Re: Car Prices Disparity
Key sentence being - as Peachy correctly said - because the market will pay it.
I was recently an interview with a very successful medical company, and the marketing manager has given me a candid explanation for their prices. In CH, they can be as high as 50% of, lets say, Eastern Europe. It is not a question of higher manufacture or marketing costs - the margins were pretty sweet for CH Reason is that the Swiss can pay for, that they will pay for it, and above all, because they firmly believe a higher cost will translate into higher quality and product assurance (what I would call the Schweizer qualitaet myth). They are growing double digits in CH, so the strategy cannot be completely wrong...
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