YL06GS

marcpitch-

I paid sticker for my GS300 and on the way home I got a hamburger with fries at McDonalds.

Can you tell me the profit margin????

VVT-i

A Big Mc may bring in the profit of 50%, not much compare the bedding industry which is 400% marked up.

My freind work at Bassett furniture and she can get a 60% discount for the furniture and the company still make money on the 60% discount. I'm talking about a $1,000.00 furniture set that she can buy it for $400.00 and the company still make money. Now, we're talking about a very big markep up here.

marcpitch

Nope, just how many McDonald hamburgers you could have bought had you wait 5-9 months more to buy your GS: Approximately 4,375.....this does not include fries, and would really fill you up.

flipside909

In all fairness, $4,375 may not be justifiable to you but it maybe for someone else.

VVT-i

Fill youself up with 4,375 Big Mc's. No thanks.

AsianGirl007

iTrader: (1)

hahahahahahaha..this thread is taking on a different life. It started as a "How much profit" thread and you guys switched over to how much McDonald's you can buy.
If you ate that much McDonald's, you'd be grossly overweight and sickly. Didn't any of you guys watch "Super Size Me"?

JHStrange

Think of it as a sale opportunity to move them into an LX

SC400guy2

Check this out for PROFIT MARGIN:

The cost to a Best Buy store for a USB cable that retails for $32.99 is $1.23!!!!

Thats a 2,682% markup!!!! OR 96% margin!!!

marcpitch

Elizabeth, that we can agree on. I saw Super Size Me, and have not had McDonalds since. That experiment with the fries was amazing.

Rockville

The GS TV advertising must have some subliminal message in it urging the viewer to visit their local Lexus dealership. Whew! We have been so busy that I had to work most of Friday, my day off. We usually are in the Doldrums until about April 15th and then things pick up. Saturday was a total zoo of shoppers and the GS demos were taking test drive after test drive. We started the day with a Black/Cashmere GS430 which had the 18" Spyder Wheels sitting pretty in the showroom. By Noon it was sold and rolled off the floor. I took two more orders for GS's and now need to find them ASAP. This car is red hot right now. This is a pace of business that we see typically in August during The Lexus Golden Opportunity. I can only imagine what will happen when the Hybrid comes in April.

Back to the topic, Since you brought up Audi which I happen to like the way it drives, I was only trying to illustrate how fragile a brand is and its health. Audi is far from out of the woods yet. Its volume is very small. When we needed to expand our facility at a preconstruction cost of 18 Million Dollars our parent Corporation had to figure out what to do with the Audi franchise. It has always been paired with Porsche and the manufacturers nowadays want the brands to stand alone. We would have had little trouble selling the Porsche franchise but the Audi franchise would not be able to sustain itself alone. At the last hour the powers that be allowed them to stay together and we can now build a new store for them on the Pike. Audi owners know their service consultants too well. At our store they sometimes recognize the owners voice before they even identify themselves. When an Audi goes out of warranty the owner knows that the time is up and let's get another or something else. They are enjoyable to drive and until now have not had many AWD competitors. I hope they can survive the new Acuras, Infinitis, and now the Lexus besides the other German makes that are jumping into AWD. Even Cadillac is getting into the act.

The net profit of our parent company Toyota is more than GM, Ford, and Daimler Chrysler combined. They reinvest that profit in Research and Development. If you purchase a Lexus or Toyota product you will benefit from that investment. The Lexus dealerships reinvest their profits into the amenities for the Lexus owners. Our dealership has about 50 Lexus loaner cars for use by the service customers. We will probably double that amount in the next couple of years. These are some of the costs of doing business in the Luxury market. You will not find them on Edmunds. You will not find a True Market Value on Edmunds either and that is just another form of internet noise. In this age of information we must know our sources well......

zoombie99

Audi is still on the mat, the 2004 A8L just loves sending time in service. That had a computer (MMI) problem that tooks months for a fix. The Audi phone system sounds like you are talking under water. There were also problems with the truck closing. Audi treats their customers like crap.

1993 GS 300
1998 GS 430
2004 GX 470
2004 Audi A8L (Approx 10 service appointments since last July including three weeks in the shop trying to fix the trunk!)

LexFather

? I'm going into the USB cable selling business, 1sickUSBcables.com

jrock65

"1sickUSBcables.com"

lol, I must admit, something about the sound of that is pretty funny.

Threxx

On the flip side they, on average, at least a few years ago when I sold computers for Circuit City and CompUSA, only make around 2% on average profit margin on the computers themselves.

They have to make up for that somewhere else...

Warranties are around 100% markup on average. So if you pay 500, they made 250. You buy a cable and paper with high markup to go with your printer that they made almost nothing on (or sometimes lost money after rebate).

BTW... there are plenty of wholesale/factory direct places that sell generic cables for about the same as Best Buy pays for them (1-2 bucks)

tsredalert

Hi there.

In regards to your thoughts on Edmunds: I have a friend who works there. I for one know that Lexus is a paying client of theirs. They get their data from corporate. From our conversations, I know that there's a "Factory Invoice", a "Dealer Invoice" (which has holdback, etc. included) and MSRP. I have a hard time believing that Edmunds would get inaccurate data from a PAYING client. Especially when it comes to a high profile client data such as Toyota/Lexus. I don't know specifics but I believe their TMV is just an "average cost" of the data (DEALER invoice and MSRP) they get from Lexus about how much people are paying across the country for the vehicle. I also know about the different pricing for GS (Gulf States) and SE (South East)... Wow. In many ways, I'm happy to live in SoCal. I DO agree that all of these sites are guidelines. I use Edmunds mostly and cross reference w/CarsDirect and KBB. All great sites. I used to work for a Subaru dealer and many times, Edmunds was the more accurate of the three... Well, that's just my 2 cents. Longo Lexus is a great dealership though. I've been there and bought many cars w/friends from you guys. Keep up the great work and service. Oh, and one last thing, please be nicer to people who don't LOOK like they have money. I know all of the "salesperson" jargon and you guys recently lost a sale to a friend of mine due to the way he was treated (and it had to be how he was dressed- kind of bummy, because if you saw his credit score and the amount of money he earned, it would've been an EASY sale. he's not a "laydown", but he would not have grinded much at all...). That changes nothing, I still refer everyone who wants a Lexus to Longo because my other experiences (at least 15 other occasions and all of them bought cars); it was just that one time- isolated incident thus far... BTW, would you happen to know of a person named David Gee? He's a close friend of mine. He's good friends with your Sales Manager.