Ford/holden Going Up 2-3%???

[dogfish]

I appreciate that car companies are going to go broke if they don't do something but chucking 2-3% on new cars is a great idea:togo:. Do you think they forgot that the consumer controls the market and that the price is governed by what someone is willing to pay.
For example plasmas and L.C.D teevees could or have gone up as much as 30-40% as of Jan 1 due to our low dollar but when it was .98c to the U.S did we get major discounted goods nooo of course not but once again its the media working with the retailers to get consumers to panic buy.
So if we all just wind it back a notch and don't need the latest and greatest imagine how cheap things would be.
As I said earlier "its only worth what someone is willing to pay for it."
Bring back negotiation as everything's negotiable.

[LowEL2XR8]

Always ask the question "Whats your best deal?"

Its free to ask the question and anything they take off is a bonus to you.

If they say they can't deal it hasn't cost you anything to ask.
I don't think I've ever paid retail at places like Harvery Norman, Retravision, Rick Hart.
Always manage to get some kind of deal.

[Scott]

Given that the dollar has dropped so dramatically, you would expect some rise wouldn't you? Whilst it was low there were deals everywhere - no great suprise here.

You can still argue the sticker price and you can still price shop a dealer.

[Auslandau]

Originally Posted by dogfish

"its only worth what someone is willing to pay for it."

Nope you only have 1/2 the story ........ "Its only worth what your willing to sell it for" Why sell for no profit? Always takes 2 to tango ..... buyer and seller need to agree.



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[mik]

a cheap selling price does`nt gaurantee sales, better to make a higher margin on those you do sell and lose a few sales rather than have more sales with no margin imo

[Sprint XR8]

Stagflation
"Prelimnary to having a classic stagflation situation settled in, short-term price declines often occur across the spectrum of industry. This results because producers and manufacturers respond to the declining demand associated with the recession component of stagflation by slashing prices to non-economically low levels. "Deflation" is then hailed by policymakers as an excuse to further stimulate the economy, as occurred in late 2008 on both sides of the Atlantic Ocean. Attrition within individual industries then occurs as the stronger firms survive and the weaker firms are unable to bear periods of losses. Such an event is the step which compels surviving firms to seek to re-enter the supply-demand curve based on smaller projected sales volume expectations, less competition and with the higher prices which restore profitability."
http://en.wikipedia.org/wiki/Stagflation

[b0son]

Originally Posted by auslandau

Nope you only have 1/2 the story ........ "Its only worth what your willing to sell it for" Why sell for no profit?

A small loss is better than a big loss (ie. no sale at all).

I suspect this is just posturing in order to get people buying now. Before xmas, retailers were talking big price hikes on TVs etc in the new year, now i'm reading reports of stable prices or even price drops.

[5.4 GT]

Originally Posted by dogfish

Bring back negotiation as everything's negotiable.

You don't work for Bing Lee do you?

[axeray]

The bigger the margin the better. They don't need to sell as many if they have bigger margins.

[Scott]

Originally Posted by axeray

The bigger the margin the better. They don't need to sell as many if they have bigger margins.

Bigger margin is always a target but not at the expense of volume. Fewer sales with very high margin (equal to that of lots of sales) leaves the company vulnerable to a quick death.

If you sold shoes, and you could sell 10 shoes a year and make $1000.00 or 1000 shoes and make $5000.00, you would sell the higher amount provided that the margin was sufficient to sustain your business and meet growth expectations.

Why do all that work to get $50 profit each instead of $100 each? Because if you lose 10 sales based on the 100 sales, you still have 90% of your business. If you lose 10 sales based on the 10 shoe strategy - you have no business at all.

There is a very finite balance between volume & margin, get it right and you have a Corolla.

[Eaturbo]

So what if cars go up 3% or 5%. People worry to much about purchase price, but not once do they stop to consider depreciation. For example car goes up $2000 but in the first year you have lost $10000 in depreciation. Maybe if we thought more about how the dealers make more than the manufacturer. As it stands normal dealer margin is 10% at full retail, this doesnt allow for discount or over allowance on trades. Mean while the manufacturers are losing what appears to be between 1 and 5% per sale on some brands and or models. how long has an XR8/SS been $45000? about 10 years. how much has food gone up in 10 years 100 or 200%

[robjh80]

I thought the dealerships "had to order" a certain number of vehicles per month from the manufacturer in order to keep their brand licence ... "or something similar?"

In other words the manufacturer just keeps sending them out ... what the individual dealerships do with them after that is entirely up to them.

If they don't order the vehicles and accept what the manufacturer sends them, they stand to lose their dealership .... is this right? ... or does the manufacturer themselves "set how many vehicles" are delivered to each of their dealers?, with no input from the dealerships at all?

Maybe someone here who works in the car industry knows how this all works?

[Bossxr8]

You can't just single Ford and Holden out, most of the manufacturers have put their prices up already and the others will quickly follow suit, especially the ones who only sell imported cars due to the lower aussie dollar. Toyota was the first to increase prices across the board.

[GTP290]

I think Ford would be making more money than GM at the moment, with Ford retailing the FG XT Falcon at 37k plus onroads, and Holden selling the VE with leather, bluetooth, 18 inch alloys for 30k driveaway its suprising Ford are selling any Falcons at all given the price gap, however Ford are offering 3k cashback, but its still 4k dearer than the Commy, without all the Commy options!

[Smoke Pursuit]

Originally Posted by robjh80

I thought the dealerships "had to order" a certain number of vehicles per month from the manufacturer in order to keep their brand licence ... "or something similar?"

In other words the manufacturer just keeps sending them out ... what the individual dealerships do with them after that is entirely up to them.

If they don't order the vehicles and accept what the manufacturer sends them, they stand to lose their dealership .... is this right? ... or does the manufacturer themselves "set how many vehicles" are delivered to each of their dealers?, with no input from the dealerships at all?

Maybe someone here who works in the car industry knows how this all works?

Not only that but they also have to sell a certain number per month to! Ford dealerships in QLD are getting put on notice monthly for not meeting their quotas... This is why its always good to shop at the end of the month when they are busting to get cars registered and out the door.

[sssn15]

Im sorry but didnt holden drop the price on Australias best selling car quite substantially this year???

[Kieron]

Not 100% about that bfiipersuit. I'll check with my friend who's a sales manager at a Ford dealership for sure though.

He did tell me the 'shopping at end of month' trick doesn't always work though as they have a 'cycle' that isn't necessarily based on the calander month.

Ford are currently offering $3,000 of 08 plated cars BUT its not all Ford money, the dealer has to stump up circa $800 from there profit margin too. You can certainly score a top deal at the moment though, SS Commies $39K drive away, and with the 3K off + a bit of haggling, you can get an XR8 for similar money - should be picking mine up in a few days, the wait is killing me.

[Luke3000]

Well in 1998 my parents bought a vt s pack for 40000. these days you would pick an sv6 up for alot cheaper than that.
This can not be a good thing when aussie compnanies have to discount so much

[InTrail]

Originally Posted by GTP006

Given that the dollar has dropped so dramatically, you would expect some rise wouldn't you?

The $AUD has only dropped dramatically against a few currencies.
Against the South Korean Won, it's over 25% up. Should be great news if you're in the market for a Hyundai, Kia; or Holden Barina, Viva, Epica or Captiva. :

For some reason, that doesn't make me feel any better.