NEW MX Bike $3000.00 ... a speculation of sorts

Would you buy a NEW base model MX bike for 3k?

  • Total voters
    7
James

James

Staff member
Mihylo33:
I don think there would be too much r&d... And I'm willing to bet there isn't 3 grand in parts... Buy a million sprockets from renthal I bet you don't pay much more than $15 each for them.... And if its basically built from a previously existing platform then the engineering would be minimal IMO...

Sean is right, the Yz 125 is a good platform to start with except it needs a steel frame and to ditch that SSS suspension. Cut costs, cut out the fat, increasing sales and increase profits...
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Maybe if you aren't looking for a bike that's going to be competitive. Yeah the sprockets will be cheap, however go quote out a frame, swing-arm, engine, and suspension...
 
Mihylo33

Mihylo33

James:
Maybe if you aren't looking for a bike that's going to be competitive. Yeah the sprockets will be cheap, however go quote out a frame, swing-arm, engine, and suspension...
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It would be on all levels of mass production.... A million swing arms at a dollar or 50cents over production costs just net that company a lot if money... It's how Walmart and sams club do it... As well as homedepot and the larger super market chains... I also understand that it is t that easy as there are way more logistics involved....
 
James

James

Staff member
Mihylo33:
It would be on all levels of mass production.... A million swing arms at a dollar or 50cents over production costs just net that company a lot if money... It's how Walmart and sams club do it... As well as homedepot and the larger super market chains... I also understand that it is t that easy as there are way more logistics involved....
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Yes that works when you have enough sales, however I don't think our sport can't support those numbers. According to one source I found ~17,500 off road bikes were sold in the US in the first quarter of this year. Multiple that by 4 and you have ~70,000 a year spread across all the manufacturers. That's not a lot of bikes to spread the R & D, advertising, production cost, office staff salaries, etc.

Spread those 70k bikes out evenly across the big 5 and you get 14k each. So for example every $1,000,000 spent on advertising (I'm guessing it's more than a few) adds $71 to the cost of the bike. According to their website, Kawasaki Motors has 480 employees, for arguments sake lets say that 75 are part of the off road division. At an average salary of $55,000 that adds ~$300 per bike. The list goes on...


Granted you do still have revenue from parts, which I'm willing to bet is where the money's at.


http://www.motorcycle-usa.com/2/15436/Motorcycle-Article/2012-US-Motorcycle-Sales-Tally-452-386.aspx
http://www.motorcycle-usa.com/2/16089/Motorcycle-Article/Motorcycle-Sales-Dip-14-7--in-2013-Q1.aspx
 
Mihylo33

Mihylo33

James:
Yes that works when you have enough sales, however I don't think our sport can't support those numbers. According to one source I found ~17,500 off road bikes were sold in the US in the first quarter of this year. Multiple that by 4 and you have ~70,000 a year spread across all the manufacturers. That's not a lot of bikes to spread the R & D, advertising, production cost, office staff salaries, etc.

Spread those 70k bikes out evenly across the big 5 and you get 14k each. So for example every $1,000,000 spent on advertising (I'm guessing it's more than a few) adds $71 to the cost of the bike. According to their website, Kawasaki Motors has 480 employees, for arguments sake lets say that 75 are part of the off road division. At an average salary of $55,000 that adds ~$300 per bike. The list goes on...


Granted you do still have revenue from parts, which I'm willing to bet is where the money's at.


http://www.motorcycle-usa.com/2/15436/Motorcycle-Article/2012-US-Motorcycle-Sales-Tally-452-386.aspx
http://www.motorcycle-usa.com/2/16089/Motorcycle-Article/Motorcycle-Sales-Dip-14-7--in-2013-Q1.aspx
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How many brand new bikes have you bought in the last 10 yrs because 8k is too much?
I bought a klx110 new for Luke in 05...$1700 that was my last new purchase....
How many new riders/consumers will it bring into the sport if the platform for it starts at 3k instead of 7k... As a dad I'm not willing to throw 7500 into my kid to try a new sport but 3k is an obtainable number... It's also more succeptable for anyone in their early 20's that may just be starting out and doesn't have excessive cash flow...
Excuse the awkward posts....icrap
 
James

James

Staff member
Mihylo33:
How many brand new bikes have you bought in the last 10 yrs because 8k is too much?
I bought a klx110 new for Luke in 05...$1700 that was my last new purchase....
How many new riders/consumers will it bring into the sport if the platform for it starts at 3k instead of 7k... As a dad I'm not willing to throw 7500 into my kid to try a new sport but 3k is an obtainable number... It's also more succeptable for anyone in their early 20's that may just be starting out and doesn't have excessive cash flow...
Excuse the awkward posts....icrap
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I'd like to point out that I'm all for a $3k bike as I think it would only help the sport. My problem is that I don't see it being possible unless it's a Chinese type bike. :thinking: Unless Obama creates a Dirt Bike Subsidy Program. :lol::facepalm:
 
Mihylo33

Mihylo33

James:
I'd like to point out that I'm all for a $3k bike as I think it would only help the sport. My problem is that I don't see it being possible unless it's a Chinese type bike. :thinking: Unless Obama creates a Dirt Bike Subsidy Program. :lol::facepalm:
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I know you are :thumb: :smurfTitties:
I'm waiting for CDA to chime in as he seems to have the most insight....

Just out of curiosity, do you know what bike sales were I. 2003 and in 1993?
 
CDA

CDA

Mihylo33:
I know you are :thumb: :smurfTitties:
I'm waiting for CDA to chime in as he seems to have the most insight....

Just out of curiosity, do you know what bike sales were I. 2003 and in 1993?
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Well thank you M33, though my insight is way off. I can answer the question though.
2003 YZ250 MSRP was $5899 - I paid $5100 OTD
1993 KX500 MSRP was around $4200 - Paid $3898 OTD
 
James

James

Staff member
CDA:
Well thank you M33, though my insight is way off. I can answer the question though.
2003 YZ250 MSRP was $5899 - I paid $5100 OTD
1993 KX500 MSRP was around $4200 - Paid $3898 OTD
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Using those dates and numbers, in todays dollars those would be:

03 ($5,900) = $7,500 today
93 ($4,200) = $6,800 today
 
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