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Price differences between EU and USA

Joined Jan 2008
84 Posts | 0+
Finland
Just checked some '09 450fe prices. In Germany the price seems to vary between EUR 8990 to EUR 9264. In the US of A the price seems to be around 9400 USD which currently equals 7374 EUR. Could someone explain where does this difference come from? Could it be the freight costs? It must be cheaper to haul the bikes to USA than to Germany....;)
 
Pricing is sometimes difficult to understand
The US models dont come with any of the street legal stuff that may come on the euro models.
The price of the US models was also fixed sometime before the dealer show last Aug so the exchange rate and the futures of the exchange rate were also fixed at that time.
many countries have different levels of duties(sometimes hidden to the comsumer) that can vary pricing by as much as 10%
Also it is not uncommon for the manufacters to borrow the money for production on the continent where the production is to be sold,this makes the selling price more stable and the cost of the production more stable and profit margins more predictable.
The japanese borrow money on at least five continents each year to finance production to level costing.
 
.... what he suad!

hannu

the USA is a very competitive market andd always cheaper. they get 1,000 off and they dump it on you! thus the 2,000 difference.

it's called life!

regards

Taffy
 
I've done my fair share of pricing and I hope I don't have too much difficulties understanding the the theory and practise behind it. If the HB and KTM export to the US market is in USD (which I think it is), then KTM should increase the export price as they get less euros/bike. So prices in EU should be competitive compared to US market which suffers from weak dollar. I think EU as a whole should be as competitive market as the US. Different pricing in different countries is partly caused by uplift in pricing (exporter think that the market in country X can bear a bit higher price, so their export price to that country is higher) as well as multiple other issues. Just some thoughts...

From consumer's point of view in global economy we don't call it life, we call it rip off ;)
 
Maybe its just me, but when you folks out there in Husaberg.org world refect upon what you all do for a living how many of you get up in the morning intent on "ripping someone off" today.Something tells me that if everyone were to reply we all just go to work and do our thing and get some satisfaction from doing the best we can.
What makes people think that the motorcycle industry is made up of people that are any different than the industry you work in.There are lots of challanges trying to manufacture and distribute and retail products for a worldwide market and if the pricing seems out of proportion between markets then maybe there is just a good reason for it.
 
I see that Finland has a 22% Value Added Tax and I am sure some hefty import tariffs which are probably way more than what we have here in the U.S.

Sales taxes here are in the 5% to 8% range. Also the dollar has done a reversal and is quite strong right now.

Your gasoline prices are about three times as much as ours but conversely we must purchase our own health insurance if it is not provided by the employer.

Push down here, pop up there. It mostly all comes out in the wash.

I think your taxes are a bit higher than here in the U.S. but that is sure to change in the next four years.
 
I am sure there's a very good reason for the difference and a proffesional economist could tell us. I know I recently learned that the value of the dollar rises and falls based not on the countries relative fincancial strength but it fluctuates because people are actually buying and selling dollars! I can't believe it but money is actually traded. So all summer the Canadian dollar was riding high because traditionally it's a commodity dollar, and commodity prices were very high. The US dollar was weak globlally, and both the Euro and the Canadian dollar were high. Now we're sitting with a 20% difference again, and our economy is strong, we're not in a morgage crisis, we don't have any bank instability, and only one province is sitting at the edge of a recession. The US on the other hand is a mess. So our dollar really should be worth more based on the strength of our banks and economy. But it's not because traditionally when there's financial troubles investors put their money in US dollars, like it or not it's the worldwide currency. I am not saying I understand it but it's just another area of world economics thats confusing and seemingly backwards. I know this summer a lot of retailers were under a lot of pressure to change prices because bikes (and everything else) were several thousand dollars more here than in the USA and our dollar at some points was worth more!
 
." Now we're sitting with a 20% difference again, and our economy is strong, we're not in a morgage crisis, we don't have any bank instability, and only one province is sitting at the edge of a recession. The US on the other hand is a mess. So our dollar really should be worth more based on the strength of our banks and economy".

Canada has without question a very strong supply side to our economy.Raw materials of almost every nature are abundant.If you can mine it,harvest it,drink it,fish it or cut it down we have lots.
Unfortunatly one thing we not do have is the population to support the consumpion side of our economy.Canadas land mass is larger than the US but we have less people than the state of New York.
As such our currency and the resulting exchange rates follow the price of the major commodities that we produce.ie oil at the moment...without a consumpion side to our own internal economy a stable currency is difficult to attain.
Except of course atlantic canada,we are always in a resession here so we barely notice any change. :D
 
Ditto Oz. We went from almost US$ parity to 0.6 in about a month. Our economy is seemingly fine!

The world economy, its all a confidence trick using smoke and mirrors.

One of these days we'll figure out how to have a stable situation that does not depend on ultimately unsustainable perpetual economic growth which is based on consumption. Root cause, too many people populating the world, and increasing all the time.

http://en.wikipedia.org/wiki/Population_growth
Go to the graph lower down on the page. Anyone remember the ZPG concept from the 1960s and 1970s?

Steve
 
The price differences between the European countries is due to the national laws and taxes. One of the big advantages of joining the European community, for us in Holland, would be to get rid of some ridiculous taxes like a "luxury ownership" tax of almost 20% on cars and motorcycles. Too bad the European community didn't bring us better rules or taxes, it's only getting worse.That's why the 09 Husaberg will cost 10.500 Euro in Holland. Compare that with Germany or the US. In my opinion the base price though out Europe is the same, the taxes make the difference.
 

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