Sublime

The biggest challenge facing pricing in the modern world is overcapacity

“too many companies focusing on market share instead of profitable results.”3

“We’re getting out of the junk business, like employee pricing sales that boost market share but destroy residual values. It’s better to sell fewer cars at higher margins than more cars at lower margins. Selling five million vehicles at zero profit isn’t as good a proposition as selling four million vehicles at a profit.”

“One thing is clear to us: we are not going to pump the market full of cars when there is no demand for them. We always want to produce one car less than the market demands.”

People have asked me thousands of times to name the most important aspect of pricing. I answer with one word: “value.”