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Yeah, BJ were massively underpriced for years, they should have been charging way more, I think it was likely part of their demise.
TotalShanner-
I think it's partly that and partly because even now, they're only going to sell a few lugged bikes to older enthusiasts who care about the heritage. When you can buy a (half) 853 fairlight with disc brakes for the same price, they won't be attracting many new customers other than those who already own several bikes.
Change with the times or be left behind and all that
PhilDAS
I don't know how they manage to keep the price that low for building them by hand in the UK including paint.