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Re: Fair price....



Eric Sheley wrote:
> 
> However dropping
> the price to that level does not guarantee a three fold increase in sales -
> if the market is 2 purchases at the $9500 price point in a month, who is
> better off, the dealer that sold one with $1,500 profit or the dealer that
> sold two and only has $1,000 in profit ? ........

I'd suggest the dealer who only made $1,000 in initial profit would be
better off, all other things being equal. Why? The dealer now has double
the number of potential revenue streams from regular maintenance,
accessory sales, etc. Maintenance and accessories are generally more
profitable than the actual vehicle sales, although sometimes not by a
whole lot.

- --
Blake Sobiloff <sobiloff@xxxxxxxxxxxxxx>
Higher Education Consulting
KPMG LLP
McLean, VA

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