 SR/Fs this year.  That's just about pure speculation on my part, but there's no way that Zero is cranking out 8000 bikes.

I doubt we'll get a solid answer for why people can't buy other models or how many SR/Fs actually get sold.

I think they used up all the parts they ordered for the 2019 model range. Well not all, because they have to keep spares for warranty claims etc.  They're probably just ordering all the parts they need for next year's range.

I'm inclined to agree that there's no way they are cranking out 8000 bikes a year at the moment. I think the article that the 10,000 figure came from mentioned they were expanding their production line.  It might have the potential to make that many units a year in the future, proving Zero buy enough parts and hire enough people.  No doubt they will be increasing volume for next year and using more is that production capacity.

So if they have spare production capacity, even with building SRFs at the moment, then I can only assume they don't have the bits to build any other models.  Maybe they're just building as many SRFs as they can at the moment so they've got plenty in stock when they have to turn production over to the 2020 range.

From  what I saw during my visit to the factory, it looked to me like the assembly of Zeros was fairly labor-intensive.  Perhaps they have their assembly line set up to make 10K bikes a year, but maybe they just can't get the staff to spit them out at that rate.  The labor situation in the Santa Cruz and surrounding area, which includes Silicon Valley for those that don't mind a long commute, is very tight and competitive.  Hiring competent assembly workers might be a real challenge for Zero.  ???
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TireFryer426

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Re: Inventory is all out?
« Reply #13 on: June 03, 2019, 09:34:24 PM »

I think I read somewhere that their production capacity is 30 bikes a week.  Can't remember exactly where I saw that or how authoritative it is.
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GaryArt1

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Re: Inventory is all out?
« Reply #14 on: June 03, 2019, 10:06:37 PM »

I think I read somewhere that their production capacity is 30 bikes a week.  Can't remember exactly where I saw that or how authoritative it is.
I read somewhere 50 bikes per week.  The CEO said 10K per year (which is about 190 per week).   So we are between 30-190.  That is one of the issues with a privately owned company.  They  don’t have to release any information publicly so all you have is specualtion.  So all I hope is Zero has achieved a production rate that still allows they quality control while producing enough bikes to meet the demand otherwise either could negatively impact the company.
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