Premium Only Content
Why did the price of the Model T drop from $950 to $300?
A model T in 1908, when it was first introduced, cost about $950. 10,000 cars were produced. By 1924, they cost $300 each and 2 million units were produced.
In 1908, manufacturing would have been largely by hand. Gradually, more machines were introduced, which also reduced the complexity of manufacturing and assembly.
In 1913, production was moved from batch production to a continuously moving assembly line. By 1914, Ford was producing more cars than all other automakers combined. No advertising was purchased between 1917 and 1923.
By 1916, the price had dropped to $360, and by 1924, it was below $300.
The relationship between price reduction and demand expansion is asymmetrical. What this means is that a price cut of half or more will result in demand rising exponentially, but tens or hundreds or times.
Works Cited:
https://www.entrepreneur.com/growing-a-business/how-ford-created-a-huge-market-by-lowering-its-prices/282218
https://transportgeography.org/contents/chapter1/the-setting-of-global-transportation-systems/ford-cost-production-1908-1924/
Tags:
assembly line, ford, assembly line (invention), moving assembly line, ford motor company assembly line, ford motor company, ford factory, ford assembly line, ford puma assembly, assembly, henry ford, henry ford assembly line, inside ford assembly line, ford f 150 assembly line, ford f-150 assembly line, ford moving assembly line, ford assembly, asembly line, what is assembly line, what is an assembly line, car assembly line plant, business strategy, business, develop business strategy, marketing strategy, what is business strategy, retail business strategy, amazon business strategy, create a business strategy, small business, bsg business strategy guide, online business, business strategy in english
-
3:29
The Last Capitalist in Chicago
1 year ago $0.06 earnedAmericans are spending like there is no tomorrow
2012 -
59:44
PMG
1 day ago $2.20 earned"BETRAYAL - Johnson's New Spending Bill EXPANDS COVID Plandemic Powers"
38K10 -
6:48:50
Akademiks
15 hours agoKendrick Lamar and SZA disses Drake and BIG AK? HOLD UP! Diddy, Durk, JayZ update. Travis Hunter RUN
161K28 -
11:45:14
Right Side Broadcasting Network
9 days agoLIVE REPLAY: TPUSA's America Fest Conference: Day Three - 12/21/24
345K28 -
12:19
Tundra Tactical
15 hours ago $12.90 earnedDaniel Penny Beats Charges in NYC Subway Killing
66.1K12 -
29:53
MYLUNCHBREAK CHANNEL PAGE
1 day agoUnder The Necropolis - Pt 1
156K52 -
2:00:10
Bare Knuckle Fighting Championship
3 days agoCountdown to BKFC on DAZN HOLLYWOOD & FREE LIVE FIGHTS!
57.7K3 -
2:53:01
Jewels Jones Live ®
1 day agoA MAGA-NIFICENT YEAR | A Political Rendezvous - Ep. 103
151K36 -
29:54
Michael Franzese
18 hours agoCan Trump accomplish everything he promised? Piers Morgan Article Breakdown
136K64 -
2:08:19
Tactical Advisor
22 hours agoThe Vault Room Podcast 006 | Farwell 2024 New Plans for 2025
199K11