Quote:
JimFlat6 said:
Quote:
nberry said:
Successful companies partner with buyers by providing a product which their customers want at a fair price. Additionally they provide value.
Porsche presently has a monoply on this market segment. Rather than protect its client base, they pillage it. Not only do they have the highest mark up in the industry but they over produce. Thus Porsche has profits margins which no other manufacturer would consider.
The downside to this approach is the customer is left holding the bag financially.
I am for reasonable profit margins. More importantly, I am for providing value to customers. Can any one honestly say that Porsche is providing value? Yes they are providing a product many want but they are ravishing the buyer who wants it.
Nick nick nick.....
So what is the right $$$ formula for sub 100K modern sports cars?
Enlighten us please, especially for those who lease and those who dont keep it longer than the warranty period.
Jim,
I think this is the formula Nick would like to see:
Porsche cuts production by 90% and charges one percent over cost to provide "value" to the customer.
Dealers realize how the supply/demand curve works and starts heavily marking up their cars. PAG realizes this isn't fair to them and makes the dealers charge MSRP.
Customers have to form secret deals with dealers to get on a "waiting list" to buy a Porsche. Secret deals like buying the GT2 sitting in their showroom. Forcing the buyer of a new Porsche to sell it back to the dealer for a pre-determined profit (which also happens to be below market). (Actually, that sounds like rape) Also, telling the customer to make sure there aren't too many miles on the car. Customers feel important because they're on the A-list.
<So far, this sounds like the strategy of another car company who I won't name, but starts with letters Ferrar_.>
Then shareholders of Porsche start pulling their money out of Porsche and start investing in CD's becuase they realize they can get a better return on their investment.
Then, Porsche goes bankrupt. People lose their jobs.
Nick is happy. He's no longer threatened.