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Caddy sales psychology?

Started by jwwseville60, February 03, 2023, 01:09:28 PM

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jwwseville60

What is the psychology behind raising prices on nice cars that have been listed for almost two years?

This nice CDV was listed at $42K two months ago, and is still advertised as $32K on the sellers website.
It is now listed for $59,000.

WTF?

Screenshot 2023-02-03 at 1.01.37 PM.png
1960 Eldorado Seville, Copper, "IKE"
1961 CDV, gold, "Goldfinger"
1964 Eldorado, Turquoise, "Billy the Squid"
1963 De Ville Station Wagon Vista roof, silver blue, "Race Bannon"
1963 Fleetwood 60S, turquoise, "The Miami Special"
1959 Sedan Deville flat top, tan, "Jupiter-2"
1947 Caddy Sedanette 62, black, "Johnny Cash"
1970 ASC Fleetwood wagon, dark blue, "Iron Maiden"
Lifetime CLC

fishnjim

We had a low volume product that was a PITA to make, and we needed capacity for other products and the marketing manager said, no problem, he'd raise the price and force it out, live off the inventory, then kill it.
Well, sales were never brisker after that price hike.   
Offer 'em half!   

jwwseville60

Ive seen more than a few good condition Caddies hike their price in the last 8 months.
Very strange tactic.
Are dealers using  the scarcity of good cars as a crowbar into our wallets?
1960 Eldorado Seville, Copper, "IKE"
1961 CDV, gold, "Goldfinger"
1964 Eldorado, Turquoise, "Billy the Squid"
1963 De Ville Station Wagon Vista roof, silver blue, "Race Bannon"
1963 Fleetwood 60S, turquoise, "The Miami Special"
1959 Sedan Deville flat top, tan, "Jupiter-2"
1947 Caddy Sedanette 62, black, "Johnny Cash"
1970 ASC Fleetwood wagon, dark blue, "Iron Maiden"
Lifetime CLC

Eric DeVirgilis CLC# 8621

I have no idea what this seller's strategy is. If the car has been offered for sale for years, that's about as clear an indication as any that the seller is whistling Dixie at either price.
A Cadillac Motorcar is a Possession for which there is no Acceptable Substitute

The Tassie Devil(le)

It is all about getting value for the object.

When things Appreciate in value, as against Depreciate, then one would be stupid not to increase the price.   And some cars, as they get older, do Appreciate in perceived value.   Take a 1959 Cadillac.   10 years ago, they were selling for less than they are now.   As against a 2013 Cadillac that was new, has depreciated.   40 years time, that same 2013 Cadillac might actually Appreciate in value.   If only we knew.   

Just look at the 1976 Eldorado Convertibles.   Investors were counting on them making money, but, sadly, not the case. 

Bruce. >:D
'72 Eldorado Convertible (LHD)
'70 Ranchero Squire (RHD)
'74 Chris Craft Gull Wing (SH)
'02 VX Series II Holden Commodore SS Sedan
(Past President Modified Chapter)

Past Cars of significance - to me
1935 Ford 3 Window Coupe
1936 Ford 5 Window Coupe
1937 Chevrolet Sports Coupe
1955 Chevrolet Convertible
1959 Ford Fairlane Ranch Wagon
1960 Cadillac CDV
1972 Cadillac Eldorado Coupe

Lexi

Quote from: The Tassie Devil(le) on February 03, 2023, 07:18:32 PMJust look at the 1976 Eldorado Convertibles.   Investors were counting on them making money, but, sadly, not the case. 

Bruce. >:D

Back in the defunct Cadillac Club of Canada we discussed at lenght the '76 Eldo when it was brand new in 1976, as a long term investment. Afterall it was big news for Caddy fans such as ourselves. The unamimous consensus even then was that it had little or no significant investment potential. That was our opinion. Even then people were hoarding them hoping for a big future payday. We reasoned that 40 years or so down the road, there will be a gazillion of them turning up so supply/demand issues would come into play. We were also not sure how long Cadillac could resist bringing a convertible back, at least in some way, which would also not help if one was counting on the '76 Eldo as being the last Caddy rag top. I guess the American Sunroof Cadillacs may have further dampened the '76 Eldo investment potential. My buddy owned a 1984 Eldo convertible, (yes with the horrid 4100 engine but it was still a sharp and stylish automobile).

Attached is a link that discusses the lawsuit that angry '76 Eldo owners launched against GM when they learned of the 1984 Eldo convertble that GM had planned. Very interesting Cadillac historical reading with a fantastic perspective on both the collective and corporate mind set at the time. I think it goes to show that unless you have unlimited funds and resources, buy something because you like it and not as an investment. You never know when things will go south. Clay/Lexi

https://www.washingtonpost.com/archive/local/1984/07/19/last-convertible-buyers-sue-gm-charging-fraudulent-advertising/64b95912-f4da-43ea-bfb6-1118601d4ce4/?utm_term=.c18adf514246

tmdeturck

I would speculate that the psychology is no different here than any other commodity for sale.  We see things being listed all the time (and sometimes selling) for higher and higher prices because the seller sees other similar things for sale at elevated prices, and perceives that their item is worth the same or better asking price.  If the seller is factoring into the price their costs for thinks like maintenance, storage and advertising, and figuring that the sale must cover those costs, the conclusion would be to keep increasing the price the longer it doesn't sell.  There is a point, however, at which the ask is beyond the reasonable, or obtainable.
1963 Series 6229
1937 Series 6019

Lexi

Yes, see it on the internet all the time. As great as the net is for locating hard to find parts and collectible objects, it has had an inflationary effect on those items. Clay/Lexi

Michael Petti

Maybe he is using it to generate traffic to his business and has no real desire to sell.

The Tassie Devil(le)

Or if the wife/partner/husband is wanting it sold, simply putting an exhorbitant price, it will never sell, but at least he/she can say they tried.

Bruce. >:D
'72 Eldorado Convertible (LHD)
'70 Ranchero Squire (RHD)
'74 Chris Craft Gull Wing (SH)
'02 VX Series II Holden Commodore SS Sedan
(Past President Modified Chapter)

Past Cars of significance - to me
1935 Ford 3 Window Coupe
1936 Ford 5 Window Coupe
1937 Chevrolet Sports Coupe
1955 Chevrolet Convertible
1959 Ford Fairlane Ranch Wagon
1960 Cadillac CDV
1972 Cadillac Eldorado Coupe

jwwseville60

Seems like mostly dealers are the ones raising prices.
1960 Eldorado Seville, Copper, "IKE"
1961 CDV, gold, "Goldfinger"
1964 Eldorado, Turquoise, "Billy the Squid"
1963 De Ville Station Wagon Vista roof, silver blue, "Race Bannon"
1963 Fleetwood 60S, turquoise, "The Miami Special"
1959 Sedan Deville flat top, tan, "Jupiter-2"
1947 Caddy Sedanette 62, black, "Johnny Cash"
1970 ASC Fleetwood wagon, dark blue, "Iron Maiden"
Lifetime CLC

billyoung

In my humble opinion these Cadillac's of old are most precious to those with personal memories of them and are most enjoyed when driven. Recently people have arbitrarily raised prices from the high to Ludacris and therefor out of reach to many who now much older cannot even think of purchasing. This is too bad as I doubt that in the future many will care about these cars as the population marches ever further away from gasoline powered cars especially ones that get 10 to 12 MPG.
Age 68, Living in Gods waiting room ( Florida ) Owned over 40 Old Cadillac's from 1955's to 1990 Brougham's. Currently own a 1968 Cadillac DeVille Convertible and a 1992 Cadillac 5.7 Brougham.

64\/54Cadillacking

#12
Dealers are greedy and delusional at best. I've seen some truly bad cars for sale locally at used car lots just to gauge what's out there and the kind of vehicles that are selling.

For the most part, CUV's are still very popular on the market and asking prices are usually much higher than a similar year sedan. But what is still asinine is how much certain dealers are asking for say a 2012 GMC Arcadia with over 120K miles, they want $15,000. Are you effin kidding me??

So I can't imagine how insane some of the prices are for our old Cads. Supply and demand does have a lot to do with it, but it also has a lot to do with popularity.

An item can be rare, but yet never sell. It's like they're specific year Cadillacs I would gladly pay top dollar in excellent condition for if I was wealthy. On the other hand, they're certain year Cads that are also lovely machines, but I wouldn't pay the same kind money for.

It's all relative. And of course the more that time passes by, the less of them are out there for whatever reasons.

For example, a gas station down the street from me partially caught on fire just last night!!  All because some homeless A-Holes purposely set an RV on fire and ran off. The RV had expired tags, and wasn't registered in years. Imagine if a nice classic was parked next to the RV?

Massive amounts of damage occurred to the gas station and 2 nearby cars that burned up from the heat alone.

The point is, anything can take out our cars, be it a fire, or an accident, which over a long period of time causes a shortage of nice old Cadillacs to chose from.

It's still no excuse however to continue to raise prices on something "just because" when it's not even selling. Common sense will tell you to lower the price to get it off of your hands as quickly as possible.
Currently Rides:
1964 Sedan Deville
1954 Cadillac Fleetwood 60 Special
1979 Lincoln Mark V Cartier Designer Series
2007 Lexus LS 460L (extended wheelbase edition)

Previous Rides:
1987 Brougham D' Elegance
1994 Fleetwood Bro
1972 Sedan Deville
1968 Coupe Deville
1961 Lincoln Continental
1993 Lincoln Town Car Signature Series
1978 Lincoln Continental ( R.I.P.) 1978-2024 😞

bctexas

#13
Quote from: jwwseville60 on February 03, 2023, 01:09:28 PMWhat is the psychology behind raising prices on nice cars that have been listed for almost two years?

This nice CDV was listed at $42K two months ago, and is still advertised as $32K on the sellers website.
It is now listed for $59,000.

WTF?


Seller had probably just finished watching Mecum and Barrett Jackson and figured his car had to be much more valuable given what he saw people pay on TV.....
1965 CDV
1970 SDV