Quote Originally Posted by VX KAT View Post
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."