Please retake your economics course.

Demand refers to the amount of goods and services that buyers are willing to purchase. More often then not as price goes up demand goes down! Supply refers to the amount of goods and services that sellers are willing to sell. Here the opposite occurs of demand. When supply will usually increase with an increase in price.

:)

If you don't think so, then explain to me, in your own way inflation, like I'm a 5year old. ;)

Sure - Inflation is when the lollipop you want increases in price and the nice person that unwraps the lollipop increases the price of that service provided to you.

So the Kirkhams increase the price of their goods.

That does not necessarily equate to an increase in cost of a used Kirkham!!!

Your both right. If the price of creating a new Kirkham goes up, you could assume the cost to buy a used one would cost more for the simple fact it now costs more to creat one, but seeing we live in a capitalistic society the used price could go down if demand does. It works both ways, I say a used kirkham is worth more now, just like a new roller costs more now.

If demand were limited, then why would the Kirkham's raise the price by 22%? I would argue that they're probably trying to limit demand, by increasing the price, because there are many more orders than any one else thinks.

The same issue will be played out with the CSX's too. They've raised their prices as well.

Ultimately, time will tell. At this point, we're discussing theories.

If the price of a new Kirkham goes up by 22%, then yes some of the people considering placing an order at yesterday's price will say 'fair enough, I'll pay 22% more, no worries" but some will just think that the price rise puts them out of the new Kirkham market, and they start looking at the used Kirkham market.
So .... more people looking at used Kirkhams, demand vs. supply, and the price of used Ks goes up....doesn't it?
3 x Cheers! for capitalists
Glen

What about "quantity" and mass production? If you raise the price you ultimately lose customers. If you increase production you bring down the price and increase customers much like TV's.
When flat screens first came out they were a fortune (ex. 52" TV cost $2300 two years ago, same TV now costs half of that because production increased which brought the costs down) Quality is as good, if not better than original.

So their price increase doesn't necessarily make them more money, it probably keeps them flat or their head above water because they have decreased their potential customer base by putting their product further out of reach for another 25% or so of society.

It always amazes me how folks identify so much with a product that they think they run the company.

They didn't, we did ;-)

"mass production" is an oxymoron when talking about production levels that we are seeing in the "Cobra" industry. The ecomonies of scale are almost non-existant at these levels of production. People, this is not GM we are talking about!

The price increase probably only brings them closer to where they need to be, indeed most all of the "bigger" players in the business have recently increased pricing (Kirkham, Shelby, SPF, etc.) in an attempt to recover some of the margin they have given away over the last few years in a attempt to keep some sort of sales volume alive. Indeed most all of the manufacturers have held pricing over the last few years in an attempt to generate sales and perhaps at least stay in business. While it might keep you alive, it does not keep you healthy.

As to "pricing out of 25% of the market" you cannot aim your product and business plan at a segment of the population that really can't afford or justify owning your product. Could Kirkham sell a buttload of cars at $9,995.00? Sure! But what does that do to the long term value and moreso the long term business plan? Most of the "Cobra" manufacturers are amazed that the market has still not yet been saturated and that there is still a decent sized market to sell to. In marketing there is a "sweet spot" where the price to volume curves intersect and I think most of the manufacturers believe they are now at that point. I know for a fact that I could sell more SPFs at a lower price point but for how long? When the factory is out of business so will I be....there must be a little bit left for all when the bills are paid, otherwise why bother?

In working with Thomas on various things and reviewing the section of the Cobra market - held by the Kirkham produced chassis, I am pleasantly surprised every time we interact with them and their products.

It is all about whatever flavor of Ice-Cream you like and want. - for some folks, they are just happy with the grocery store brand of vanilla , and there is millions of gallons of that stuff sold each year.

People tell themselves it s about affordability, but it is really about something else. For some, it may be external pressures, it may be spousal restrictions or some sort of internal budgeting of resources.

You may explain it to yourself and rationalize. Sure, you can pour a bit of creme-de-menth' on it for effect.

However, if you have the opportunity to break free and get to a place where you can acquire a pint or two of nicely done butter pecan, or new york super fudge chunk then you will never want to go back to the Lucerne Vanilla if you can help it.

69K for The kirkham flavor is well worth it, they were under market at 54K -- shame on me for not getting one sooner.

Afterall you can pay more for less in many places, - but Kirkham is not it.
You definitively get what you pay for - and then some.

not to mention piece of mind.

Some folks want to "build" their car, others want to construct , others want to assemble.

Bottom line ; whatever flavor of Ice Cream is your favorite, go for it - !

Steve

Ok, so continue to explain to me, like I'm a 5 year-old:
What happens to the price of all the other lollipops?
Do they not creep up in prise also? ;)

Further, keep in mind your not talking about a "made in China, Walmart special" here. :cool:

Not necessarily but the other lollipops may lose flavor :-)

Whew! Glad to hear it's not from China. I don't want lead in anything but my pencil!

Well, that's not entirely true. Costco, not Walmart, did offer an Kirkham once upon a time:

http://www.clubcobra.com/forums/kirk...mp-costco.html

BTW, back in 2004, the Kirkhams did offer a "$39,900 Blue Light Special":

http://www.clubcobra.com/forums/news...-900-each.html