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Old 08-11-2011, 06:00 AM   #566
kirb
should be out riding
 
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Joined: May 2010
Location: Musky, MI
Oddometer: 1,576
Quote:
Originally Posted by Moronic View Post
Add that up and what do we have?

- They are hoping there will be a waiting list of buyers for the few hundred bikes built.

- They will charge whatever they believe they can get away with while maintaining that wait list.

- They will avoid charging so little that the wait list is enormous (because if they did, then the real money would be made by people earlier on the wait list selling at a premium to those further down).

So (and as usual, assuming the bikes turn out to be as good as they hope), what sort of price tag would ensure they get only a few hundred people a year placing deposits?
Anyone who was hoping for a $15k bike was not paying attention. Motus early on said it would be a premium priced bike, but not exclusive. I suspect $22-28k depending on trim level. Any higher and they won't sell very many, any lower and they won't be able to keep up with demand. People who are thinking 'They won't sell very many at $20k in this market" are very wrong. I would be thinning out my fleet just to get in line at that price.

They won't be 'charging whatever they can' either. The price they charge is one they will have to live with. You can't charge too much and lower 2-5k later or you piss off the people who bought in early. You can't charge too little early or you get a bad name by raising your prices too quick. The initial offering will be a careful consideration of ROI and maintaining the brand name. 300 bikes a year at $25k is 7.5 million dollars...That's not a bad gross income in year one. I doubt they have more than a few mil tied up in R&D at this point.

They started this project at a perfect time- engineering firms need work to do with the downturn in the auto industry. MFG firms are more willing to take on small batch projects. They have timing and a good idea on their hands.
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