Date registered: Jul 2005
Vehicle: R107 300SL; 1990 500SL (R129);2001 R170 230SLK
Mentioned: 0 Post(s)
Quoted: 9 Post(s)
RE: should mercedes raise its prices ?
This goes back to the decisions that DB took in 1992.
It`s Management Board decided that DB could no longer afford to maintain " the best or nothing" philosophy of Gottlieb Daimler. This approach essentially empowered the engineers to determine how the cars would be built and to what standard (obviously the best standard).
Coupled with this decision was the rise of Marketing within DB and the focus on the customer. It was recognised that in days gone by a Mercedes was a reward, usually later in life, that an individual would give himself for a lifetime of endeavour. Not suprising really given that by comparison a Mercedes was usually significantly more expensive than a rival product. The price was accepted because the customer got two important paybacks..... quality of engineering and the cache of exclusivity that a premium priced product conferred. A Mercedes was an older or old man`s car. Marketing wanted to make Mercedes a car for everybody and that`s what we`ve got today at least in name rather than product.
Those 1992 decisions swept the DB traditions away for good.
Today it is the Mercedes brand that holds the whole thing together not premium engineering or exclusivity which is an irony given that buyers are buying into a brand that died in the early 90`s. Mercedes is a mass marketing operation with a product for every niche and for some niches that do not yet exist.
This is not a premium brand. Ferrari, Porche, Rolls Royce are premium brands, manufacturers that concentrate on one or two specialist products and DC is not in that market anymore.... if it ever was.
The 70s,80s and very early 90s represent the last of a never to be repeated golden era. Raising prices without raising quality would be the death knell for MB but to return to the days of the golden era would mean massive increases in prices not just a few thousand dollars.
If you want Mercedes quality and exclusivity buy an R107,W123,W124,W126,W140 or R129.
As a footnote, Porche is now the most profitable car manufacturer in the world and has an even smaller product line than DB had in the eighties so you don`t need lots of products to make a profit just concentration on good products built to very high standards. Bit like Lexus actually.