BMW are they mad, low sales so they put the prices up

[snotsnfarts]

http://business.timesonline.co.uk/tol/business/ind...


Basic economics, something that is not in demand drop the prices, something that is in demand/rare increase the price.

My personal view is that they have two many models, that Chris Spangle designs are getting people scratching thier heads. and the image of an aggresively driving back to front baseball bat wearing driver is not sitting well with a lot of people.

Edited by snotsnfarts on Monday 4th August 06:45

[BMWBen]

That might not be the "economics" answer, but it could be the marketing answer...

[Bing o]

snotsnfarts said:

My personal view is that they have two many models

Edited by snotsnfarts on Monday 4th August 06:45

Is that two too many, or just two?

It's reverse marketing - make something more expensive when times are hard, and some people will see that as desirable - certainly one step ahead of the Jones's.

Not that a BMW driver would be concerened with such thinngs....

[ab@]

Aye, but putting up the prices will stop the sorts of people who drive them with their baseball caps on back to front thus increasing demand?

Who knows...

[WhoreLex]

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

[mel]

Economics is not just about sales and marketing, have you seen what has happened to the price of steel in the last year ? I think several other other car manufacturers may be following.

[ab@]

Most definitely. The 5 series M Sports are fantastic, hated them at first.

[HundredthIdiot]

I think it's as simple as

small margins + crap exchange rate = no profit.

Also, possibly they feel that prospective US customers are less price-sensitive right now (i.e. former price-sensitive customers now can't afford BMWs at all, leaving only the better-off, who can now be milked).

[off_again]

If you can make more money (margin) by charging more then great, go for it. Of course, increasing the price will have a number of customers not bothering to buy the cars, but if this is offset by the increased margin per car, who can complain?

Ultimately its not a bad idea as such. Better residuals because fewer sales, higher prices and more even demand - which makes it better to buy in the first place. Equally, they can turn down the manufacturing side of things and try to drive up profit a little. To be honest, the more I think about this the better it is.

[speedy_thrills]

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

[crofty1984]

speedy_thrills said:

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

There you go, beating about the bush again. Get off the fence speedy, tell us whet you really think.

[speedy_thrills]

crofty1984 said:

speedy_thrills said:

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

There you go, beating about the bush again. Get off the fence speedy, tell us whet you really think.

You have to walk a fine line sometimes when telling the truth.

[playerone]

speedy_thrills said:

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

They have generally been designs that challenge convention when they are released but age very well.

[Fiddlemesticks]

speedy_thrills said:

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

I gave a lot of thought to what you have written, then looked at your cars and realised you are wrong.

Its like Stevie Wonder giving fashion tips.

[B'stard Child]

Fiddlemesticks said:

speedy_thrills said:

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

I gave a lot of thought to what you have written, then looked at your cars and realised you are wrong.

Its like Stevie Wonder giving fashion tips.

PMSL - good call

I didn't like the bangle designs when they first came out but the 5 series to me has aged best and looks the best proportioned

People didn't like the looks of the Ford Sierra when it came out as a replacement for the Cortina - nothing new at all!!

[WhoreLex]

The 5 series and the Z4 have really grown on me

[Munter]

Fiddlemesticks said:

speedy_thrills said:

weLex said:

Anyone finding that, as time goes on the bangle designs don't look as bad as you thought?

You are wrong. Any BMW-Bangle cars produced to date will never aesthetically appeal to people with taste, this is a fact. People who want to appear cool will buy them but actually no one worth impressing is impressed. Bangle designs shout "try hard" almost as much as the brands marketing.

I gave a lot of thought to what you have written, then looked at your cars and realised you are wrong.

Its like Stevie Wonder giving fashion tips.

I'm with Fiddle.

[kambites]

I can stand the 5-series these days (although it's still nowhere near the E-class, ascetically). Everything else Bangled still looks awful to my eye though.

ETA: I don't think it's ascetics that's causing BMW sales headaches though, it's just the current state of the western economies and the price of crude.

Edited by kambites on Monday 4th August 09:38

[mcflurry]

off_again said:

If you can make more money (margin) by charging more then great, go for it. Of course, increasing the price will have a number of customers not bothering to buy the cars, but if this is offset by the increased margin per car, who can complain?

Ultimately its not a bad idea as such. Better residuals because fewer sales, higher prices and more even demand - which makes it better to buy in the first place. Equally, they can turn down the manufacturing side of things and try to drive up profit a little. To be honest, the more I think about this the better it is.

[geek mode on]
Correct It's called Elasticity of price and demand
http://en.wikipedia.org/wiki/Price_elasticity_of_d...

[/geek mode off ]

[Deva Link]

HundredthIdiot said:

Also, possibly they feel that prospective US customers are less price-sensitive right now (i.e. former price-sensitive customers now can't afford BMWs at all, leaving only the better-off, who can now be milked).

Have you seen the US prices?

I was in Southern Florida a couple of mths ago, and was amazed at how many X3's I saw. Then I saw a local dealer advertising on TV - X3 3.0i auto - $21995!!

They also offered 328i's (that the *entry* level in the US) on personal lease for $297/mth.

And the warranty is 4 yrs and includes all maintenance FOC.


BMW thinks UK buyers are stupid.