Why are SL's expensive....

[N7OGP]

... i saw a SL350 £71.000. when you can buy an E class estate with more metal, more glass, more leather, and 3 more seats for half the price.

 

[Stratman]

The SL production line has as many machines and people as the E's but will produce far fewer cars, so the unit cost will be much higher.

Having said that, long gone are the days when the price was "manafacturing cost plus decent markup". Now it's "What will the market stand?"

 

[vincenz]

... i saw a SL350 £71.000. when you can buy an E class estate with more metal, more glass, more leather, and 3 more seats for half the price.

Its expensive because your paying a premium (if that makes sense).

When you think about it, if Ferrari made the 458 on the same scale as a BMW 3 series the piece price of it would drop drastically and (by cost) you could make a profit on them for selling them at £40k (mid range 3 series money).

If your smart, you can make money on selling 1/10 as many vehicles, because thats 1/10 as many vehicles to hold in stock (before being bought), to warrant, yet by keeping supply short it keeps residuals high and for people to aspire to.

However, if you accept your place within the sector then you know people will not necessarily pay hand over fist for a badge you can get for £15k, (i.e. A/B class money) but people will pay £60-80k, so the Mercedes SL makes sense.

As a manufacturer you can offer a sports like car that the sector and people will pay upwards of £60k (new) yet incorporate technologies from lesser models (to maximise profit) and still draw on the heritage the SL nameplate has.

Although there is less physical raw material to produce the car and economies of scale play a part, the reason its sold in the volumes it is to create a halo product within the brand.

 

[JohnDeere8530]

good answers

 

[Satch]

good answers

Indeed and should count yourself lucky.

Otherwise any number of existing SL owners would be happy to show how much boot space is left when the roof retracts by putting you in it.

 

[Rory]

... i saw a SL350 £71.000. when you can buy an E class estate with more metal, more glass, more leather, and 3 more seats for half the price.

CLS vs E Class seems bonkers to me. It's the same car, with one less seat, for £10K more.

There was apparently a very nice SL500 388PS 7-spd, 2006/56, 22k miles at Blackbushe yesterday, which sold for £29,400.

 

[corned]

... i saw a SL350 £71.000. when you can buy an E class estate with more metal, more glass, more leather, and 3 more seats for half the price.

You really need to read the work of Milton Friedman! And you too, Rory!

The laws of supply and demand; market forces, desirability. The price of a commodity has more influence from these than raw cost (depending on which industry it relates to of course).

In the fashion accessory business, in which the majority of the motor industry resides, these influences take precedence over basic 'cost plus markup' requirements.

 

[Mudster]

In the fashion accessory business, in which the majority of the motor industry resides, these influences take precedence over basic 'cost plus markup' requirements.

Louis Vuitton is the most extreme example of this.

I understand people wanting quality and exclusivity, it's why you'd get a suit in Saville Row....but Louis Vuitton? Really I've never got my head around that, it's not even leather either, it's all made of a "special" plastic.