2007 US Pricing?

[GMP]

KTMs are also discounted a lot more. I've bought two of each, an additional $200 more off the KTMs. It adds up.

[ScottyR]

IMO, BMG needs to figure out how they can get the "base model" EC300 down to $6999 US. I think that most guys will spend $400 more for the GG over a KTM. I cant see them changing the prices now, but we wouldnt be having this conversation if they were $6999.

BMG may have to re-think some pricing strategies after their dealer meetings next week. If enough dealers complain and refuse to order many bikes, because of pricing, then and only then, will pricing be revamped.

Again, you guys in the US have it good. I am trying my hardest to convince the CDN Dist to price the 07 EC250 for $7999 CDN, not the $8399 he wants to price it at.

What really blew me away was the base model FSE 450 for $8995 and $9995 for the Ohlins. I cant see them selling any of those next year. I would go with a Berg or Husky instead for a lot less $$.

[jeffd]

Originally Posted by ScottyR

Actually, a 2007 KTM 300XC-W is $6698, not $6900 so an 07 EC300 with Ohlins is almost $1K more money. I cant see many guys spending that much more for the Gasser.

If I was BMG, I wouldnt bother bringing in any 07s with an Ohlins shock to try and keep the price down.

As a CDN Dealer, I will not be ordering any 07s with the Ohlins shock.

I stand corrected - I previously stated a ktm 300 was $6900 - it is $6700 (rounding up $2). So the MSRP price difference between a KTM and a "standard" gasgas is $500.00 (not 300.00).

jeff

[REVERUP]

I may be in the minoriety here, but I am willing to pay more for a GAS GAS just so I don't have to ride an orange woods bike like the majoriety or woods racers. ITS WORTH IT! My bike never breaks through serious abuse. Yet many club members friends KTM's are tore apart consistantly on the garage work bench.To me the reliability the way the bike fits me and the fact that it is different than most others machines makes it worth the extra cost. My dealer is very good and knocks off set up charges ect.. to help keep these prices competitive. Sure your gonna pay more, but you get what you pay for. If you want an exotic your gonna pay!

[GMP]

Thats my point, the minority will, the majority will not.

[REVERUP]

Originally Posted by GMP

Thats my point, the minority will, the majority will not.

And my point is that's fine by me, cause the majoriety already don't! Sure I would rather spend the money somewhere else, but you cant expect to get an exotic for a mass produced price. I will continue to ride and race an exotic for a few hundred dollars more a season as long as it works for me! I could easily put that much extra $ into something common to make it work for me. But why would I, when I like to be different!

[tprnottp]

Originally Posted by GMP

Thats my point, the minority will, the majority will not.

GMP is right. The majority won't even consider the additional cost; they won't be able to conceptionalize the difference. This is possibly where Gas Gas and the new distributer are going to suffer.

The larger market will refuse to consider the brand and turn elsewhere, thus never experiencing the Gas Gas difference. They'll only view it as some over-priced exotic that's possibly hard to get parts for.

The '02/'03 lower pricing strategy...

My '03 came with full FMF exhaust, D.I.D Type U rims, a nickle plated frame and WP forks with Ohlins rear. How is it, the manufacturer was able to offer "more" bike at a lower price?

Like it or not, when it comes time for resale, name-brand accessories and components make a positive impression. The seller may not get much more in resale per the aftermarket found on the bike, but then again, it sure makes for a much more attractive deal--from the buyer's point of view.

TP

[Hawkeye]

My '03 came with full FMF exhaust, D.I.D Type U rims, a nickle plated frame and WP forks with Ohlins rear. How is it, the manufacturer was able to offer "more" bike at a lower price?

MSRP prices for the 2002's with the prior distributor were very high, GGNA had a BIG markup on the bikes. Why do you think GG tried to put in an in house distributor and go thru the lawsuits, etc. with GGNA? Spain didn't drop the price for the '03's, they just reduced the markup by trying to deal them direct. That failed, so they brought in BMG. As far as the '07's std. equipment, I haven't heard definitively that they won't have Ohlin's shocks or FMF pipes here in the states. I don't miss the low quality nickle plating, I think the painted frames are more corrosion resistant, and you can touch them up if needed. I wouldn't miss the Ohlins shock personally, as I have heard from 2 respected suspension tuners that you never know what valving will be in an Ohlins. My buddy's had an SX stack in his 200XC! Sachs are a good quality shock that don't have this quality control variance.

I'm going to wait and see what comes out of the dealers meeting. I'm really surprised at the reaction from some on here. BMG is new, they do know the market and what KTM's and Japanese bikes sell for, not just MSRP.
It depends on what Spain want's to give them to work with. There is a new management group running the show after the new factory (2001) increased the company's debt load. If they will listen to BMG, that's good. If they are just a bunch of money grubbing VC's, that's bad.
GG isn't going to grow much against KTM doing the same thing they are doing, they are too big and powerful now. I think it would be a logistical challenge, but GG/BMG may increase sales by selling a fitment kit to dealers so you can pick up a bike that already has the right size seat, bars and spring rates for you. That would be a definite value add, as how many of us have spent $200-400 on getting those basic items? Plus it is a timesaver not to track that stuff down. The concept of race ready would be elevated to a new level with this approach.
Back in the 70's, there was a saying, "I'd rather have a sister in a whorehouse than a brother on a Honda." I'll pay more to ride something different, but I'm not convinced that these prices discussed will be the "street" price.

[MattR]

I think the opinions here from "dedicated" GG riders is exactly what BMG and Corporate need to here. If the dedicated riders feel the price is too high, then they have little chance to gain new buyers. Hopefully, the dealer meeting will clear up some of the issues. So I won't rant too much until they can share their side of the story.

From a basic market standpoint, GasGas needs to list MSRP prices at or below their #1 competitor (KTM). This base model needs to include all of the performance features of the prior year and along with a few new product differentiators. I doubt the Sachs rear shock is a product improvement over last years Ohlins rear shock. Is it easier to service (such as having a schrader valve for gas charging)? Does it have more adjustable tuning features (such as high/low speed compression)? and so forth... If there is no product improvement, then the base model needs to be below KTM's MSRP... not $500 above.

Granted, the newer features like seat attachment, air filter quick change, and better subframe are product differentiators from the prior year models. At most, these features could warrant a $100 total price increase. Compared to GG's competition, these features are not new so a large price increase is not justified.

Hawkeye made a good point... GasGas could offer buyers special rider fit kits or even a standard guard package (like skid plate, exhaust pipe, and bark busters). If the bikes were offered with this package for $6999, there would be more new buyers considering a GG bike instead of other brands. Or offer the bikes with both Ohlins front and rear at the $6999 price level. The point is, give the buyers a good reason to pay more money.

Hopefully, after the dealers meeting, the folks can explain all of GG's product differentiators for the new year. As a dedicated GG rider, if the price does not justify these product differentiators... there will be one less GG owner in the new year.

[GMP]

reverup,

You don't have to preach to us about the GGs superior points, we all know that. Most of us have owned them for a few years. I'm personally heavily invested with spares and accessories. Re-read the discussion, the issue is the effect of the prices on NEW customers. Matt and TP are on the same page as well. If a customer that has been on GGs for 5 years and knows the bikes has to consider switching brands for financial reasons, how can you expect a new customer to jump from another brand to a GG at close to $1K more?

One of the main advantages of these bikes is their durability and the ability to keep them for a few years in top condition. The diehards like us don't buy new bikes every year. If Les at LTR depended on GasGas accessories alone for his business, and not his excellent suspension work on all brands, he would be done.

What I could see happening is slow sales until late season when the distributor is forced to drop prices.

As far as fitment kits and adding value, not a bad idea. Better yet is (for the US at least) drop all the Euro street crap to save money, like KTM. You can still have a large 2K-3 ignition if desired without a mile of wire and all the switches that most will not use anyway. Leave it on the FSE, but on a 2-stroke why bother. Offer it as a kit to those that want it. These are serious bikes and to most riders bar space is a premium.

What I want to know next, and this affects us all new bike plans or not, is parts prices. Do the parts prices track the bike prices at +11%? Up to now GG parts have been very reasonable.