Price Increase

JWheaton · #1 (**permalink**) 01-02-2012, 10:32 PM

Quote:

Originally Posted by RodKnock

In real estate, it's called the Theory of Progression (The Theory of Regression is the opposite).

If new houses become more expensive, then the used stock of homes in the neighborhood will trend up as well. Buyers who can't afford the new homes, then will look at the used stock more and thus the used stock will move or progress towards the price of the new stock because of increased demand of the used stock of homes.

Nice theory. Don't think that it will really hold up well with a car. If the theory worked on all goods then what an amazing world we would live in. Everything in essence would turn to gold and prices would sky rocket. With this theory you are basically constrained by the land the house is built on. I could buy a Kirkham from anyone in any state. Sure I have to pay for shipping but that is a small percent of the purchase price anyway.

Others have mentioned that the supply is limited. Which is true. The demand is limited as well. The demand will be even more limited with the price higher. It all evens itself out.

Current cars will be sold for many reasons and some will be sold for less and some will be sold for more. The used car market does not change because of the price increase.

Dimis · #2 (**permalink**) 01-02-2012, 10:50 PM

Quote:

Originally Posted by JWheaton

Nice theory. Don't think that it will really hold up well with a car... If the theory worked on all goods then what an amazing world we would live in. Everything in essence would turn to gold and prices would sky rocket....

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

JWheaton · #3 (**permalink**) 01-02-2012, 11:31 PM

Quote:

Originally Posted by Dimis

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!!!

fordracing65 · #4 (**permalink**) 01-02-2012, 11:47 PM

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.

Dimis · #5 (**permalink**) 01-05-2012, 05:22 AM

Quote:

Originally Posted by JWheaton

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!!!

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.

Dominik · #6 (**permalink**) 01-05-2012, 06:38 AM

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

mreid · #7 (**permalink**) 01-05-2012, 07:25 AM

Quote:

Originally Posted by Dimis

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.

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

RodKnock · #8 (**permalink**) 01-05-2012, 02:18 PM

Quote:

Originally Posted by Dimis

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

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

KMP @ Costco?

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

10 Kirkhams for $39,900 each

RodKnock · #9 (**permalink**) 01-03-2012, 12:05 AM

Quote:

Originally Posted by JWheaton

Others have mentioned that the supply is limited. Which is true. The demand is limited as well. The demand will be even more limited with the price higher. It all evens itself out.

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.

xb-60 · #10 (**permalink**) 01-03-2012, 04:28 AM

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