From: welty@cabot.balltown.cma.COM (richard welty)
Subject: Re: Saturn's Pricing Policy
Organization: New York State Institute for Sebastian Cabot Studies
Lines: 20

In article <1993Apr5.230808.581@cs.brown.edu> cs012055@cs.brown.edu (Hok-Chung Tsang) writes:
>Moreover, if Saturn really does reduce the dealer profit margin by $1000, 
>then their cars will be even better deals.  Say, if the price of a Saturn was
>already $1000 below market average for the class of cars, then after they
>reduce the dealer profit, it would be $2000 below market average.  It will:

>1) Attract even more people to buy Saturns because it would SAVE THEM MONEY.

>2) Force the competitors to lower their prices to survive.

but what is Saturn's motivation here?  they're already selling every
car they make, with multiple shifts in the plant.  given this, what
possible motivation could they have to lower prices?

cheers,
  richard
-- 
richard welty        518-393-7228       welty@cabot.balltown.cma.com
``Nothing good has ever been reported about the full rotation of
  a race car about either its pitch or roll axis''  -- Carroll Smith
