VFACTS - May 2024

[XR Martin]

Originally Posted by Franco Cozzo

A) would be the correct answer I reckon, its always 'market pricing' - which is what price you can get away with charging that you know a market is willing to pay.

Rather than setting a margin target, ie say 40% you go well I can charge this much for it because the market seems to be willing to pay for it (or has no/limited options).

We did this with a few product categories where the target was 40% but I could get 250-300% for stuff that you had no options on.

I've spoken about it before but I managed to bend over IVECO massively because their own behavior killed my only competitor and left me as the only option on the table for them.

Then if they didn't go for it, I'd just sell direct to their customers and take even more from them by removing their aftermarket from them.

You can see it with Ranger price creep across the years, Australians are obviously willing to pay a premium for their product so they can keep increasing pricing, and Isuzu is now starting to do it on their N series light truck range now they're managing to convert some Thailand Special sales.

Single cab tray back Ranger is circa $50K DA? Thats well above inflation rate from the PX introduction.

Hilux Workmate keeps creeping up in price, $8000 price increase on an older platform, with a naturally aspirated engine thats been around for a long time, 5sp manual gearbox, something that was under $25K DA as the competitors reduce in the fleet spec market.

VDJ79 pricing, thats the king of platforms that were long paid off decades ago thats now pure profit

Cars were going to be cheaper once local manufacturing ended remember!