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Many industries use wholesale price changes to re-price current inventory. Example:
Old School: Gas stations set prices based on observing their competitors.
New School: Gas Station retail price strategies are aware of today's gasoline wholesale prices (incl.'ing volatility and trend).
Gas stations turn inventory in 3-10 days. I watch prices change daily. Clearly they're factoring in the 'cost to replace'. Car Dealers turn every 60-ish days. This 60day lag (from date of buy to date of sale) makes 'cost to replace' significantly more important.

--Car Dealers--
Old School: Price to Market = car dealers set prices based on observing their competitors.
New School: Car dealer's retail price strategies are based on today's wholesale prices.

Actually, the new school pricing strat should add data for both supply and demand. It should pull in today's wholesale prices AND the TREND of the wholesale prices (see chart), and retail traffic stats from internet shoppers (marketplace & dealer's site). Almost new Used autos need to be aware of new car prices, supply and incentives.

No wonder Wall Street struggles to disrupt our industry
Just some coffee thoughts from Uncle Joe
[ATTACH=full]7376[/ATTACH]

<blockquote data-quote="joe.pistell" data-source="post: 65592" data-attributes="member: 7">Many industries use wholesale price changes to re-price current inventory.&nbsp; Example:<ul>
<li data-xf-list-type="ul">Old School: Gas stations set prices based on observing their competitors.</li>
<li data-xf-list-type="ul">New School: Gas Station retail price strategies are aware of today's gasoline wholesale prices (incl.'ing volatility and trend).</li>
</ul>Gas stations turn inventory in 3-10 days.&nbsp; I watch prices change daily.&nbsp; Clearly they're factoring in the 'cost to replace'.&nbsp; Car Dealers turn every 60-ish days. This 60day lag (from date of buy to date of sale) makes 'cost to replace' significantly more important.--Car Dealers--Old School: Price to Market = car dealers set prices based on observing their competitors.New School: Car dealer's retail price strategies are based on today's wholesale prices.Actually, the new school pricing strat should add data for both supply and demand.&nbsp; It should pull in today's wholesale prices AND the TREND of the wholesale prices (see chart), and retail traffic stats from internet shoppers (marketplace &amp; dealer's site).&nbsp; Almost new Used autos need to be aware of new car prices,&nbsp; supply and incentives.No wonder Wall Street struggles to disrupt our industry <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite108" alt=":)" title="Smile&nbsp; &nbsp; :)" loading="lazy" data-shortname=":)" /> Just some coffee thoughts from Uncle Joe[ATTACH=full]7376[/ATTACH]</blockquote>

[QUOTE="joe.pistell, post: 65592, member: 7"] Many industries use wholesale price changes to re-price current inventory. Example: [LIST] [*]Old School: Gas stations set prices based on [B]observing their competitors[/B]. [*]New School: Gas Station [B]retail price strategies[/B] are aware of today's [B]gasoline wholesale prices [/B][I](incl.'ing volatility and trend)[/I][B].[/B] [/LIST] Gas stations turn inventory in 3-10 days. I watch prices change daily. Clearly they're factoring in the 'cost to replace'. Car Dealers turn every 60-ish days. This 60day lag (from date of buy to date of sale) makes 'cost to replace' significantly more important. --Car Dealers-- Old School: Price to Market = car dealers set prices based on [B]observing their competitors[/B]. New School: Car dealer's [B]retail price strategies[/B] are based on today's[B] wholesale prices.[/B] Actually, the new school pricing strat should add data for both supply and demand. It should pull in today's wholesale prices AND the TREND of the wholesale prices (see chart), and retail traffic stats from internet shoppers (marketplace & dealer's site). Almost new Used autos need to be aware of new car prices, supply and incentives. No wonder Wall Street struggles to disrupt our industry :-) Just some coffee thoughts from Uncle Joe [ATTACH type="full"]7376[/ATTACH] [/QUOTE]

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