Guys, Toyota executes business on a per quarter basis (at least when I used to work for Toyota in '06). Q1, Q2, Q3, and Q4. A rough forecast for the *next* quarter is announced to execs around the start of the current quarter. A solid forecast reaches the whole company (internally) towards the end of the current quarter. Let's use our predicament as an example.
Right now we're at Q1 start (Jan-Mar). Jack Hollis and co. recently saw the Q2 (Spring launch) rough forecast and decided,
"These numbers don't look so hot compared to Japan. We can't announce the price quite yet like they did. How can we nudge up the demand? Ah yes: the First 86 ploy."
First 86 is timed perfectly so business analysts can get their numbers in by the due date (March, Q1 end). Q2 prices can't be based on Q4 2011. Demand garnered during Q1 will *heavily* factor into the Q2 price. Granted, there might be very little change between Q4 and Q1, but Q1 is what matters (bottom line) for Q2 predictions. Simple logic.
This is the business model I've been exposed to in all companies I've worked for in the corporate world. If someone can refute this system with fact, please do.
Every car I've bought (new and used) were paid upfront in full from my own savings and I've got cash to get this one now but I'm aiming for the higher trims/packages. A lower base price will pull down the upper end. That $1k sway in price matters - could go towards my Roth or 401(k) or hookers and drugs
