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      01-18-2020, 03:37 AM   #6
RVAGuy
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Quote:
Originally Posted by scotchy View Post
I was talking to someone about this from Switzerland (specifically about Mercedes and how much more his was than mine in the Canadian market) and he said pricing is based off the specific countries net average income. When you look at cost of living/incomes in various countries, often where the vehicles are priced significantly higher you'll see a much higher local purchasing power than countries where they cost less.
I don't know if there's any truth to that being how the pricing is done though.

If you like numbers, go to numbeo.com and you can compare various cities/countries, it's pretty interesting.
While the pricing to “local purchasing power” conceptually makes sense, it has to be more nuanced than that. I’m curious now if all BMW models in Canada are discounted the same percent or does the discount %’age vary based on price point: higher % for 3 series and lower for 7 series. Also, they probably have to price to achieve a certain volume level to maintain the dealer network. If the CND strengthened to parity with the USD (where it was pre 2015), would they reduce the discount %’age despite no change in local purchasing power?
My curiosity is more “profit” vs “numbers” related as I used to work in the finance area for an international company.
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