Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

Bike prices drop

Discussion in 'General Motorcycling Discussion' started by Julien, Oct 19, 2009.

  1. Ok the Aussie dollar is stronger everyday against the major currencies.

    Does that mean that bike prices are going to drop??? If so, when?

    I am really thinking of buying a Street Triple - the exchange rate against the English Pound has never been more favourable to us. I'd love to see a price drop...
  2. I can't imagine it'd change any time soon. Why drop prices when you can keep the extra profit?
  3. The price of anything is not determined by the cost to the retailer, but by the buyer's willingness to pay.
    (but you may be able to crunch a better deal on the floor if there is enough stock around :wink:)
  4. :rofl:

    Not been here long, have you? ;)
  5. Julien - Just because the exchange rate changes doesn't mean prices will instantly change.

    The first to consider is when and how long have the companies hedged the currency for? They may have hedged for 6 months at US$0.75 so therefore won't see any benefit until their next currency hedge.

    Second is when things aren't looking good for the AUD, companies don't often raise prices, the will instead take the pain. It's a 2 way street mate. Let the companies make some cash to make up for the pumelling they got when we dropped to 60 cents.

    For the general retail market you will see some good things happen with discounts in November and December as companies start to use the currency to their advantage and the competitive nature goes into full swing.
  6. Agreed it has to do with the term on the hedging contracts.

    If the AUD remains strong vs. the GBP for long enough then I'd try giving various bike stores offers below the asking price (assuming that it isn't already revised downwards for the exchange rate).

    Someone could be willing to accept their 'original' profit margin?

    Wonder what sort of price you'd be paying if you got it direct from the UK???.... I have relatives there... HMMM

    *taking orders now* :grin:
  7. Us$ and the Yen are the ones to watch.

    You won't grt extra out of stores. You will get an RRP drop
    from the subsidiary or a rebate offer. Other than that the discounts are fixed and the subsidiary keeps the extra proft, they do not pass it onto stores.
  8. please also considder that
    1. import and distribution pricing may have been negotiated in one of many currencies, yen, won, US$, or AUS$.

    2. The bikes on the floor have already been paid for.
  9. +1 , As well as the next few bikes ordered in on the current floor plan.
    Some bike shops get told how many of what type and how much, and under contract to supply X amount @ X dollars, 12 months in advance !!

    If you stuff up and a model sells better than you thought it would in your area, forget calling the supplier, you have to call around to other dealers to see if they have a spare of X model on the floor you can buy off them. :tantrum:

    So no in most cases the bike prices wont start dropping for awhile yet.
  10. Then cos you been a loyal (insert bike brand) for years the next step is they started giving you your next bike for free.

    Nice thought, prices wont be going south.
  11. Agree with all above. Prices won't drop on bikes. Similar with european cars. Dropping the price f$cks the resale value, which then f$cks customer loyalty.

    I would also think the companies would have insurance to cover when the Australian dollar tanked - I know suppliers get it when we order an item with a 3-4 month lead time.

    Maybe when a new model is released it might lower the price then, or a minimal increase for increased technology, but i highly doubt the price will drop.

    Add to that a street triple is harder to aquire then a hooker looking for her next fix. Seriously the street triple is has a massive backorder at the moment, 3-4 months i think, and even then there is no guarantee of when you will get one. Simple market forces:
  12. There is at least one Street Triple R on the floor at Brisans Newcastle! Glanced at it while I was rushing to get my bike back. If anyone is desperate for one then they might be able too call them to enquire about it? I wonder if Buell's prices will drop at all considering the demise of the company?

  13. Yeah, the dollar is hedged for whatever period so that sets the price of things. An aside is that the bs we're always fed that "the dollar has dropped" so things like petrol immediately rise. How quickly does it fall and is it by the corresponding AU$ increase? I think not.

    I'm yet to see (m)any take that pain you describe. No suppliers I've ever ordered from kept their prices down when the AU$ went down just because they've liked my business in the past.

    Margins seem to be different around the world and are based on what the different markets are willing to pay. For instance, some cars just cost more in Europe when compared to what they cost here. Bikes cost more here full stop.

    Like others have said, I don't expect bike prices to drop because the dollar has gone up. I suspect that the downturn this year caused sales to drop off so they'll make up for the earlier slower period with the higher margins when the hedged dollar rate goes up. It's really a case of looking at a longer term average rather than short term spikes and drops.
  14. You probably aren't looking to hard then.

    We kept our prices the same and it cost us many millions. None of our competitors raised their prices, they all took the pain. In fact some of them even dropped prices! Everyone was watching everyone to see who would raise prices. Hardly anyone did.

    Commodity/raw material pricing is a different ball game and i don't know the finer details. With fuel prices it comes down to who has the smartest people to dodge the numbers. What appears to be blatantly obvious just shows how smart those guys really are.
  15. Yep, some companies seem to "cash in" when the dollar drops. When I inquired about and got a quote for Aprilia mirrors, and then ordered them a few days later, the price had gone up by 10 dollars a mirror (by the distributor - not the retailers fault) and blamed on the weak dollar. Being NZ, it's highly likely that the mirror had already been sitting in their shelves for some time, in fact there was a 2007 stock item stiker on the packaging. I guess they thought they'd cash in and blame it on the weak dollar.
  16. Point taken. I should have had an industry/market specific disclaimer to that then.
  17. You can buy brand new r1s here in japan for around $12000 aus :LOL:
    I picked up a brand spanking new Arai yesterday for $550
  18. No, I have to agree. Prices won't be dropping. Now, had the GFC bitten deeper and shown signs of lasting longer, then that may have happened. We are already being told that car prices are the cheapest they have been in 35 years in relative terms, but the car market is big enough to absorb the changes, the bike market is not.