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by SilasX 1688 days ago
It’s the opposite:

Normal market: “this product costs $2.60.”

‘Wasn’t it like, $2.10 a week ago?’

“Yes it was.”

Cars:

“This car is $26k. Oh, also you have to pay a $2k market adjustment, because man things are just crazy.”

That is, in normal markets, you just raise the price, you don’t need to refer to an explicit “market adjustment”, especially not as a random addon.

3 comments

On a used car, they do as you describe. On a new car, the sticker generally starts with something like “manufacturer’s suggested base price” then various options, then local adjustments. You can’t just claim that the manufacturer’s suggested base price is $2K higher than it actually is.
I mean you _could_. MSRP is not unique to cars. Graphics cards are sold in online stores for higher than MSRP. It's just not something that dealers are likely to do, because they gravitate towards fees over changing the price.
My claim was simpler. If Ford’s MSRP is $35K and you write up a window sticker representing that Ford MSRP is actually $37K, you’re committing fraud and of a type that will be easily discovered and proven.

So you instead write it as $35K and tack on “market adjustment” or “additional dealer profit” or whatever else of $2K.

It's completely fair to raise the price due to supply and demand, just as its fair to lower it. I don't think you are objecting to that, in either direction. But your complaint that it should just be called the price is a bit puzzling. Honestly, what do you (anyone) care what it's called? It's not a random addon, it's a carefully calculated (and continually tested) clearing price.

Normal market car pricing: "This car costs $26k. Oh also, we are giving $2k off because man we have so many of these. And so does the dealer in the next county over. Please buy from us. Today."

This is normal because discounts motivate buying behaviors, not because car manufacturers are laughably bad at setting MSRP. But also, it's critical for prices to be flexible regionally, and faster than the manufacturer can declare what the fair price should be.

Saturn famously tried non negotiable national sticker pricing. Just like Sears tried having no sales whatsoever. Both had to revert to standard pricing behavior.

My point? In a normal market, the sticker price is not the price.

Most markets don’t put you through that garbage, no.

And it’s not fair to advertise one price and add on a market adjustment when someone asks to buy it.

This is an industry famous for charging a small fortune for BS undercoatings. For Doc fees, Nitrogen air in tires, destination fees etc.
Rust-prevention undercoatings aren't BS. They really work if re-applied regularly.