Already Raising Base Prices
Thread Starter
|
Junior User
Joined: Nov 2008
Posts: 68
Likes: 0
Already Raising Base Prices
They must be doing some heavy drugs at the corporate office at Ford. In the last 2 days they have RAISED the base price on the F-150 FX4 model by 1.4%. From $33,630 to $34,100. All the while we're hearing Bush wants an orderly BK for GM and Chrysler before he submits any bridge financing. And these two are once again considering joining forces. All this turmoil in the auto world and Ford is trying to punch the pricing pedal to the metal? A real stupid move IMO. Their greed is pretty arrogant I’d say under these recessionary times.
Postmaster
Joined: Nov 2008
Posts: 3,938
Likes: 2
From: BC Canada
I hope Ford is offering a $20,000 rebate per truck, along with that price increase.
They need to lower prices to raise sales.
Not raise prices and kill any remaining sales.
I am a Ford guy thru and thru.
But if ford wants to start raising prices my new truck may say Dodge on it after all.
They need to lower prices to raise sales.
Not raise prices and kill any remaining sales.
I am a Ford guy thru and thru.
But if ford wants to start raising prices my new truck may say Dodge on it after all.
Posting Guru
Joined: Sep 2008
Posts: 1,512
Likes: 0
Thats not what CNN were saying today. GM said it's not true but every news outlet seem's to think otherwise. Only time will tell.
Postmaster
Joined: Aug 2006
Posts: 2,829
Likes: 3
The base MSRP on all F-150 models was raised on 12/01 by $470. This coinsides with the beginning of Job 2 production and is a fairly common practice. The prices will probably go up once again if/when Job 3 production begins. Keep in mind that Ford is not the only auto manufacturer that raises prices as you get later in a model year...
Infact Ford raised the pricing on 17 vehicle lines beginning 12/01, so the F-150 was not the only one. It was one of the lowest increases though when compared to the others...
Infact Ford raised the pricing on 17 vehicle lines beginning 12/01, so the F-150 was not the only one. It was one of the lowest increases though when compared to the others...
Post Fiend
Joined: Nov 2001
Posts: 7,698
Likes: 4
From: Neenah, Wisconsin
I hope Ford is offering a $20,000 rebate per truck, along with that price increase.
They need to lower prices to raise sales.
Not raise prices and kill any remaining sales.
I am a Ford guy thru and thru.
But if ford wants to start raising prices my new truck may say Dodge on it after all.
They need to lower prices to raise sales.
Not raise prices and kill any remaining sales.
I am a Ford guy thru and thru.
But if ford wants to start raising prices my new truck may say Dodge on it after all.
Postmaster
Joined: Nov 2008
Posts: 3,938
Likes: 2
From: BC Canada
It makes absolutly NO sense to lower the price, make no money, and keep selling....it makes far more sense to idle a few plants and workers now....raise the price a bit....sell a few less, but at better profits....sure we don't like it, and the line workers don't like it, but its more profitable....its also why they sell a platinum line, a king ranch, a lariat, and a fx4....because those are FAR more profitable than selling xl and xlt's all day long.....
I doubt selling less makes them more money.
The less they make the more they have to pay suppliers to for everything from seats to tires.
I personally lower prices in tough economic times, and get more customers.
But then again I have not bankrupted my company , so what can I know?
I just do not understand ford raising prices, when they need to be slashing them. Just like all the stores in my area slashing prices on items from books to furniture.
Trending Topics
Senior User
Joined: Jul 2006
Posts: 488
Likes: 0
If you are not making money what sense does it make to "slash" prices??? Make less and less and go closer to bankruptcy like GM and Dodge?? I fail to see your logic that a higher profit margin is bad....
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
2026 Shelby F-150 Off-Road: Better Than a Raptor R?
Brett Foote
2027 Super Duty Carhartt Package First Look: 12 Things You NEED to Know!
Michael S. Palmer
Post Fiend
Joined: Nov 2001
Posts: 7,698
Likes: 4
From: Neenah, Wisconsin
and has slashing prices at your local bookstore or furniture retailer kept them from going belly up???? cause it hasn't around here...around here tons of furniture retailers cut prices about two years ago...running huge sales non stop.....over half of the furniture stores locally closed about 1 year ago....not enough profit left when you run huge sales...plus the warranty/customer service costs are much higher due to the larger quanities....
I think the platinum was designed JUST because of the economy, its a trim package they could get another 5,000 for, while only costing 1,000 (estimated) more than a lariat....its about making each sale profitable, not selling more at hardly a profit or worse....a loss....
you'd never see ferrari selling cars at huge reductions to increase sales.....you see them building less cars....for more profit...its the same business model ford (and the other big 2) should adopt....
Toyota and honda have a very similar model, until the new tundra....toyotas hardly ever had 0% financing or big rebates....and i don't think honda, subaru, or mercedes ever did...they rely upon a PROFITABLE sale, not volume at no profit
I think the platinum was designed JUST because of the economy, its a trim package they could get another 5,000 for, while only costing 1,000 (estimated) more than a lariat....its about making each sale profitable, not selling more at hardly a profit or worse....a loss....
you'd never see ferrari selling cars at huge reductions to increase sales.....you see them building less cars....for more profit...its the same business model ford (and the other big 2) should adopt....
Toyota and honda have a very similar model, until the new tundra....toyotas hardly ever had 0% financing or big rebates....and i don't think honda, subaru, or mercedes ever did...they rely upon a PROFITABLE sale, not volume at no profit
Postmaster
Joined: Nov 2008
Posts: 3,938
Likes: 2
From: BC Canada
I know vehicles are different.
But keeping them selling is important if you ask me.
Selling very few and making $10,000 each is still not very profitable.
But if you sell a LOT, and make $ 2,000 each your laughing.
Elder User
Joined: Feb 2003
Posts: 945
Likes: 0
When Cadillac came out with their newly designed CTS they raised the base price no less than 6 times the first year. Have continued to do so. Ford's raising prices as of Dec.1? They must be on drugs for sure. Some real heavy chemicles I'd say. You do not raise prices in a recession. Econ 101.
Post Fiend
Joined: Nov 2001
Posts: 7,698
Likes: 4
From: Neenah, Wisconsin
Hows big rebates been workin for ford....whens the last quarter they were profitable.....i'd say its time for a new approach, selling everyone a truck at 10k off msrp doesn't seem to be working...
Posting Guru
Joined: Sep 2008
Posts: 1,512
Likes: 0
I guess I am just seeing walmart and costco make less profit per unit, nd prosper.
I know vehicles are different.
But keeping them selling is important if you ask me.
Selling very few and making $10,000 each is still not very profitable.
But if you sell a LOT, and make $ 2,000 each your laughing.
I know vehicles are different.
But keeping them selling is important if you ask me.
Selling very few and making $10,000 each is still not very profitable.
But if you sell a LOT, and make $ 2,000 each your laughing.
Thread Starter
|
Junior User
Joined: Nov 2008
Posts: 68
Likes: 0
WMT is the king of retailing and wrote the book on this subject. They are so large that they can "squeeze" any supplier until they either give in and/or die. But Ford raising prices now is just bad business.
Post Fiend
Joined: Nov 2001
Posts: 7,698
Likes: 4
From: Neenah, Wisconsin
theres also a difference between retail and auto manufacturers....when walmart sells a can of soup....there are no residual costs....they're not going to have to service it, they're not going to have to carry parts for them...they're not going to have to provide technical support.... Ford has to do all of those things......
So if i got this right....ford should cut the cost of these trucks way back...even to the point they're not making anything....just to sell them???? that sounds like bad business to me...
So if i got this right....ford should cut the cost of these trucks way back...even to the point they're not making anything....just to sell them???? that sounds like bad business to me...