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Genesis Forum: Low Inventory: You can't sell from an empty wagon!
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  1. #1
    balfor is offline Registered Member What I drive: 2G Genesis 3.8 V6 Sedan
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    Default Low Inventory: Boys, you can't sell from an empty wagon!

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    I was snooping around the genesis website and the dealers in my area, and noticed something rather remarkable: there is almost no inventory of this car. In all of San Diego county, there is currently just one G90 in stock. Now, San Diego is not LA, but it is a metro area of 3.5M people so it isn't tiny either.

    If you look at sales figures, the G80 is outselling the G90 by about 3 to 1 (as you might expect). There are about 50-60 G80's in San Diego, so you would expect about 15-20 G90's relative to G80 sales. Even if you expand the search to the LA area, a lot of dealers only have 3-4 cars and the biggest I saw had about 11, in all of LA which has nearly 20 million people. So yes, you can find the car, but there certainly isn't a generous supply out there.

    Is this a calculated move by Hyundai to limit inventory so they won't be stuck with too many cars, or is there some production issue? I mean low inventory is good to a point, but if customers can't physically get the car that will be a huge headwind to sales. Again, using my area as an example, a prospective customer might have to drive 45min or more just to see the only G90 in the area, and of course one car means just one color choice.

    What gives?


  2. #2
    Mark_888 is online now Registered Member What I drive: 1G Genesis 3.8 V6 Sedan
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    Default Re: Low Inventory: You can't sell from an empty wagon!

    The ratio of Hyundai Genesis sales to Equus sales was much higher than 3-1. My guess is that they just underestimated demand for the G90 based on past Equus sales.

    Another factor may be the recent Genesis Open Golf Tournament (formally the LA Open) held a couple of weeks ago. Some of the G90's may have been used for the tournament, and/or sparked demand for the G90 in the Southern California area. Also, Hyundai Motor America HQ is south of LA.
    Last edited by Mark_888; 03-07-2017 at 08:51 PM.

  3. #3
    Munch520 is offline Registered Member What I drive: 2G Genesis 3.8 V6 Ultimate
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    Default Re: Low Inventory: You can't sell from an empty wagon!

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    As a supply chain exec, I love and hate (mostly hate) that saying. You can't sell what the public doesn't want, regardless of how full the wagon is

    Seriously though, I think they're smart. They're looking at past sales to support stocking levels and the best thing you can do with a new brand (in my opinion) is keep people wanting more. This has been met with better reviews and seems to be more popular than the Eqqus, so I wouldn't think a multiple of more than 1.5x monthly Eqqus sales would be a bad starting point.

    They're one of the largest manufacturers in the world, they can ramp up to meet demand if they stay on their toes. The simplicity of configuration, and lack of colors and options help them in this regard. If I were them I'd rather be in this position than have lots flooded with the most expensive car they've ever produced.

    It's a marathon, not a sprint!

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