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RRP and pricing

Discussion in 'General Motorcycling Discussion' started by vmaxer, Apr 13, 2011.

  1. I read the article on the home page "Kawasaki Announces Substantial Price Rollbacks". Well it's sure good top hear some news that some prices are falling. But for goodness sake get rid of the RRP, it had it's place in the past and has no relevance in the modern world.

    **** the RRP, next time you walk into a showroom for a new bike tell them to stick the RRP up their lilly white arses and tell them you want a real deal. How some of these dealerships stay in business is beyond my comprehension, they must think we are still living in caves for ****'s sake with no links to the outside world. The RRP merchants would have us like mushrooms, kept in the dark while being fed on bullshit.
  2. but the ones that charge RRP are mostly still in business, while the discounters go broke, selling for less than they pay....
  3. The manufacturers publish the RRP and will base it on where they perceive the bike will fit in the market. It also standardises the dealer network on a level footing.

    It's the pesky consumer that causes the problem. They don't want to pay RRP and insist on negotiating and shopping prices about. And they usually have very unreasonable expectations for their trade-ins as well. The concept of a change-over price just won't cut it with so many buyers. And so it begins.

    Also, if there was no RRP, imagine how predatory some dealers would be when they perceive a "sucker"?

    May as well let the fun and games begin at RRP as anywhere else.
  4. RRP is set by their marketing department after careful research.

    The free market decides what someone actually pays. Some buyers are reasonably happy to pay RRP while many want to pay about half for the same machine.

    If a dealer refuses to budge on RRP it means sales are going well that month :p
  5. Or demand exceeds supply of that bike. Fairly basic economics.

    A dealer is only incented to discount if they are trying to convince the buyer to actually buy the bike. In some situations, they know a bike will sell very quickly anyway so won't move on it. That said, good opportunity there to bargain more creatively and get some extras thrown in.
  6. If whatever you are buying has a waiting list some places even charge more than RRP, especially if you want to have it NOW.

    But, they do need to set a level. Hence it being what its called.
  7. RRP is there as a guideline for dealers to make their deals with.
  8. I thought it was common knowledge that RRP doesnt equal on road price (ORP).

    @ the op

    If your not happy with current ORP's just wait to the end of financial year (not to far away) the price should improve.
  9. vmaxer - perhaps you should mortgage your gonads and your offspring's to start a motorcycle franchise.
    I'm sure you'd be happy when some knob comes in and starts making insulting, low-balling offers on your stock. And then walks out.
    I've been in retail for more than 20 years. 80% of people who walk into my shop are arsewipes. Clueless, rude, no manners. Fortunately, the other 20% are really cool and they make it all worthwhile.
  10. Would be less painfull to stick a Glock 17 at the roof of your mouth and pull the trigger.
  11. The customer is always right stroker, that essence is sadly missing in Australia. Ever been in the USA ? Been in one of those supermarket size bike shops ? Had some salesperson bending over backwards to tell you everything about a bike including the insane cheap price, even though he has already figured you are only there as a voyeur ? Maybe after doing so you won't think we are arsholes, perhaps I should visit your store one day and give you an education into the 22nd century ! Customer service is below par here, your comment is proof of that.

    And before you start spewing vitriol, yes I have been in business, it's tough but no one owes anybody a living brother. If you can't stand the heat get out of the kitchen. :-({|=
  12. Yep! Burt's in Covina just out side LA on the way to Vagas is one of the best ones in the world to go look at. link

    ....but to put it in persepctive when I left Honda Aus in 2008 we had had one of our best years in a long time with new Honda sales at a tad over 29,000 units. The guys at Honda America sold over 400,000 units that year. Its not fair to compare the USA market to the Aus. Theres lot more margin in America sales than Aussie and not too many Aussie bike shop owners have a personal jet that fly's them to an off shore island every weekend to go sit on the beach. Trust me, the bike game in Aus is a very hard business to be in and the rewards sometimes just dont reflect the effort that goes in to running the place.
  13. Hmmm,

    in the US:

    2011 Ducati 1198
    MSRP $16,495 USD

    In AUS:

    2011 Ducati 1198
    RRP: $27,990 ($33,990) plus ORC

    Where the hell is all that extra money going? My opinion is that we get ripped HARD.
  14. I could bite, but...

    My results speak for themselves, I've taken three franchises into the national top ten for the brand that I sell, all of them from a rock-bottom base. All of them have averaged 95%+ CSI. I bend over backwards for my customers. The ones that go too far are told in no uncertain terms to never ever come back again.

    Bullshit artists can shop elsewhere. Dudders can shop elsewhere. There's too many good customers out there who are getting ignored because salespeople are trying to please people who will never be pleased, who never buy and who use up all of your valuable time.

    I stand by my remarks. The customer is not always right.
  15. Sheeth you are onto it my friend, the only way we can change this is by putting pressure on dealers (like Stroker), squeeze their margins and force them to get better pricing from the importers. We are paying +50% above the USA for the same machines, it's a rort, a huge rip off, backed up by RRP price fixing.

    Mostly everything imported into OZ is at a premium, Levi jeans 35$ in USA and 110$ in OZ. Difference is I can order jeans online from USA, cannot do that with a new bike due to the bullshit import regulations ! But I do get all my bike parts from there and never had anything lost in transit.

    I am a consumer and discerning shopper, not a social worker, don't care how well or bad the dealers or importers businesses are doing. The world is a fast changing place and RRP is for the brain dead.
  16. hahahahaha

    good luck with that... you want to know what happens when you squeeze dealers? They shut down. They don't get better prices of importers, nor can they reduce their costs with any other ludicrous schemes you have in mind. Now when the smaller dealers shut down, what happens then? Well, the big dealers get bigger. And when big dealers keep on getting bigger, it becomes a monopoly. You know what happens then, right? Don't think for a moment that there will be multiple big dealers in one city. Sydney will be Sydney City, Melbourne will be Peter Stevens, etc. You will have just shot yourself in the foot and wondering how that could have happened even though your finger was on the trigger and the gun was pointing straight down.

    Sheeth, the extra goes into making sure a country with next to no economy in riding can have a market that stays alive. As more people move into the world of PTW you may see these prices dropping.
  17. Lilley - you're spot on.

    vmaxer - don't get me wrong, I'm happy for people to come in, sit down and make a serious offer to purchase, even if that offer is 50% off RRP. Just make sure you've got the balls to put your money where your mouth is if I agree to the offer. That's what pisses me off, big-mouths coming in, talking themselves up, then walking out when I've called their bluff. I'm not saying your like this, champ, I've never met you. You might be cool as.

    DO put pressure on your local shop. Tell them you want to do business and mean it. DON'T get ripped off. Trust me, they'll be putting big pressure on their suppliers. But don't get angry when it all turns into a monopoly or a duopoly like Lilley says.

    Remember the local butcher ? The local green grocer ? The local mixed-business ? Most of them are gone, swallowed up by Coles & Woolies. Are we getting a better deal these days ?
  18. Lilley I know many people with full licences who cannot afford the luxury of riding a motorcyle. Nearly everyone I do ride with already sources parts, apparrel etc from USA or UK. If the import restrictions were removed every man and his dog would be importing bikes, the prices would drop overnight and there would be a flood of bikes to choose from.

    I don't get propped up in life and I am sick and tired of being expected to prop up the manufacturers, importers and dealers who want to rob us blind. The bike market here is small because historically it''s been so damn expensive. Since the NZ government allowed parallel importing 20 years ago, bike & car prices dropped significantly. Why ? Because anyone can ship in whatever they like, whenever they like, new, second hand, parts, etc etc. Pay the duty, get a simple roadworthy at the testing station and away you go. It's called competition Lilley and boy would our beloved bike importers shit themselves if they had to compete.

    There are more people employed in NZ servicing, importing and in parts than anyone would have imagined possible when the auto industry cried foul before deregulation. Defending the protectionist policies in OZ leaves us in a time warp, we don't make bikes here, 90% of vehicles are imported, but due to tight control the prices stay high. Many dirt riders are already bringing in machines and saving thousands of dollars, they can do so because the bike does not need certification to go "ön road".

    Stroker it's good to know you make deals.
  19. You got me there, mate. But, we live in a welfare state, don't we ?

    Interesting point. When we look at the import restrictions here, do we really have restrictions ? Or, is the market tied up by some very well run distributors ? I know we've got import duties ( 5% ? , none for product from Thailand, USA, anywhere else ? ) and GST, but are there really any other imposts besides our isolation and small market ?

    My bestie just bought a late model Softail Deluxe from the States. He paid retail over there, paid Geezers their full price for the importation and compliancing. It will owe him $10k less than the same thing ( used ) here. If we keep buying direct from overseas, does it mean that the few resellers that will be left have even more power ? Or Less ?
  20. That US price is without tax.

    I don't disagree with your point but you need to compare apples with apples.