In article >, Michael Johnson, PE wrote:

> The market price of any Ford vehicle is virtually unaffected by dealer
> allotments.

Rationing affects market price.

> The allotment system for popular vehicles is Ford's way of
> rewarding certain dealers for their performance and not as a way of
> controlling prices. The price is set by what the consumer is willing to
> pay.

Yes, it rewards the dealers by rationing the goods which increases their
price and dealer profit should the dealer do so. If the cars were not
rationed, the dealers that sold at MSRP would drive down the market
price. But since they are rationed, the MSRP selling dealerships run
through their allotments quickly allowing the others to add 20K to the
sticker.

> You are applying the free market definition to a very specific company
> and a very narrow circumstance.

Let's see, you and others are telling me it's the free market and I
should love it. It's not a free market situation. It's a rationing
situation.

> You are not obliged to buy a GT500.

I haven't stated otherwise and I am growing quite tired at this continual
sidetrack of yours. That doesn't change the fact that the additional
profit dealers are tacking on does not come from a free market situation.

> You have the ability to choose a Corvette, Mercedes, BMW or any other
> car you choose as a substitute if you aren't willing to pay a dealer's
> price.

And that's likely what will happen.

> This is the free market, or supply and demand, forces at play
> that really sets the price of a GT500.

But there is no free market between _independently owned_ Ford dealers.

> You need to take off your
> blinders and see the entire playing field.

I see the whole field thank you very much. Could you please stop
constructing this strawman?

> Then you might see how
> supply and demand, along with the dealer's, and Ford's, right to
> maximize profits is determining the price of the GT500. This isn't a
> rare case. It happens with nearly every item we purchase.

Ford isn't maximizing anything but their losses. MSRP is where _FORD_
thinks it will _MAXIMIZE_ it's profits. If Ford thought that maximium
profits were at $65K, that's what MSRP would be.

Then again look who I am discussing this with, someone who thinks highest
unit price is always maximum profit. It's not.

<snip, unread>