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Mike T. on 15.10.2007 17:59:14Ah, the old cost+profit=price theory. Traditional accounting at its best.Costs and profits do not set price. Price is set by the market. Thus, profit=price-cost. Toyota vehicles are priced by the market. By producing the vehicles cheaper, Toyota is able to provide more to their customers - those being shareholders, employees and the communities where Toyota exists. External customers get the rewards of a better designed, better made, longer lasting, higher resale vehicle. Even if you only keep a vehicle two or three years, the Toyota will have much better resale value. Combine that with increased performance and reduced maintenance costs, and you will find that the Toyota is the better value for the price.
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