Open Air Mode Slate Pickup w/ Blue Wrap (from Rhode Island event showing)

[AZFox]

So when you go to the store to buy something, the cost given by the store does not mean anything. It is what you are willing to pay. I wonder how the store figures that out.

We might say that a store price is advertised, you then go to the store and bargain with them if they are willing to bargain.

The bargaining happens over time.
Price too low? -> You left money on the table -> Raise price
Price too high? -> Product doesn't move -> Lower price

Repeating for emphasis: Price is determined by what people will pay, not cost of goods sold.

It's more complicated than than for an option like the Extended Battery.

For example, Slate could do research and realize people will eventually regret choosing the Standard Battery. That creates unsatisfied customers.

In the long run, unsatisfied customers feed back to future potential customers, causing them to turn away. This reduces long-term profitability.

Imagine all of the whining too-small-battery reviews they can avoid by making the upgrade price more attractive.

Slate Automotive might accept low margin on the option because satisfied customers cause them to make more money in the long run by accepting low margin on the option.

Economics is a fascinating behavioral science.

 

[Neil Nelson]

Price is determined by an agreement between the seller and the buyer. It is not what the buyer is willing to pay. Some products such as the food you buy at WalMart are completely determined by WalMart. Some products as perhaps the car or house you buy might be negotiated somewhat. Negotiations depend on if there are other buyers available.

 

[sodamo]

Most likely I told my wife many things before we were married. There have been changes in those 40+ years and thankfully she doesn’t harp on what might have been said BEFORE those changes.

 

[sodamo]

Price is determined by an agreement between the seller and the buyer. It is not what the buyer is willing to pay. Some products such as the food you buy at WalMart are completely determined by WalMart. Some products as perhaps the car or house you buy might be negotiated somewhat. Negotiations depend on if there are other buyers available.

Not really. If I think a price is too high, then it is my choice to agree and pay it or more likely find a substitute at my price. If neither, then no sale.

 

[Doctors Do Little]

Most likely I told my wife many things before we were married. There have been changes in those 40+ years and thankfully she doesn’t harp on what might have been said BEFORE those changes.

In my world I call that marital Alzheimer. She remembers everything from 15 years ago…I forget everything recently promised?

 

[AZFox]

Price is determined by an agreement between the seller and the buyer. It is not what the buyer is willing to pay.

This is self-contradictory.

 

[sodamo]

In my world I call that marital Alzheimer. She remembers everything from 15 years ago…I forget everything recently promised?

So true

 

[Neil Nelson]

This is self-contradictory.

My meaning is that it is not only what the buyer is willing to pay. When a sale is made it is an agreement between the buyer and seller. How that agreement works out depends on the kind of product or service under question.

 

[sodamo]

My meaning is that it is not only what the buyer is willing to pay. When a sale is made it is an agreement between the buyer and seller. How that agreement works out depends on the kind of product or service under question.

So if I look at a product and don’t buy because price is more than I want to pay, come back at later time and price has dropped to acceptable, but product/service is still the same ????

 

[Neil Nelson]

If the product is still for sale, has not been sold. When there are several copies of the product the price can also increase. Note inflation.

 

[AZFox]

OK one last time...

A price is determined by the interaction of supply and demand.

Buyers and sellers negotiate based on their willingness to pay, and willingness to accept, a certain amount for the item.

A market equilibrium price is not determined by cost of producing the item.

 

[Trace26]

OK one last time...

A price is determined by the interaction of supply and demand.

Buyers and sellers negotiate based on their willingness to pay, and willingness to accept, a certain amount for the item.

A market equilibrium price is not determined by cost of producing the item.

And to add to this, things are often sold at a loss (less than the cost to produce the item).
This is usually done when future profits after the sale make up for the initial loss or to compete with a competitor to gain market share.

 

[AZFox]

And to add to this, things are often sold at a loss (less than the cost to produce the item).
This is usually done when future profits after the sale make up for the initial loss or to compete with a competitor to gain market share.

This is what I meant by something I wrote previously.

Happy customers create more customers.

Subsidize the option -> Regret avoided -> Happier Customers -> Long-term $uccess

Something like that, anyway.

 

[Doctors Do Little]

And to add to this, things are often sold at a loss (less than the cost to produce the item).
This is usually done when future profits after the sale make up for the initial loss or to compete with a competitor to gain market share.

Or this is done when additional units keep the facilities completely busy. Example, take a small loss on 3,000 USPS fleet units that allows for better supply pricing for all units.

This is microeconomics.

 

[KevinRS]

Yes when the incentive was possible, slate stated under 20k after incentive, and it's simple math to say 20k+7.5k = 27.5k
Slate made no other statements at the time on price.
Since the incentives were cancelled, Slate has only stated "mid 20s" and that they were going to try to keep it as low as possible.
They don't have all the details on what is going into the truck finalized and parts contracted. For one they were hiring a seat designer, so the seats in all these photos are likely placeholders. 50% tariffs on Brazil have been announced, so that may shift the math on manual window cranks. There are probably dozens of other parts that aren't finalized and contracted. I don't expect to hear more solid pricing until they add accessory pricing in "early 2026"

There is no point in saying "but the price is $27,499" because ever price we've heard have at best been planned prices and subject to change.