Originally Posted By kin
Hope I'm not going off topic here...interesting views regarding residuals, but why make it sound so complicated, it really is a simple case of supply and demand,
Seriously, people buy Morgan with their hearts,

It IS simple and people DO buy Morgans with their hearts. You simply need to have those hearts remain unbroken.

Peter Morgan, either by astounding intelligence or the instincts that come with experience, realized that the company had four great shortcomings.

1. The cars are more hand-made than most and that unavoidably leads to more faults than most. (a new owner turn-off)

2. The company did not have the resources for extensive R&D or plant improvement and technology. It was a big strain simply to keep the cars regulatorily compliant.

3. The dealership (aka support) network is extremely thin.

4. The cars are less performant and more costly than the competition.

HOWEVER, Peter also realized that his buyers (and their SWMBOs) were prepared to forgive all these failings if the residuals showed they couldn't lose. (The logic behind the love.) He kept production limited (dictated by each model's waiting list) and carefully meted the result out to the dealers ensuring as many as possible could survive. Outside of demos, he never laid down a frame without a signed order from a verified buyer in hand.

The old Works never changed and nothing was invested in it. Yet it became a famous tourist attraction because of that and a big selling point. Owners would even wax nostalgic about their "sorting" problems!

He further limited Morgan supply and upped demand by encouraging a vibrant community at every opportunity he could. So when you buy a Morgan you are buying into a social life. It is much harder to switch to another marque when you are leaving your social life behind you. You keep your Morgan or buy another.

So when the waiting list started to shrink in the 90s (with the competition from the new wave of roadsters, Peter Morgan's proposed solution was to hold the line on production and costs, and weather it out again. Of course, this time he was outvoted by the other shareholders and the Harvey-Jones route was chosen instead.

However, the lessons Peter learned and taught are just as pertinent today. Apply them (albeit theoretically) and see.

Lorne