Stop in to my local HD dealer yesterday. Showroom was pretty much empty of customers. Probably less than 30 new rides on the floor. I picked up a couple new hats and walked over to check out the new hardware.
$999.00 appearance package and $500.00 HD market adjustment was added to the price.

This morning I went to the local cars and coffee meetup. There were two new car dealers represented there with salesman and their offerings. One of them a local KIA dealer showing a 2022 KIA stinger msrp $53,000.
Added to that $3,500.00 market adjustment.

I feel bad for those who pay it, which is usually the people who ask how much a month, not how much. I hate being good with my money because that puts me out. I wont do it. Not to mention how much prices have gone up in restaurants both sit down and fast food.

Has anyone else paid attention? Are you pulling away from the table like myself?

 

OK...so I'll be one to ask:
What the hell is a "market adjustment"...who determines what it will be and who puts it on the sticker ???

 

This is just a guess but , for lack of a better term, market adjustment says this to us: Hey, the true value of a product (or real estate btw) is set by what a willing buyer and seller agree on. So when demand exceeds supply, market adjustment adder is a way of saying "This is our way of making sure we don't leave money on the table". Now then, if the seller has set prices too high they will not make sales, and will lose money by sitting on un sold inventory. In reality, the sellers are pretty sure they can sell over MSRP, they just don't know by how much over, so they raise the "list price" .Maybe someone won't quibble, and just pay their top price. If not enough people will pay the market adjustment, or if not enough people at least make offers , the market adjustment will shrink or dis appear. This is simple, basic economics at work nothing more. If you think the price is too high, just hold on until the price comes down. You would never sell your motorcycle or house foe less "the going rate" would you? Why should anyone else? Let them go broke or succeed based on their business ability to react to market conditions. Prices for most everything fluctuate, and a free market place is the absolute fairest and efficient way to balance supply and demand. Don't blame the messenger (retailer) for screwed up inflationary pricing, put blame where it belongs, on governmental over regulation and horrible monetary and social policies.

 

Very good explanation of free market and capitalism. The majority of businesses do the same. Everything from hotels, airlines to skilled tradesmen change prices based on demand. They take the risk of starting a business and surviving during the lean years. They have the right to make money during the good years. For all the faults of government, they do protect somewhat against gouging during disasters and monopoly pricing, e.g. utilities. You are right, the Feds are responsible for managing inflation. However, inflation is not main driver of these price increases, it is as you said, good old supply and demand.

 

Just my opinion... it's price gouging plain and simple.

Kia was perfectly happy setting the price and making a profit on the Stinger at $53,000. Now since they believe there aren't alot of them to go around suddenly they think their entitled to another $3500 for the same car produced at the same cost. Same for Harley Davidson. That's price gouging.

On September 11th when the World Trade Center was destroyed, several gas stations here in Indianapolis immediately jacked up gasoline prices that afternoon to $5.00/gallon. I have read there is a 45 day supply of oil 'in the pipeline' so there could not have been any real shortage for a month or so. That was price gouging, and they put a stop to that **** REAL quick. Several station owners paid a hefty fine if I recall correctly.

Almost every year gas stations here start jacking up prices in late April on the ASSUMPTION there COULD be a shortage of gasoline because of the stupid race they have here every May. There is no shortage until there is actually a shortage, but they want to gouge people well... because they can. Then as soon as the month of May is over gas prices fall.

Gas stations are perfectly happy selling gas for say $2.50/gallon. A station close by receives a new load of fuel at a higher price and sets their price accordingly. Suddenly all stations jack up their price on fuel they already had in the ground and were perfectly happy selling for $2.50/gallon. THAT'S price gouging.

We all **** and moan about government intrusion into private business, and the massive regulations they impose. Well, it's things like this that drive it. You'd think they'd learn...

 

Economics 101: supply and demand. This is how free markets work.

 

Personally, I differentiate between gouging vs free market pricing. Absolutely agree that when retailers take advantage of shortages for NECESSITIES like gas, or bottled water, even toilet paper , that is despicable and stealing at gunpoint, the difference is the form of the gun. When a gun is pointed at you, your option are very limited. But when it comes to DISCRETIONARY purchase, cars, motorcycles, etc, that is free market pricing. Keyword is FREE market, vs FORCED market

 

nothing new under the sun!
this has been going on since the seventies!! remember the first oil embargo???
long gone the contracts with oil companies and now enters the spot market, why???
i worked for amoco and we had to meet our contract or pay penalties so we had to buy products from others and sell at a loss, still cheaper than not meeting contract!!
did it stop there???, nope!!!
now comes the electric and natural gas companies. now gone the flat rate per kwh and cu/ft and now enters base rate and fuel adjustment cost. so now if you do not use 1 watt or 1 cu/ft gas, the company still gets their operating fee and if you do use and power, the fuel they used is passed on to you.
americans are stupid because they let this happen!!
every studied the driving force behind the MSRP???
goes back to the oil embargo. we americans produced fuel guzzling barges of a car and yet japan had fuel saving lite weight cars. now the 500 dollar so called trash car went for thousands and we could not get enough of them and american cars sat on lots or sold for under cost.
did we americans learn anything from it, well simply NO!! down the road another embargo and a repeat!!!
has anything changed??? nope gets worst every year!@!! just look at this covid mess, americans are simply not smart.
as a parent, we are supposed to die for our child if needed but if one is presupposed to let one die then i say the filament in the brain has burned out so the bulb needs to go to the trash!

 

The Harley dealer I once worked for priced the then new Heritage Springer at $25,000 back in '97. He loaded every new 2002 V-Rod with saddlebags and windshields before he ever put one on the floor. He sold everything those 2 times. Nobody put a gun to any buyers head back then.

This is simply tried and true capitalism when it comes to boys and their toys (but it does not apply to necessities, gasoline or toilet paper, without an actual supply issue in play.) That's the diff between capitalism and gouging.

 

The dealers set the market adjustment, the manufacturer gets none of it.