fxz

In Flagship models the margin is much less so the limited numbers

Flagship models are nevertheless needed to sell entry products like cayman or base /S versions
there the profits are high

NateOZ

Turbo S runs at 75% margin, 911 is one of the highest margin cars of any auto producers. The point wasn't to get the margin spot on, but demonstrate economics of a limited can be higher.

Dan39

That's true with the 918 - we know this because the 918 sold very slowly. To the point it was borderline embarrassing. These cars are supposed to be coveted and snapped-up like hot cakes - that didn't happen.

With the Ferrari it was the opposite. That car sold out before it was even announced. And it was sold only to the ridiculously select group that had bought both FXX's or F1 cars or every model of Ferrari or whatever it was...

mrsullivan

bingo...

these are halo models... they are the reason someone pays $90k for a cayenne instead of $45k for a tourag or acura mdx... they are brand enhancers... sure they make money on them too... but part of limiting supply is to maintain the brand impact of limited edition models...

ranger22

I doubt the average cayenne buyer even knows what an RS is. I bet they couldn't tell the difference between a C2S and a GT3 either!

Nick Yoskin

yeah do you even think that the average Cayenne/Boxer etc buyer even knows what an RS is? I doubt it. Remember us board guys are freaks

Manifold

And yet Porsche has essentially no real competition for the 911 even at their price point. Gotta wonder why no other manufacturer can offer a compelling alternative in the ~ $90K to $200K price range.

mrsullivan

well, obviously, it is a better vehicle... and there are some that buy for that reason... but a lot of Porsche's ongoing strategy with GT/special cars in indeed a very direct marketing/branding halo effort...and shoppers don't need to understand the specifics of RS vs. GT2 vs. whatever, to see cool race car like vehicles on posters, in magazines, on the highway, etc. There is absolutely an effect on downstream purchase behavior...

NateOZ

Yeah - everyone keeps trying.

This year some of them look interesting in the AMG GT, NSX, new R8, and McLaren Sports Series (NY launch I believe).

Alan C.

Let's not forget this is the company that has mastered the art of charging $365 for painting the clamshells on two keys. I believe they will turn a profit.

NateOZ

I purchased a Macan Turbo for my wife because the Halo RS is super sweet. Not a fan of the Cayenne, so was a bit of a leap of faith at the time...

Petevb

Rumor is that for some time German manufactures had a tacit truce to support Porsche. Porsche is good for the German car industry as a whole, and while it was a small independent sports-car manufacture it was somewhat fragile. Porsche got a pass on the self-imposed 155 mph speed limiter, and other German manufactures did not take direct aim at the heart of its sports car market. Since Porsche buyers tend to gravitate towards Teutonic style and engineering this gave Porsche quite a bit of breathing room.

Mercedes seems to have broken this truce the the GT, targeting it directly at the GT side of Porsche's 911 lineup. Perhaps now that it's part of the VW group and a full-range manufacture the gloves can come off. Meanwhile the British are learning to build cars again, Jaguar's F-type and McLaren's new cyborg clearly vying for a slice of the pie, and even the Americans are moving on Porsche held territory from the track-worthy and build quality directions.

Porsche maintains a certain mix others don't yet match. There is a balance of exclusivity and acceptability that's very hard to achieve, in part because Joe Schmo can't tell one 911 from another, but car guys can. There's undoubtedly impressive engineering, especially since it's not easy to make a relatively inexpensive car as good as a Carrera. There is breadth of ability spanning daily drive-ability through trackworthyness, and finally there is design and tradition few cars can match. The sum of all this is that Porsche has been able to charge a premium, and likely still will going forward.

However it's clear that others are aiming at Porsche's juicy market, and as Porsche customers that's a good thing for us. The days of cost based pricing are long gone at Porsche. We're in the era of "value-based" pricing, and Porsche is going to charge us exactly as much as we're willing to pay. The only true solution is if "there is a substitute"

GrantG

Would love to see some of these competitors offer all of the following to push Porsche:

1. NA motor with high revving capability
2. Manual or excellent hydraulic steering
3. Manual gearbox
4. Light weight

Some competitors offer some combo of these, but don't think any (including Porsche) offer all of the above anymore.

simplex

Agree with what you said Pete. However, I happen to think that the 911 carries a unique design, packaging and driving experience. For most of us appearance of more powerful, and even higher-performing alternatives is irrelevant (the GT-R and Z06 are to wit). I personally have no interest in the new Mercedes GT, as for me its weight balance, esthetics and practicality are vastly inferior to the 911.

Also, there used to be an exclusivity element to Porsche ownership, but that is gradually disappearing what with the extended model range and unprecedentedly high production numbers - which will get even higher. But the 911 is no longer synonymous with Porsche, so I can see the 911 not be negatively affected by the Porsche brand's loss of exclusivity. And special versions like GT3RS will continue to carry that link to motorsport that many covet.

TRAKCAR

If we're going to accept the new style 991's with all the new tech you might as well go AMG.
Although I think AMG GT pricing isn't out yet, with a similar pricing to a 991TT, I'd take the AMG maybe even over a 991GT3 if I didn't track (much).