Henry Ford quotation from My Life and Work

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one to a great deal of trouble without any corresponding benefit. Therefore in our buying we simply get the best price we can for the quantity that we require. We do not buy less if the price be high and we do not buy more if the price be low. We carefully avoid bargain lots in excess of requirements. It was not easy to reach that decision. But in the end speculation will kill any manufacturer. Give him a couple of good purchases on which he makes money and before long he will be thinking more about making money out of buying and selling than out of his legitimate business, and he will smash. The only way to keep out of trouble is to buy what one needs--no more and no less. That course removes one hazard from business. This buying experience is given at length because it explains our selling policy. Instead of giving attention to competitors or to demand, our prices are based on an estimate of what the largest possible number of people will want to pay, or can pay, for what we have to sell. And what has resulted from that policy is best evidenced by comparing the price of the touring car and the production. YEAR PRICE PRODUCTION 1909-10 $950 18,664 cars 1910-11 $780 34,528 " 1911-12 $690 78,440 " 1912-13 $600 168,220 " 1913-14 $550 248,307 " 1914-15 $490 308,213 " 1915-16 $440 533,921 " 1916-17 $360 785,432