Wednesday, Jun 24, 2009
How to sell more cars-raise the price!
BBC News: Ford raises prices for third time
Carmaker Ford is to raise its prices in the UK by an average of 4%, blaming the weakness of the pound against the euro.
It is the third time this year that Ford has raised prices. They rose 4.7% in February and 3.75% in April.
Posted by flintster1994 @ 11:35 AM (818 views) Add Comment
12 Comments
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1. flintster1994 said...
I think Ford may be trying to emulate the housing market of the last 10 years or so. If they can make cars more expensive year on year, then maybe consumers will start viewing their cars the same way as they viewed their houses. Maybe new cars will start to appreciate over time!
2. it_is_going_with_a_bang said...
Does this not just mean that they will print a more expensive RRP and then sell you a the car for the same price as before but with a bigger "discount". Nice marketing ploy is all I see that as.
3. inbreda said...
imported inflation. With the GBP so weak - and given modern computerised stock control levels - I'm surprised this didn't happen ages ago. I guess companies absorbed some of the shock. But with little gain in the GBP the dam walls are bursting. I reckon we will have an onslaught of price hikes over the next 6 months
4. Bear said...
Prices rising, like this, each month? This IS hyperinflation. What next, prices up each week? The system is preparing for lift off. Strap yourselves in. I hope you are all prepared.
5. japanese uncle said...
Anyway any car maker without the know-how to build hybrid or electric cars, are doomed to disappear within the next five years, including Ford.
6. wdbeast said...
I smell a rat!!
The car scrapage incentive scheme works off the RRP, so by increasing their RRP they can claim the £1000 government subsidy and still increase their own margins.
So in effect they are pocketing the £1000 government funding and not passing it on.
7. matt_the_hat said...
Alternatively buy a british car like Rover TVR or something
8. uncle tom said...
When a recession starts, businesses tend to freeze or cut their prices, for fear of losing market share.
Then the need to rebuild margins prevails, and prices rise. If sales are still slack, they may even increase the margin per unit above what it was before, to achieve overall profitability.
This is kicking in now - Ford are not alone
9. stillthinking said...
this looks inflationary. but ford are not raising prices and selling more cars, and ford are not raising prices and selling the same amount of cars.
ford are selling fewer cars basically, and were overproducing before, if they sell fewer cars they need fewer workers, whatever their price increase is I think the offsetting affect of unemployment is deflationary.
10. inbreda said...
how exactly is unemployment deflationary?
I get the fact that it reduces demand - but it is only a relative thing. If cars cost 10pence every unemployed person would have several. The reduction in demand is purely a factor of them not being able to afford them any more - in other words the cost (rather than price) has risen. Cost too is relative - basically it is inflation.
The number of cars ford sells has got naff all to do with inflation. Inflation is absolutely determined by price (unless you are talking about car tyre inflation or some other non related use of the word!!). They have increased prices - therefore whether it is measured specifically in RPI/CPI calculations or not, it is still a contributory factor to overall inflation.
11. stillthinking said...
inbreda, I think the best thing to do is to take my last comment back. I seem to have been guilty of twisting the facts to support my overall view.
12. doomwatch said...
My Grandad used to say:
"Four wheels and a board make a jolly good Ford. Guaranteed to go ... if you push it."
Nowts changed.