Why has Ferrari abandoned the upper middle class ?

Dude (Am I using this term correctly? I'm trying to connect with these younger folks, but I dunno. It is probably a waste of time. I still get grossed out by tattoos.)

Ferrari has NEVER been for the middle class -- upper, middle or lower.

A wise man told me a long time ago that there are only two reasons for buying a Ferrari. One because you want to, and two because you can.

Jus sayin.

Dale

 

jerry,

i think that is a bit antiquated...seems that would be a solid middle class number.

there was a time however the number you mention would have been an upper middle class representation however i think that would have been approx 10 yrs ago.

pcb

 

I find it interesting that, in other sections of this board, people complain that Ferrari is building too many cars, and cheapening the brand through dilution. Building 5-6000/year cars seems to be perceived as too many.

Yet, the direction of this thread seems to be that Ferrari should build more cars each year?

 

This is really a pointless thread. New Ferraris have always been largely out of reach for the up-mid class. In 1981, $55K for a 308 was big bucks, as was $12K for a 250 GTE in 1961.

If I was worth $10 mil, I still wouldn't buy a new Ferrari for list or higher price and watch it depreciate $100K or more over the following three or four years.

The only way to Ferrari ownership for the middle classes is the "pre-owned" route. If you can handle the purchase and mantenance, there many good and reasonably priced cars to choose from.

 

Really? Tell the 288 GTO and F40s that ;-)

Also, the Daytona was the fastest production car in the world for a time.

 

The late 80s were not a good time for Ferrari. In the early days, i.e., before Fiat, Ferrari was strictly for the "Jet Set." (Sounds quaint, no?) But, by the 80s, things were not so good.

But, ever since Luca Montezemolo took over, the world has been a different place for Ferrari. And more power to em.

However, don't ever make the mistake of thinking that Ferrari gives a rat's behind about you and I, because they don't.

It's an Eye-tal-yan thang.

Dale

 

Yeah, but...

How many 3X8s did Ferrari sell compared to 288s and F40s?

Fact: Ferrari had to beg the guy who brought the last Daytona Spyder to take it off their hands. True story.

Dale

 

Well, let's see. You're a bidness man, right? How do you price your products?

Dale

 

I imagine they are targeting all the new wealth in China, ME, & India

 

agreed. more ultra rich popping up everyday in other parts of the world.

IMO the US incomes have really lagged. If you look at the medium income for the 80s and 90s average US households relative to the price of not just ferrari's but all cars, houses, fuel, etc... everything is disproportionately higher.

 

Actually not. During most of the 80s the "Greatest Generation" was winding down, and the Boomers were winding up, i.e., we were having families.

Frankly, with a few exceptions such as the F40, the late 70s and early-to-mid 80s were a sucky time to be a car guy.

Now, if you fast forward to the late 80s after da man died, the Japanese changed the world. Hell, they even brought Pebble Beach. But, that's another story for another day. Nighty night.

Funny how only the names change, eh?

Dale

 

simple answer : inflation!

 

No way Greed.

Until our financial crisis there was a waiting list for 250k starting price cars. They have made the 6k cars a year they've always wanted to make and although they have claims of wanting 12k cars a year I don't think it's possible out of their little factory.

Ferrari does sell to the Upper Middle Class and semi rich. It's not the Wealthy people we are talking about. Most Wealthy don't concern themselves with cars of this nature. The truly wealthy are dealing in the 7 figure cars.

It's all supply and demand, raise your pricing until you slow down demand enough to keep up with production. Plain and simple.

My feeling is Ferrari doesn't want to dilute their name brand and adding a 120-150k car to compete with the Porsche 911's would do just that. Remember Fiat already has entry level cars. Ferrari is the marque name brand and it makes no sense to drop down.

 

Yes, greed. When you are selling a luxury item to wealthy people, it's good business acumen to milk them for every penny they are comfortable with giving up. In this case, not only is greed good, but it makes fantastic business sense.

Beyond all that, there's no way Ferrari can make a sports car that will compete with Porsche in both price and performance without destroying their $275k+ market.

 

I look at it this way.

Maybe Ferrari was actually UNDERVALUED in 1985. Maybe instead of the 328 selling at 40K, they should have been selling 288 GTO's at 100K. They may have sold just as many and made twice as much money if they did.

I remember when the 288 came out and people like road and track said this is the car they should have been making all along. Maybe they were right...

There is one thing that needs to be mentioned. The Ferrari company of today is NOT the same company of 1985. It's stronger and making superior products. It's dealer and service network is vastly improved so it CAN charge more. It's products are more reliable. It's performance is vastly improved. It's quality is much better. It's brand image is stronger.

All of these mean that you can charge more than you could when you were in a weaker position.

If you're comparing apples to apples, luckily for us the Ferrari organization of today is a lot better than it was 25 years ago. If not, Ferrari may have gone belly up in the early 90's.

 

This is really an interesting thread. It's interesting because I can see how some think that making money is "greedy" when, if you're in business, what you want to do is maximize your profits anyway you can.

Also, it goes to the heart of the aspirational longing and wishing to own one vs the financial costs of realizing that dream. If it were up to everyone, they would sell for $10 so anyone could afford one. But, if they did, then they are no long special to us.

Ferrari IS about the dream. If everyone can fullfill that dream, it's not much of a dream, is it? If you can get a Ferrari as easily as you can walk into a 711 and buy a coke, it's no longer very special anymore.

Then, we would all want Bugatti's or Zonda's!

 

Ferrari isn't trying to compete with Porsche 911's. Ferrari has a name brand and they are selling their name brand.

It's not a ton different than my wife's Hermes and Chanel purses. They do the same thing as their $400 competition but it doesn't git r don the same way.

This in no way is bashing Porsches. I love without question both name brands but for different reasons.

Exactly

 

Prestige is what the manufacturers are looking for. Really, is a new Ferrari worth $300k or more, or a Lambo at $500k, I think not. Even a RR or Bentley are ridiculous in the prices they command!

The only reason they can sell cars at these prices is because some 'nouveau riche' want to try and impress with their wealth. It's not like old money where conservatism is usually shown.

 

its not like that...actually the prices of ferrari have plunged to a faster level than upper middle class salaries...