The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-05-06
WHY PRICES WILL
Be MAINTAINED


One of the most important qhes.
lions in which the automobile public
iG always interested is that of price.
This season, as heretofore, POSSIBLE
tiles of a reduction in the cost of the
automobile are being discussed. Four
or five years ago, the prediction was
freely made that in a short time, all
grades of motor cars would be reduc-
ed in price, a prediction which has
been repeated year after year, yet
prices seem to remain stationary; cars
continue to sell at prices varying &C.
cording only to intrinsic value.
Two years ago, when every manu-
facturer was behind in orders and un.
able to supply the demand, it was
commonly believed that prices were
out of proportion to manufacturing
and selling costs and that prices were
being maintained at unreal values
solely on account of the abnormal de-
mand. 1t was found, however, that
even after the supply had caught up
with the demand and manufacturers
were obliged to strive hard for bust
ness and competition became keen,
no reduction in price could be made.
1t is true that a few manufacturers
had made enormous profits, but the
majority of builders found that at
the prices at which they were selling
their cars, they were receiving no
more than fair interest on their in
vestment, and in many cases where
reasonable economies and good bus
mess judgment had not been employ
ed, large losses had been suffered
No material reductions in prices
have been made, and in some cases
even advanced prices have been found
necessary. Every maker was striving
. to improve and perfect his car, and
although prices were not reduced cars
, were really made better through the
employment of cqstlier materials and
improved devices. This, as a mat
ter of fact, was really in the nature
, of a price reduction; the purchaser
= paying the same amount of money,
, but receiving greater value.
This season, while small reductions
, have been made in the price of some
of the smaller types of cars, cars sell
= ing at $500 being reduced to $3.50
, and $1,000 cars selling for $500, etc.,
through increased production and the
t further fact that cars of this type
2 have been brought to that state of
/ perfection were, for limited uses,
l they are very satisfactory and little
!. improvement can be asked for.
The manufacturers of the higher
! priced and more powerful cars are
f still making improvements. These
4 cars built for the widest variety OF
/. extended touring all over the world
; carrying every conceivable equipment
for the comfort of the tourist, offer
2 an almost endless opportunity for
5 study and care in detail and these
| magnificent, luxurious road machines,
! designed to give the car user the max
imum of power, comfort and service,
have caused the builder to stop at no
/. expense in the purchase of alloy steels,
, costly equipment and extended eXper-
I iments in an effort to obtain perfec-
ton. In view of these facts, the big
high-power touring car, nothwith.
standing it is high priced, still offers
Y the builder only a moderate profit at
o present prices, and for this reason
|. very little in the way of price reduc,
e ton can be expected.
e The demand Tor motor cars is
' Ogreater at the present time than at
e any time during the past eighteen
n months, and present indications are
that manufacturers will be taxed tC
a the utmost to supply the demand this
|. summer. This, together with the facts
4 above noted, make it a reasonable
t certainty that no material price re
duction is to be expected within the
+ next twelve months.
a C. A. EMISE,
,, Manager Department of Advertising