The Shift in Consumer Spending Habits

The dynamics of pandemic-related spending have come to an end. In reality, this shift likely occurred about two years ago, as individuals started cutting back on discretionary purchases and focusing on saving every penny. This change is largely due to the fact that the economy is not as robust as politicians in Washington D.C. would lead you to believe.

This trend applies to both sides of the political spectrum.

The impact of this economic reality is evident in the declining demand for high-priced powersports vehicles such as large adventure motorcycles, fast side-by-sides, and snowmobiles designed for mountain terrain. Dealership lots across the country, and even globally, are now filled with these unsold machines. This decline in demand has led to challenges for brands like KTM, which faced a significant drop in sales for their expensive motorcycles.

While KTM is not the only brand facing difficulties—Harley-Davidson and BRP have also encountered setbacks—another major player in the industry, Polaris, has been quietly struggling in recent months. The launch of their $10,000 Ranger utility-focused side-by-side seemed like a step in the right direction, but recent developments suggest otherwise.

According to a report by UTV Driver, Polaris is discontinuing the base trim of its most expensive side-by-side, the Xpedition, and increasing the base price by $8,500. This significant price hike is concerning, especially considering the already high cost of the vehicle.

The Xpedition was positioned as more than just a typical enclosed side-by-side. With the growing popularity of overlanding vacations and the use of UTVs in street-legal areas or public lands, Polaris aimed to capture this market with a factory-built machine that offered versatility and a range of accessories.

However, the price of the Xpedition has now reached $40,499 for the base model, making it a costly investment. Adding accessories can further increase the price, with the overlanding package alone costing an additional $13,889. This brings the total cost to $54,388, which is comparable to the price of a Toyota Tacoma or multiple used overlanding vehicles.

Given the current economic climate and consumer spending habits, the high price of the Xpedition may deter potential buyers. The introduction of the more affordable Ranger 500 reflects a shift towards more budget-friendly options in the powersports market.

While the concept behind the Xpedition is commendable, the pricing strategy may not align with the financial constraints of most consumers. Offering a more affordable version of the vehicle or integrating its features into the Ranger platform could be a more viable approach to attract a wider range of buyers.

Ultimately, the economic landscape and consumer preferences are evolving, and brands like Polaris will need to adapt to these changes to remain competitive in the market.