Perth-WRX.com  

Go Back   Perth-WRX.com > General WRXing > General Subaru Discussion
Register Diddy Kart ArticlesAll AlbumsBlogs FAQ Community Calendar Today's Posts Search


Welcome to Perth-WRX, click here to register!

Reply
 
LinkBack Thread Tools Display Modes
  #11  
Old 18-04-2011, 07:53 PM
mARC's Avatar
Perth WRX Old Skool Cool Dude
Member
 
Join Date: Aug 2007
Location: In a House
Posts: 3,589
Thanks: 43
Thanked 30 Times in 28 Posts
mARC at standard level
Default

Quote:
Originally Posted by Kato View Post
What economics did you fail?

Its about achieving the right sales volume, market exclusivity and profit margin.

If you sell 1 unit at $500 profit, it's a lot better to sell 10 units at $100 profit. Esp given you have invested in the tooling to manufacture the 1 item.
As far as selling 5units for the same price when your chosen market is prepared to buy in at the increased price are you crazy?

Your per unit cost is going to increase if you go along that route 'repairs and maintenance, increased cost in staffing to cope with production increases, capital asset replacement, possibly spoilage as well as you could safely say that product quality would decrease, increased warehousing costs as you may need to upgrade your facilities the list goes on.

Flooding the market also decreases the exclusivity of your product which is a key variable in the luxury car market.

The tooling is already there, you've paid for it, why increase capital expenditure, why exhaust it?
__________________
[SIGPIC][/SIGPIC]

Last edited by mARC; 18-04-2011 at 07:58 PM.
Reply With Quote
  #12  
Old 18-04-2011, 08:05 PM
reconus's Avatar
STI Master
Member
 
Join Date: Sep 2009
Location: ym
Posts: 639
Thanks: 2
Thanked 4 Times in 4 Posts
reconus at standard level
Default

Depends what you would consider to be an exclusive & luxurious car though, right?
Reply With Quote
  #13  
Old 18-04-2011, 08:09 PM
mARC's Avatar
Perth WRX Old Skool Cool Dude
Member
 
Join Date: Aug 2007
Location: In a House
Posts: 3,589
Thanks: 43
Thanked 30 Times in 28 Posts
mARC at standard level
Default

Quote:
Originally Posted by reconus View Post
Depends what you would consider to be an exclusive & luxurious car though, right?
More so dependent on your budget/cashflow.
__________________
[SIGPIC][/SIGPIC]
Reply With Quote
  #14  
Old 18-04-2011, 11:08 PM
REXXXED's Avatar
Subaru Tech Division
Member
 
Join Date: Oct 2008
Location: Probably Fishing
Posts: 1,917
Thanks: 55
Thanked 56 Times in 45 Posts
REXXXED knows their stuff
Default

Even though i knew the majority of that it still made me extremely angry reading that article
__________________
[COLOR="Red"][B]Need Finance for a new Car or Mortgage??? Call or email me today:[/b][/COLOR]
[b][color="BLUE"][url]http://www.themortgagegallery.com.au/find-a-broker/manager/sam-zurzolo.aspx[/url][/b][/COLOR]
Reply With Quote
  #15  
Old 19-04-2011, 08:33 AM
Kato's Avatar
Burnout!
Member
 
Join Date: Jul 2005
Location: Pimp Corner
Posts: 7,079
Thanks: 7
Thanked 120 Times in 75 Posts
Kato is a guruKato is a guru
Default

Quote:
Originally Posted by mARC View Post
As far as selling 5units for the same price when your chosen market is prepared to buy in at the increased price are you crazy?

Your per unit cost is going to increase if you go along that route 'repairs and maintenance, increased cost in staffing to cope with production increases, capital asset replacement, possibly spoilage as well as you could safely say that product quality would decrease, increased warehousing costs as you may need to upgrade your facilities the list goes on.

Flooding the market also decreases the exclusivity of your product which is a key variable in the luxury car market.

The tooling is already there, you've paid for it, why increase capital expenditure, why exhaust it?
In my example, I'd rather have the $1000 profit than a heap of economic tripe and only have $500 profit.

Name of the game is profit. If you can have a good volume on a good profit and generate more overall profit, why not do it? I don't see any reason a business would want to have a high profit, sell less, make less overall profit all just to stay 'exclusive'.

McDonald's may as well just sell one burger for $100,000 per day using your logic.
__________________
[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]
Reply With Quote
  #16  
Old 19-04-2011, 09:42 AM
JDM_STYLE's Avatar
Sign me up!
IMPREZA STi S204
 
Join Date: Jul 2005
Location: Shibuya
Posts: 5,518
Thanks: 4
Thanked 20 Times in 20 Posts
JDM_STYLE at standard level
Default

^^^ The Mc Millionaire eh?
__________________

221.7KW-ATW 498.5NM MMS ROLLER DYNO & BUILT BY STi NINJAS, BUILD #318/600

EBISU SUBARU, SHIBUYA-KU TOKYO
Reply With Quote
  #17  
Old 19-04-2011, 09:51 AM
mitchwnz's Avatar
Flat Four Father
Member
 
Join Date: May 2010
Location: Beeliar
Posts: 2,786
Thanks: 113
Thanked 63 Times in 50 Posts
mitchwnz knows their stuff
Send a message via MSN to mitchwnz Send a message via Skype™ to mitchwnz
Default

At the end of the day it costs a lot to produce/manufacture cars here in Australia due to all the red tape/health and safety/unions rah rah rah the list goes on. As long as the cost of producing cars here is so high the government will do all it can to protect the interest of these manufacturers.
Reply With Quote
  #18  
Old 19-04-2011, 09:58 AM
Kato's Avatar
Burnout!
Member
 
Join Date: Jul 2005
Location: Pimp Corner
Posts: 7,079
Thanks: 7
Thanked 120 Times in 75 Posts
Kato is a guruKato is a guru
Default

Quote:
Originally Posted by mitchwnz View Post
At the end of the day it costs a lot to produce/manufacture cars here in Australia due to all the red tape/health and safety/unions rah rah rah the list goes on. As long as the cost of producing cars here is so high the government will do all it can to protect the interest of these manufacturers.
Which would be fine if the manufactures didn't then go and sell the car cheaper overseas.

Why protect an industry that is just flipping the bird to the country supporting it?
__________________
[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]
Reply With Quote
  #19  
Old 19-04-2011, 01:25 PM
stinga's Avatar
Subaru Tech Division
Member
 
Join Date: Jul 2005
Location: Fremantle
Posts: 1,060
Thanks: 1
Thanked 1 Time in 1 Post
stinga at standard level
Default

Brand new ZR1 supercharged Corvette, 638HP, 0-100 in 3.3 secs = $US125K sigh........
Reply With Quote
  #20  
Old 19-04-2011, 01:46 PM
Flat Four Father
Member
 
Join Date: Jun 2006
Location: Perth
Posts: 2,082
Thanks: 44
Thanked 7 Times in 7 Posts
muggz at standard level
Default

^^^
TGA mag drove a Performax converted zr1... Buy in now price incl taxes, conversion etc low 300k AUD!!

You're best bet is to wait for a few Emirates pilots to bring some here as personal imports from Dubai. That way youre exempt from doing the conversion LHD FTW!!
__________________
MY00 GT Forester with STi goodies
Reply With Quote
Reply

Tags
cars, imported, pay


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
What cars have you owned darlyn General Subaru Discussion 181 30-10-2010 10:13 AM
FS: 2x RC cars (electric) wild_rx For Sale 0 23-02-2009 05:16 PM
P platers and powerful cars and other stuff doadrift Non-WRX Discussion 131 15-10-2008 08:32 AM
Silver cars less safe on roads vivioman Non-WRX Discussion 27 16-01-2008 05:00 PM



Welcome to Perth-WRX, click here to register!

All times are GMT +8. The time now is 05:38 AM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Content Relevant URLs by vBSEO