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Newspaper
High Point Enterprise
Location
High Point, North Carolina, United States of America
Date
Oct 16, 1938
Page
17
Two machinists OD and AD design cars. OD shows a high price, invites friends, but none can pay $3,000. AD tests demand through public demonstrations, sells to ten buyers, lowers price to $2,500 by scaling production and cutting costs.
OD sold ten cars then began a second line where each vehicle cost nearly as much as the first. He showed it widely and sold it near cost. Over five years he built several more cars, but AD consistently produced better cars for lower prices.
AD pursued mass production and widespread advertising to expand demand. He appointed agents in multiple cities and shared the car’s story to unseen buyers. As production grew, costs fell and quality improved, leading to 10 000 cars sold in 1911 at a $1,500 price.
AD realized millions would buy his cars if prices fell. He expanded a factory, hired more workers and advertised nationwide. By 1921 he offered a six cylinder car with self starter at 1000 dollars, selling in high volumes. By 1938 he built his best car yet at 750 dollars, expanding affordability.
In a factory office, AD and OD recall the horseless carriage at a fair and explain how advertising spurred manufacturing progress. They note advertising boosted car sales, lowered costs, and made better cars affordable for millions, with prices dropping about 1500 dollars over 30 years from 1911 to 1938.
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