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Value Based Pricing

Tags: Value Pricing Market Environment

 Q: Have you thought about ‘value based pricing’ your car? In other words, is $25K too low a price for the value you are providing? http://en.wikipedia.org/wiki/Value-based_pricing


 A: For 'value based pricing', we revisit it regularly in team and it's always a consideration. The idea currently is to offer the vehicle to the widest part of the market- and in the U.S. the median vehicle transaction price is mid $17k- meaning that if we target a $17k product that delivers value new to the market we have access to the very largest portion of the auto buying public. Which could be good, one investment firm phrased it as "you wouldn't just join the big 3, you would be the big 1." And from my stand-point, that means we could make the largest environmental impact as well, which could be a good thing too. I see the race-track focused, 631hp, Corvette ZR1 picture from you; which magically still returns a 17 mpg epa combined. We may offer other configurations and platforms that resonate with buyers at very different price points - I know I also dream of a high-horsepower version with even lighter-weight components to compete with the coming Ferrari F70. In our configurations, we just might get 40 mpg combined even in a vehicle like that.

 -Joe Justice

2 Comments

  • Jens Schmidt said

    Just a comment considering "targeting the largest potion" which may or may not work.
    18 minutes of your time but it leaves you with a changed perspective
    http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

  • Jens Schmidt said

    I don't know if my previous post got in, so i post again :-)
    consider this idea regarding "targeting the largest potion"
    http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

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