Why not realistic pricing, and effect of price dropping?

lamborghini · 10th July 2009, 12:07

@sgiitk: It is absolutely normal for businesses to cut down prices of their old model when the new one comes in. Due to reduction in cost of machinery due to depreciation, companies can now make the products cheaper, when the newer one comes in, thus cashing in on both ends, as they can tap a cheaper segment of the market, with their upper-market cars, and make money on the new ones as well.
This can be seen with cars from all segments:
- Maruti Alto
- Maruti Baleno
- Ford Ikon
- Hyundai Accent
- Mitsubishi Lancer
- Mitsubishi Cedia, etc.

10th July 2009, 12:07	#16
lamborghini Distinguished - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 6,139 Thanked: 5,846 Times View My Garage	@sgiitk: It is absolutely normal for businesses to cut down prices of their old model when the new one comes in. Due to reduction in cost of machinery due to depreciation, companies can now make the products cheaper, when the newer one comes in, thus cashing in on both ends, as they can tap a cheaper segment of the market, with their upper-market cars, and make money on the new ones as well. This can be seen with cars from all segments: - Maruti Alto - Maruti Baleno - Ford Ikon - Hyundai Accent - Mitsubishi Lancer - Mitsubishi Cedia, etc.
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