Porsche parts price increases in the last 8 years.....

[Soterik]

I was just looking through a back issue of Excellence magazine, Feb 2003.

The prices of the parts advertised caught my eye... they seemed pretty reasonable by comparison to current pricing.

I don't think the particular retailer is important, I did some research tonight and found that they all had virtually the same increase in pricing.

Here's a snapshot. Note that I compared similar manufacturing, german vs german, not german vs say a newer repro, and brand to brand (hella to hella) etc.

Prices are from the SAME retailer, 2003 and 2011.

Inflation has gone up 23.41% between Feb 2003 and May 2011, from one calculator I grabbed online.

I also know that certain items like say mens apparel hasn't gone up almost at all between this time period...I was in the industry for almost 30 years, 2003 pricing was virtually identical for a like product between then and now, but production probably did move from one country to another in order to keep the pricing.

Ansa Muffler,
2003, $185
2011, $298

Turn Signal Switch
2003, $99
2011, $194

Lower Valve covers
2003, $35
2011, $69

Euro tail light lens pair
2003, $119 (think they were still Bosch at this time)
2011, $129 (new repro's not Bosch)

Stainless brake lines
2003, $45
2011, $69

Distributor cap and rotor
2003, $15
2011, $35

Ignition wires
2003, $69
2011, $134

Brake master cylinder
2003, $89
2011, $219

Bosch H-4 headlight pair
2003, $229
2011, $398

Carrera chain Tensioner
2003, $339
2011, $679

Front Chin spoiler (74-89)
2003, $189
2011, $279

A possible causal of combining exchange rate impact "and" inflation might cause the above pricing increases, but I would also think that the manufacturer would move some production to mitigate these factors to some extent. Unless of course the people who price these products think that Porsche parts buyers have inelastic demand. Which to a great extent they might be right, particularly as there probably wouldn't be very many manufacturers of a particular product.. it probably is just one.

Please note that these particular prices are pretty good... particular as I just ran them against Pelican which was MUCH higher than the 2011 prices of the retailer I used for them above example.

cheers, should be an interesting discussion.

Eric

[gulf908]

So this is how Weideking got us to pay for all those expensive VW shares !!
... and just look how that little excercise ended up ...

Cheers,
Dennis.

[718RSK]

Eric,

Check 4-cam bearings from $110 each to close to $800 each. Price for the gears has also almost doubled in the last years. I believe 912 cranks are now close to $5K. The lists goes on. This is what they call "supporting our heritage"

[Nine17]

Not to get too political, but this is exchange-driven, plain and simple. The dollar is taking a beating against the Euro and there is a certain inelasticity in demand for Porsche parts. Most of us would turn our noses up at anything not made in the Fatherland, and with good reason.

The United States has been embroiled in the expensive long-term occupation of distant and hostile foreign lands while engaging in a program of massive tax cutting, beginning with the Clinton administration, continuing with Bush the 43rd, and sustained in full by Mr. Obama. His likely challengers propose even more of this nonsense. Meanwhile, we have devastated our once-great middle class, the income equality created by the Greatest Generation as as basic human right now being out-sourced in the name of "competitiveness." The cherry on the sh*t sundae is financing all this through setting interest rates at uneconomic levels, printing money to bail out the banks that these rates have forced into failure, and finally creating the illusion of "profitability" through the legalized asset-looting that is "de-regulation."

As a result, the buying-power of most Americans (even for many of the better-heeled among us) has fallen. Here is a Euro vs. Dollar historical chart from Yahoo! Finance:

[Soterik]

The bulk of the exchange rate vis a vis the Euro occurred during the 2002 to 2005 time period. Certainly a serious amount of fluctuation between 05 and 11. However, I do think there is enough volume that you would think that production would get moved to mitigate the pricing increases from exchange rate fluctuation. I know that production of H-4 headlights has moved, and according to a good source I met at Essen, that it's due to move again.

Certain European countries enjoy much lower labor rates than German, and I dare say there is a lot of production going on there vs Germany for many items we "believe" or attribute to being "fatherland" production. Many Cayenne parts are made in Slovakia, Boxters and Caymans made in Finland. I'm certain many parts by subcontractors are made outside of Germany.

It does appear that Porsche will to an extent hold down pricing here in the US on the cars due to favoring it's largest market (China next?), but pricing on parts appears to be allowed to float to whatever the market will bear. That's just my .02 comment, I need to research the car pricing a little more.

e

[Soterik]

Porsche base pricing 2003, coupe $68,600

Porsche base pricing 2011, coupe $77,800

So, the Porsche base coupe has risen less in price than the rate of inflation for this time period (23.41%).

Eric

[Nine17]

Slovakia and Finland are both in the Euro Zone. Production costs are lower vis-a-vis Germany due mainly to lower wage levels, but our exchange rate problems persist. Porsche keeps the price of entry behind inflation and exchange but makes up that initial hit by tightly controlling the parts supply. Just ask your corner dope-dealer how that economic model works.

[304065]

Eric, a fine observation, and justification for buying every part you need at the front end of a multi-year project insofar as you can build in a significant discount given part appreciation.

I hear from the M-B community that Mercedes stocks every part for every car made since WWII. BUT the prices of those parts are astronomical, reflecting the carrying cost of half a century-- and that M-B restorers will regularly fabricate replicas of original parts given the delta in price between perfect replicas and the still more expensive originals.

However, with regard to price elasticity of demand, we do observe that there are competitors and substitutes entering the market all the time, and Porsche is seemingly oblivious to this. For example, consider suspension pieces-- there are three or four suppliers that are now offering replacements or substitutes for the factory bits. Meanwhile Porsche continues to charge about $250 each for the SWB rear suspension bushings.

I really think that if the critical bits got too expensive to maintain the fleet of used cars, domestic suppliers would tool up to fill the demand. What keeps them from doing this now (as you know all too well from your jewelry-like exhaust tip run and houndstooth) are the gross margins available in a small market.

[preS]

I was just looking through a back issue of Excellence magazine, Feb 2003.

The prices of the parts advertised caught my eye... they seemed pretty reasonable by comparison to current pricing.

I don't think the particular retailer is important, I did some research tonight and found that they all had virtually the same increase in pricing.

Here's a snapshot. Note that I compared similar manufacturing, german vs german, not german vs say a newer repro, and brand to brand (hella to hella) etc.

Prices are from the SAME retailer, 2003 and 2011.

Inflation has gone up 23.41% between Feb 2003 and May 2011, from one calculator I grabbed online.

I also know that certain items like say mens apparel hasn't gone up almost at all between this time period...I was in the industry for almost 30 years, 2003 pricing was virtually identical for a like product between then and now, but production probably did move from one country to another in order to keep the pricing.

Ansa Muffler,
2003, $185
2011, $298

Turn Signal Switch
2003, $99
2011, $194

Lower Valve covers
2003, $35
2011, $69

Euro tail light lens pair
2003, $119 (think they were still Bosch at this time)
2011, $129 (new repro's not Bosch)

Stainless brake lines
2003, $45
2011, $69

Distributor cap and rotor
2003, $15
2011, $35

Ignition wires
2003, $69
2011, $134

Brake master cylinder
2003, $89
2011, $219

Bosch H-4 headlight pair
2003, $229
2011, $398

Carrera chain Tensioner
2003, $339
2011, $679

Front Chin spoiler (74-89)
2003, $189
2011, $279

A possible causal of combining exchange rate impact "and" inflation might cause the above pricing increases, but I would also think that the manufacturer would move some production to mitigate these factors to some extent. Unless of course the people who price these products think that Porsche parts buyers have inelastic demand. Which to a great extent they might be right, particularly as there probably wouldn't be very many manufacturers of a particular product.. it probably is just one.

Please note that these particular prices are pretty good... particular as I just ran them against Pelican which was MUCH higher than the 2011 prices of the retailer I used for them above example.

cheers, should be an interesting discussion.

Eric

Eric

It's all relative ;-)

In 2003 an average nice 65 911 was $15K. The muffler $185. This is 1.23%
In 2011 an average nice 65 911 is $40K?. The muffler $298. This is .74%.

Absolutely prices have risen, relatively it actually has become cheaper .. ;-)

Just my 2% ;-)

Richard

[raspy2point2]

Well Eric I found my NOS Euro tailight assemblies for SWB cars. They were $930 each. I wonder how that compares to your 23.41% inflation. I know I paid too much but I just had to have them. I think retailers know this about us Porsche addicts and price accordingly. I also know that these are very rare to find now and the market shows this. Its almost like the price takes a back seat to "are they available" for this kind of stuff. Chris