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Samarth 619

The non-expensive Biker, but how?

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by , 03-10-2018 at 03:55 AM (454 Views)
The non-expensive Biker, but how?

Here come the Bikers.. Yeah, exactly, the rich breed that feeds our business. Ok now shut up everyone, here they come...

Ahhaaa Welcome "Brothers". Have a soft drink. Or rather, have a hard drink. We got some cool stuff for you. The latest Duke windshield that costs Rs. 15,000! But you're our own. For you, a special discount... Just Rs. 12,000! Because you are special. And don't forget to invite your friends too.. Keep purchasing from us too, invite your friends too.... Visit again.

This is the phrase that I dreamt a showroom guy saying, when I dozed off minutes after gazing at my Facebook Timeline..
A timeline full of offers & deals...
A side bag for Rs. 5000, a windscreen visor for Rs. 10,000, a performance ECU for rs. 15000 (ok, good deal I know), and a more comfortable rear seat for Rs. 12,000 too.
Well, get all of these, no big deal, right? I got a bike worth Rs. 2 Lacs, so what's this chiller money in my eyes, isn't it?

Well, not exactly. Let me explain. We all have our budgets for different things. If you want a pair of bathroom slippers for Rs. 100, you won’t spend much above it, even though you might have already spent Rs. 10,000 on a mobile phone. We pre-value things as per our estimate, which may change too.

So, where do these extra-extravagant offers come from? A bag for a Pulsar 220 costs much lower, than a similar one for CBR 1000RR. What’s the logic? Can you (as a business) just present the “you’re the rich guys” argument, to the CBR owner? Will it hold valid? Where do you “fit” the Visors whose prices come in five digits, pun intended? What are they made of, Persian bulletproof glass?

Well, I’ll clarify. A company prices it products not just to recover the input/ raw material and processing costs, they also have to recover a whole lot of other costs like staff salaries, plant maintenance, electricity charges, legal charges, office charges, etc, with the former being the direct costs and the latter, indirect costs.
So, how do they recover all this? Just one source- the product they sell. Rarely does a company have any other source of continuous and intended income, except the product sales itself.
Its obvious that if they manufacture and sell a large amount of goods, then the indirect costs won’t go sky high as they’re not affected by high production (for example, your legal charges & staff salaries won’t change with the units you produce).
So, simple maths is that, the more you produce, the lesser the costs will be, per unit of product. Produce more, sell more, earn more. They call it economies of scale. That’s why large scale production is often beneficial to the companies, if they manage to sell it.

Mostly, raw material is not a big cost. Take for example, raw iron is about Rs. 1.50 per kg in India. That means your Bullet 500 should cost no more than Rs. 300 if we account for raw material only, isn’t it? Haha. Alright, but it doesn’t.

As they say, the costliest unit of a product, is its first one... The very first unit, that leaves a factory.
Just to make that unit, you set up a whole plant after receiving funding and employing hundreds of people and burning countless hours in R&D. Big cost, right?!

After that, it gets easier, as the company produces and sells more units..

Now, a CBR 1000RR might have sold about (a four digit number) units by now. So, how many units will its bag or visor sell? Logically, a number lesser than the bike’s own sales, right?
On such low numbers (of accessory’s sales), its obvious that the costs will be high per unit, right? And, that’s not the only thing.

If the company wants the shops to sell their “Rare & expensive” product, they must give "higher than normal" margins to middlemen. That’s why costs multiply badly.

A typical CT 100 spark plug may have a margin of Rs. 30-35 per unit, because its a running product.
But that racing visor for your race replica bike gets sold for Rs. 2500 or so to the retailer, who sells it for a fat margin, probably even Rs. 5000-7000 per visor. Fat, I know, but the retailer hardly sells one in six months, so its justified, right?
And if the product is imported, woah!, now you can imagine!


So, in distant future, when the CBR 1000RR has 1- 2 lakh owners in the country, rest assured, the costs of its accessories will go down. But not necessarily by a huge margin, because yes, “they’re the rich guys” is an actual phenomenon. You read that right. Its a real factor.
Any business thinks in terms of profit, and if they sense that the market is ready for a higher price, they “oblige”, if I may use the word as a sarcasm.

So, when you pay more than usual for a product, you fuel and encourage a market. Remember, always evaluate your choices. Its ok paying serious cash for a helmet or riding gear, because your life relies on its quality and quality is not cheap.
But, for a Company branded T-shirt, or an expensive fancy visor, or a non functional “looks” accessory, THINK before you spend.


Caveat Emptor. May the buyer beware. I’ll give you some useful tips:-

1. Search for alternates. Search what the competition is offering and at what price. Read unbiased reviews. Search for good domestic alternates to imported products.

2. Spend more money if the brand/ product is a quality one. Its better to spend Rs. 4000 on a Royal Enfield or Viaterra bag if it lasts you for some years, than spending Rs. xxx on a local brand.


3.
Be “jugaadu”. For example, Visor of another bike may be drilled and fitted in your bike for cheap. Mostly, even sprockets may fit. Headlight bulbs are another example. How about creating something new and posting a DIY on our Xbhp DIY section? That’ll save some bucks, show your intelligence, while also benefitting the community. But, do have relevant knowledge before trying this.

4. Try negotiating/ discounting if you’re sure about it, considering all factors. Try logical counters instead of just humble requests and self-pitying. Try multiple purchasing, try mentioning the competition’s highlights, etc.

5. Look for seasonal offers. Royal Enfield gear/ apparel store had a 50% discount running, when I purchased 4 products from them. Awesome, right?

6. Don’t purchase. Yes, avoid purchasing if its not needed. Walk out the store. Log off the browser. Do whatever you must to save your money for better things. Because,
All you hindi speaking people, Rap after me, in speed.... (otherwise skip this)

Cash hai to Aish hai,
Money hai to honey hai,

Moolah hai to Jhula hai,
Dhan hai to fun hai,

Wealth hai to health hai,
Rokkad hai to dhaakad hai,

Daulat hai to izzat hai,
Savings hai to barkat hai,

Dollar hai to Ghar hai,
Euro hai to Joru hai,

(and finally, say this last para slowly)

Rupee hai to hi jaadu ki jhappi hai,
Paisa hai, to hi log puche, bhai kaisa hai?


Ok enough jokes for a serious blog article.
This article will help you evalute what happens behind the scenes, so that you don’t foolishly question a rare accessory’s high pricing, but that doesn’t mean the sellers are always right.

YOU. You are the buyer. Decision lies upon you, so make an awesome one!

Happy Shopping.
rreneav1987 likes this.

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Updated 03-12-2018 at 01:46 AM by Samarth 619

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Comments

  1. rreneav1987's Avatar
    hahaha.. Just before opening your post.. I was going through Tank Bags and found some neat ones for a decent price.. But I just closed the tab as I didn't feel the need for it at the moment and need for it in the near future. Closing that tab, I logged on xBhp to check on new posts and came across yours! What a coincidence
    Samarth 619 likes this.
  2. Samarth 619's Avatar
    Quote Originally Posted by rreneav1987
    hahaha.. Just before opening your post.. I was going through Tank Bags and found some neat ones for a decent price.. But I just closed the tab as I didn't feel the need for it at the moment and need for it in the near future. Closing that tab, I logged on xBhp to check on new posts and came across yours! What a coincidence
    Haha. So, I helped you in a way?

    Well, this blog entry was planned since a long time. I had written parts of it before as a .doc file. Recently, I was browsing old files and saw this. Completed it and posted!

    As you can see it has reference of Duke 390's parts, when it was just launched. The visor and comfortable seat and all... Now, its pretty economical getting an accessory for it.