2009 Prices

sockpuppet

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Just got a letter call from the dealer.

2009 Prices for the GSA are:

£10105 - Basic Bike
£1285 - Premium Pack
£1175 Dynamic Pack

Total - £12565

I think the old price was £12090 so an increase of £475 over the 2009 prices.


I've been sent a new price sheet I'll scan it in when I get home and post it.
 
It seems ambitious in these times of 'recession' to have the confidence to increase prices at all! :loopy

Do you think the dealers will try to 'absorb' these increases in deals??? :nenau

I somehow don't think so!
 
........and has my trade-in gone up a bit too now I wonder???????? :augie
 
sockpuppet said:
Just got a letter call from the dealer.

2009 Prices for the GSA are:

£10105 - Basic Bike
£1285 - Premium Pack
£1175 Dynamic Pack

Total - £12565

I think the old price was £12090 so an increase of £475 over the 2009 prices.


I've been sent a new price sheet I'll scan it in when I get home and post it.
Click to expand...

Factor in that the old price was based on a VAT rate of 17% and the new at 15% and the difference is actually more. :augie
 
Price of the euro against the pound, dealers won't have as much profit even with the increase.

I've put my price's up by 10%
 
Dainese Brave said:
It seems ambitious in these times of 'recession' to have the confidence to increase prices at all! :loopy
!
Click to expand...

I think the relatively small increase is very generous given the pound dropped so much against the Euro over the last 12m.

For the old price of £12k in Jan 2008, I would hazzard a guess that BMW got two-thirds (£8k) of this and the dealer got one third (£4k) (these are pretty much random numbers out of the sky, but serve to show the point).

BMW's £8k in Jan 2008 was worth about 11k Euro to them. However the £8.3k they get now (two-thirds of £12.5k new price) is only worth 8.3k Euros to them. For BMW to get the same 11k Euro today, they would need to get a cut of around £11k from the selling price.

If the dealer is keeping their split at £4K, the bike would need to be priced at £15k to give the dealer and BMW the same money (in their own currencies) as last year.

Thus given BMW need to pay their staff and suppliers in Euros to get the bikes made, I suspect they are making something like 20% to 25% less per bike sold in the UK than they did last year.

In effect BMW (or dealers) are taking most of the hit on the exchange rate rather than passing it on - I think they deserve some credit for that at least!

Darren
 
Last edited:
dazlewis said:
In effect BMW (or dealers) are taking most of the hit on the exchange rate rather than passing it on - I think they deserve some credit for that at least!
Click to expand...

That is of course assuming that the £ is the only currency that has dropped against the euro.

I'd expect that BMW are making the same from the bikes, maybe a little less but certainly not 20% less.

They will be getting parts cheaper (far eastern currency drops), cheaper shipping (both from far east and to the UK), cheaper energy costs (always pegged to the price of oil) will make running the factory a lot cheaper!

Basically they are getting £640 ish more per bike (if all options).

That is 6% ish - assuming costs are the same.

Ok, they've not given out the full cost of the increase but they have certainly not done the uk a favour.
 
I'm sure BMW will be using the 'credit crunch' to access parts cheaper, and other suppliers of parts and commodoties...so I'm sure that will absorb some of the loss in exchange rate..and therefore profit.

I do think the 40% increase in sales, and exceeding sales targets in 2008 has given them confidence to place the increases....and you can't blame them for trying....but £500 extra could well swing future deals...I know it will with me if at least some of it is not absorbed by the dealers when I talk to them soon!

I also think that it is maybe a bit unwise with all the 0% and low interest finance deals being offered by almost all of the other marques. Do the increases if absolutely necessary...but offer some incentive...but at the moment it seems BMW seem secure in their market with continuing as they have done.
 
dazlewis said:
I think the relatively small increase is very generous given the pound dropped so much against the Euro over the last 12m.

Mmm, yes. Thanks Mr BMW, for your kindness to us British potential customers. (Tug of forelock). :blast
Click to expand...
 
Be interesting to see what the other bike manufacturers do regarding 2009 prices. KTM is also in the Eurozone, and Triumph will source many parts form Europe so presumably both will be subject to many of the same economic factors as BMW.

The 'premium' prices BMW charge for their products does mean the increase may seem larger. I still cannot figure how a GS costs £12k retail when you can buy any number of reasonably specified new cars for similar money and they have a lot more parts, etc. If we all stopped buying GS's perhaps the prices woudl fall.


The poor £ / Yen rate is also going to affect the Japanese marques. Our weak currency is not going to do anyone any favours in terms of import prices, and will certainly not help my holiday spending power. Guess that something else we need to thank our PM & Chancellor for :mad:
 
Indeed...the demand has given BMW a sense of security....but in these hard times it is hard to sell anything that isn't a necessity….and no matter how brilliant the GS and GSA are, they are definitely a luxury item to very many.

I personally wouldn’t like to think that I would ever be forced into having to sell mine….but trading up is another matter entirely…..people are not spending on things at the moment….and making an already expensive non necessary item (£12 ½ grand is a lot of money in any climate!) another £500 dearer is a very risky move I think…..as I’ve already said, it has already made me think twice about what was a genuine intention to trade up to a 2009 GSA….how many more are there thinking the same as me????
 
Speaking with the Williams guys last week, the bikes were the only ones that made a profit last year, AFAIK they also sell Minis, BM cars and Land Rovers.

Maybe bikes are a luxury that we can't do without? Or trade in the £20 000 toy car for a new bike, that has more performance, and is half the price :nenau
 
BMW can price their bikes at what ever price they want but we have total control over whether we are prepared to pay that price.
 
Don't get me wrong...realistically most bikes are a luxury…but I am sure I am like most others, it may be a luxury but it’s a luxury that I could never imagine being without!...and it would take something very serious to make me sell it!!! (I’m talking having the keys ripped from my hands from Satan himself here!...and even then I’d put up a good fight!!) :rocketwho

If there was no fuel, no oil, no roads, no mountains to visit….my GSA would still be safely under cover in my garage!! :bow

…..but keeping the bike you’ve got, and trading up to a new one is something totally different.
 
I think at the momment you'll find most 2009 Prices sre Negotiable due to the Current climate ,still glad I got my 2009 spec GSA in October though:thumb2
 
Nippy Normans supply Touratech, Wunderlich, Desert Fox and many other makes of accessories.
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