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GMPenguin's Automotive and Etc. Homepage -> GMPenguin's Automotive and Etc. Forums -> The Mainstream Cars Forum -> Pontiac Sunfire expires
Post Info TOPIC: Pontiac Sunfire expires
thewizard16


V-12

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RE: RE: RE: RE: RE: RE: RE: RE:
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quote:
Originally posted by: Kevin
"
How would they lose money?
Selling 8,000 cars for $33k vs. selling 12,000 cars for $28k (I just pulled some numbers out of my !@& btw)"

Kevin, I think you're missing the point of profit. I can sell 200 glasses of lemonade at twenty cents, or I can sell 100 at forty cents, but if it costs me 30 cents per glass to make, then selling 200 isn't doing me any good at all.

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ifcar


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quote:
Originally posted by: Kevin
"
How would they lose money?
Selling 8,000 cars for $33k vs. selling 12,000 cars for $28k (I just pulled some numbers out of my !@& btw)"


If (hypothetical, not sure what the dealer really pay) they sell 12K cars for $28K and they had to buy the cars for $29K, they lose $12,000. If they sell 8K cars for $33K, they make $32,000.

It's the same deal for GM. If the dealer has to sell the car for $28K, they'll want to pay less, so GM will have to sell them the car for $25K instead of $29K. If it costs them $26K to build, they lose money on every car they sell.

See why it's better to have the higher price?


thewizard, I think he needed a vehicular example.

-- Edited by ifcar at 06:25, 2005-02-10

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Kevin


GMPenguin

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RE: Pontiac Sunfire expires
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Okay, my only point throughout this is that they should make the GTOs cheaper, not on the lots, (well, on the lots, but because of my next statement) but from GM.  I know it doesn't cost that much to actually make the cars, so this isn't too much of a problem since they would surely sell more.


The reason they should do this is for increased sales, and the dealers already sell them for cheap to get them out, which is just losing them money.


 




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____________________ DUE TO CIRCUMSTANCES BEYOND MY CONTROL, MY BRAIN IS CURRENTLY NOT FUNCTIONAL. MY EMPLOYER HAS BEEN NOTIFIED. AT THIS TIME, I HAVE NO WAY OF PREDICTING HOW LONG THIS ISSUE WILL TAKE TO CORRECT.
Kevin


GMPenguin

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Another article, including possibilities for its replacement.


http://forums.gminsidenews.com/showthread.php?threadid=11539



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____________________ DUE TO CIRCUMSTANCES BEYOND MY CONTROL, MY BRAIN IS CURRENTLY NOT FUNCTIONAL. MY EMPLOYER HAS BEEN NOTIFIED. AT THIS TIME, I HAVE NO WAY OF PREDICTING HOW LONG THIS ISSUE WILL TAKE TO CORRECT.
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