Price and cost apparently not related

[fgwinn]

In the Taycan 4 configurator upgrading to the 19" Taycan S Aero wheels adds $1260 to the price.

In the Taycan 4S configurator downgrading to the 19" Taycan Aero wheels adds $600. I guess that's a nuisance fee.

Sadly, Taycan 4S buyers do not get a $1260 break when upgrading to the more expensive wheels. They pay the same price as a Taycan 4 buyer who is not already paying for the 19" S Aero wheels in the base price of the car.

This pricing approach pretty much demonstrates that price and cost are not related.

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[whitex]

In the Taycan 4 configurator upgrading to the 19" Taycan S Aero wheels adds $1260 to the price.

In the Taycan 4S configurator downgrading to the 19" Taycan Aero wheels adds $600. I guess that's a nuisance fee.

Sadly, Taycan 4S buyers do not get a $1260 break when upgrading to the more expensive wheels. They pay the same price as a Taycan 4 buyer who is not already paying for the 19" S Aero wheels in the base price of the car.

This pricing approach pretty much demonstrates that price and cost are not related.

Who told you price and cost are related? Did you really think the Turbo S cost so much more to produce than a base Taycan? Price is what the customer is willing to pay, which indirectly is what is to worth to a customer.

Additionally, you're also dealing with option packages which are not just a sum of all its parts. Notice for example Taycan CT Turbo has "free" upgrades to metallic paint, no discount if you go with plain white. If you could get credit for all included options individually, you might be able to get a Turbo S stripped of all the options for free.

 

[fgwinn]

Who told you price and cost are related? Did you really think the Turbo S cost so much more to produce than a base Taycan? Price is what the customer is willing to pay, which indirectly is what is to worth to a customer.

Additionally, you're also dealing with option packages which are not just a sum of all its parts. Notice for example Taycan CT Turbo has "free" upgrades to metallic paint, no discount if you go with plain white. If you could get credit for all included options individually, you might be able to get a Turbo S stripped of all the options for free.

No one told me price and cost are related. For my entire business career I have understood that in the short run the opposite is the case. I have always practiced a value pricing approach to determine the price of products I manufactured and sold. What surprises me about Porsche's pricing decisions is how obvious the pricing discrepancies are and how inconsistently they are applied.

For example, as pointed out earlier, a 4S buyer effectively pays $1260 more for the premium wheels than a CT4 customer, whereas a Turbo S customer gets a $4K+ break on the 21" Carbon Fiber Aero Blade wheels.

The paint pricing policy on the Turbo S is not an apples to apples comparison to the wheel pricing. It's true that a Turbo S customer does not get a discount for choosing white as the color. But, the fact that no one (99% confidence) has ever purchased a white Turbo S CT makes this unfair price for the white color somewhat irrelevant. In other words, if something is never sold, the price does not matter.

 

[ChronoMax]

Porsche is not the most profitable car manufacturer by accident.

 

[Mr.Smith]

No one told me price and cost are related. For my entire business career I have understood that in the short run the opposite is the case. I have always practiced a value pricing approach to determine the price of products I manufactured and sold. What surprises me about Porsche's pricing decisions is how obvious the pricing discrepancies are and how inconsistently they are applied.

For example, as pointed out earlier, a 4S buyer effectively pays $1260 more for the premium wheels than a CT4 customer, whereas a Turbo S customer gets a $4K+ break on the 21" Carbon Fiber Aero Blade wheels.

The paint pricing policy on the Turbo S is not an apples to apples comparison to the wheel pricing. It's true that a Turbo S customer does not get a discount for choosing white as the color. But, the fact that no one (99% confidence) has ever purchased a white Turbo S CT makes this unfair price for the white color somewhat irrelevant. In other words, if something is never sold, the price does not matter.

Value is not how you can describe Porsche.
It's also better to throw out logic when speccing your options or it will drive you crazy.

 

[whitex]

No one told me price and cost are related.

Why then title a thread "Price and cost apparently not related"? It's like writing a post on "Apparently water is wet".

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