You guys must all shop for new cars in a much higher price bracket than
me. I can't think of a single new car I've looked at that had GPS as
standard equipment.
Geoff
On Mon, Mar 28, 2011 at 4:54 PM, Max Heim <max_heim at sbcglobal.net> wrote:
> 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 at 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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