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Old Nov 28, 2004 | 03:19 AM
  #11  
Reflexx's Avatar
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From: Oxnard
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You just need it to flow a little better. I do get the idea of what you're talking about, but it takes a little effort. You need to focus on a path and follow that path. Mention your S2000 and how you noticed that there were a lack of performance parts. Support this. Mention your sub $20,000 theory. Give supporting data and what conclusions you've come up with regarding each set of data. Then talk about your prediction that there will be more parts available for your S2000 in the near future.
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Old Nov 28, 2004 | 09:01 AM
  #12  
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From: Okoboji
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Originally Posted by steven975,Nov 28 2004, 01:08 AM
actually he is on to something. There is a point where a car picks up interest among younger people, mostly due to affordability. I don't know that point, but $20K is a psychological barrier no doubt. 19,999 seems like a lot less than 20K at first blush (that's why things are priced at X.99; there are many studies that confirm the psychological effects).

Is the "magic number" 20K? Who knows, but it is a good theory. Hell ,the magic number could be anything, but there IS a point where the derivative of demand takes a sharp increase. Part of his argument was when a car falls under the "magic number" it has a higher perceived affordability and thus more demand. The S2000 is a car that young people are extremely interested in, no doubt. If more young people think they can afford it, more will buy it, and when the S2000 hits a saturation point as far as the number or "tuner owners" go, you will see more parts produced.

There is a lot of established economic theory to back up his argument, but the argument of tuner suppliers suddenly producing S2000 parts may not be true (or it may be). FYI my degree is in economics.
Sure, I agree that there is a psychological barrier of cracking $20,000.

BUT. The hypothesis is that there is a MAGIC $20k where there is a marked change in the demand curve.

And my point is that there is no included evidence to show that there is a disproportionate difference in demand between a $20,500 car and a $19,500 car....


Without a "poll" of tuner kids or companies, his point becomes:

"When cars get older and cheaper, more young people can afford them."

Duh. That's a no brainer.
But he's trying to support that there is a distinct shift in the slope of the demand curve once the price is below $20,000. Without evidence, I'm not buying that it's not an even drop.
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Old Nov 28, 2004 | 06:45 PM
  #13  
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it would be damn near impossible to prove, but chances are it is at the 20K mark. 20,000 is a definite psychological barrier. It is any time you change a digit...the change is more pronounced as the left-most digits change, and 20000 to 19999 is a change on the 5th digit, which is undoubtedly significant.

again, you can't prove it, but if there is a point at which demand picks up, it is most LIKELY that point.

proving that increased youth demand will lead to aftermarket support is a whole other can of worms.
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