I think I saw a turbo in the ND

[NitroDann]

Honestly, things arent priced based on cost, or anything like that. Products are priced to maximise profits, they are priced as high as people will pay for them without discouraging sales by a higher percentage than the price increase.

Its really basic. You sell what you have for what you can. And they can. In the USA they cant.

Dann

[Odd]

Perhaps.....but they aren't selling too many at the moment and there is a couple of
cheaper 2 seater rear wheel drive models....raining on their parade....;)

Things change.....

[NitroDann]

Sure, but they will still sell it for what they can. If the toyobaru is going for 35+ then so will the mx5, probably more for various reasons.

Dann

[davekmoore]

Just my 2 cents worth as an ex marketeer and present purveyor of Mazda automobiles (although all figures are pure conjecture and not based on any insider knowledge):

XYZ dealer sells, on average 3 x MX5s per year at the average $52k present pricing. Because they're so over-priced, to shift them, the dealer has to discount them well into the $40ks and makes $0 profit per unit. $0 x 3 = $0 for the dealer. Mazda Australia keeps, say an $12,000 margin x 3 = $36,000.

If Mazda Australia drop the price to say $42k they only make $2,000 per unit. But now the car would start selling. The same dealer now stands a chance of making a profit and sells, say 20 per year, and Mazda gets 20 x $2k = $40,000.

Would you rather have $40k or $36k?

In the latter example any marketing spend by Mazda is spread between much more units. Turning the car back into a seller also produces a halo effect for the rest of the range.

[Nevyn72]

I seem to recall reading somewhere that the Mazda Australia boss was targeting a lower price for the ND to make it more competitive in the market against the perceived competition such as the BRZ/86 and potential new Nissan..... How much lower than the current price (if at all) we'll have to wait and see.....

[tescoking]

If it is getting so cheap like 86 or some Nissian, then what is the point of having a MX5. Mazda built MX5 is to compare with those expensive and classy European and US cars. Meanwhile not so cheap as a Hyundai Tiburon. The MX5 should be more expensive than the 86 as they are convertible and they are the legend. We have made our name, no point to lower our class and price for the new buyers. I really think the current market price is very good and attractive. The MX5 should stay in the middle of the market.

[sailaholic]

The point is the 86 is selling the mx5 is not if that continues there may only be an 86.


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[davekmoore]

If it is getting so cheap like 86 or some Nissian, then what is the point of having a MX5. Mazda built MX5 is to compare with those expensive and classy European and US cars. Meanwhile not so cheap as a Hyundai Tiburon. The MX5 should be more expensive than the 86 as they are convertible and they are the legend. We have made our name, no point to lower our class and price for the new buyers. I really think the current market price is very good and attractive. The MX5 should stay in the middle of the market.

Wrong

[davekmoore]

The point is the 86 is selling the mx5 is not if that continues there may only be an 86.
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Right

[Mr Morlock]

I rather like Tescoking sentiment- what he is saying if I may paraphrase it is that the MX5 is a class act and does not to stoop to going head to head with the biggest car co in the world. Nice; and as far as the last of the NCs I don't think it has done Mazda any real harm. I know I am being repetitive but it was a good move in not just dropping the price with the launch of the upstarts. In reality fixed head coupes were always going to have a bigger market. Even on this forum many NA NB owners go for hard tops.

ND will start a new slate and just possibly the price will drop but then perhaps discounting will also not be a feature. Cars that need to move are discounted but ones that are in demand need not go down that route.

You can guarantee, I would suggest, that the ND will make its way to Au because it is still somewhat of a automotive hero and Mazda get the chance to carefully work out what price to sell it at.

[Dan]

Honestly, things arent priced based on cost, or anything like that. Products are priced to maximise profits, they are priced as high as people will pay for them without discouraging sales by a higher percentage than the price increase.

Its really basic. You sell what you have for what you can. And they can. In the USA they cant.

Dann

Yeh that's what is happening and the market is so small here that making it cheaper probably wouldn't increase units too much.

I'm not certain but you'd think some of the MX5's target market who wanted a light good handling RWD sports car and not a convertible have already been gouged by Toyota, if they come out with the convertible version they showed a concept for last year that would be interesting for Mazda pricing the MX5.

[gslender]

what he is saying if I may paraphrase it is that the MX5 is a class act and does not to stoop to going head to head with the biggest car co in the world

Sure. That's an option. There are heaps of convertible/expensive cars that market to a niche buyer - typically the price is high because the volume is low.

That's not what got the MX5 to where it is today though.

I still think Mazda is messing with the formula and in a market full of fast, good handling, feature packed and fun cars, the MX5 can't just release any stripped down convertible with a gutless 1.5 and expect everyone to rush to it... it will need to represent something that isn't easily obtained elsewhere.

A Peugeot 308 convertible comes with a 1.6 Turbo and has 4 doors and lots of extra - sure it might not be as nimble, but at the same $$$ as an NC is surely going to impact sales of the ND if it comes with a smaller engine and less trim. The problem is that most cars now handle really well, they've got them to a point where Mr Avg Joe doesn't see the difference, even when pushed hard on the road... the feedback to the driver and engineering is well understood.

Things aren't the same anymore.

G

[Mr Morlock]

well actually there are few sports car convertibles in the market which are pitched at reasonable prices. The MX5 was easily the best and most affordable- I don't think anyone can come up with a plausible argument to dispute that. A 308 Pug is not in the same class as an MX5.

MX5 was never a cheap vehicle right from 1989 but it was still accessible for a certain volume.

I don't think there is any chance that Mazda will make an ND which is not competitive in its class. Whether it makes a mark remains to be seen.

Incidentally USA is like any other market- there is competition and they still have to pitch pricing for their target customers. USA has not done very well with a number of bankruptcies and a record of lousy cars now saved by non US owned co.'s. . Aust is a relatively small market but it has grown considerably and it is one of the most crowded in terms of models than anywhere.

Price alone is actually not always a big factor and easy to prove. BMW Merc Audi have been selling overpriced cars because people see them as status symbols and aspiration but a Japanese car apart maybe from a Lexus cannot get away with it because the myth survives- but at least the Lexus has the runs on the board for build quality.

[tescoking]

If I am someone who works in Mazda then I would want people to drive the MX5 instead of the 86s. But how about others? If the MX5 gets cheaper like the 86 then everyone would go for the MX5, and in that case whose going to buy the Mazda 2,3 & 6? Have you counted the amount of Mazda 2s and 3s on the road? Do we really want to see the MX5 be as common as that? Do we want it to become nothing special just because we want to beat the market? There are so many of us, including myself who looks after and loves our MX5 so dearly because it is a special, convertible and classy type of car. What happens if this car fell into the hands of someone who isn't like us? It can turn out that someone will drive the MX5 and will never look after it? Will you even look at that car again? Eventually the MX5 will become a car that doesn't turn heads anymore. I think the car is sort of like a mirror image to ourselves. It represents me. I would never want to see a MX5 turn into a trash looking vehicle just because it is cheap and people will buy it and not take care of it.

[greenltd]

Tescoking some good points. Manufacturers set prices baeed on a range of factors not only cost to build. Also things like the numbers they are able to build, how many they need to build to make a profit, how its priced against competitors of similar cars and within its own brand.