4 ms·
I never said it was more profitable, I was disputing your argument that a $36k car is "premium", which means your analogy comparing Toyota to Apple was poor at
by chrismeller 8y ago
I never said it was more profitable, I was disputing your argument that a $36k car is "premium", which means your analogy comparing Toyota to Apple was poor at best.
I also did not look down on a $36k car - if you read my comment I actually did quite the opposite - but my opinion isn't at all relevant, since we're talking about the majority of buyers (in this case in the US) when it comes to buying expensive "premium" products like cars and phones.
- Retric 8y agoPremium is a marketing strategy. A base Toyota Camry is 22k and that’s the price point you’re buying dependability / utility. The marketing changes as you move up the price point even before you hit the ultra premium price points. An easy way to look at this is Advertising as a percentage of total sales. If you spend 10% on advertising you could instead lower the price by ~10%. Dawn dish soap does not spend millions on advertising because it feels good, they are well past the point of people being aware of their product. https://en.m.wikipedia.org/wiki/Premium_pricing https://en.m.wikipedia.org/wiki/Premium_pricing Ex: ‘It does not just raise the bar, it is the bar’.