The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-11-05
NO Big CUT IN
PRICES OF AUTOS
"ANY ARTICLE WILL SELL FOR
WHAT 1T is WORTH" SAYS
pEALER-MATERIALs
NOT LOWER.

There has been a good deal of talk
lately about automobile prices, and
much speculation as to whether the
prices of standard makes of cars
would be lowered.
a canvass OF the automobile dealers
shows that almost without exception
they do not believe there will be any
lowering OF prices any time soon.
People are apt to become confused
when they begin talking about prices"
said a well known dealer. They are
apt TO overlook the essential point
with relation to prices. The price of
any article means nothing at all ex-
cept as IL is taken into consideration
with the intrinsic value of the article
itself. The price of any article i'm dol
lars and cents is only symbol Money
is only a medium of exchange. 1t is
worth much or little in accordance
| with what you can buy with il.
Take two men who each think of
spending $1,000 for some article. one
mans $1,000 is worth just as much as
the other mans $500 so long as they
keep the money in the bank. but just
as soon as they go TO spend it, one
mans $1,000 Will probably become
worth more than the other mans
$1,000 because of the one mans ability
to buy more with his money than the
other man can buy with the same
amount. In other words the price of
any article Is only interesting in rela-
tion to what that price will buy in
quality and in service.
II have noticed. however, that the
price OF any article has a tendency To
seek the level of value of that article
The man who attempts TO sell an
article for less than IL is really worth
will soon drive himself out of business
The man who tries to sell an article
for more than IL is really worth, will
either be driven out of business by
the public or driven to lower his
prices.
IAN article that is worth $1.O0 will.
before very long. be selling for about
that amount no matter where the price
is started.
THE buyer Of an automobile should
remember when he goes to look at
cars that he is not buying a, price but
that he is buying a cara thing
which he expects will render him
certain amount of service. If he
thinks, after careful Investigation.
that he can buy as much pr more in
one place for 5000 than he can in an
other for $1,000 Why he Y9pld be fool
ish to buy IT,
However, tlfSOthlng for T. him to keep
uppermost in his, mind Is the actual
value of the article rather than the
price. The man who buys is always
the judge and, he gets a big or
skinny value for his~iollar just in ac-
cordance as he Is able to examine
carefully and Judge wisely
when the price of any article is
lowered, there can be only. one or more
of four reasons, and these reasons
are: Philanthropy the lowering of the
cost of material, the lowering of labor
cost or an unjustly high price to be-
gin with.
Now taking these reasons up In
order. No one thinks for a moment
that any automobile manufacturer is
going to reduce his prices simply be-
cause of philanthropic motives.
Regarding materials. there is no
special change in the prices of raw
materials which are used in aItomo-
biles in quantities since last season.
Some Materials on the other hand
have advanced and this is especially
true OF rubber.
80 far as labor is concerned, II is a
great deal higher than it was last
year. There is not an automobile
manufacturer whose labor cost is not
higher than a year ago.
I'm view of these things. the COM
pany ! represent is seriously consider
ing whether ii would not have to raise
its prices in order to make the fair
margin of profit to which any manu-
facturer Is entitled.
$50 at this time in the automobile
business II goes back to the question
of whether the price was right in the
beginning, and from all know about
this business and the conditions in It,
I have no hesitancy in saying that If
any manufactures is reducing the
price of his car to any great extent
right now. he is doing it because he
knows that his price heretofore has
been exorbitant and because he fears
the competition of cars which are Of
fering greater dollar for dollar value
than Is to be purchased in his car"