Proof that Isuzu actively supported limited VX sales?

[Scott Larson]

It's not news to anyone here that the VX cost more to produce then it sold for. This is also not new to the automotive market in general, there have been many examples of cars costing more to make then they sold for. Marketing of any product requires generating interest in your product line, there is a cost-to-loss ratio involved that is counterintuitive to the normal cost-to-profit ratio that most are familiar with. Just sayin...

[circmand]

When the Mazda Miata came out it was listed around $18,000 but because of demand some dealers were getting up to $35,000

[VX KAT]

wow, black sambo, you make it sound like you've never seen or heard of "dealer mark-up" before.

Agree with all above, biz and marketing folks too,....Isuzu would always value profits above rarity.

FIRST day of my MBA...they taught us:
"Shareholder equity".....is #1 for any publically traded company.
Isuzu Motors (OTN) is publically traded and must answer to the shareholders.....to think they may inflate price to LIMIT SALES, is ...um...highly unlikely. I'd think they'd actually be sued by shareholders over that practice.



Let's think how the free market works...supply/demand...good old Keynesian theory:

Back in 1984 when I was a young pup and lived in Los Angeles, the Honda CRX debuted, to MUCH MUCH demand... I negotiated for almost 3 hrs with local Cerritos dealership on sticker price of $6,300 vs their asking price of $9,300.....yes, 47.62% MARK UP!.....It was the only one actually on a showroom floor for at least 50+ miles!
I talked till I was blue in the face (and ya'll know that'd take some time! ) and only got them down to $8,300....so....
ferrgettaboutit!

Where could I find "lower demand" ?...out in the boonies of course! So I searched for dealerships way, way outside LA area...found one in Hemet, CA....I agreed to their $500 over sticker (dealer mark-up) price and they ordered one for me, exact specs I wanted (wow..all of two choices...color and engine size..a whoppin' 1.5l ! ).

I was drivin' my new whip in 2 months! Haven't stopped smilin' over that ride....yer first is always special!


Good example on the Miata Dave, exactly the same as the CRX.
This is just how capitalism works. period.

[JoFotoz]

PT Cruiser.....another of MANY that dealers marked up initially.

IIRC, the Bugatti Veron was a "limited edition" when first shown in Geneva...

..and demand outstripped "limited" production.

So, they built more.....


Supply & demand...given DEMAND, we'll supply....

...thats business 101.

IMO

Jo

[circmand]

the Bugatti Veron was a "limited edition" when first shown in Geneva...

..and demand outstripped "limited" production.

So, they built more.....
Jo

An interesting fact the Bugatti Vearon actually sells below cost of manufacturing. They just were determined to sell the fastest production car.

[Scott Larson]

An interesting fact the Bugatti Vearon actually sells below cost of manufacturing. They just were determined to sell the fastest production car.

Ah yeah, I kinda mentioned other manufacturers have done it. The Chevy Volt, the Ford GT, the Ferrari F40, and so on and so on and so on...Name dropper!

[blacksambo]

wow, black sambo, you make it sound like you've never seen or heard of "dealer mark-up" before.

Agree with all above, biz and marketing folks too,....Isuzu would always value profits above rarity.

FIRST day of my MBA...they taught us:
"Shareholder equity".....is #1 for any publically traded company.
Isuzu Motors (OTN) is publically traded and must answer to the shareholders.....to think they may inflate price to LIMIT SALES, is ...um...highly unlikely. I'd think they'd actually be sued by shareholders over that practice.



Let's think how the free market works...supply/demand...good old Keynesian theory:

Back in 1984 when I was a young pup and lived in Los Angeles, the Honda CRX debuted, to MUCH MUCH demand... I negotiated for almost 3 hrs with local Cerritos dealership on sticker price of $6,300 vs their asking price of $9,300.....yes, 47.62% MARK UP!.....It was the only one actually on a showroom floor for at least 50+ miles!
I talked till I was blue in the face (and ya'll know that'd take some time! ) and only got them down to $8,300....so....
ferrgettaboutit!

Where could I find "lower demand" ?...out in the boonies of course! So I searched for dealerships way, way outside LA area...found one in Hemet, CA....I agreed to their $500 over sticker (dealer mark-up) price and they ordered one for me, exact specs I wanted (wow..all of two choices...color and engine size..a whoppin' 1.5l ! ).

I was drivin' my new whip in 2 months! Haven't stopped smilin' over that ride....yer first is always special!


Good example on the Miata Dave, exactly the same as the CRX.
This is just how capitalism works. period.

One point here: The M.S.R.P. already contains at least 20 percent dealer mark-up or in common parlance profit. The mark up sheet I shared goes well beyond that (although, it shows the dealer's lack of basic math skills as the mark up was actually less than the 10% printed) and expresses Isuzu's tacit agreement that total price paid by the final consumer is free to float, to wherever ( Isuzu would get none of the money beyond the net M.S.R.P). They had no requirement to prove they could sell "X" units for a specific price to justify a later production expansion, they accepted a free market economy scenario instead. And that means positively it was not a test market proposition. Test market = control of all marketing variables, including selling price. "Don't let price float, it muddies the results."

[Ldub]

And that means positively it was not a test market proposition. Test market = control of all marketing variables, including selling price. "Don't let price float, it muddies the results."

Again...SRSLY ?...

Give it up...they sunk your battleship...

Move on to a topic where you might stand a chance...

If there was profit to be provided the shareholders, they woulda made more...

OOps...

I forgot...you're the type that would start a new thread so they could have the last word...

Go ahead, carry on...

Futility is your bestus Amigo...

[VX KAT]

One point here: The M.S.R.P. already contains at least 20 percent dealer mark-up or in common parlance profit. The mark up sheet I shared goes well beyond that ."

so you think I was referring to that profit when I referenced "dealer mark up"?...um...no.... I didn't just fall off the turnip truck and accidently land on this car enthusiast forum.....and stay for 3 1/2 yrs...
I believe in paragraph #5 I'm quite clear that I was referring to OVER MSRP MARK UP pricing.