2008 $1000 price increase for 1098...

[thewall67]

Did anyone listen to the 2/14/2007 DMH conference call with Federico Minoli?

He said to protect the company against the devaluation of the US dollar and from demand they can't meet for the 1098 they will raise the price $1000 for 2008 (July of 2007). Interesting...

I interpret that basically as they under priced the 1098. Ducati (Minoli's) most "rosey" outlook for the 1098 didn't forsee this level of demand. I guess now they feel a price increase can only add to their financial success. To me it seems it was the improved bike combined with the low price that created that demand. I wonder if they underestimate how much a decrease in demand a $1000 increase in price will cause?

An interesting speculation? he confirmed is there will be a middle weight superbike released for 2008. This may be old news on the ducsti.ms although I didn't see any posts saying this was 100% for sure. He didn't mention cc's. Maybe this info has been in his blog on Ducati's website. I'm a bit behind the times on this subject.

If anyone wants to hear a recording of the call go here for the details of how to dial in:

http://biz.yahoo.com/prnews/070208/ukth011.html?.v=92

I think it is available via the website too, not sure.

[redlabelmoto]

Originally Posted by thewall67

Did anyone listen to the 2/14/2007 DMH conference call with Federico Minoli?

He said to protect the company against the devaluation of the US dollar and from demand they can't meet for the 1098 they will raise the price $1000 for 2008 (July of 2007). Interesting...

I interpret that basically as they under priced the 1098. Ducati (Minoli's) most "rosey" outlook for the 1098 didn't forsee this level of demand. I guess now they feel a price increase can only add to their financial success. To me it seems it was the improved bike combined with the low price that created that demand. I wonder if they underestimate how much a decrease in demand a $1000 increase in price will cause?

An interesting speculation? he confirmed is there will be a middle weight superbike released for 2008. This may be old news on the ducsti.ms although I didn't see any posts saying this was 100% for sure. He didn't mention cc's. Maybe this info has been in his blog on Ducati's website. I'm a bit behind the times on this subject.

If anyone wants to hear a recording of the call go here for the details of how to dial in:

http://biz.yahoo.com/prnews/070208/ukth011.html?.v=92

I think it is available via the website too, not sure.

Do you think the demand would of been any less had MSRP been $15999 instead of $14999?

I don't believe it would of been less, no. I think the only thing the reduced Superbike price for 2007 did was piss off recent new 749/999 customers.

[fff]

Originally Posted by redlabelmoto

Do you think the demand would of been any less had MSRP been $15999 instead of $14999?

I don't believe it would of been less, no. I think the only thing the reduced Superbike price for 2007 did was piss off recent new 749/999 customers.

I agree 100%.

[thewall67]

Originally Posted by redlabelmoto

Do you think the demand would of been any less had MSRP been $15999 instead of $14999?

I don't believe it would of been less, no. I think the only thing the reduced Superbike price for 2007 did was piss off recent new 749/999 customers.

Yes. Less to how much of a factor I couldn't say. Every significant price point higher or lower is going to have an effect on demand. It still may/probably would have been more demand then Ducati could supply. Which is probably why they feel comfortable raising it $1000 for 2008.

[JEC]

It was an intro price to woo new buyers to the brand. Now that everyone's appetite has been whetted, they raise the price. It's not an uncommon practice, I had heard they were planning on doing this but this is the first confirmation I've gotten.

Generally companies do this when they want to crack a difficult market. Audi did it with the A8 to undercut the S-Class and 7-Series. There are plenty of other examples.

[Quantum11]

Originally Posted by redlabelmoto

Do you think the demand would of been any less had MSRP been $15999 instead of $14999?

I don't believe it would of been less, no. I think the only thing the reduced Superbike price for 2007 did was piss off recent new 749/999 customers.

The inability of Ducati to meet the full demand for 1098s demonstrates that customer demand exceeds supply. You are probably right that a $15999 price would not have lowered demand appreciably.

Whether psychologically a price of 14999 or 15999 is a trigger point that will cause buyers to consider Ducatis over other superbikes is an interesting question. If the buzz and demand for the 1098 remain in 2008, then a $1000 price increase won't have a big demand cooling effect.

Rob
2005 999 (Not as pissed as he probably should be.)

[VisitorQ]

As long as it is not more than a grand, I am in the good.

I got in writing from my dealer that if they can't get me an 07 they will match the price on a 08 up to 1g if MSRP goes up.

Jason

[p8ntdyou]

Originally Posted by redlabelmoto

Do you think the demand would of been any less had MSRP been $15999 instead of $14999?

I don't believe it would of been less, no. I think the only thing the reduced Superbike price for 2007 did was piss off recent new 749/999 customers.

thanks for saying that .. it brings to mind the 749 that i bought in may of 06 ...still love it though and already have a buyer for it if i want to trade up ... but i still dunno ...

[kentamcolin]

A $1K price increase, or 5-6%, is really not that great on a $15K-$20K product, especially when you consider the demand. What they'll need to do is really hold the line on prices over the model run. If a base 1098 is $20K+ OTD in a few years, they sure won't be wooing many new buyers.

[dfaber]

Originally Posted by p8ntdyou

thanks for saying that .. it brings to mind the 749 that i bought in may of 06 ...still love it though and already have a buyer for it if i want to trade up ... but i still dunno ...

How much can you get for the 749? Just asking....