Audi
A German carmaker that launched the Q7 SUV.
Where Audi comes up1 book
From Book case on Audi's Q7 launch pricing
What was said about Audi
Audi priced the Q7 below what its demand supported. Audi launched the Q7 at €55,000 with demand of 80,000 units against capacity of 70,000. At €58,000 it would have earned about €210 million more a year.
The book treats this as a sign of underpricing: when demand outruns capacity, sales are easy. It advises pricing on the value created for customers rather than cost plus margin, and raising an underpriced price in small steps paired with improvements. Quote: "With minivations, failure can masquerade as success."
Monetizing Innovation: How Smart Companies Design the Product Around the Price
It launched the Q7 at €55,000 with demand of 80,000 against capacity of 70,000. At €58,000 it would have earned €210 million more a year.
Audi priced the Q7 below what its demand supported. Audi launched the Q7 at €55,000 with demand of 80,000 units against capacity of 70,000. At €58,000 it would have earned about €210 million more a year.
The book treats this as a sign of underpricing: when demand outruns capacity, sales are easy. It advises pricing on the value created for customers rather than cost plus margin, and raising an underpriced price in small steps paired with improvements. Quote: "With minivations, failure can masquerade as success."
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