I mean there are two ways of look at it one LAUNCH the product at a higher price, get the maximum profit as coz of no compitition in its class n then gradually decrease the price to maintan the sales and fight compitition.OTHER WAY round is LAUNCH the product at lower cost TRAP YOUR TARGET MARKET(TWO WHEELER), and also this will move the existing market(CAR SEGMENT) towards your product. They will soon follow your trend but R&D cost in 2008 and now differs by say 15% which certainly means compititor will have to launch the product by 20% hike as to earn profit. and this is the time when the existing manufacturer can increase the price to earn MAX'profit either by value addition to existing product or by launching new varients(Diesel or CNG or any new technology by then..).
Kindly comment if i am wrong on my approach of thinking!!!! needless to add "WELL DONE TATA"...
No one had an inch of thought about what is TATA's strategy on NANO. Normally an automobile company would earn a lot more profit on spare parts and services than on the automobile itself So, REALIZE guys. The spare parts that are made for NANO are unique. You need to go back to TATA service showroom for them. So, TATA's are aggregating their profits.
I believe the price of NANO would not be hiked at least for the near future.
guys, everyone knows that its difficult to sell nano at 1 lakh for tatas, its just a gimmick to show, dont its prices will definitely go up, whereas my other friends are having some issues, asking people to work for same salary & what not.
but one more thing is there that the prices should grow with rate of price appreciation & salary appreciation,
i dont think so that many of us who were working at X salary in 2004 after 3 years have got their salrey doubled or 3 times.
So guys, this is business. Tata has already build a brand before spending a penny,
Think smart and do what u like - as he will do what he thinks best for him.
If u like nano buy or if u feel its costly forget it yaar,
Tata has passed the first test of creating Hype. In India, today publicity is the most important factor... product sells once it is advertised successfully. Its not that Tata has this car in market to serve the people and help people to fuilfil their dreams. Its has one purpose i.e to earn money. Irrespective of what happens later.. Tata has passed the first test.....
HI BUDDY CONGRATS FOR A VIEW DIFFERENT FROM THE MASSES, WHEN I FISRT SHARED MY VIEWS NO ONE BELIEVED IT BUT NOW I HAVE SOME SUPPORTERS. 1 WHY WILL NANO BE SOLD AT 1 LAKH IN THE LONG RUN IF THE OTHER CHEAPEST CAR IS AT 2 LAKH THIS IS A OPPURTUNITY LOSS. 2 DIFFICULT TO MAINTAIN THE PRICES 1 YEAR DOEN THE LINE WHEN ACTUALLY THE CAR COMES ON THE ROAD. 3 THERE IS NO SENSE SELLING IT AT 1 LAKH WHEN PEOPLE ARE PAYING 2 LAKH FOR A CARD HAVING 80% MARKET SHARE. TATAS GOT THERE CALCULATION WRONG AND WE WILL SEE IT CORRECTING BY END OF THE YEAR WHEN THEY START BUILDING THE CAR. REGARDS MANGESH DESAI
I fail to understand a person like Govindraj missed out the basics. Ginger is not a new concept from Taj. It is basically a new version of the Gateway hotels they had launched in the late 80s. Ajit Kerkar and Camellia Punjabi were the people behind the concept behind the no frills hotels. But like Ginger, the no frills Gateway had to introduce room service, laundry and all the other frills. The result - prices at which the room was sold went through the roof. So Mr Ethiraj, I expected better things from you. Please do some research before you write an article.
YES, Tata can promise the price of Rs.1 lakh for the next 50 years provided: 1. the employees work on the same salary of 2007 2. the power charges, taxes, remaint the same as of 2007 3. the raw materials suppliers supply the materials at the same price as of 2007 4. whoever is connected with the Tata 1 lakh car assures uninterrepted service/supply at the same price as of 2007
RE:yes, Tatas will - provided
by Chanakya on Jan 22, 2008 10:06 AM
Tatas will peg the price at Rs.1 lakh until then. Compare to any other business conglomerate, Tatas has been sincere, layal and doing business with integrity. let us not forget that.
Dear Govindraj, would your commit or would like to remain at the same salary what you got till your retirement? One should appreciate that Tata could launch a car at Rs.1 lakh. for the years to come, with the increase in salaries and operating cost, tax etc. there could be a 10% hike or so every year - but that too is affordable compared to the cost hike by other car manufacturers etc. Manufacturers can never promise a price for ever on any items since the final cost depends upon many parameters some are within their control and some are out of their control.
RE:i don't find any sense in this article
by Proudly Indian on Jan 22, 2008 10:11 AM
Tatas need not sell THE CAR for 1 lac for N number of years! What was the cost of a Bajaj/Hero Honda Bike before 10 years??10 years it has increase around 25%! I bought a Baraja Champion for 40k in 2007!Mr.Govindraj's points are valid. The market will decide the price! Tata can increase the price as per their production costs, inflation etc.! But still the price will be very attractive and affordable to the middle class! I think the govt.should give some kind of tax exceptions for the CAR!
RE:RE:i don't find any sense in this article
by Chanakya on Jan 22, 2008 10:25 AM
I agree here... however, even if the price increases to about 50-60% in the next 3 years, still Tata car would be cheaper compared to any other cars in INdia.
RE:i don't find any sense in this article
by Ranjit Kumar Patnaik on Jan 22, 2008 09:54 AM
How can you find sense when your name itself does not make sense. You have read the article without an open mind. The author is talking fo 100% jump in Ginger's room tariff in just 2-3 years. And let me tell you, Ginger has not provided any additional facility after the price hike.
RE:i don't find any sense in this article
by sourabh jain on Jan 22, 2008 10:16 AM
Please compare your salary in 2004 with the present one and you will realise the reason behind price hike.
RE:i don't find any sense in this article
by Chanakya on Jan 22, 2008 09:59 AM
Ranjit - sense and common sense are different - unfortunately you lack the later... did any time Ginger promise to keep the Rs.1000/- room for years? nobody can do that, and in India in particular, where FMs like PC comes out with various taxes and cesses at his own will and wish. A price could be stagnant provided the services/supplies cost are also stagnant.
RE:i don't find any sense in this article
by Ranjit Kumar Patnaik on Jan 22, 2008 10:09 AM
You seem to lack both. I was trying to tell you that a hike can be 20% to 30 % at the most in 3 years..not more than 100%. Got my point now ?
RE:i don't find any sense in this article
by Ranjit Kumar Patnaik on Jan 22, 2008 10:21 AM
Comparing salary hike with hike in price of a car ?? Carzy Man...
