Originally Posted by howard
Originally Posted by CooperMan
Sooo, if you can knock off 5k's worth of usually chargeable options, does it prove they are vastly overpriced anyway ? like £1500 for metallic when your painting the car anyway, £1700 for posh leather, £800 for 3 yds of carpet, £700 for contrast piping !! no difference in labour for the last 3 and where's the credit for the original materials allowed for ?

You are mixing up two things, price and cost. Price is what you think the market will bear. Cost is what the accountants believe , and is very much a moveable feast.

The Morgan Extras are like the Porsche extras or those on Ferrari - they are a way of padding the price and the profit margin. Further down the scale and with poorer customers, they are included in the base price. When times are good Ferrari wont even sell you a base car without extras.

Exactly right...in any manufacturing organisation product cost is what the accountants want it to be, the way actual material and overhead costs (wages, energy, paint, etc, etc) are allocated to a finished products depends on where the accountants want to see the profit land. In turn this will depend on how best they can minimise tax and or get grant support.
Price is what the sales and marketing people want and accountants are far less involved. Pricing is a tactical tool to generate sales volume.

Peter,
66, 2016 Porsche Boxster S
No longer driving Tarka, the 2014 Plus 8...