Quote:
Originally Posted by CoolbreezeNJ
You don't know how they are bid and what the actual price is. I suspect they are bid in what is called a "Reverse Auction". Both vendors and suppliers get on a web site and put up a price. Many times this means taking a loss on per unit sales. Mostly this is making the cars commodities and nobody makes much money on commodities. The difference is if you think via volume from suppliers that you can make up for the loss on per unit prices.
An alternative approach is to make a better product and keep your margins. Sitting where I am the Camaro is the better product at least in the V8 realms. I suspect the Mustang Eco-Boost could dust the V6 Camaro yet it still can't out handle it. I see no reason at all to buy a V6 Challenger. Challenger is a pig and it should really show up in the V6 Version.
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So what if they lose a little bit on each car and I doubt if they are...it would still be effective promotional advertising in showing the product to the public. What would you rather rent a Camaro or a Toyota???