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Date:         Sat, 24 Apr 2004 12:54:03 -0500
Reply-To:     Stan Wilder <wilden1-1@SBCGLOBAL.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Stan Wilder <wilden1-1@SBCGLOBAL.NET>
Subject:      Re: 2.1 hose price deal
Comments: To: Norm - RoweBoat <norm@ROWEBOAT.COM>
Content-Type: text/plain; charset="iso-8859-1"

I can't name the news sources but I've heard that both Ford and GM make about $10,000.00 on every full sized pickup or full sized SUV they build. That doesn't include what the dealer makes when they pay you a $2000.00 rebate just to take one off the lot. This discussion can get really nasty since most Car Dealers take advantage of every body that comes through their doors with the exception of a few fleet buyers. My son has a F-150 Crewcab with a retail price of $34,000.00 and with financing after rebates etc it's still hovering in at 34K. What a rip off.

Stan Wilder

----- Original Message ----- From: "Norm - RoweBoat" <norm@ROWEBOAT.COM> To: <vanagon@GERRY.VANAGON.COM> Sent: Saturday, April 24, 2004 12:08 PM Subject: Re: 2.1 hose price deal

Some items in grocery stores are marked up at a higher rate than others. From what I understand (and never having been in the grocery business, I can't speak from first-hand knowledge) the overall profit margin is about 5% and their costs (rent, insurance, wages, advertising, etc.) get covered by that. Which means high sales volume is critical.

Plus, at a car dealership, it isn't the car sales that really makes the money and keeps the place in business. The Parts Dept. helps some, but the main profit center is the Service Dept. The Service Dept. is what usually makes or breaks a dealership. And if your dealership acts as a district or regional parts supplier (which we weren't, it was just a small town dealership) and offer some of your commercial customers a 35% discount (keeping 5% for yourself), you're still making a little bit off of the discounted parts and your standard 40% off of the bulk of your parts sales (parts used by the Service Dept. on customers' vehicles and across-the-counter sales) so you're still showing a good profit margin.

Norm

-----Original Message----- Date: Fri, 23 Apr 2004 22:06:25 -0700 From: Karl Wolz <wolzphoto@WORLDNET.ATT.NET> Subject: Re: 2.1 hose price deal NVC

That margin is after paying fro rent, insurance, wages, advertising, etc. Not direct, item-by-item mark-up.

Karl Wolz > > I used to work in the Parts Dept. at an Olds/Cadillac, GMC Truck dealership. > Our prices were across the board 60% cost, 40% markup. So even if we sold > to someone at a 35% discount, we still had a %5 margin. Not much, but most > grocery stores operate on a 5% average profit margin. > > Norm


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