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How Carmakers Use Dynamic Pricing to Raise Margins
Episode 102 of Pricing Power Podcast explores how the automotive industry is adopting dynamic pricing — a strategy long used by airlines and hotels — to boost margins and manage inventory. Lucas and Luna break down Tesla's several price cuts in 2023 and 2024, Ford's experiment with dealer pricing flexibility on the F-150 Lightning, and the broader shift away from haggle-based pricing. They examine the risks: brand erosion, customer backlash, and the challenge of communicating frequent changes. Specific data points include Tesla's roughly 20% price cuts on Model Y in early 2023…
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