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Why not charge the market rate to remove the shortage ?
by clircle 5y ago
Why not charge the market rate to remove the shortage ?
- StillBored 5y agoWell in the manufactures case they aren't making any of the extra margin, they would be better off knowing there is increased demand and making more of that particular model.
- TylerE 5y agoThere is little incentive for them to do so. It takes a lot of money and time to spin up a new production line, and you don't really effect total sales that much... as someone willing to spend an extra $50k for a C8 Corvette or a Bronco will also happily pay sticker and wait 12-18 months.
- mywittyname 5y agoThey get sued. This happened with the SRT Viper. Dodge overestimated prices in the first year of new model production, so they dropped MSRP by like 15k the next year. Owners sued successfully to get $15k back. Now these $80k cars are selling for ~$150-250k. People who purchase Vipers made out like bandits.