Honda slashes its new bike prices across the board

**Scuba_Steve** · 7th September 2011, 13:40

Originally Posted by shrub

Slashing prices is a really, really bad idea and every marketing textbook says so. It kills the brand value by wiping out resale, it upsets customers, it pisses off dealers and generally costs money. It even hinders sales because people think "hmmm, I'll wait till the low K second hand bikes come up" or "I wonder what their competitors will do to respond".

If they needed to kick the sales up they would have been better to offer value-added stuff like the first 20,000ks or 2 years at no cost other than fuel tyres and/or the first 24 months rego paid and put together a finance package that fits around that.

I don't know how "it upsets customers" I was quite pleased to get my $1800 discount on Suzuki summerfest when I got my 1st bike, wasn't upset at all.

As for slashing prices being a bad idea??? you may want to let the rest know, almost every company does it from food to automobiles

**Usarka** · 7th September 2011, 13:41

Two years free rego would almost be a 10% discount on the 600rr.

**shrub** · 7th September 2011, 13:41

Originally Posted by imdying

Shit, even offering a full years rego would be a start. Although to be fair on Blue Wing, that's a nasty dealer trick.

Putting on my marketer's hat, what is the biggest thing motorcyclists have been talking about and what has pissed them off? I'd have a picture of Nick Smith with the caption "Nick hasn't been listening to you - but we have" Under that I'd have "Bike rego costs are hitting us all hard, we reckon that's not fair, so we're doing something about it. We're going to shout 24 months registration on every new Honda bought between now and the election/end of the year. And because we're good bastards and want to see you out riding more, we'll even shout you your first 2 years services so you can spend the money on gas".

**shrub** · 7th September 2011, 13:49

Originally Posted by Scuba_Steve

I don't know how "it upsets customers" I was quite pleased to get my $1800 discount on Suzuki summerfest when I got my 1st bike, wasn't upset at all.

As for slashing prices being a bad idea??? you may want to let the rest know, almost every company does it from food to automobiles

You were happy, but what about the guys who bought a bike before you? A few years ago I knew a guy who bought a Gixxer600, then a few weeks later the price plummeted. He discovered that because of an old back injury he couldn't ride his Gixxer, so went back to get a trade on something more suitable only to be offered just over half what he had paid. He accepted that he would lose a few grand, but the amount he lost turned him off Suzuki forever and he ended up buying a Street Triple. He still lost the same amount, but at least Suzuki didn't get another cent off him.

But having said that, learner bikes are a good area to do that in because it encourages people to get into the sport.

Slashing prices is a slippery slope, and just because everyone does it, doesn't make it a good idea. On premium products (like bikes) price cuts take reduce the brand equity and it takes a long time to regain it. If there has been a significant drop in importer cost that is likely to stay, then it can be done judiciously, but otherwise you end up like briscoes where nobody buys anything from them unless they're having a sale, which they have to do all the time. In 3 months time when Honda want to bring their prices back up, what will the market do? Take it on the chin or wait for the next price drop?

**Scuba_Steve** · 7th September 2011, 13:57

Originally Posted by shrub

You were happy, but what about the guys who bought a bike before you? But having said that, learner bikes are a good area to do that in because it encourages people to get into the sport.

Slashing prices is a slippery slope, and just because everyone does it, doesn't make it a good idea. On premium products (like bikes) price cuts take reduce the brand equity and it takes a long time to regain it. If there has been a significant drop in importer cost that is likely to stay, then it can be done judiciously, but otherwise you end up like briscoes where nobody buys anything from them unless they're having a sale, which they have to do all the time. In 3 months time when Honda want to bring their prices back up, what will the market do? Take it on the chin or wait for the next price drop?

I would say as long as you keep it to clearing out last years models there isn't too much of an issue.
You'll always have people that pay to have the latest & greatest & each new model should have an improvement on the old plus it's 1st come 1st serve of whats left & quite often when you go in for the old model you can find yourself leaving with the new (not always the case but does happen).

**Gremlin** · 7th September 2011, 14:02

Originally Posted by shrub

In 3 months time when Honda want to bring their prices back up, what will the market do? Take it on the chin or wait for the next price drop?

You guys are misunderstanding. It is not a price drop, it's stock clearance.

They are clearing old stock, no new stock would land and be sold at this price. As it is, some people who want a model on the clearance price are finding it very hard to actually get one, as there are so few available. Once the bikes are gone, normal pricing continues.

**HenryDorsetCase** · 7th September 2011, 14:05

Originally Posted by ynot slow

Spoke to honda dealer today,he sold a 2nd hand bike on Tuesday,Thursday get the flier from Honda,rang his customer and offered to stop the sale if the client wanted a new bike,which the customer took,end result dealer made less than $800.

hopefully they can survive till that customer for life wants a new bike. great effort though by the dealer.

**HenryDorsetCase** · 7th September 2011, 14:09

Originally Posted by shrub

Putting on my marketer's hat, what is the biggest thing motorcyclists have been talking about and what has pissed them off? I'd have a picture of Nick Smith with the caption "Nick hasn't been listening to you - but we have" Under that I'd have "Bike rego costs are hitting us all hard, we reckon that's not fair, so we're doing something about it. We're going to shout 24 months registration on every new Honda bought between now and the election/end of the year. And because we're good bastards and want to see you out riding more, we'll even shout you your first 2 years services so you can spend the money on gas".

THIS. great idea. cost to dealer is $1050 plus the services (say $600 at retail, less to them) but value to the customer is very good.

can you buy two years rego at once? Though presumably they'd do that at servicing time: run it thru the WOF and rego at the same time.

**george formby** · 7th September 2011, 14:09

Originally Posted by Blair-SV

The Repsol CBR (2011, ABS) was sold within 15 minutes. I got the email at 4:35pm on Thursday from Botany Honda, in the time it took me to ride around the corner as I needed oil and filter anyway it was gone.

18K for a brand new, 2011 race rep, some one got a steal.

So it was sold before I could wipe my drool off the ad? Nah, not really but the prices floored me considering a mate just paid ten grand for an 05 ST1300.

**HenryDorsetCase** · 7th September 2011, 14:12

Originally Posted by Scuba_Steve

I don't know how "it upsets customers" I was quite pleased to get my $1800 discount on Suzuki summerfest when I got my 1st bike, wasn't upset at all.

As for slashing prices being a bad idea??? you may want to let the rest know, almost every company does it from food to automobiles

read my post above about my experience with my GB400TT in 1988: it was 20 years before I bought another new Honda. and the cocks burned me for "only" $500. But fuck them and the horse they rode in on.

**Scuba_Steve** · 7th September 2011, 14:28

Originally Posted by HenryDorsetCase

read my post above about my experience with my GB400TT in 1988: it was 20 years before I bought another new Honda. and the cocks burned me for "only" $500. But fuck them and the horse they rode in on.

Then I guess it just depends on which side of the line you are as a customer for me saving $1800 was awesome for you not saving $500 was shit

**Renegade** · 7th September 2011, 21:13

man if i had the cash any of those new old models would do, that ST1300 or the cbr600, dam even that wing would have a place next to my other wing

**Matt** · 8th September 2011, 11:15

Supposedly they only had 4 ST1300's that went straight away (which is a shame as would have had one at that price) - lots of VFR1200's left tho...hmmmm

**Vinz0r** · 8th September 2011, 12:58

Originally Posted by HenryDorsetCase

read my post above about my experience with my GB400TT in 1988: it was 20 years before I bought another new Honda. and the cocks burned me for "only" $500. But fuck them and the horse they rode in on.

Not trying to start an argument here, but I'm really struggling to see why you are so upset. You bought a bike at a price that you were happy to pay at a specific point in time.
Did you have an issue with the price of the bike at the time, and would you have been unhappy about purchasing the bike if the price hadn't been changed? If the answer to those is no, then I think it is a bit ridiculous to complain when a dealer changes a price on a product (which they are entirely within their rights to do) two months after you have purchased it. How, and where, are you losing out on anything?