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On 11/04/2012 4:49 PM, Invisible wrote:
> On 11/04/2012 04:32 PM, Stephen wrote:
>> On 11/04/2012 4:25 PM, Invisible wrote:
>>> for the first box again??
>>
>> Because high cost equals quality in most peoples mind. Or, it is cheap
>> therefore it must be inferior.
>
> I was thinking more why the /supermarket/ would pay more for the same
> product...
Public demand and brand loyalty. People want the brand of cornflakes
they have always eaten. So the supermarkets buy them in for them.
There are some supermarkets that only stock generic brands but do not
let your neighbours see you going there.
--
Regards
Stephen
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On 11/04/2012 02:43 PM, scott wrote:
>> So... how the hell did Fiat manage to afford Ferrari?
>
> Because there are 2 million Fiats sold each year, yet only 5000
> Ferraris. Which brand would you rather own? Hint: if you choose
> correctly you could buy the other one with about 2 weeks of profit :-)
OK, let's do the math on this...
Fiat sells in the budget market. In that segment, if you have a 3%
profit margin, somebody else will come along and start making the same
thing, but selling it at only 2% profit, and everybody will buy that
instead of yours, so you shut down. And then somebody else will start
selling it at 1% profit, etc. In summary, we can take it as read that
Fiat sells its cars at only fractionally more than the actual
manufacture cost.
Suppose for argument's sake that the cheapest Fiat you can buy is
We've already agreed that Fiat is selling nearly at-cost. In other
manufacturing a car. Now, a Ferarri probably costs slightly more to
might be /priced/ at twice as much as a 1L engine, but it doesn't
actually /cost/ twice as much to machine it. No doubt the Ferarri has
nicer fabric lining the seats and a few other bits and bobs. Let's
over-estimate and pretend that the Ferarri costs 2x to manufacture.
Now, explain to me again, *how* can Fiat afford to buy Ferrari??
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On 11/04/2012 9:34 PM, Orchid Win7 v1 wrote:
> Now, explain to me again, *how* can Fiat afford to buy Ferrari??
You are wrong in your assumptions.
Remember what Father Ted said to Father Dougal.
Inside head - Fantasy
Outside head - Reality.
Have you ever thought "this does not add up to my conceptions so I must
be wrong"?
--
Regards
Stephen
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On Wed, 11 Apr 2012 21:34:42 +0100, Orchid Win7 v1 wrote:
> Now, explain to me again, *how* can Fiat afford to buy Ferrari??
As Stephen said, your assumptions are bad.
You've forgotten, for example, to include labour costs in the
manufacturing process. Those who work on Ferraris tend to command higher
salaries than those who work on Fiats because making cars for high
performance driving requires more skill than making cars for uses that
the masses produce.
Jim
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Warp escreveu:
> (For example, good luck trying to stop Sony from getting any of your
> money.)
hey, Microsoft makes money off of Linux and Android, so what would you
know?... :p
--
a game sig: http://tinyurl.com/d3rxz9
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Invisible escreveu:
> Currently I'm seriously ****ed off with Amazon. When you buy something
> from them and the price on screen is X, you expect to pay X, plus some
> negligible amount for postage. You to /not/ expect to pay 1.5 X. If I
> had known that the /actual/ price was 1.5 X, I would not have purchased
> the item. The fact that Amazon hid this information seems tantamount to
> fraud, to me.
oh, you're crying for nothing.
trying to import a Kindle reader from Brazil means you're supposed to
pay 109 for the product and more than that for the import fees,
effectively more than doubling the final price.
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> oh, you're crying for nothing.
>
> trying to import a Kindle reader from Brazil means you're supposed to
> pay 109 for the product and more than that for the import fees,
> effectively more than doubling the final price.
But the question is, do they *tell* you that before you actually
purchase the thing? Or do you just find out after the fact?
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Le 12/04/2012 10:15, Invisible nous fit lire :
>> oh, you're crying for nothing.
>>
>> trying to import a Kindle reader from Brazil means you're supposed to
>> pay 109 for the product and more than that for the import fees,
>> effectively more than doubling the final price.
>
> But the question is, do they *tell* you that before you actually
> purchase the thing? Or do you just find out after the fact?
It's a protective law for Brazil: if not made in Brazil, it's taxed
(heavily).
Purpose is to help companies to be from Brazil if they want to avoid
that tax.
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nemesis <nam### [at] gmail com> wrote:
> Warp escreveu:
> > (For example, good luck trying to stop Sony from getting any of your
> > money.)
> hey, Microsoft makes money off of Linux and Android, so what would you
> know?... :p
I don't think its comparable. Maybe MS makes money *using* Linux and
Android, but that doesn't mean that *your* money goes to MS when you "buy"
Linux or Android (them costing nothing, after all).
--
- Warp
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On 11/04/2012 21:34, Orchid Win7 v1 wrote:
> On 11/04/2012 02:43 PM, scott wrote:
>>> So... how the hell did Fiat manage to afford Ferrari?
>>
>> Because there are 2 million Fiats sold each year, yet only 5000
>> Ferraris. Which brand would you rather own? Hint: if you choose
>> correctly you could buy the other one with about 2 weeks of profit :-)
>
> OK, let's do the math on this...
>
> Fiat sells in the budget market. In that segment, if you have a 3%
> profit margin, somebody else will come along and start making the same
> thing, but selling it at only 2% profit, and everybody will buy that
> instead of yours, so you shut down. And then somebody else will start
> selling it at 1% profit, etc. In summary, we can take it as read that
> Fiat sells its cars at only fractionally more than the actual
> manufacture cost.
>
> Suppose for argument's sake that the cheapest Fiat you can buy is
>
> We've already agreed that Fiat is selling nearly at-cost. In other
> manufacturing a car. Now, a Ferarri probably costs slightly more to
> might be /priced/ at twice as much as a 1L engine, but it doesn't
> actually /cost/ twice as much to machine it. No doubt the Ferarri has
> nicer fabric lining the seats and a few other bits and bobs. Let's
> over-estimate and pretend that the Ferarri costs 2x to manufacture.
>
>
>
> Now, explain to me again, *how* can Fiat afford to buy Ferrari??
Errors in your above assumptions:
Volume car makers are generally on about 5% profit (Fiat had 3% in 2010)
More expensive brands can generate 10% profit (eg BMW/Daimler etc.)
Ferrari made 15% profit in 2010
The development cost for designing and testing a car is HUGE
Manufacturing costs are way cheaper per car if you are making 2 million
rather than 5000 a year.
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