I was a bit surprised when Ducati announced pricing on the new Panigale V4 model.

I knew the Italian brand would command a premium for the latest edition of its flagship model, but what took me aback was how high the price had climbed ($21,195) in one swoop, even though prices on the Ducati 1299 Panigale have steadily been creeping upward over the past few years.

Part of the blame is surely comes down to simple currency conversion between the euro and dollar, which has also been climbing steadily in the past year (after a sudden and sustained drop for the past three) and is now nearly at its year-long high.

When it comes to the US market though, currency fluctuations are only part of the puzzle when it comes to understanding the pricing programs put together by motorcycle manufacturers.

Motorcycle manufacturers subsidize (and inflate) their prices for the US market, based on the goals of the company, and Ducati is no different.

For European manufacturers too, it is important to understand a fundamental difference in economics: that pricing in Europe reflects a value-added tax (VAT), which is typically close to 20% for motorcycles - an inflation of consumer cost that doesn't occur in the United States.

That being said, in the same breath I should mention that sometimes tariffs come into play for the US market...but that's a whole different story. For now, let's stick to how Ducati superbike prices have climbed over $6,000 in just over 10 years' time.