Thread: Motor City
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Old 27-09-2011, 05:57 AM   #229
dos_junkie2
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sorry I made a mistake here the correct numbers:
=======================================


soooo in the end ... ONE car cost you exact:

650$....for parts
233$....for labor
294$....for distribution (inc. advertising)
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1177 $ per car
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So if give every shop a sales discount of 20%, you have to sell your cars
at least at 1495$ to not make a loss. (1471$ - 20% = 1177$)


To max. your profit its very important to find the optimal profit margin.
I have done a little research after i bought every sales shop in europe.
At that time I had 2 models (both small cars) lets say model "A" and model "B".


Profitmargin:..................20%................ .30%..............50%
sales volume of car A:....1718.................695...............522
sales volume of car B:....1598.................1258..............459
turnover:..................6.487.000.......4.283.0 00........2.450.000
profit:......................2.438.000.......1.900 .000........1.650.000


So... a profitmargin of 20% will give you the most profit...but ONLY if:
- you own all sales shops in europe
- you have the production capacity for 1718 cars model "A" and 1598 cars model "B" (=30 Factories)
- you avertise in every sales shop with 5%-10% of your local turnover


I dont remember my costs for model "A" and "B", but lets say the overall costs for one model "A" were as mentioned (in the example before) 1177$.

So the perfect price for model "A" would be:

1177$ + 20% (profitmargin) = 1412$
1412$ (=price without sales discount of 20%)

so:

1412$ / 80 x 100 = 1765$

that means:
1765$ - 20% (sales discount) = 1412$ which is our perfect price inc a profit margin of 20%

Sorry for my bad english, and for the long explanation but i hope everybody gets ist.

greetings

dos-junkie [/quote]
                       
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