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

[Ron Porter]

Don,

The drift of these articles is that Porsche began to move away from "cost
plus" pricing wit the 944, then totally embraced it in the early '90s when
they dropped prices on the 911 by a bunch. MB also did this around the same
time. They are slightly different examples. Plus, Porsche does improvements
to their cars (the 911 in particular...I don't follow the others) EVERY
YEAR, some years are more significant than others. This is a lesson that US
mfrs haven't yet grasped.

Detroit has done "market pricing" for years. That's why Ford lost $$$ on
every Escort, and that's why there's no longer an SVT Focus.....the same
thing happened there.

Actually, the SRT versions are not really $10K higher when you compare
optioned-out cars. I actually poke into the Hemi forums on occasion, and
there are some discussions about folks just buying an SRT Charger, rather
than doing mods, the price delta isn't as great. Plus, their pricing, even
for SRT cars, is in line with the market for other cars out there. Not so
with the SHO in it's day....it was above everyone else in the domestic
market. When '97 SHOs had $30K+ stickers, you could buy a GTP for $23K.

You can talk al of the logic that you want (and I am someone who works on
logic....which fit with my IT background for years!!) but most car buyers
deal on emotion. DC has priced the Hemi cars to fit the market (regardless
of the deltas in pricing), and the market has responded positively.

Without his permission, I'll use the Troll (Dudek) as an example. He got an
'06 Hemi Charger for about $30-31K out-the-door. Compare this to a
$27K-stiker '95 SO, or a '97 $33K sticker SHO (around what Tim Wright's was,
IIRC). This is a hell of a better deal not counting the subjective "better
performance" factor.

Don, and I'm sure that you bought your 300C for a price comparable to what
many Gen 3 SHO folks paid when new! Adjusting for inflation, you got a lot
more car for the $$$!!

Ron Porter

-----Original Message-----
From: Donald Mallinson [mailto:dmall@mwonline.net] 
Sent: Tuesday, December 20, 2005 2:58 PM
To: 'Shotimes'; 'SHO Tech'; 'V8List SHO'
Subject: Re: [Shotimes] Re: (OT) How to avoid the pitfalls of pricing Former
Porsche boss: There's no 'right price' for a car

Ron,

Yea, I doubt there was a total of $4000 in the engine alone, but they 
had to ramp up for parts for the MTX again, and the SHO has some better 
interior bits, the V6 expecially being different from the SLO's at first.

Also, the body had more work on it, additional bracing in several spots, 
so a major change to several areas of the car, extra parts (gas tank , 
suspension bits etc) that need to be created/inventoried. 

When Porsche creates a different version of their cars, they don't just 
tack on $1000 do they?  Of course not, if they significantly change the 
car they get many thousands for the "improved" version.  How about the 
SVT cars?  they were more than just a few bucks more.

The SRT versions of the 300/Magnaum/Charger are about $10,000 more, and 
they have many of the same basic bits, not even a totally new engine.  
Of course you do get 85 more HP, the SHO gave people what?  Oh, 
Yes.....EIGHTY (80) extra HP over the standard engine in 1989.  Just 5 
shy of what the SRT engines give you for $10k large.  Add in inflation 
and the SHO still comes out a bit of a bargain.

Yes, a lower price probably would have sold more, but based on what 
other manufacturers are doing with similar "special" cars, the SHO was 
priced about the same as most of them.

Don Mallinson