Quote:
Originally Posted by Richardlord
Oh, and increasing prices to meet demand - Paalease - No one is buying that bit of pseudo economics - One meets demand by increasing production not prices - Price increases if anything lower demand - I am sure Chevy does not want to lower demand, and is increasing prices to increase profits, and/or maybe cover some some higher costs, although I doubt the latter as the more a part is in demand and the more it is produced, the economies of scale kick in that should lower the part price. I don't necessarily fault Chevy for increasing prices if it can get asking, as it is a great car much in demand, but call it what it really is. The price increase is definitely not to meet demand as I for one am certainly not demanding a price increase.
|
You are 100% correct !!! Raising the base price $2000.00 and the Z51 option that is in 75% of cars produced by $1200.00 has nothing to do with meeting increased demand. If that was the case they would have increased the price of the exposed CF roof and CF dash, both high dollar constraint options. Having suppliers increase the number of parts needed to keep up with demand would have decreased demand and lowered constraint wait time by actually putting more cars into more owners hands.
No this is very simple economics fueled by greed. Take a car that is very high demand and keep increasing the price of it until sales begin to decline because it has reached it's maximum high dollar tolerance limit. That is the point when the majority of perspective buyers no longer feel that the product is worth the dollar amount requested. GM knows that that point is still years away based on the current competitive car market. As many people have stated, it is a hell of a car for the price. And it will continue to be until it reaches it's maximum saturation point or another company steps up and offers a better product at a lower price point.
But to openly state that you raise prices to meet demand, please! It only has to do with making as much profit as possible and striking while the iron is hot. I sure as hell do not see them putting a $3200.00 increase in their truck products. A lot of people will pay the current $3200.00 increase and the upcoming $3200.00 increase for the 2015 models, including myself, but that does not mean I have to like it.
I do understand that in it's target section, there is no other car that can touch it for the money. Even with the increase, it is still way below other comparable, competitive models starting prices. But I also know that GM priced this car with a profit margin at it's original starting point of $52,000.00. So each additional $2,000.00 is strictly additional profit with no other changes to the car whatsoever. GM has us bent over a barrel and we are going to take it or buy some place else. But, they also know there is no other place to buy without spending even more money. At least have the decency to be truthful and tell us the real reason for the price increase. Anybody have some lube, this barrel is cold and I know what is coming is going to hurt!