Proof that Isuzu actively supported limited VX sales?

[Dumke]

Blacksambo,

Um ok im not buisness major but wow you are far out there on this whole post. HAFS

So I guess no one should ever buy anything. Also your reasoning of companies making money because its "rare" is laughable. So does that make everything in Wal~mart rare? Take their gum for instance, which they mark up 100% (its good gum btw because its rare). Every company out there no matter who they are are about selling a product, period. Whole sale sells cheaper to a retail which in turn marks up to sell it to a consumer. THis is how they make money and how the world revolves. That goes with any product in any country. No company cares what happens to their product or if it gets resold or not. They did their job, they got it off their shelf.




Oh and btw Elvis and Tupac are still alive

[Ldub]

Blacksambo,

Um ok im not buisness major but wow you are far out there on this whole post. HAFS

Ya lost me there Rob...

HAFS ?

[Dumke]

Ya lost me there Rob...

HAFS ?

Ya my sentence structure is some what laughable ... and HAFS... Honestly and factually speaking?? lol..


I was mearly stating that WOW thats a far stretch. Or maybe I am missing something from a previous post??

[vt_maverick]

So if sales were strong throughout production and dealerships had thousands on waiting lists across the US in late 2001 you really think Isuzu (and their creditors) would have passed because they didn't follow the scientific method?

[Cris]

I got mine new in 99 dealer demo ha ha got mine 2000miles on it but full factory and all the goodies 27,849 thought I did well ha ha ha

[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.

[BigSwede]

A. Dealers are, by and large, autonomous from manufacturers. They have certain contractual responsibilities to corporate, and vice versa, but pricing is pretty much left to the dealer. In fact, too much price control by corporate will usually result in a lawsuit over fair trade/collusion/anti-monopoly laws etc.

B. Dealers will rape you if they think they can get away with it.

And that's really all there is to it.

[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...

[blacksambo]

How many vehicles can one point to in motoring history that have been test marketed in very-intentional limited numbers that later on expanded to big production numbers? Probably very few. That's why the VX was never destined for more than approx. 6000 units. The entire concept of try a few on the public makes no practical sense, at all. It's just not how it's done in vehicle marketing. There is no big toe in the water, kinda thing.