Not the best time to put up prices I suggest
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Ford and Vauxhall raise prices by 5%[^] So...they aren't selling many cars in the current climate.......so let's make them even more expensive. If they've got cars stockpiled they could just give one to me to make room. I'd be happy to help.
My new favourite phrase - "misdirected leisure activity"
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Ford and Vauxhall raise prices by 5%[^] So...they aren't selling many cars in the current climate.......so let's make them even more expensive. If they've got cars stockpiled they could just give one to me to make room. I'd be happy to help.
My new favourite phrase - "misdirected leisure activity"
I can only assume that they are raising retail prices so that the dealers can appear to offer a bigger discount because no-one will pay RRP on anything in the current climate. Perhaps dealers will now be offering 30% off where previously they were offering 25% off (and yes I know that the maths is wrong, I'm simplifying!).
"If you reward everyone, there will not be enough to go around, so you offer a reward to one in order to encourage everyone." Mei Yaochen in the 'Doing Battle' section of Sun Tzu's: Art of War. .
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I can only assume that they are raising retail prices so that the dealers can appear to offer a bigger discount because no-one will pay RRP on anything in the current climate. Perhaps dealers will now be offering 30% off where previously they were offering 25% off (and yes I know that the maths is wrong, I'm simplifying!).
"If you reward everyone, there will not be enough to go around, so you offer a reward to one in order to encourage everyone." Mei Yaochen in the 'Doing Battle' section of Sun Tzu's: Art of War. .
Or the cost of making the cars has gone up. It's called inflation. Prices go down when demand increases. One would assume the opposite effect when demand decreases. I skipped econ in college so I could be completely wrong!
Todd Smith
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Or the cost of making the cars has gone up. It's called inflation. Prices go down when demand increases. One would assume the opposite effect when demand decreases. I skipped econ in college so I could be completely wrong!
Todd Smith
More likely their overhead costs have gone up due to the losses they've suffered last year.
Today's lesson is brought to you by the word "niggardly". Remember kids, don't attribute to racism what can be explained by Scandinavian language roots. -- Robert Royall
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Or the cost of making the cars has gone up. It's called inflation. Prices go down when demand increases. One would assume the opposite effect when demand decreases. I skipped econ in college so I could be completely wrong!
Todd Smith
This is a bit simplistic but this isn't an economics lounge! *** YEAR 1 You make 10 cars at £10 each and sell two at £12. You are left with a stockpile of 8 cars you can't sell and you have to rent space to store them costing, say, £1 per car. Total income £24, total costs £108, loss £84. (I'll not bother with book values of the unsold cars). YEAR 2 Your costs rise 10%, do you pass this rise on? CUT PRICE If you make 10 cars at £11 each and sell all ten at £7, plus all your stockpile of eight cars, no storage costs. Total income £108, total costs £126, profit £18. MAINTAIN PRICE If you make 10 cars at £11 each and sell two at £12, stockpile rises to 16 cars. Total income £24, total costs £126, loss £102. RAISE PRICE If you make 10 cars at £11 each and sell one at £13. Total income £13, total costs £129, loss £116. YEAR 3 Demand remains subdued, do you want to shut down some factories? and so on *** If your costs rise but the market won't bear a price rise you are better off cutting prices to sell unsold stock at a loss than passing on your costs. High street retailers do this every year to churn revenue - but carmakers seem to prefer to fill up unused airports.
"If you reward everyone, there will not be enough to go around, so you offer a reward to one in order to encourage everyone." Mei Yaochen in the 'Doing Battle' section of Sun Tzu's: Art of War. .