Re: Scaling noise

Timothy Miller
2003-09-10T14:41:37Z

Larry McVoy wrote:

>
> You don't make that much money, if any, on the high end, the R&D costs
> dominate. But you make money because people buy the middle of the road
> because you have the high end. If you don't, they feel uneasy that they
> can't grow with you. The high end enables the sales of the real money
> makers. It's pure marketing, the high end could be imaginary and as
> long as you convinced the customers you had it you'd be more profitable.
>

I think some time in the 90's, Chevy considered discontinuing the
Corvette. Then they realized that that would kill their business.
People who would never buy a Corvette buy other GM cars just because the
Corvette exists. Lots of reasons: It's an icon that people recognize,
it makes them feel that other Chevys will share some of the Corvette
quality, etc.