New Brammo promotion: what is going on?

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Brammo is having a sudden fire-sale on all its models, with prices off by $5,000 to $7,000, a promotion that raises a lot of questions.

Sure, now is the time to get a Brammo! You can ride an Empulse for $156 a month (for a 2013 model and $1,500 down), or get a 2013 Enertia Plus for $6,995! At these prices, run to your closest dealership!

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And it is not limited to the USA, the promotion is also available in Europe:

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On the other hand, if you just recently bought a Brammo at the regular price, you might feel a little different. Even if you bought your Empulse a while ago, you probably wonder what this promotion will do to the resale value of your bike.

Discounts of up to 37% on the prices of new electric bikes are unheard of, and clearly Brammo is selling at a loss. So what is going on at Brammo? Does the firm have a urgent need of cash? Did it over-produce its bikes to such a level that it had no choice? Why does it still have 2013 models in its stock?

Some have suggested that maybe Brammo has decided to get out of the electric motorcycle business, but that would be rather surprising considering the recent efforts at developing its international distribution.

The most optimistic explanation could be that Brammo is trying to clear its inventory before announcing a completely new line of electric motorcycles. For now, we will hope that this is the case…

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5 comments for this post
  1. Car News wrote the 24/08/2014

    They probably realized they were not competitive with Zero and those are better bikes for the $$$.

    • JP, the author of the post, wrote the 24/08/2014

      Selling motorcycles at a loss is a strange business model for a firm that dreams of an IPO very soon…

  2. yuval Brandstetter MD wrote the 24/08/2014

    I can tell you zero in Israel is trying to move some 2013 models at what seems to be a loss
    But is it a real loss? Both Brammo and Zero value their battery KwH at 1000 dollars. The battery is approx 150 Wh/Kg
    Tesla values its battery at less that 500 doolars per KwH. Its possible that both MC manufacturers upmarked their profits on batteries, and now they are coming down to more realistic pricing?

    • JP, the author of the post, wrote the 24/08/2014

      If Zero sell 2013 models, those batteries were manufactured in 2013, maybe even 2012, at 2013 or 2012 costs.

  3. Albert wrote the 24/08/2014

    I don’t care why Brammo is doing it, I just think it’s great that electric motorcycles are becoming cheaper. I am really thinking about going to see my Brammo dealer.

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