25-04-12, 05:57 PM
Triumph's price position was good back a ways because the pound was weaker 12 months ago. This year the pound has recovered a fair amount against the euro, the yen and other worldwide currencies. Japanese and European imports are a bit more competively priced this year than last for this reason.
What are Triumph to do? Drop their prices to maintain last year's differential and hope to achieve the same profit from a lower margin? Ask George White how well that philosophy worked out for them!
Domestically assembled or domestically produced ? If sub-assemblies, electrics etc are being bought in from overseas, that can induce price increases over which Triumph have no control.
Assuming pricing amongst comparable machines is pretty much the same, performance and quality will be the deciding factor in most buyer's minds. How do you maintain quality while cutting back on production costs to retain an acceptable profit margin?
Answers on the back of a tenner to me, please ...
What are Triumph to do? Drop their prices to maintain last year's differential and hope to achieve the same profit from a lower margin? Ask George White how well that philosophy worked out for them!
Domestically assembled or domestically produced ? If sub-assemblies, electrics etc are being bought in from overseas, that can induce price increases over which Triumph have no control.
Assuming pricing amongst comparable machines is pretty much the same, performance and quality will be the deciding factor in most buyer's minds. How do you maintain quality while cutting back on production costs to retain an acceptable profit margin?
Answers on the back of a tenner to me, please ...