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Digging into the actual numbers before commenting. What a novel concept! Good for you. You should be the Vital editor for a day as a prize.
Are you even self employed?
Boom
So, Fox and Bell are “The Devil”, now?
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A lot of businesses have taken significant raw material cost increases and at the same time have not been able to raise prices accordingly while maintaining sales. In some cases they can raise prices, but sales drop as a result which results in flat to lower sales and profit. Its mainly due to inflation driving costs up where businesses struggle to pass the price increases along and maintain previous sales levels. The short term knee jerk correction is to layoff workers as it is a direct reduction in the bottom line. So yes, this is driven by inflation which was driven by everyone in the world printing money while staying locked down (which has now been proven to be the wrong decision). Basic economics....and elections have consequences.
It could be the state they are located in today. The cost of running these businesses in California is extremely expensive. Yamaha left California, Toyota left California, Tesla left California, Lucas Oil has left California. Lots of other companies who choose not to fight the fight to be there. While there is a lot of great things about California, the business environment is a treacherous path today.
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It's actually thousands of billions... Grrrrrr
Wait, you're not supposed to have an extra long paid lunch for moto, little or no accountability for performance/production, and a "living wage" with no real skills?
Where does one find a job like this..? Asking for a friend. Yoga is gay though.
Fixed it.
Seriously do people exist with jobs like that? Is that what working in tech is like or something?
Yes. Not specific to tech, but the unrealistic expectations of the "woke" and others since Covid are literally nuts. If you watch South Park or even of you don't, check out the hot dog shop episode from a few weeks ago. It's exaggerated, but not by much. All the "remote" work for jobs that were never remote, extra PTO, and lack of accountability has created all these issues where so many don't want to actually work anymore. It's really hard to believe.....and all the kids in high school or college during the pandemic had the easiest workload I have ever seen (my daughter was a junior/senior) and it set them back years IMO.
Probably wasn't a good idea to kill the economy over a sniffle, maybe that was the idea.
I guarantee that Moto 10 costs less than $50 to make, the fact that they have the audacity to charge $900 for it is criminal and I hope they go out of business for it.
If they are willing to move to cost save I’m curious why they aren’t moving out of CA.
CA must have given them a pretty good incentive to stay.
Sales wen’t down tremendously for the bicycle catagories, moto has been more or less stable.
Most MX dealers already had similair experiences in the years after the banking crisis in 2008 so learned their lesson. The dealers in the bicycle catagories are in many instances much younger companies and they thought business would stay booming post covid and bought crazy amounts that they can’t clear now.
As soon as i saw this, i thought that they were another company leaving California, but it appears not.
But having said that , why run 2 places , when you can do it from one.
Its a good job the economy isnt tanking , else things could really be bad.
Pit Row
So an individual is entitled to make as much money as they can possibly do so, but if a business does the same it is wrong? Money sustains businesses, like oxygen sustains life.
This IS the American corporate way in a lot of cases. I have an elderly friend who built an amazing furniture mfg business in over a 50 year span. Once him and his partner got into their 70's it was starting to really weigh on them so they decided to sell the companies since their kids cared nothing about carrying on their legacy and just wanted the money.
The main staple company is,.....WAS,.. very high end products and the corporation that bought them out pretty much forced the older craftsmen workers who had been there for years out by pay cuts, shitty benefits and 401k cutting threats. The materials, quality and reputation of this company was run into the ground in just two years of the sellout. The prices went up while the finished product quality went down. The workforce there now is mostly unqualified and 50% are made up of foreigners. My friend is heartbroken to what happened to his company and to the people that were so loyal to him for all those years.
My point being there seemingly is no loyalty to the workers and customers in today's business world. Profit trumps everything including dedication, loyalty and dignity.
I recall an interview with a Bell Helmets representative several years back. His comment was the cost of producing their product had held steady or maybe slightly increased. The big cost center was the product liability.
Ah yes, another california hater...you clearly didn't get the memo, that Bell/Giro will be moving from their CALIFORNIA offices, to their new CALIFORNIA offices at the Fox building. Point being, no one moved out of CALIFORNIA.
Many companies, not just off-road companies, are setting up for the possible future of economic struggles. I hope it's false predictions.
Economists have been predicting a recession for years. My previous company was "right sizing" (corporate newspeak for cuts) 5 years ago in anticipation of a downturn that has yet to happen.
I'm not saying that it won't happen, only that it hasn't yet.
Hell…California is leaving California! There are tons of Californians moving their families to Texas, Florida, Missouri & other places where the quality of life is less expensive & a better place to raise children! Austin & Houston look like Los Angeles…without the explosion of homelessness & open drug use.
Sad to see Bell helmets is doing so poorly, but I’m not at all surprised.
I did read that. I simply provided facts that a lot of large corporations have moved from the state of California to more business friendly locals.
Read this article from a year ago. States most of the production is now in foreign countries with the engineering in the US.
https://motoprove.com/where-are-bell-motorcycle-helmets-made/
Excerpt:
Does Bell still operate in America?
As their business grew and the cost of labor/production went up, Bell decided to move their business out of America. Currently, Bell operates its plants from different locations around the world.
The production plants are located in China, Bahrain, and Quebec. Whereas, the R&D department still operates inside the United States.
What did I say to elicit such response? Let me buy you a Bud Light!
Just came here to say if I could keep my salary but teach yoga I’d start TODAY.
Their racing helmets (along with Fox, TLD, Fly, 6D, and many others) are made by Topkey Composites who is based in Taiwan. Bell is a helmet brand, not a manufacturer.
*$1.5B
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