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PORSCHE PROFIT $17K PER CAR

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Old 03-20-2017, 05:32 AM   #1
rmauro
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Default PORSCHE PROFIT $17K PER CAR

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Old 03-20-2017, 07:04 AM   #2
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All in, based on how you can drive the hell out of them every day I'm good with whatever they can make and reinvest in continuing to make great cars. Good companies making great product should be highly profitable.
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Old 03-20-2017, 08:41 AM   #3
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Originally Posted by rmauro View Post
Add to that the $22,000 the dealer makes on a $120,000 car (margin plus 5% holdback) and there is plenty of gross profit.

Of course the article doesn't say how much Porsche spends to developer a new car, factory construction, retooling, distribution costs, dealer support, warranty services, transportation, marketing etc.

Makes for a good headline though.
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Old 03-20-2017, 08:51 AM   #4
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Porsche being the most profitable car company is a title they've had for quite a long time. Nothing new. They are in business to make money like anyone else.

BMW makes almost 2,000,000 cars worldwide a year, Mercedes around 1,900,000, Audi around 1,800,00, Porsche like 225,000, and Ferrari 8,000

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Old 03-20-2017, 09:14 AM   #5
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Originally Posted by kayjh View Post
Of course the article doesn't say how much Porsche spends to developer a new car, factory construction, retooling, distribution costs, dealer support, warranty services, transportation, marketing etc.

Makes for a good headline though.
Definitions of "operating profit" I see take all of that into account.
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Old 03-20-2017, 09:51 AM   #6
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And remember that the profit margin on a 911 is even higher. That 17k number is brought down by the less expensive models, especially the large volume of Macans they are selling... which still aren't cheap, but certainly much cheaper. It's the price of entry to the club..
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Old 03-20-2017, 05:52 PM   #7
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That profit mentioned in the article, $17,250, is the price below dealer invoice.

Which means, if the dealer invoice is 10% of the sticker, then a 911 C2S with a $145,000 window sticker comes off the assembly line with a "manufacturers invoice" of about $113,250.

Thus, between the manufacturer and the dealer, there is 22% markup on a C2S with a window sticker of $145,000.

If you're a negotiator, that's something to keep in mind.
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Old 03-20-2017, 07:39 PM   #8
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Originally Posted by fuddman View Post
That profit mentioned in the article, $17,250, is the price below dealer invoice.

Which means, if the dealer invoice is 10% of the sticker, then a 911 C2S with a $145,000 window sticker comes off the assembly line with a "manufacturers invoice" of about $113,250.

Thus, between the manufacturer and the dealer, there is 22% markup on a C2S with a window sticker of $145,000.

If you're a negotiator, that's something to keep in mind.
True but your negotiable price is only as good as what the market "i.e. the next guy" is willing to pay for the same product. And for Porsche that is very high, especially if there is deviated stitching involved....
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Old 03-20-2017, 11:57 PM   #9
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.....your negotiable price is only as good as what the market "i.e. the next guy" is willing to pay for the same product. ...
Which, to me, is another way of saying you need to go out and find a market where the next guy is unwilling to pay for the same product. A market where where deviated stitching is, at the moment, an unaffordable luxury and where sales are not all that good.
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Old 03-21-2017, 12:10 AM   #10
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I'm just glad we can go and buy a car like the 911. Big smiles every time I drive my car.
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Old 03-21-2017, 12:30 AM   #11
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Quote:
Originally Posted by StormRune View Post
And remember that the profit margin on a 911 is even higher. That 17k number is brought down by the less expensive models, especially the large volume of Macans they are selling... which still aren't cheap, but certainly much cheaper. It's the price of entry to the club..
+1

simple math:
238K Vehicles @ $4.1B profit
Average Profit per Porsche made/sold Vehicle = ($4,100,000K) / (238K)
=17,226=~17K

Socialism: Robbing Peter (911 owners) and charging Paul less (Macan and others), and it works ! :-)
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Old 03-21-2017, 12:48 AM   #12
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I vote they just start charging more for their cars
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Old 03-21-2017, 02:57 AM   #13
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Just remember that's the margin for Porsche AG, not what the dealers' margins are.
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Old 03-21-2017, 07:07 AM   #14
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Quote:
Originally Posted by fuddman View Post
Which, to me, is another way of saying you need to go out and find a market where the next guy is unwilling to pay for the same product. A market where where deviated stitching is, at the moment, an unaffordable luxury and where sales are not all that good.
You didn't buy a new Porsche did you?

Or you bought one no one else wanted that had been ordered on (stupid-)spec and sat for 24 months?
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Old 03-21-2017, 12:29 PM   #15
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You didn't buy a new Porsche did you?
Actually, I did. 911 - built the way I wanted it. Got it last December. Like it a lot except for the many dashboard button options and such; but, I'm working on that.

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Or you bought one no one else wanted that had been ordered on (stupid-)spec and sat for 24 months?
I'm not sure what you're driving at here. I guess you,re saying that any discount on a new Porsche is only available on some lot dog. I guess you're implying, too, that all Porsche dealers face the same market demands and price the same way. If that's what you're saying, I disagree.

I think there is quite a bit of market and price variance out there in Porscheland - affecting ordered cars.
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