Cost per Car of Ads...
in [Automobiles]
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From: Ron Peterson on 6 Apr 2010 10:32 On Apr 5, 8:11 pm, dr_jeff <u...(a)msu.edu> wrote: > I disagree. Without the ads, GM would hardly sell any cars. Consumers go to the Web to get information on cars now, advertisement costs could be better spent making better vehicles. -- Ron
From: dr_jeff on 6 Apr 2010 14:57 Ron Peterson wrote: > On Apr 5, 8:11 pm, dr_jeff <u...(a)msu.edu> wrote: > >> I disagree. Without the ads, GM would hardly sell any cars. > > Consumers go to the Web to get information on cars now, advertisement > costs could be better spent making better vehicles. > > -- > Ron Except, without advertising, people won't know about the cars. Advertising is part of selling the cars. It's a cost of doing business. Jeff
From: Ed Pawlowski on 6 Apr 2010 22:05 "dr_jeff" <utz(a)msu.edu> wrote in message news:QdWdncRNWPyPGSbWnZ2dnUVZ_sYAAAAA(a)giganews.com... > Ron Peterson wrote: >> On Apr 5, 8:11 pm, dr_jeff <u...(a)msu.edu> wrote: >> >>> I disagree. Without the ads, GM would hardly sell any cars. >> >> Consumers go to the Web to get information on cars now, advertisement >> costs could be better spent making better vehicles. >> >> -- >> Ron > > Except, without advertising, people won't know about the cars. Advertising > is part of selling the cars. It's a cost of doing business. > > Jeff At the cost stated, it is about 1/25th of the cost of the average vehicle. A friend of mine works for a major cosmetics company and he says 40% of their revenue goes to advertising.
From: Ed Pawlowski on 6 Apr 2010 22:08 "jim beam" <me(a)privacy.net> wrote > > that doesn't explain it. g.m. have been making profits on their well > managed and well run european operations, and european pension/health care > costs [along with virtually every other cost too] are /way/ higher than > here. Costs have little affect on profitability. Selling price does. You have to know both to do a comparison between US and Europe
From: dr_jeff on 6 Apr 2010 22:18
Ed Pawlowski wrote: > > "jim beam" <me(a)privacy.net> wrote > >> >> that doesn't explain it. g.m. have been making profits on their well >> managed and well run european operations, and european pension/health >> care costs [along with virtually every other cost too] are /way/ >> higher than here. > > Costs have little affect on profitability. Selling price does. You > have to know both to do a comparison between US and Europe So a car that costs $100,000 to build will be real profitable at $25,000? Both costs and selling price are part of profitability. In fact, profit = selling price - costs. Jeff |