Quote:
Originally Posted by drroc
In NA people like packages because it just saves the hassle of going over all of the small individual options. Granted, some package options can be annoying that require paying quite a bit for just a single thing that you want out of the entire package.
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That's the key point:
* Volume sellers need packages because the buyers aren't interested enough in the cars - they just want the car with the stuff. Since profits depend on volumes which depend on throughput, all friction needs to be eliminated.
* Quality / Brand Strength sellers need choices because they get relatively larger margins off of each highly engaged customer. Customers not only WANT to pick options, but somewhat demand to. If the seller doesn't offer it, they'll immediately go aftermarket.
So if you're a manufacturer who sells a high-margin product AND can figure out how configure each core unit to a customer's preferences, then you can get ever escalating margins.