Forum Discussion
rgatijnet1
Jan 09, 2016Explorer III
In a lot of cases, the difference between entry level and higher quality is just what the manufacturer does with the MSRP when they add more fluff. I ran into this way back when with a motorcycle dealership I that I raced for. The Japanese were coming in to the market and the owner of the shop toured the Yamaha facility. Basically the labor function for a 50CC motorcycle was exactly the same as for a 250CC machine. Same number of almost identical parts with the difference being the size. Basically the largest motorcycle cost about 20% more to manufacturer than the smallest motorcycle. They motorcycles were priced(MSRP) so the dealer made a much smaller profit on the smallest bike and made a much much higher profit on the larger bike, as did the manufacturer, because the larger motorcycle sold for 300% more than what the smallest sold for. .
Do you really think it costs five times as much to stamp out a Mercedes fender than it costs to stamp out a Ford fender.
I'm pretty sure that RV are pretty close to the same concept. The incentive for the dealer is to upgrade the buyer in to spending more money but not necessarily getting the same increase in quality. In other words, and entry level coach may cost $100,000 and a luxury coach by the same manufacturer might cost $500,000. Does that mean that the quality level will be FIVE times greater? No way, but the dealer and the factory will make a lot more money and there may be a few higher quality components, as well as a lot more fluff to justify the price difference. Sure there may be a little higher quality cabinets but how often have your cabinets failed? There may be a little bit better appliances but are they five times better? The carpet may be of a higher quality and the engine may be more powerful, etc, but five times better? Nope
For the best value per cost, the entry level in most automobiles, motorcycles, and RV is the one to buy. The upgrades are for you to decide if they are worth the extra cost. Car dealers and RV dealers love to upgrade their customers for the simple reason that it makes them a lot more money. You just have to decide if the extra cost is worth it to you. You may be getting a slightly higher quality, but the cost for that slight improvement is disproportionately high.
Do you really think it costs five times as much to stamp out a Mercedes fender than it costs to stamp out a Ford fender.
I'm pretty sure that RV are pretty close to the same concept. The incentive for the dealer is to upgrade the buyer in to spending more money but not necessarily getting the same increase in quality. In other words, and entry level coach may cost $100,000 and a luxury coach by the same manufacturer might cost $500,000. Does that mean that the quality level will be FIVE times greater? No way, but the dealer and the factory will make a lot more money and there may be a few higher quality components, as well as a lot more fluff to justify the price difference. Sure there may be a little higher quality cabinets but how often have your cabinets failed? There may be a little bit better appliances but are they five times better? The carpet may be of a higher quality and the engine may be more powerful, etc, but five times better? Nope
For the best value per cost, the entry level in most automobiles, motorcycles, and RV is the one to buy. The upgrades are for you to decide if they are worth the extra cost. Car dealers and RV dealers love to upgrade their customers for the simple reason that it makes them a lot more money. You just have to decide if the extra cost is worth it to you. You may be getting a slightly higher quality, but the cost for that slight improvement is disproportionately high.
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