PonyUp

Hey wait, didn't the MYTHBUSTERS proove that shoving a car into reverse or park while moving would not cause anything??? Hmmm, I think they did!

kngdaka

Theres 100 stupid people if you ask me.

jdphillips73

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Theres 100 stupid people if you ask me.
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especially if they cut the price in half, they could sell 5000 of them

my06shaker

Appears to me that P.T. Barnum addressed that years ago. Something about a sucker being born every minute. I would love to replace my black stock auto shifter in mine with something that has a bit of bling. Maybe I'll just wait and buy one of the IUP upgrade shifters that one of the 100 took out of their mustangs in order to make TCI as rich as the oil barons. Oh My......
Come on TCI....... use a little common sense. Price dictates demand

kngdaka

I'm learning all about this in economics, but when it comes to the real world and how much price gauging is on some useless products, it never makes any sense to me (these shifters are like those airbrushed pony emblem things, price is way too high)

Lets say these things cost $150 for TCI to produce. Now, say that they stick with their plan of $545.83 and sell say 200 of them at that price. Revenue will be $109166, not to shabby. $109,166-$30,000(this is the cost to produce)=$79,166 profit.

Now lets look at half of $545.83, about $272.92. How many units would they need to sell to meet the profit they had of selling at $545.83? Since profit is defined as revenue minus cost, if we set the profit function of 200 units sold at $545.83 equal to the profit function of X (unknown right now) number of units sold at $272.92, we can find the value of that X. Pretty basic

So...
$545.83(200)-$150(200)=$272.92(X)-$150(X)

$79,166=$122.92(X)

Divide both sides by $122.92 and you get

644.04=X. So, TCI would have to sell 644.04 units at $272.92 in order to equal the profit they had from selling 200 units at $545.83. You can substitute any dollar quantity you want for the second half of the equation to represent what you think is a fair price for it ($300, $350, and so on).

I guess they just don't wanna go through the work of having to produce and sell more, because it's certainly not like it can't be done. However, I think they are merely testing the waters here, since the demand function in this case isn't really known yet. I wish I had the demand/supply functions and then we could see where market equilibrium (the point at which supply meets demand) truly lies with this product

MN Moose

Well so far they are going to be the only company with an aftermarket shifter for the 2005 and up Mustang.

The thing is, they know they can get that amount of money for a nice ratchet shifter when no other company's are putting out a similar product. Hell, i'll probably buy it for $500.

As far as B&M goes, that thing is ugly and if it even comes out, i doubt they'll have a huge market.

kngdaka

Right, which is why the demand curve in this case would be interesting to me, because there's nothing out there like it. I mean, if they were really in business to make as many people happy as possible and get their brand out there, setting the price at $272 or $300 isn't a bad idea. But, like any business, they want to make money and you are right in that they are the only ones to have this out there, so they probably are justified in their price.

HOWEVER, all the economic analysis in the world isn't going to make this shifter look good[8D]