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Thread: Riddle me this Tombie.

  1. #1
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    Riddle me this Tombie.

    Mike, rather than send the garage thread off topic, what is a reasonable markup for cars and other goods?
    If you don't like trucks, stop buying stuff.
    http://www.aulro.com/afvb/signaturepics/sigpic20865_1.gif

  2. #2
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    Thatís a bloody good question.

    In many instances it is common to mark up to what the market will bear.

    The Range Rover Vogue was a $200k vehicle. To build was approximately £14k.

    I remember reading from a Detroit guru who explained the mark up on vehicles based on what people would pay.
    There was a formula - body coloured bumpers, door trims, chrome - all had a price.

    Just look at what people here pay for a HSE... thereís not $30k worth of gear in it...

    Doesnít mean I wonít spend silly money - but I recognise it.
    Cheers
    Tombie

    Gone - D1 AZZKIKR - 5.0L Supercharged with the lot
    Gone - Tombraider Defender - Lara
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    D4 MY11
    - Just about the way I want it.
    D90 MY15 - Just about the way Mrs Tombie wants it.

    On order...
    Tesla Cybertruck Tri-Motor AWD due 2021


    And for those fun times:
    2007 Suzuki M109R Boulevard Limited - 1800cc of V-twin goodness
    2020 Suzuki Katana - 1000cc of pure mayhem - Just Send It

  3. #3
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    For much of what I would make for 4wds. I would charge 20% Gross Margin

    Partially it comes down to units produced, time etc invested...
    Cheers
    Tombie

    Gone - D1 AZZKIKR - 5.0L Supercharged with the lot
    Gone - Tombraider Defender - Lara
    Gone - D2 TD5

    D4 MY11
    - Just about the way I want it.
    D90 MY15 - Just about the way Mrs Tombie wants it.

    On order...
    Tesla Cybertruck Tri-Motor AWD due 2021


    And for those fun times:
    2007 Suzuki M109R Boulevard Limited - 1800cc of V-twin goodness
    2020 Suzuki Katana - 1000cc of pure mayhem - Just Send It

  4. #4
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    In the 70s car manufacturers would consult psychologists to help determine prices. They may still do so.
    I think you're on the mark with 'what the market will bear', it seems to be the way with most commodities.
    If you don't like trucks, stop buying stuff.
    http://www.aulro.com/afvb/signaturepics/sigpic20865_1.gif

  5. #5
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    Quote Originally Posted by V8Ian View Post
    In the 70s car manufacturers would consult psychologists to help determine prices. They may still do so.
    I think you're on the mark with 'what the market will bear', it seems to be the way with most commodities.
    Yep, they always say charge what the market will bear.

    Then they cry when people dont shop local.
    Cheers
    Slunnie


    ~ Discovery II "Storm" ~ ~ Series IIa 6cyl ute ~ ~ Series II V8 ute ~

  6. #6
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    According to the news tonight the "intent" to purchase property is up but the "intent" to purchase a new vehicle is down, way down. So how much can the market bear? Has the upper end of the market gone too far?
    I know I have no "intent" to purchase either but I couldn't even afford a base model Chinese anything at this time. Prices keep rising, wages remain stagnant, or with minimal increases and the grubberment want us to work longer. Where does something give? What is the breaking point?
    Not sure about vehicles but from my time in retail and hospitality, I would suggest that most mark ups from wholesale to retail would be in the vicinity of 100-200+%.
    There is no eraser on the pencil of life.

    Ray

  7. #7
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    I read that total Australian vehicle sales have fallen every month for 18 months. I guess stagnant wages mean less money to spend.
    2009 Defender 110 2.4. ARB bulbar, Ironman winch, Safari snorkel, Steinbauer chip, AP HD clutch, Lightforce spots, larger tank, Off Road Systems drawer, Traxide 160 controller, Tekonsha brakes, Mulgo seat runners, Uniden UHF, Nuggetstuff seat corners, breathers, Polaris GPS.

  8. #8
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    Quote Originally Posted by Tombie View Post

    The Range Rover Vogue was a $200k vehicle. To build was approximately £14k.
    does that include research n development costs?
    Quote Originally Posted by DazzaTD5 View Post
    Its a land Rover Defender... you need a real mechanic

  9. #9
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    When determining costs, you have to look at total Life Cycle costs. That is from development to production to post production to warranty cost. Then divide that total cost by the number of expectant vehicles, allowing for future development of the product, economies of scale, opposition inroads to sales, and inflation and then finally company profit expectations. Its not just a simple % added on. For example we have owned a Mazda 3/323 since 1995. Until 2019 (when we are about to replace), the base model has been $19,990 or near enough for the 23 years. The car we had in 1995 had basically nothing where as our last car had a lot of things that have been included. Maybe thats why the new Mazda 3 is now $30K as they got it wrong or they have changed their target market.
    2016.5 TDV6 Graphite D4, Corris Grey, APT sliders, Goe air comp plate, UHF & HF radio, Airflow snorkel, Discrete Winch,Compomotive rims with 265/65/18 KO Ta's, LLAMs, Traxide dual battery with winch set up, EAS emergency kit,

  10. #10
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    Quote Originally Posted by Eevo View Post
    does that include research n development costs?
    That is part of the calculation.
    Cheers
    Tombie

    Gone - D1 AZZKIKR - 5.0L Supercharged with the lot
    Gone - Tombraider Defender - Lara
    Gone - D2 TD5

    D4 MY11
    - Just about the way I want it.
    D90 MY15 - Just about the way Mrs Tombie wants it.

    On order...
    Tesla Cybertruck Tri-Motor AWD due 2021


    And for those fun times:
    2007 Suzuki M109R Boulevard Limited - 1800cc of V-twin goodness
    2020 Suzuki Katana - 1000cc of pure mayhem - Just Send It

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