Sled Sales Lowest
In 12 Years
Heading into the current season, snowmobile sales are at their lowest ebb since 1994. Industry estimates put 2006 sled sales at just under 165,000 units. That’s the lowest sales report since 181,000 sleds were sold in 1994. That was a relatively “good” year as the industry was rebounding from two previous sales years that saw sales under 160,000 units.
As you can see from the following chart, the snowmobile business clearly reacts to snow conditions. Plentiful snow results in plentiful sales. Industry sales figures clearly reflect the effect of poor snow conditions in the North American marketplace.
Just as in the 1970s inventory problems are a concern. While snowmobile makers are far removed from the volume of carry-over units seen back then, current unsold inventory poses problems for sled maker profitability until there is a better balance between new models and carried over units. These inventory problems are a boon for consumers in the short term as manufacturers and their dealers can offer terrific “deals” to blow out old models. However, dealers are faced with the double whammy of getting non-current product out the door so bank interest doesn’t bankrupt them and being forced — in some cases — to absorb some of the manufacturers’ special “blow out” deals to consumers. Snowmobile dealers know that while virtually all special programs are good for the sled maker, only some of them are beneficial to the dealer as well. This is most likely why many dealers have stood their ground in not taking on too many new sleds — despite the objections of the manufacturers.
When you figure it all out for this past season there were 91,670 new snowmobiles sold in the U.S., and 42,953 new snowmobiles sold in Canada. According to industry reports the average suggested retail price of a new snowmobile sold in North America in 2006 was $8,269.00.
If you are a consumer looking for a good buy, look now as you’ll find some very good values. Of course, once inventory of new versus non-current gets to a more manageable level, those great values will be gone. Until the next time manufacturers overproduce and end up with more non-currents than current models. It seems to be a cyclical thing that can be caused by lack of snow, fuel prices and general economic malaise. For now, though, the market is starting to get back on track.
Snowmobile Industry Market
2006 to 1968
Estimated Sales (In Units)
- 2006—164,860
- 2005—173,733
- 2004—181,336
- 2003—186,627
- 2002—203,152
- 2001—208,592
- 2000—208,297
- 1999—230,887
- 1998—257,936
- 1997—260,735
- 1996—252,324
- 1995—227,433
- 1994—181,000
- 1993—158,000
- 1992—150,000
Sales from 1978 to 1968
1978—226,000- 1977—195.000
- 1976—243,000
- 1975—316,000
- 1974—435,000
- 1973—450,000
- 1972—460,000
- 1971—495,000
- 1970—425,000
- 1969—255,000
- 1968—85,000
© 2006 Copyright Snowmobilia/Jerry Bassett
