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      08-24-2007, 10:40 AM   #1
michal12
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Am I the only one in the world who is happy with M3 pricing?

I am based in Prague. In here, the new M3 is priced approx. 10% BELOW the old model
The reason for that is appreciation of our currency. I am from a small country where exchange rate fluctuations immediately are reflected in pricing of cars.
So guys from US excuse me now but you have no idea how lucky you are. With current USD exchage rate the car simply should be priced at $89,000 (equivalent of EUR66,000 which is EU price more or less). Period.
But since US is a major market (hence oligopsonistic buyer), the prices never get adjusted accordingly. The rest of the world sort of pays for you guys since BMW needs to cover exchange rate losses from US market elsewhere.
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      08-24-2007, 12:38 PM   #2
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Originally Posted by michal12 View Post
I am based in Prague. In here, the new M3 is priced approx. 10% BELOW the old model
The reason for that is appreciation of our currency. I am from a small country where exchange rate fluctuations immediately are reflected in pricing of cars.
So guys from US excuse me now but you have no idea how lucky you are. With current USD exchage rate the car simply should be priced at $89,000 (equivalent of EUR66,000 which is EU price more or less). Period.
But since US is a major market (hence oligopsonistic buyer), the prices never get adjusted accordingly. The rest of the world sort of pays for you guys since BMW needs to cover exchange rate losses from US market elsewhere.
Wow that is great, not sure I have ever explicitly heard of such a thing happening. However, determining the price for a region with straight currency conversions is nonsense. It is all simply about supply and demand. Furthermore if you want to think about "fairness" rather than straight economics you will need to take into account income and cost of living vs. the prices of goods such as cars.
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      08-24-2007, 01:16 PM   #3
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So guys from US excuse me now but you have no idea how lucky you are. With current USD exchage rate the car simply should be priced at $89,000
BTW, you think gas (Petrol) price are high now? Try to imagine what will happened to gas prices if the US military will stop protecting oil tankers in the golf on their way to Europe? We Americans subsidized your oil, so in return we get lower prices on cars made in Europe.

I guess we both lucky!

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      08-24-2007, 03:53 PM   #4
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Supply and demand only works for major markets. There are markets so small that nobody bothers to think what a price increase will do with demand.
But anyway, I just wanted to provide an overseas opinion since most members here seem to be from the US.
I am actually amazed that Euro manufacturers are able to keep US prices so "low" (from EU point of view)

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Wow that is great, not sure I have ever explicitly heard of such a thing happening. However, determining the price for a region with straight currency conversions is nonsense. It is all simply about supply and demand. Furthermore if you want to think about "fairness" rather than straight economics you will need to take into account income and cost of living vs. the prices of goods such as cars.
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      08-24-2007, 05:43 PM   #5
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BTW, you think gas (Petrol) price are high now? Try to imagine what will happened to gas prices if the US military will stop protecting oil tankers in the golf on their way to Europe? We Americans subsidized your oil, so in return we get lower prices on cars made in Europe.

I guess we both lucky!


mhhhh....better to avoid political discussion, don't you think?
much better...Your prices before the Gulf War (about fuel and cars) were
better than today..Am I correct?Sure the fuel price was much better before that war.In Europe.Today a liter of fuel in Italy costs almost 1,4 euro.One liter!and Germany, Austria or France are in similar conditions..



Michal12...dobriden..:-)Ja neisem Cesky...I am importing the M3 from Italy into Czech Republic because it is less expencive...I remember that the price was 2.100.000czk, is it true?..
I have an aviation company in Zlin...one day we could meet:-))

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      08-24-2007, 06:49 PM   #6
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mhhhh....better to avoid political discussion, don't you think?

You right. Who care about politics. Life is too short - right?

Peace
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      08-24-2007, 08:10 PM   #7
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You right. Who care about politics. Life is too short - right?

Peace
Why would they price an M3 at $80k when you can get a Porsche for that much..?

Swamp has it right, strait currency conversion isn't the tell-tale sign of reasoning. USA is BMW's biggest market and they must compete in that market. I think many of you world wide forget that the Big Three are here in the states and still make decent cars which BMW, Mercedes, Saab and other must compete against.

Whats a new Corvette cost in your country..?







-Garrett
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      08-24-2007, 08:48 PM   #8
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Wrong

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Supply and demand only works for major markets. There are markets so small that nobody bothers to think what a price increase will do with demand.
Totally disagree - BMW has to price this car "correctly" for all of its markets in order to obtain certain sales goals and the goals are fairly high for this car, 100,000 units over its life span. Sure 100,000 is a small number of units compared to high volume low price commodities like food but the volume is high enough to be very price sensitive. The "supply" is really all of the competitors cars as well as this partcular one. If you think a few thousand dollars higher or lower would not change the demand for the car you are mistaken. Read the forums - folks are incredibly price sensitive
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      08-25-2007, 01:16 AM   #9
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You right. Who care about politics. Life is too short - right?

Peace

 
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      08-25-2007, 02:07 PM   #10
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Originally Posted by Garrett View Post
Why would they price an M3 at $80k when you can get a Porsche for that much..?

Swamp has it right, strait currency conversion isn't the tell-tale sign of reasoning. USA is BMW's biggest market and they must compete in that market. I think many of you world wide forget that the Big Three are here in the states and still make decent cars which BMW, Mercedes, Saab and other must compete against.

Whats a new Corvette cost in your country..?







-Garrett
Coupe starts @ $44,900 (MSRP) in reality you'll get it at about 3-5 K less.

Convertible starts @ $53,000 and Z06 @ $70,000

BTW, you guys are right about the pricing, my comments meant to be funny, but I guess it wasn't.

Best
David
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      08-25-2007, 02:59 PM   #11
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Hello savage ulm,
in CZ the price of the new M3 is 1 950 000 CZK which is not too bad!! Is the car really cheaper in Italy?
Wow aviation company is Zlin? Great stuff. I might know some people from your industry from Ostrava...

Quote:
Originally Posted by savage.ulm View Post
mhhhh....better to avoid political discussion, don't you think?
much better...Your prices before the Gulf War (about fuel and cars) were
better than today..Am I correct?Sure the fuel price was much better before that war.In Europe.Today a liter of fuel in Italy costs almost 1,4 euro.One liter!and Germany, Austria or France are in similar conditions..



Michal12...dobriden..:-)Ja neisem Cesky...I am importing the M3 from Italy into Czech Republic because it is less expencive...I remember that the price was 2.100.000czk, is it true?..
I have an aviation company in Zlin...one day we could meet:-))

Regards
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      08-25-2007, 03:03 PM   #12
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The Z06 here is about 120k USD with all local taxes.
Of course BMW has to price the car accordingly to other players at the market and that is what they are doing. Here a 911 costs like 100k EUR (hence 140k USD) so 89k for an M3 is OK.

Quote:
Originally Posted by Garrett View Post
Why would they price an M3 at $80k when you can get a Porsche for that much..?

Swamp has it right, strait currency conversion isn't the tell-tale sign of reasoning. USA is BMW's biggest market and they must compete in that market. I think many of you world wide forget that the Big Three are here in the states and still make decent cars which BMW, Mercedes, Saab and other must compete against.

Whats a new Corvette cost in your country..?







-Garrett
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      08-26-2007, 03:53 PM   #13
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Originally Posted by michal12 View Post
Hello savage ulm,
in CZ the price of the new M3 is 1 950 000 CZK which is not too bad!! Is the car really cheaper in Italy?
Wow aviation company is Zlin? Great stuff. I might know some people from your industry from Ostrava...
Hi Michal,
the true difference is not more than 2800 euro. Not much. But the 4 years of extended warranty (not the standard 2) that we get for the Italian market from BMW and the difference on the cost of some accessories, and the difference in the discount (%) we can get in Italy, make a difference of about 5.500 euro. Not bad, for one morning or less of burocracy to import the car in Czech.

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