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Doesn't that mean that they should just raise the price? Flippers mean there's uncaptured value.
by local_crmdgeon 3y ago
Doesn't that mean that they should just raise the price? Flippers mean there's uncaptured value.
- deleted 3y ago[deleted]
- delecti 3y agoA strategy used by some other car manufacturers during the height of the chip shortage was to limit their production to the highest margin vehicles. It increases the price, but at least provides something for it. That's probably the best and most honest way to handle this kind of demand.
- conjectures 3y agoNot necessarily. Another scenario would be: Tesla anticipates the 2nd hand market getting flooded, undermining primary sales.
- Karellen 3y agoThe only way to eliminate uncaptured value is to set the price to exactly the amount that is the limit of what the person who most wants one is prepared to pay. Congratulations, you've captured the maximum possible value... from one sale. If you want to sell 1,000 vehicles, unless you're willing to have a salesperson wheedle every single buyer out of the maximum amount they're willing to pay, rather than just doing some market research and setting a "reasonable" price, there will be uncaptured value in 999 of those sales. But you'll probably make more money, with less work, in that scenario. https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-duckies/ https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...