Supply & Demand

[6 Shooter]

When Chevrolet initially priced the 2014 Corvette Stingray coupe at $51,000 and the Convertible at $56,000, we were shocked at how much car an owner was getting for the money. Add to the fact that the very popular Z51 performance package added a mere $2800 to the sticker price and we can see how that pricing eventually led to demand outpacing supply.

Chevrolet Raising Prices on the 2014 Corvette Stingray and Z51 Performance Package

 

[catbert]

The morons are alive and well in the Renaissance Center. They are blowing the goodwill they have amassed by bargain pricing at intro. They did the same thing with the C5, as I remember, doing mid year price hikes. Let's see how fast backs down to supply on the C7. I know there are quite a few in dealer showrooms around here, so they aren't presold anymore.

BOHICA. :L

 

[LLC5]

Quote from the article:

"To help meet the demand, Chevrolet is raising the prices on both the base Corvette Stingray Coupe and Convertible, which will see their prices go up $2,000. The Z51 package increases $1,200 for a total package cost of $4,000."


How is that helping to meet the demand for the vehicle, by removing potential new buyers and then gouging them if they do decide purchase? Wow.......

Job done GM.

 

[Psychojr]

I don't see where this is a problem. They have a backlog of orders and a certain manufacturing capacity. You price where it maximizes the profit. Has no one had Eco 101?

 

[6 Shooter]

Pretty sure that's why I named the thread "Supply & Demand"

Has no one had Eco 101?

​

 

[catbert]

The law of supply and demand is pretty much "all the traffic will bear." With all the good press, GM is confident it can slip 4 or five more grand on each sale in their pocket, It will no doubt work for a while, but at what cost? Some new buyers who are on the teetering point of being able to buy, or justify buying, will move on, and likely not return.

Those who ignore history are damned to repeat it. A lot of us old fogies remember the old days of full production by the big three. Every three years the UAW (or steel companies or tire companies) went to the companies, threatened to shut them down, and walked away with a big new contract. The big three rolled over, because they just raised the price of new cars to offset the contract, and added a little for the shareholders while they were at it. Those who made it to Econ 601 recognize that, depending on the item, a certain percentage of buyers fall out of the market with price increases regardless of the reason. It doesn't matter if the increase goes to shareholders, banks, execs or whatever. The buyers are gone, and someone else gets the business.

Truly successful companies are long sighted, and don't charge all the traffic will bear, hoping to develop life-long customers. Look at Toyota. They have built a really loyal customer base with a line of truly ordinary, sometimes boring, vehicles.

The GM pig feeds at a different buyer's trough than Porsche, Jaguar, etc. Price counts.

I hope I'm wrong, but once done, the damage is permanent. I'd like to see GM sell 35,000 Vettes a year like they did until recently, but it appears they want to make the same money without having to mess with making so many cars.

 

[LLC5]

The law of supply and demand is pretty much "all the traffic will bear." With all the good press, GM is confident it can slip 4 or five more grand on each sale in their pocket, It will no doubt work for a while, but at what cost? Some new buyers who are on the teetering point of being able to buy, or justify buying, will move on, and likely not return.

Those who ignore history are damned to repeat it. A lot of us old fogies remember the old days of full production by the big three. Every three years the UAW (or steel companies or tire companies) went to the companies, threatened to shut them down, and walked away with a big new contract. The big three rolled over, because they just raised the price of new cars to offset the contract, and added a little for the shareholders while they were at it. Those who made it to Econ 601 recognize that, depending on the item, a certain percentage of buyers fall out of the market with price increases regardless of the reason. It doesn't matter if the increase goes to shareholders, banks, execs or whatever. The buyers are gone, and someone else gets the business.

Truly successful companies are long sighted, and don't charge all the traffic will bear, hoping to develop life-long customers. Look at Toyota. They have built a really loyal customer base with a line of truly ordinary, sometimes boring, vehicles.

The GM pig feeds at a different buyer's trough than Porsche, Jaguar, etc. Price counts.

I hope I'm wrong, but once done, the damage is permanent. I'd like to see GM sell 35,000 Vettes a year like they did until recently, but it appears they want to make the same money without having to mess with making so many cars.

Exactly.

Home run post.

 

[6 Shooter]

Looks @ some cars that supply/over production has out run demand, price enticements/money on the hood...

Old GM...​

 

[Huskerman]

I think a lot of us were amazed when they posted the prices for the car early on. The main response was...wow, I wonder how they can do that? I think they low balled it like a lost leader going in knowing full well they couldn't make them for that kind of money but to get the ball rolling and to sink the hook they sold them at an undervalued price. Now that they know they got a good thing and folks are wanting them all of a sudden the price goes up to where they can make some money. Or more money if that's the case. They should have bit the bullet at least untill the 2015's were out is what I think..........

 

[thrilled]

About demand

As of right now there is A demand.But I'm hearing talk already about people wanting to unload their 2014 for the 2015 Z-06 8 speed auto.

 

[catbert]

There are many dealers with cars on the floor, and some are offering minor discounts. The bloom is about to be off the rose. I know of a Z51 that has been on the floor since before Christmas.

 

[thrilled]

About the Z-51's

The prices for them is so expensive.I can't get one of them

 

[ltmax]

Sport Car Prices

If it's bad for the Vette (which it ain't), it's terminal for the viper, which is down to a production rate of 6 cars per day. Once the Z-06 comes out, with performance the same as the Viper at 30% less, it's good night Viper. Stick the knife in, Chevy - no prisoners.

 

[6 Shooter]

I'd say supply is slowly taking over...

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