price increase
- Thread starter rossi46
- Start date
BMW Edinburgh suggested that BMW would seek to raise bike prices by 2.5% in 2009 which is coincidetantlally the amount VAT was reduced by. Net effect was that he thought prices would stay around the pre-VAT change 2008 levels.
Of ocurse, this conversation was before the £ went really south against the Euro over the past few weeks. BMW UK may yet think again bsed on what they need to pay Germany for the bikes before the 2009 prices are made public. Still, if the economy does really fall on its face into 2009 (more than it has already done), there should be some negotiating position with dealers. Also the £/ Euro rate is expected to improve into 2009 so BMW may have some scope for manoeuvre on prices.
Of ocurse, this conversation was before the £ went really south against the Euro over the past few weeks. BMW UK may yet think again bsed on what they need to pay Germany for the bikes before the 2009 prices are made public. Still, if the economy does really fall on its face into 2009 (more than it has already done), there should be some negotiating position with dealers. Also the £/ Euro rate is expected to improve into 2009 so BMW may have some scope for manoeuvre on prices.
I have been told by 4 dealers whilst hunting around for a deal for a 1200GSA that the prices will go up by about 5%... Was it a ploy to get me to buy now? ....possibly not as its from 4 different dealers... I dunno..
DutchBryn
Registered user
Morning All,
I have no idea what various GB dealers will try to do with their 09 prices.
But economically, we are all in this train wreck together.
German economy slated to contract 3.5% in 09.
Seems a bit brave (of them) to expect price increases, to me. Still, if you don't ask, you don't get.
Blog seems live atm, check out:
http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/12/19/germany_is_already_collapsing
Wait a while..
DB.
I have no idea what various GB dealers will try to do with their 09 prices.
But economically, we are all in this train wreck together.
German economy slated to contract 3.5% in 09.
Seems a bit brave (of them) to expect price increases, to me. Still, if you don't ask, you don't get.
Blog seems live atm, check out:
http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/12/19/germany_is_already_collapsing
Wait a while..
DB.
given the state of the pound vs the euro I think you can safely expect significant increases in the new year on most 2 and 4 wheeled product out of europe.
Stu
Rock and a hard place for BM etc.
Value of £ down against the € so in conventional times £ price would go up. But, if the bike market is anything like the car one, or is about to become, then 30% drop in sales doesn't shout out "increase the price" does it?
Value of £ down against the € so in conventional times £ price would go up. But, if the bike market is anything like the car one, or is about to become, then 30% drop in sales doesn't shout out "increase the price" does it?
DutchBryn
Registered user
It's not only the Germans that are struggling with a strong currency (relative to sterling). Sony 'need' to increase their prices by around 1/4-1/3 to retain their margins in UK market.
Can't / won't happen. Incapability Brown's miracle economy was all credit based. That's over.
Cash is now King. 09 will be a buyers market.
Can't / won't happen. Incapability Brown's miracle economy was all credit based. That's over.
Cash is now King. 09 will be a buyers market.
Sadly it does. The majority of car manufacturers have put their prices up in the last 5 months regardless of stock due to the crippling exchange rate eg VW 1.5%, Ford 2.1%, Peugeot 1.9% , Renault 1.3% etc even non euro players toyota 1.3% suzuki 2.43% etc. Expect further increases in the New Year.
In general the UK has become rather unpleasant for anyone who imports in euros (or who builds product here with parts paid in euros).
So , in general , with a decline in volume , and exchange rate going against you, you see your profit fast diasppearing. So you raise list price to offset.
In the short term I take it you've noticed the raft of finance offers as everyone rushes to liquidate stock asap to get cash in ( more so than usual at year end for new model intro).
BMW is no different to other euro manufacturers at the moment , tho in the m/c divisions case it seems their more prudent way of build more to order than stock will help them. However in this market cash is king and as all around you start to edge pricing up ( £9995 new R1) why despite possibly a better position than most would you not raise price. I 'd say 2.5 - 3%.
Stu (no I don't work for BMW)
In general the UK has become rather unpleasant for anyone who imports in euros (or who builds product here with parts paid in euros).
So , in general , with a decline in volume , and exchange rate going against you, you see your profit fast diasppearing. So you raise list price to offset.
In the short term I take it you've noticed the raft of finance offers as everyone rushes to liquidate stock asap to get cash in ( more so than usual at year end for new model intro).
BMW is no different to other euro manufacturers at the moment , tho in the m/c divisions case it seems their more prudent way of build more to order than stock will help them. However in this market cash is king and as all around you start to edge pricing up ( £9995 new R1) why despite possibly a better position than most would you not raise price. I 'd say 2.5 - 3%.
Stu (no I don't work for BMW)
DutchBryn
Registered user
Who knows what next year will bring? I am gloomy.
Maybe you're right, Stu.
But with regards to quoted car prices, ford et al can sticker-price as the will.
Punters are not paying anything like those prices.
We shall see.
Good luck and best wishes with your new toy, whenever you buy.
Maybe you're right, Stu.
But with regards to quoted car prices, ford et al can sticker-price as the will.
Punters are not paying anything like those prices.
We shall see.
Good luck and best wishes with your new toy, whenever you buy.
motobiker
Registered user
Not being funny - but if BMW spent more money on getting the bike right then the savings on the never ending recalls would go some way to funding a static price.
I see that no sooner do they bring out a MK2 version - but theres a recall - brake failure for gawds sake
Maybe a GS1200 basic without all the doo das would be a good idea. back to the drawing board: a bike with the same design ethos that gave the world the 1100 after the older airheads. Simple - go anywhere - but with the modern engine and looks. And none of the "solutions" to problems that never really existed.
I see that no sooner do they bring out a MK2 version - but theres a recall - brake failure for gawds sake
Maybe a GS1200 basic without all the doo das would be a good idea. back to the drawing board: a bike with the same design ethos that gave the world the 1100 after the older airheads. Simple - go anywhere - but with the modern engine and looks. And none of the "solutions" to problems that never really existed.
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