One example of a best-cost provider strategy is Toy- ota's Lexus brand of cars. This is especially true with the ES model. Although the Lexus is considered a luxury car. it is in the midrange of prices for cars. Customers who purchase Lexus cars definitely do so because they con- sider it to be a very good car with an image with which they identity. It is a diferentiated product for them. However, there are many cars of very similar quality. Therefore, there is a ceiling on how high the price can go. Because the features that help differentiate a Lexus do cost more and there is a ceiling on price, profits can be squeezed. Lexus must work to both keep its cars differen- tiated plus keep per unit costs down or at least keep them from rising.