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Path: utzoo!watmath!clyde!cbosgd!ihnp4!ihlpa!animal
From: animal@ihlpa.UUCP (D. Starr)
Newsgroups: net.cycle
Subject: Re: 450 Rebel - Price
Message-ID: <1268@ihlpa.UUCP>
Date: Mon, 14-Apr-86 15:09:59 EST
Article-I.D.: ihlpa.1268
Posted: Mon Apr 14 15:09:59 1986
Date-Received: Sat, 19-Apr-86 14:40:54 EST
References: <564@drutx.UUCP>
Organization: AT&T Bell Laboratories
Lines: 47

> 
> 
> After a long winter of waiting the new Honda Rebel 450 is
> finally in the showrooms.  Unfortunately I had been led to
> expect a price in the range of $1600 - $1900.  A quick survey
> of actual going prices with four local dealers turns out to
> be around $2300, with one at $2400.  Since this bike does not
> have any ultra-current or sophisticated components, )the engine
> dates back to the old 350cc, no fancy suspension, chain drive, etc.)
> I can only speculate that Honda is hoping to rip off the people
> who would like to own this bike.

Well, before Dan O'Brien tries to blame this price increase on Harley :-)

There are two (and a half) very good reasons why the 450 Rebel is more
expensive than it should be.  First, the 250 Rebel was the hottest-selling
bike in the U. S. last year.  Honda obviously expects the same thing to 
happen with the 450.  When demand is strong, you keep the price high; that's
the American way.  Besides, even Honda admits that the Rebel's styling is
flat-out copied from the Harley Sportster; maybe they decided to copy the
price as well.  

Second, the Japanese yen is strengthening with respect to the dollar.  I
believe the Rebel is still made in Japan (unlike the bigger bikes, which
are made in Ohio), so this will affect the price.  Japanese car prices
jumped about 7% last week (according to the Chicago Tribune), with auto
industry sources expecting another 10-12% before they stabilize again.  This
leads to the interesting possibility that some of their US-produced bigger
bikes will actually cost less than the Japanese-built Rebel...what will they
do then?  If they cross-subsidize from the US-built bikes to keep the Rebel
cheap they open themselves to "dumping" charges again.  

> 
> My plan now is to wait longer.  I don't believe that $2300 is a
> competitive price and expect it to drop later in the season. :-(
> 
> Bob Formhals

Which brings us to reason two-and-a-half:  this is the beginning of the
riding season, demand is at its peak and prices are at their peak too.  As
demand drops later in summer, and if the yen stops rising, the price should
come down.

Dan Starr

P. S.:  Rebel 450 ($2300):	$5.11 per cc
	Sportster 883 ($3995):	 4.52 per cc