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Old 03-25-2002, 08:39 AM   #30
HippoSleek
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</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (drift freaq @ Mar. 24 2002,4:56)</td></tr><tr><td id="QUOTE">hipposleek says ....
take a second look at my post and see what comes before it before you give me the face there tough guy
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oh so you have to call me tough guy hahahhahhaha
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and once again he murmurs
Note that I said at charging 160% of retail, they will eventually turn a profit. That is the reality of the business.
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ok you wanna play this way . we can.
whats the retail price for a Skyline in the States? There is none . So it turns into a situation of what the market will bear. econ101
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and he says yet more

I'm not saying there in it to screw you, that's just the way it works out. No R34 is worth 911 prices, IMHO
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911's are overrated and priced IMHO
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and his last but least statements

BUT - that's what it takes to get one here, so that's the best you can hope for... well, that and some lube. Supply and demand
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and here is where you fall all over yourself. they don't charge 160% over retail. you should do the math again .
Car costs 60K in Japan R434 GTR for example. NOw they bring it over here dot and legalize it . Now with shipping and what not that is going to be another 10K-20K on average hmmmm 115k-80K 35K profit on a 80k investment sounds like standard business to me not gross over profit.</td></tr></table><span id='postcolor'>
Ugh - okay... I'll take it from the bottom up:

The website says the price is $95K for $60K car. &nbsp;That is a $35K mark up on a $60K price. &nbsp;Now, go back to the part that you quoted a bit further up and notice that I said "160% of retail" not 160% above retail. &nbsp;The math is rough, I understand, but generally a $35K price increase would make the total just over 50% additional (150% = $90K). &nbsp;<img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/huh.gif" border="0" valign="absmiddle" alt=':huh:'> &nbsp;(BTW: if I had used your $115K price - it would be almost 100% mark up)

Note, additionally, that the retail price stated was the price in Japan - obviously, the retail price of a Skyline in the states is whatever Motorex charges <img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/sigh.gif" border="0" valign="absmiddle" alt=''> &nbsp;As we agree - supply and demand.

As for a Skyline being worth the price of a 911 - well, that's a matter of taste. &nbsp;At any rate, 911's sell all over the world for about the same price, while the R34 sells for an relatively inflated sum in the US. &nbsp;If the car were worth 160% of retail - wouldn't Nissan sell it for that in the UK or Japan? &nbsp;Isn't it whatever the market will bear?

Let's face it, kids pour $20K into Civics and they are still slower than Moosetangs and not 1/2 as attractice as an M3. &nbsp;Basic supply and demand curves are out of the issue and fanatacism is in. &nbsp;"Cool" has a price - in the case of the R34, it is about 160% of international retail.

Now, my argument for why, like it or not, Motorex is on target is that they are adding value to a product that a small segment of society is willing to pay for. &nbsp;While you could have better performing cars for less money - you can only have an R34 from them. &nbsp;

Shipping and updating, however, do not cost anywhere near $20K - if it did, Motorex would NEVER make a profit. &nbsp;Don't try to tell people that it takes half of the price of the car to put a few sensors, a couple air bags and a bumper support on a car. &nbsp;It is finding out how to do this and getting it approved by the feds that is the hard part. &nbsp;The important fact that everyone is leaving out is development/ start up costs! &nbsp;

Motorex's costs were front loaded - meaning that it probably cost them US $1-2M to get ONE Skyline into the states and sold retail (no - I don't have no idea if that price is in the ball park... it's a hypothetical). &nbsp;The second one was probably $60K (car price) + maybe a few thousand for shipping and updating. &nbsp;BUT, they have to recapture that $1-2M initial expenditure if they ever want to break even. &nbsp;As a result, they charge an extra $30K/car for every car and start to finally turn a profit after selling 50-100 cars. &nbsp;After that, they either make extreme profits or lower prices to compete with other cars being sold at their non-fanatic market price. &nbsp;

That, I believe is the reality. &nbsp;That means that yes - it is a high mark up. &nbsp;Yes - some will be willing to pay it. &nbsp;No - there is nothing shady or unfair about it. &nbsp;Yes - it is a perfectly valid standard business practice. &nbsp;No - I don't think they're screwing anyone. &nbsp;Yes - I do think people are getting screwed (by themselves for willing to pay $95K for a $60K car). &nbsp;<img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/confused.gif" border="0" valign="absmiddle" alt='???'> &nbsp; What're you gonna do? &nbsp;

So there &nbsp;<img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/sly.gif" border="0" valign="absmiddle" alt=':sly:'> &nbsp; &nbsp; &nbsp; &nbsp;<img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/wink.gif" border="0" valign="absmiddle" alt=''>
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