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Re: [Mgs] MG6 Review [GPS]

To: MG List <mgs@autox.team.net>
Subject: Re: [Mgs] MG6 Review [GPS]
From: Max Heim <max_heim@sbcglobal.net>
Date: Mon, 28 Mar 2011 16:54:58 -0700
Um, I am sure it is quite a bit more than $10.

Just the 7 to 9 inch LCD screen is going to cost more than that, even at OEM
prices. Then you have a fairly powerful embedded processor, a proprietary
operating system and the GPS receiver. Parts-wise, I would imagine it was
similar to an iPhone, minus the fancy case and battery -- say, $100.

You are right about the profit motive -- that's why they include it as
standard equipment -- because the "perceived value" lets them raise the
price of the car. Not necessarily public demand for that particular feature.


--

Max Heim
'66 MGB GHN3L76149
If you're near Mountain View, CA,
it's the primer red one with chrome wires



on 3/28/11 4:30 PM, Murray Arundell at arundell@ghs.com.au wrote:

> The reality is that cars are built to a price, to be sold for a
> profit.  Manufacturers will only put a feature in a car for one of two
> reasons:-
> 
> They are compelled to by legislation.
> It will sell more cars.
> 
> If manufacturers are installing these devices without compulsion then
> its a no brainer that they are doing it due to public demand.  Those
> complaining about the added extra cost imposed upon them when they buy
> a new car and don't want such features are frankly displaying a lack
> of understanding of the cost of such items at the point of manufacture
> and the science behind upselling options.  Just because you ask for a
> factory GPS to be installed as an option and are charged $500-00 for
> it does not mean that the cost to the manufacturer is anything even
> remotely close to that figure.  The cost of pricing options has
> nothing whatsoever to do with the cost to the manufacturer but
> EVERYTHING to do with what the manufacturer thinks the customer will
> pay.  It would be my guess that MG/Ford/GM/VW etc are paying no more
> than $10.00 for the GPS hardware going into their vehicles.
> 
> Murray Arundell
> Brisbane Australia
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