Quote:
Originally Posted by Vman455
I've never studied marketing, so apologies if this is something basic that all marketing majors know anyway. But, isn't there an inherent demand for something that would dictate the maximum number that a company could expect to sell? Say only 50,000 people in the US want something like an Arcimoto (three-wheeled EV with unenclosed body). Finding the relationship between price and demand such that the company could theoretically sell 100,000 of them when only 50,000 potential customers even want one would be moot, wouldn't it?
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I barely graduated HS, so my economics knowledge comes from a class I took my senior year and whatever I learn on my own...
What you say makes sense, though not precisely how you put it. If the Arcimoto was free, there would be way more than 50k customers, so price always plays a factor in demand. There might even be people somewhere that wouldn't take a free one, but would if you paid them. Then there's probably a few that would be willing to pay $50,000 for one.
What price would it have to be to sell 50k units in the first year? I'd think it would have to be pretty low considering that most people aren't willing to drive a small trike, with no heating/AC, with limited storage...
It's a very fun car, but I probably wouldn't entertain owning one unless it got down to $5k or so. I can buy a used Nissan leaf for that price, and it has most of the utility and safety of a conventional car.