|
|
|
|
Joined: Feb 2004
Posts: 7,392
Addicted CEG\'er
|
Addicted CEG\'er
Joined: Feb 2004
Posts: 7,392 |
Originally posted by sigma:
Exactly.
SVT, SRT, Mazdaspeed, etc they're all what marketers term "Loss Leaders" or at the very least extremely low-margined vehicles. They get your name out there, they create brand loyalty, and they get people into your stores (dealerships) to buy lesser-priced items that you don't lose money on.
So when creating them it comes down to what vehicle is going to create the most buzz more than anything.
i'd like to see some research on that... as from what i've read throughout the years, the companies make very little on low end vehicles. it's the higher end models and trucks that create the most GP. the cobra stickers for @ $11K more than a GT, and i'm thinking fords making an equally good profit on that as a GT.
02 Mustang GT... Tuned by Nelsons. Low 12's, anyone? 
.....______
___|______\_____
|/-\_________/-\_|
.\_/...............\_/
|
|
|
|
|
Joined: Jun 2000
Posts: 3,496
Hard-core CEG\'er
|
|
OP
Hard-core CEG\'er
Joined: Jun 2000
Posts: 3,496 |
Originally posted by MxRacerCam:
Originally posted by sigma:
Exactly.
SVT, SRT, Mazdaspeed, etc they're all what marketers term "Loss Leaders" or at the very least extremely low-margined vehicles. They get your name out there, they create brand loyalty, and they get people into your stores (dealerships) to buy lesser-priced items that you don't lose money on.
So when creating them it comes down to what vehicle is going to create the most buzz more than anything.
i'd like to see some research on that... as from what i've read throughout the years, the companies make very little on low end vehicles. it's the higher end models and trucks that create the most GP. the cobra stickers for @ $11K more than a GT, and i'm thinking fords making an equally good profit on that as a GT.
You honestly have no idea about the Auto industry. CAFE regulations are what drive base Focus sales and there is little margin on them but Ford has to sell them.
Money is made on checking option boxes and high volume discounts as economies of scale click into action. This is why the F-series platform is so profitable for Ford.
See, MXRacer you forget about all the R&D costs that go into these low volume production vehicles along with the speical assembly lines. Buying 300,000 Mustang GT wheels of each variety each year is cheap. That some company that makes those wheels is gonna charge you a lot more for a run of 30,000 Cobra wheels a year.
So I'm a finance guy who audits the accountants who count beans all day 
Money doesn't always bring happiness. People with ten million dollars are no happier than people with nine million dollars ~ Hobart Brown
|
|
|
|
|
Joined: Feb 2003
Posts: 4,220
Hard-core CEG\'er
|
|
Hard-core CEG\'er
Joined: Feb 2003
Posts: 4,220 |
Quote:
i'd like to see some research on that... as from what i've read throughout the years, the companies make very little on low end vehicles.
I didn't say "low-end" I said "lesser". Lesser, while it does include a base 'stang, also includes the GT.
Quote:
it's the higher end models and trucks that create the most GP
Higher-end, yes. Limited production of highly-specialized vehicles, not necessarily.
Quote:
the cobra stickers for @ $11K more than a GT, and i'm thinking fords making an equally good profit on that as a GT.
Well, logically one would think that.
But the Cobra has an extensive amount of R&D that's very likely greater than that put into the GT. It's also produced in much smaller numbers, meaning that each part (that's unique to it) costs much more than equivalent parts on the regular mass-production versions, and more overhead and labor expense is allocated to every unit. All of these extra costs add up in a hurry and they all must be spread out over a significantly fewer number of vehicles.
2003 Mazda6s 3.0L MTX
Webpage
2004 Mazda3s 2.3L ATX
|
|
|
|
|
Joined: Nov 2003
Posts: 466
CEG\'er
|
|
CEG\'er
Joined: Nov 2003
Posts: 466 |
thats it i want a ford falcon in the usa now!
98 contour svt
#6473 of 6535
|
|
|
|
|
|
|
