You could say that, but if they are expanding current production rather than diverting it from existing markets, if the current UK and EU market currently pays the bills, then any additional production could be priced on the marginal/additional/extra costs involved solely on that production rather than on the full absorption costing for current markets
I seriously doubt that Morgan will lower UK and EU prices in established markets if current demand holds up and then load some of those overhead costs onto an emerging market such as the USA. Longer term maybe. The current markets pricing structure have probably already absorbed all the additional costs of getting US conformance to-date. I'm sure once the US market demand is secured on an annual basis, the price will rise. If that increases Morgan's resources to secure future product development etc, great.
The most important element is to secure the future of Morgan and if the US market achieves that and reduces reliance on existing markets which may well be close to saturation, look at where used prices are heading......then surely that is good for the brand overall.
Last edited by JohnHarris; 06/10/24 08:57 AM.
