Re:Apple's warning is a bad omen for Wall Street bulls
by chrismeller on Thursday January 03, 2019 @06:17AM
(#18814330)
I never said it was more profitable, I was disputing your argument that a $36k car is "premium", which means your analogy comparing Toyota to Apple was poor at best.
I also did not look down on a $36k car - if you read my comment I actually did quite the opposite - but my opinion isn't at all relevant, since we're talking about the majority of buyers (in this case in the US) when it comes to buying expensive "premium" products like cars and phones.
Re:Apple's warning is a bad omen for Wall Street bulls
by Retric on Thursday January 03, 2019 @08:49AM
(#18815033)
Premium is a marketing strategy. A base Toyota Camry is 22k and that’s the price point you’re buying dependability / utility. The marketing changes as you move up the price point even before you hit the ultra premium price points. An easy way to look at this is Advertising as a percentage of total sales. If you spend 10% on advertising you could instead lower the price by ~10%. Dawn dish soap does not spend millions on advertising because it feels good, they are well past the point of people being aware of their product.
https://en.m.wikipedia.org/wiki/Premium_pricing
Ex: ‘It does not just raise the bar, it is the bar’.
Sell 10 million cars for 20k with 5% margins or 2 million cars for 40k with 10% margins. Do the math the second makes you more money even selling 1/5 the cars.
Also, you might look down on a 36k car, but it’s several steps up from a 16k Yaris which would get you from A to B.