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The success of the Honda Grom has met and surpassed the expectations that Honda had for it. Honda has referred to the excitement around the Grom, "Grom-o-mania." The Grom is selling out around the country as dealers just don't have the supply to keep up with demand. Beyond this, there is a thriving aftermarket parts market that is popping up as people are really taking to customizing the Grom.



"Dealers pretty much have them pre-sold as they're getting them out of the crates and putting them together," said assistant manager of powersports press for American Honda John Seidel. Dealers have been sitting on deposits and waiting for deliveries basically since the Grom was available for pre-order. "It's been a hit from the moment it was revealed."

Even employees haven't been able to buy Groms from the manufacturer. They have been turning to dealers to get their hands on a Grom of their own, or borrowing them from their workplace for the weekend. Even industry companies are waiting on Groms as Honda just doesn't have enough Groms to loan out.

Beyond having to wait for inventory, dealers have also been frustrated by the small profit margin of the Grom. Though the Grom gives the same percent profit margin as other Honda bikes, because it is only $2,999, the profit margin is far less than dealers are used to. In order to raise profit margins for dealers honda is encouraging dealers to stock up on aftermarket parts as there is a huge demand for parts to customize the Grom.



Honda purposefully built the Grom to be customized, and people have taken notice. Two Borthers and Yoshimura were the first to get into the Grom aftermarket. Selling these aftermarket parts are how dealers are trying to make more profit off of Grom sales. Honda also hopes that people who start on the Grom will become Honda customers for life.
 

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Sounds just about right to me, A LOT of people have a grom. I'd like to see what production numbers are like right now and even production and sales numbers on a month to month basis
 

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Two brothers one of the the first to get into the Grom aftermarket?? yeah right!
Yeah I know there has to be some brand that got in way before.. Plus what about the MSX125, it's practically the same bike and people in Thailand had it way before us.
 

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Beyond having to wait for inventory, dealers have also been frustrated by the small profit margin of the Grom. Though the Grom gives the same percent profit margin as other Honda bikes, because it is only $2,999, the profit margin is far less than dealers are used to. In order to raise profit margins for dealers honda is encouraging dealers to stock up on aftermarket parts as there is a huge demand for parts to customize the Grom.
Low profit margin is likely to be the case on anything priced around this. I would guess margins are similar to the Ruckus and other 50-125cc scooters.

The somewhat nearby super discount dealer sells them for $2699 and they are making money so as most dealers selling at MSRP are getting $300 plus profit already. Not to mention what they make in the required conveyance fee. I recall mine was about $250, for less than hour work of getting all the paperwork together. So my dealer made at least $550 to go towards their expenses.

I don't care if they want to try gouging on accessories but hopefully not on the price of the bike itself. And I hope American Honda doesn't raise the MSRP to try to make the dealers happy because I think it would hurt sales in the long run.
 

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Competition

The good news is that competition while not generating big discounts on GROM accessories will keep prices on accessories reasonable. I'm in a major city and their are 5 Honda Dealers within 10 miles of me. I expect to see more factory and aftermarket stuff for the GROM within the next 6 months.
Also given the success of the GROM I expect the other major manufacturers to do the "me to" thing. Modifying their East Asia bikes for the North American market. You'll probably see some displacement wars with the 150 to 200 CC range coming into play. Just a WAG on my part:D
 

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GROMsanity

The aftermarket support for this motorcycle sprung up like overnight.
 

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H2c will come to usa eventually I believe its honda oem aftermarket, In Thai its called Honda 2 Customize for h2c
 

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I fully expect Honda to raise their prices on the grom .. don't be surprised to see $3499.. they cant keep them in stock look at the guys paying 4K+ otd for them the market is willing to pay for them
 

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never happen, only price hike will be the USA greedy dealers that want to raise the price.

Supply and demand

When and if Suzuki, Kawasaki, Yamaha jump on the band wagon with their mini-hayabusa, mini-ZX machines and Yamaha rebirth of the YSR-200, all with six speed and such will the market really open up.

You can call them commute pocket rocket, or college i-rides or i-blaze or something like that with a catchy phrase and it will sell and out beat the Honda.

Look at the Apple iphone an ipads which use to be the hot item, when all the other electronic companies such as Samsung and such copy than GAME ON.
 

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I fully expect Honda to raise their prices on the grom .. don't be surprised to see $3499.. they cant keep them in stock look at the guys paying 4K+ otd for them the market is willing to pay for them
I hope not, makes less sense to buy it for another $500. Easier to step up to a bigger bike or even down to a Ruckus at that point.
 

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To be honest, I thought it was underpriced a bit from the start, particularly from Honda, who has a habit of overcharging. They may take a page from the dirt bike side, change something 2mm, convince us it's far better, then charge more.

And thank goodness for Two Brothers...
 

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I dont care what oyher manufacturers do. cant beat a honda

Yep Honda makes some good stuff, I had a 1988 Honda VLX-600 shadow and I put about 60K miles on it and sold it to my neighbor and he put another 40K on the Shadow before he sold it to his brother-in-law and all together there must have been about 120K miles on that motorcycle and I heard it is still running strong.


When RC-racers,campers and ham radio operators want a back up gen for their rigs they go with Honda gen
 

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I won't lie, if Kawi comes along and makes something comparable in the US market, I may have to jump ship depending on specs and aftermarket outlook. I may drive a Honda car but when it comes to my toys, I prefer green.
 

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low margins on each bike just mean they need to move them in volume, certainly looks like the GROMS have been moving in VOLUMES
 
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