Tough economy: Off-road enthusiasts spending less on new gear
| Friday, Sep 11 2009 06:02 PM
Last Updated Saturday, Sep 12 2009 05:14 PM
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Henry A. Barrios / The Californian Bill Abshier, right, owner of Valley Cycle and Motorsports and Brent Needham, sales manager, sell a variety of motorcycles at the shop on Buck Owens Blvd. in Bakersfield.
Customers used to line up before the doors opened at 9 a.m. Saturdays at Cycle Gear, the dirtbiking and off-road vehicle equipment store on 24th Street.
"We were making a lot of money here," manager Jim Ferguson said.
Things are different now, and not only for Cycle Gear. In another sign of the tough economy, off-road enthusiasts are playing it safe these days and spending less money on new vehicles and equipment.
One of the most striking local examples is that the number of Bakersfield stores selling dirtbikes has fallen from about five a couple of years ago to two.
Even the survivors aren't doing great. Bill Abshier, partner and general manager of Valley Cycle and Motorsports, said sales are off 60 percent from their height in 2006, not counting the recently added brands of BMW, Yamaha and KTM.
"It's impossible to make it as a single-line dealer with the overhead the way it is and the business the way it's going," he said.
Competition across town is feeling the pressure as well. Salesman Jon Shetrone at Fred Cummings Motorsports said his customers are having a hard time getting their loans approved.
"If you have any remotely rough credit, you know, it's not really in the cards," he said.
Statewide, sales of ATV, enduro and motocross vehicles declined by about 33 percent between July and a year before, according to a published report by industry analyst Don Brown.
Across the nation the decline is about the same: 33 percent, Brown reported.
The trends may not be as bad as they seem. Before the downturn the industry enjoyed an unprecedented run-up in business, according to the Motorcycle Industry Council.
The trade group reported that every year between 2002 and 2008, more than 1 million two-wheelers were sold across the country, a trend communications director Ty van Hooydonk described as "pretty positive."
"Things are going to have to reset" after such an upsurge, he said.
Moreover, he added, motorbikes in general have become a popular option, especially since gasoline prices skyrocketed last year. Scooters in particular sold in record numbers in 2008, according to the council.
"There's still a tremendous interest in motorcycle riding in general," van Hooydonk said.
Locally, off-road vehicle dealers point to another challenge that weighs heavily on business: a dearth of local places to ride dirtbikes, both out in the open and on the track.
Housing development has claimed some land where riders used to go. There have been recent proposals to build new parks and tracks, but they have been stalled or left without money amid the state budget crisis.
That leaves riders little choice but to drive further and further from Bakersfield -- which increases costs.
"Having a local venue would be awesome to promote the sport," said Fred Cummings sales manager James Robertson.
