See, GM raises prices because they can


GM raises price of some '07s | Chicago Tribune:

The other day, I complained about how GM was “forced” to raise prices due to materials cost increases and how wrong that concept is.

Yesterday's Chicago Tribune explained it better:

“‘GM sales are doing a little better than they thought and so GM felt it was in a strong enough position to increase prices a bit to make a little money,' noted Jim Hossack, vice president of research and consulting firm AutoPacific.”

There is nothing wrong with this. If GM thinks it is reading the market (and remember, the market sets prices), then GM is right to increase prices. Why? Because they can.

THAT is how the free market works. Not increasing prices because you “have to” because you're entitled to a given profit level. You raise prices because you can.

Why is an iPod $249? Because lots of people are willing to pay that. Why is a given car worth $24,999? Because people are willing to pay that. Why is a given house worth $249,000? Because one person is willing to pay that. It's all the marketplace talking, not the sellers “setting” prices.

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.


Get New Posts Sent To You

Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. His latest book is Measures of Success: React Less, Lead Better, Improve More. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. He also published the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.