The moving assembly line system, which started on October 7, 1913, allowed Ford to reduce the price of his cars. As he continued to fine-tune the system, Ford was able to keep reducing costs significantly. As volume increased, he was able to also lower the prices due to some of the fixed costs being spread over a larger number of vehicles as large supply chain investments increased assets per vehicle. Other factors reduced the price such as material costs and design changes. As Ford had market dominance in North America during the 1910s, other competitors reduced their prices to stay competitive, while offering features that were not available on the ModelT such as a wide choice of colors, body styles and interior appearance and choices, and competitors also benefited from the reduced costs of raw materials and infrastructure benefits to supply chain and ancillary manufacturing businesses.
The moving assembly line system, which started on October 7, 1913, allowed Ford to reduce the price of his cars. As he continued to fine-tune the system, Ford was able to keep reducing costs significantly. As volume increased, he was able to also lower the prices due to some of the fixed costs being spread over a larger number of vehicles as large supply chain investments increased assets per vehicle. Other factors reduced the price such as material costs and design changes. As Ford had market dominance in North America during the 1910s, other competitors reduced their prices to stay competitive, while offering features that were not available on the ModelT such as a wide choice of colors, body ,styles and interior appearance and choices, and competitors also benefited from the reduced costs of raw materials and infrastructure benefits to supply chain and ancillary manufacturing businesses.