Shelby CSX price increase!

[dcdoug]

I wonder if Shelby dropped their price by $10k (so $39,995), rather than increasing it, whether they'd pick up a enough customers currently buying BDR's, SPF's and ERA's to generate enough sales that their overall margin would increase or whether lower sales at a higher price still results in better a better overall margin. Wonder how price elastic the demand is for CSX cars?

I know that Shelby generally is pursuing a strategy of reducing its auto sales business and focusing on parts, but it is an interesting question.

[Learjockey1]

For a perspective, I am reading Cobra The Shelby American Archives (62-65) by Dave Friedman and on page 34, they have an invoice dated April 7 1964 for CSX 2393 no engine, silver, with red trim top and tonneau, rack/pinion. It cost Ford 778 Pounds about $1,500 US in 64. I did not check equivalency in 2010.

[dcdoug]

Originally Posted by Learjockey1

For a perspective, I am reading Cobra The Shelby American Archives (62-65) by Dave Friedman and on page 34, they have an invoice dated April 7 1964 for CSX 2393 no engine, silver, with red trim top and tonneau, rack/pinion. It cost Ford 778 Pounds about $1,500 US in 64. I did not check equivalency in 2010.

Here's your answer:

$1,500.00 in 1964 had the same buying power as $10,482.96 in 2010. Annual inflation over this period was 4.32%. (Courtesy of http://www.dollartimes.com/calculators/inflation.htm)

[Mark IV]

Originally Posted by Learjockey1

For a perspective, I am reading Cobra The Shelby American Archives (62-65) by Dave Friedman and on page 34, they have an invoice dated April 7 1964 for CSX 2393 no engine, silver, with red trim top and tonneau, rack/pinion. It cost Ford 778 Pounds about $1,500 US in 64. I did not check equivalency in 2010.

United Kingdom, 1963 - 1964

One US dollar equals=

1963 0.3571 British Pound
1964 0.3582 British Pound

or effectively around 3 dollars per pound

[RodKnock]

Originally Posted by dcdoug

I wonder if Shelby dropped their price by $10k (so $39,995), rather than increasing it, whether they'd pick up a enough customers currently buying BDR's, SPF's and ERA's to generate enough sales that their overall margin would increase or whether lower sales at a higher price still results in better a better overall margin. Wonder how price elastic the demand is for CSX cars?

I know that Shelby generally is pursuing a strategy of reducing its auto sales business and focusing on parts, but it is an interesting question.

That's an excellent question, but the CSX is believed by many/most to be the "top of the line" Cobra in our segment of the industry and would probably sully their name and added premium by reducing the price of the CSX to levels of their "competitiors."

[Anthony]

Originally Posted by RodKnock

That's an excellent question, but the CSX is believed by many/most to be the "top of the line" Cobra in our segment of the industry and would probably sully their name and added premium by reducing the price of the CSX to levels of their "competitiors."

You can't reduce the cost of the glass shelby to that of the competitors, because the parts to build the Shelby are more expensive than the competitors. If you want original spec suspension, higher end gauges, original spec frame, it's going to cost more than to use/modify existing suspension parts from other passenger cars (either new or used) like all of the competitors, and even if they use their own design that's not original spec. It will almost always cost more to build an original spec cobra unless you go exotic.

[RodKnock]

Originally Posted by Anthony

You can't reduce the cost of the glass shelby to that of the competitors, because the parts to build the Shelby are more expensive than the competitors. If you want original spec suspension, higher end gauges, original spec frame, it's going to cost more than to use/modify existing suspension parts from other passenger cars (either new or used) like all of the competitors, and even if they use their own design that's not original spec. It will almost always cost more to build an original spec cobra unless you go exotic.

You're making an assumption since none of us have seen a cost per unit report from any manufacturer. Maybe SPF, BDR, ERA or whoever spend more on their bodies. Further, using ERA as an example, I think the ERA uses some very nice new parts. Just a guess, but then that's all any of us can do.

BTW, PANAVIA purchased his CSX 4985 from a dealer for right around $41K-42K.

[Got the Bug]

Originally Posted by RodKnock

BTW, PANAVIA purchased his CSX 4985 from a dealer for right around $41K-42K.

A little bit of luck and excellent timing by Steve. BTW - Should he ever sell the car, I'm sure he won't mine if the cost basis for the roller fades off in to the archives of CC forever.

[BT SNAKE]

Hey Rodney, them what ifs are working pretty good Huh?
Anthony, I used to live three miles from Hi-Tech in Tempe, Az. I was down there buggin" those guys all the time.
I do know who owns the tooling from Hi-Tech and it ain't anywhere near Shelby or Vegas.
On the cost factor of parts used are better than most other manufacturers does not hold water. There are limited suppliers for many items so you have all the manufacturers buying many parts from the same company. One big example is frames and glass, brake lights, and a lot of other small items. Besides if Shelby payed twice as much for those items it wouldn't come close to an extra 10K. As far as A arms and suspension goes
there are many that do use OEM stuff but more make their own and most of those are steel. I believe the CNC A arms are an option. I don't know what they cost.
Now if you are saying that Shelby uses the best of the best and newest in technology and the finest in materials and labor then you might have something... but I don't believe that to be the case with Cobras. At least not in the labor aspect.

Hersh

[rodneym]

Originally Posted by BT SNAKE

Hey Rodney, them what ifs are working pretty good Huh? Hersh

Yes, Hersh.
YOUR 'what ifs' have ME working overtime!

Now, if someone will only talk vintage Fender guitars with me....

rodneym

[greg schroeder]

+10K increase seems reasonable if the dollar is devalued as it is right now. Inflation to those spending USD will follow.

The idea of an increase in my perception puts the buyer of a CSX in a position wanting something that is Shelby rather than any of the other replica Cobras out there. I think it's a nice way to keep the cars as a specialty rather than a car for bargain shoppers.

If the plan was to save money and end up with a better car in quality, design and durability maybe get a Toyota for 20K.

[RodKnock]

[quote=greg schroeder;1085371The idea of an increase in my perception puts the buyer of a CSX in a position wanting something that is Shelby rather than any of the other replica Cobras out there. I think it's a nice way to keep the cars as a specialty rather than a car for bargain shoppers.

If the plan was to save money and end up with a better car in quality, design and durability maybe get a Toyota for 20K.[/QUOTE]

BTW, Toyota just announced another recall.

That's me! A bargain shopper. I'm the one who shows up to the local Wal-Mart at 5:00 AM on the day after Thanksgiving looking for the that extra 10% discount on gift wrap paper.

[Anthony]

Originally Posted by RodKnock

You're making an assumption since none of us have seen a cost per unit report from any manufacturer. .

Not necessarily. I've priced the individual components. Ask Kirkham how much of a price break you get if you order a car with the original spec suspension and Girling brakes? Why has Superformance changed the differential as supplied in their cars at various times in thier production run if it costs the same no matter which diff they use?

[Got the Bug]

Originally Posted by Anthony

Why has Superformance changed the differential as supplied in their cars at various times in thier production run if it costs the same no matter which diff they use?

When a builder like SPF or Shelby changes a part, it could be due to the fact their supplier is no longer going to manufacture that component. I think that was the case regarding the rear end change that SPF made.

[Mark IV]

[quote=Anthony;1085241]. If you want original spec suspension, higher end gauges, original spec frame, it's going to cost more than to use/modify existing suspension parts from other passenger cars (either new or used) like all of the competitors, and even if they use their own design that's not original spec. QUOTE]

Superformance does not use "parts from an existing passenger car" in their products. The components they use are equally costly as what is used on the CSX cars. That alone does not justify the selection of one over an another. As Hi Tech (the manufacturer) builds both Superformance products and some of the CSX cars, they alone would know the exact cost differences although my guess would be it is not $10,000 worth of cost.

Buy what you can afford and what makes you happy..................