What is the difference between premium pricing and luxury pricing? This can be seen very well in the example of Ferrari, Porsche and Mercedes, as Andreas Neuhaus from Handelsblatt vividly describes in his article.

“In 2023, Ferrari sold just under 14,000 cars – Mercedes sold more than two million. Even the comparison with Porsche, like Ferrari an iconic sports car brand, is extreme. Porsche sold 320,000 cars last year, almost 23 times more than the Italians. The Italians’ scarce supply ensures a permanent excess of demand. Analysts at US bank JP Morgan have calculated that Ferrari buyers wait an average of 24 to 30 months for their car. With other car manufacturers, the value is around 18 months. This allows Ferrari to keep raising prices. According to JP Morgan, the latest models to hit the market are 20 to 30 percent more expensive than their predecessors. This increases the margin further and further. In 2015, it was just under 16 percent, most recently it was almost 28 percent. Ferrari makes more than 90,000 euros net profit per car.”

– Andreas Neuhaus, Handelsblatt editor in the finance department, in “What makes Ferrari unique – Investors avoid European car stocks. However, there is one exception: Ferrari. The Italians are far superior to other manufacturers with their business model”, Handelsblatt, December 11, 2024, No. 240.

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