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Pricing cars tips and tricks - Printable Version

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Pricing cars tips and tricks - BrumBrum - 09-18-2016

Noticed some games(Automation and Gear City) are not giving accurate pricing for car model and specs. Now there are probably a few reasons why so I'm gonna give an example of where it might go wrong. Lets just say the game or us site gives price of $70,000 Dollars or so. Its probably missed out key parts:

1:Import duty:Now this could range from 10% on WTO style arrangement, 0% in free trade or up to 60-70% if you are say importing a car into a protectionist place like China(You can get around those situations by partnering with local manufactaurers to produce cars in that market).
So lets just assume its a standard arrangement going from say florinthus to Goldecia on a 10% rate

So $70,000+$7,000 = $77,000

2: Sales tax:Now this is a key thing, US typically doesn't include sales tax in pricing whereas European sites do as a matter of course. Now sales tax can range from 0% say in places like strathae, in rl world usually will be arround 10-15% at least possibly even up to 25% in some places in Europe. Now assuming we have a similar range here this will change prices dramatically depending on country.

So lets now add say a 15% sales tax on.

So base price is $77,000+$11,550=$88,500.

On this example you can see that $70,000 looked cheap but once you add taxes in it shot up to $88,500 . Thats $18,500 on base price or 26.42% of the original price in taxes. Just watch out for this kinda stuff when setting prices.Also if a market is protectionist and has a china like policy don't be surprised if the taxes add almost the original price on the car in taxes. Its not uncommon and is a massive factor in why for example Jaguars are now made in China and India or why rolls royces could easily be nearly £1,000,000 in china when they cost like £500,000 in the UK.


RE: Pricing cars tips and tricks - BrumBrum - 09-18-2016

Disclaimer:Obviously final price depends on local sales tax and import duty paid so it may vary. Basically pro-tip if you want to be competitive in all markets set a baseprice that would produce a reasonable price even at 20-25% vat.