Would you sell a product below cost?

[Kevlar]

You can sell a product at cost if you cross product subsidize and have a strategic imperative to create top line revenue growth. It's crappy and potentially unsustainable business but it can be done if that's your plan.

You can't only manage costs and create share holder value.

Is Top Line Revenue growth more important than margin in the first few years of operating a business? - maybe.

You guys know more than me. Not my circus...not my moneys.

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[Kevlar]

One of the reasons I expected them to keep the original pricing was because of the money they expected to generate in subscription fees over the life of the vehicle.

A good point!

Ongoing subscriptions is a place to incentivize pre-sale reservation holders to stay onboard. I'd consider a discount on subscription fees as a reason to pay the price and stay the course. I hope they know that they will need to do something to keep interest and avoid the churn they are seeing.

 

[Dark-Fx]

Oh how the sheep blindly defend what they don’t even understand. I love how the majority hear “supply chain” and naively just accept the price increase. Guess what, contractors, manufactures, and suppliers all figured it out months ago so while some price increases are real many are made up arbitrarily.

I can defend it because I work in manufacturing and have a first hand account of how much our costs have gone up just in the last year. We are still getting hit with new increases, they are more than twice the typical yearly increase. Some of our vendors have increased prices twice in the last year. That's something we've never experienced before, it's hard to plan out pricing a product when your costs aren't settled.

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