Jverhelst
Member
I think its fast disappearing pricing model. It has worked well for Porsche for sure, but markets change. The ritual of customizing your car: the fact that most of their cars are custom ordered and their custom manufacture is obviously highly refined, though no doubt extremely costly too.
There has been a lot of research on choice in the market place; that too much choice actually leads to lower levels of purchase. It is believed, for example, that Trader Joe's industry topping revenues per square foot (and profits too) is related to the fact that they offer far less choice than traditional supermarkets. (3,000 SKUs versus 35,000 SKUs for an average supermarket, if I remember correctly).
On another front: the SAAS software market typically offers three choices: 'good, better, best'. I'm sure there is a lot of research behind this approach.
Sound familiar? It is exactly the approach Tesla takes!
I'm personally a big convert. I began to find Porsche's pricing approach really annoying. I always wanted the best but it began to grate on me that everything was extra.
I bought my Tesla with five clicks, total. Absolutely no choice other than color for me since I was committed to getting the fastest version I could, especially considering the princely sum of $6,000 for the privilege!
The automotive market is in the early stages of an incredible transition away from ownership towards autonomous transportation as a service. I think it will happen faster not slower than median expectations.
Too much choice is never good.. and indeed Porsche gives the consumer too many options.. an endless list of all sorts of options. On the other hand, Tesla could use a bit more personalisation