You guys heard
It's yis ur nu
I think many years ago dealer's mark up for expeditions was at 100k per unit. I guess I read it somewhere.
This is an article from tgp. Maybe this will the answer question and end this senseless bickering.
http://www.topgear.com.ph/features/f...t-to-read-this
MODERATOR'S NOTE: philsat is banned for 7 days for violating several forum rules.
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i read somewhere,that only the manufacturer can truly approximate the cost of a car's manufacture.
some authors even say that it can be done accurately, but only after that particular model's manufacturing run is over. the simplified equation is as ff:
cost per unit = total cost of running the factory for that particular model, divided by the number of units manufactured.
then the manufacturer will add the non-manufacturing expenses, like additional taxes, mark-up, advertising, shipping and storage, etc..
the topgear's article above delved only on dealer mark-up, which is not part of the cost of manufacture.
are there rules on mark-up? unfortunately, these are better left to the imagination of the manufacturer and the dealer.
henry ford once said, "big cars, big profit.. little cars, little profit". but that was before the arab oil embargo industry... how things change..
heh heh.
We can only assume, only internal accountants of these big companies may know. This may be highly variable depending on the tax, company, country, model, variant, purpose, etc.
Luxury and Sports cars may have bigger profit margins since these cater to a specific niche and may be inelastic to price increase (eg Floyd buying several Bugatti's).
On the other side of the coin, a company may opt to sell cars at a very low profit just in order to maintain market dominance in a specific country since it was mentioned that bulk of earnings are from maintenance. Case point is the Toyota Vios or the Hyundai Eon which from what I remember are top sellers of their respective brands locally. I wouldn't be surprised if the actua; profit margin per unit is only 1% or less since more brand new units, more casa maintenance, and more earnings.
Secondly, iba din ang market presence. If I see a lot of cars of a specific model and this is true for 3 years or more, then that company may be doing something right. To a typical pinoy, this can be interpreted that the model is a good and reliable one.
i wonder too if there are rules. what's the standard? who regulates this? DTI?
I guess there are no standards on pricing. This is generally a free market after all.
value and price are two different things
for the common daily cars, the profit margin of the manufacturer is not that much. they get it back from parts and labor specially when the car is still under warranty. that is why too, some of the maintenance/repair services require manufacturer specific tools and equipment. as for high end cars, they make the profit immediately from sales and after sales which is parts and service.
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value and price are two different things
for the common daily cars, the profit margin of the manufacturer is not that much. they get it back from parts and labor specially when the car is still under warranty. that is why too, some of the maintenance/repair services require manufacturer specific tools and equipment. as for high end cars, they make the profit immediately from sales and after sales which is parts and service.
a friend from Isuzu Alabang told me that the mark-up per vehicle varies... Average of 10-12% lang daw per vehicle.
Malaki difference ng kita ng dealer (i.e. Toyota Global, Manila Bay, etc) sa kita ng manufacturer (i.e. TMP). Dealers make peanuts. Manufacturers make much more.
from my understanding here, from economics point of view, it is wrong to say (our great debater is always wrong anyway) "car true value" or "how much is your car without mark-up" but what is the value for money at a given time, right? or the purchasing power of money (for example, Php1M) at a given time. Is the purchasing power of Php1M in 1915 the same in 2015?