[Shotimes] Re: (OT) How to avoid the pitfalls of pricing Former Porsche boss: There's no 'right price' for a car

[Ron Porter]

In reading Schutz comments on the 944 pricing, though, I believe the SHO
pricing issue was much the same situation. I don't truly believe that the
Yamaha engine cost Ford $4K more than a std SLO engine. From all indications
they were making a good $$$ on SLOs, and cutting the margin thinner on the
SHO could have sold more cars.

I felt the car was on the expensive side in '89, and got worse. A $19,995
sticker would've helped a lot, I believe. If you recall there were comments
in reviews that complained about the pricing WRT a loaded SLO.

One thing is that, unlike Porsche back in those years (and I understand that
they are no longer this way), US mfrs do not price cars on a "cost plus"
basis. They have been unable to do that for years......which is why Ford
lost money on every US Escort they ever built.

Ron Porter

-----Original Message-----
From: shotimes-admin@autox.team.net [mailto:shotimes-admin@autox.team.net]
On Behalf Of Donald Mallinson
Sent: Tuesday, December 20, 2005 12:42 PM
To: Shotimes; SHO Tech; V8List SHO
Subject: [Shotimes] Re: (OT) How to avoid the pitfalls of pricing Former
Porsche boss: There's no 'right price' for a car

Ron Porter wrote:

>I wonder how well the
>SHO would have done if it was priced no more than $1K more than a loaded
>SLO??
>
Ron,

Obviously it would have sold better, but the cost of the SHO was mainly 
in the engine.  A much more costly design than the 5.0L Mustang engine 
or the Chevy engine.  If Ford had sold the SHO for just 1k more, then 
they either would have lost more money and stopped production even 
sooner, or they would have put in a slightly modded 3.0 Duratech, and I 
don't think any of us would be on the SHO lists talking about how good 
the car is.  We would be over with the TCCA folks.  :)

I certainly would never have considered the SHO without the engine it 
had.  Anything less and I would have been somewhere else.  I suspect 
that would be the way for most people here.

Don Mallinson
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