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Empirical Pricing Matrix

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Old 12-27-2009, 05:14 PM
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jaudette3
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Default Empirical Pricing Matrix

While it might be impossible to reduce pricing of early 911's to a purely empirical level given all the variables, it's fun to reduce the variables to two and give it a try. Suppose we use the following scales to judge the two variables of collectibility and condition:

o Collectibility: A through F with A the highest
o Condition: 1 through 5 with 1 the highest

We can then build a matrix and insert values, ideally from recent sales, less ideally from "feel". It would look something like this:



For example, the top value of $125,000 is assigned to a A-1 rated car: top rated for collectibility and top rated for condition. A middling car, say at C-3 is valued at $35,000. These values are just relative at this point as I haven't done much research on recent comparable sales and am going mostly by personal feel. But it should be possible over time to assign real world values by monitoring real world sales.

You can build a chart from the data that looks like this:



It would be possible to put an interactive spreadsheet here that members could use to plug in their own values. Here's an example of one that I built for my company - The Internet Marketing Cube. If there is any interest I would be glad to build one for early Porsches.

Just diddling around on a cold and snowy holiday weekend in Central Oregon.

Cheers,
JohnA



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