A note from Daniel

Ford's advantage—which had flowed directly from Klann's analogy between butchering hogs and building cars—enabled the company to quickly and steadily cut the price of the Model T from $575 in 1912, which was unaffordable for most Americans, down to $360. This put a car, previously a luxury item that only the well-to-do could afford, well within the financial reach of millions of working families. Eventually, with improvements to the line, the Model T's price would fall even fur-ther, to $280. While falling prices cut into the profit margin on every car, they drove up sales and revenue and allowed Ford— at the time just one among many competing automakers—to more than double its market share from 22 to 48 percent in only three years.

Daniel Shortcut, page 91 · April 10, 2024 Save to shelf
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