[Shotimes] Pricing

Bill Strobel theamcguy@yahoo.com
Thu, 22 Dec 2005 08:56:09 -0800 (PST)


This is another example of an argument where everyone is right.  
  SHO when it was introduced the Taurus was the #1 selling sedan.  The SHO was introduced as a halo car to sell more Taurui noit more SHO's.  Sure they would of liked to sell more and introduced the ATX to do that but bottom line the car hung around to sell more base Tauri than SHOs.  Therefore there was no incentive to price the car at rock bottom prices.  They already had a market for the Taurus no need to lose money on the SHO.
  Porshe and the 944.  This was a new model I believe.  The launch is critical priced too high and it dies.  Therefore the decision was made to price the car low, lose money for awhile but gain market share and good word of mouth advertising.  Then increase the price when demand for the car increases.  This is the same strategy used by Lexus when they launched the brand here in the US.    


Bill Strobel
Independent Towing
Fayetteville NC
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