Why such huge product line separation?

x2mag68 said:
Well in the car industry, the lower priced cars are sold at a a small profit and the expensive luxury cars sold at a loss.
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Is it not the other way around ?

Luxury cars are always sold at a huge profit margin, and lower priced cars are sold at cost or a minor profit. Why ? The buyer of a luxury car at $55,000 is not going to worry about a $500 increase as much as a $12,000 car will.

In our airline industry - it is the same, we sell economy class seats at cost or loss just to fill the planes - but business class seats and first class is where the real $$ is. That is true with almost any luxury product/brand - they cater to different segements which have different priorities (cost vs time, cost vs convinience, brand loyalty vs brand recognition etc)
 
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