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cronkbogey · Dec 28th, 2003, 09:43 AM

Auto manufacturers should avoid using terms like "avoiding overquality". GM and Ford lost over 30% of the US auto market in recent decades because their attention to quality slipped and reliable imports proved a better alternative. Reliable cars continue to bring in profits to dealerships for many years. Many people can cite examples of a parent they know that encourags their child to buy the same safe and reliable make from a dealership that they have. And dealerships have made increased profits from used cars in recent years. A reliable pre-owned Honda Civic that is several years old still sells at a price that brings in profits. Customers who want that "new car feel" trade in their old and reliable model for a new one, and those that cannot afford the new model purchase the pre-owned one. Companies like Mercedes, Honda, and Toyota have practiced this varient of Dr. Ochy's "Z Theory" philosophy successfully for many years. Satisfied customers are loyal customers who want to tell their friends what a great car they have. That's why the dependable Model T or venerable Volkswagen Beatle had such a long run. Selling a high quality, long-lasting vehicle does bring increased revenue.

Dec 28th, 2003, 09:43 AM	#6 (permalink)
cronkbogey Nissan Enthusiast Join Date: May 2003 Location: Tennessee Posts: 56	Auto manufacturers should avoid using terms like "avoiding overquality". GM and Ford lost over 30% of the US auto market in recent decades because their attention to quality slipped and reliable imports proved a better alternative. Reliable cars continue to bring in profits to dealerships for many years. Many people can cite examples of a parent they know that encourags their child to buy the same safe and reliable make from a dealership that they have. And dealerships have made increased profits from used cars in recent years. A reliable pre-owned Honda Civic that is several years old still sells at a price that brings in profits. Customers who want that "new car feel" trade in their old and reliable model for a new one, and those that cannot afford the new model purchase the pre-owned one. Companies like Mercedes, Honda, and Toyota have practiced this varient of Dr. Ochy's "Z Theory" philosophy successfully for many years. Satisfied customers are loyal customers who want to tell their friends what a great car they have. That's why the dependable Model T or venerable Volkswagen Beatle had such a long run. Selling a high quality, long-lasting vehicle does bring increased revenue. __________________ ONWARD TO VICTORY!...or at least survival.