Monday, May 10, 2010

Hyundai: Tell the truth about your pricing

Once again, a company is making disingenuous claims about the pricing of its products. In a Hyundai television ad, the actor Jeff Bridges says, "We believe a safety feature like electronic stability control is too important to charge a premium for." So, is Bridges saying that Hyundai cars would cost exactly the same if they didn't have electronic stability control? It sure sounds like they are... but that can't be true.

The truth is that Hyundai, instead of offering electronic stability control as an option, has made it standard. As a result, the base prices for Hyundai's cars are higher. Don't believe me? Well, imagine if Hyundai decided to make gold-plated steering wheels standard, too. Do you think its base prices would be higher then?

No premium, my foot.