4 ms·

Why don't manufacturers just increase prices temporarily to neutralize supply and demand?

• joezydeco 4y ago
  Because if you raise the price of your pickup $20,000 and Toyota doesn't then you're discouraging customers who see two similar vehicles with a significant difference in advertised price. And if you try to work with the other companies to move prices up together, that's illegal. Same for airline tickets.
• kube-system 4y ago
  Look at the sentiment on these types of articles. Do you think Toyota wants that sentiment directed towards themselves? Supply issues might last for a couple years; brand image lasts for decades.
• colinmhayes 4y ago
  Car companies have spent a literal century building their brand. It’s important to them.
• taftster 4y ago
  And then have to deal with all the "price gouging" press/lawsuites/legislation. The manufacturers know they need to keep selling at a constant price, otherwise it will be much much worse for their business and brand. Ford's CEO trying to address this dealership franchise problem is going to bode well for the Ford brand overall. They are best to keep their prices down for now and make the dealers look like the bad guys everyone knows they are.