antonOO2
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Registered: 17th Sep 02
Location: Midlands
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i heard the word overheads ,this is important for a company that sells just products .if you can keep these down then yes there is alot of money to be made .
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Donna Corsa GSi
Registered: 1st Jan 70
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Im not saying you won't make money from it im just saying out of that 35% net profit you've got to pay out advertising staff wages, rent, rates, heat, light, PPS, carriage, bank chgs etc etc etc etc the list goes on and on. But if you offer a service like Carisma you've got practically 100% net profit and then you've just got to pay out for overheads
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Donna Corsa GSi
Registered: 1st Jan 70
User status: Offline
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Well advertising ALONE will eat into a lot of this 35% profit
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M2RTY
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Registered: 25th May 01
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donna sounds like my uni lecturer
ever fancy a career change lol?
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Donna Corsa GSi
Registered: 1st Jan 70
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And to stock all these products you're going to need a fair size warehouse plus showroom thats going to cost a fair bit a month
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antonOO2
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Registered: 17th Sep 02
Location: Midlands
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depends how much you need ,if you can beat other companies prices its not long before the word gets out and spreads that you are cheaper .
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Scott
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Registered: 11th Mar 01
Location: Kilmarnock,Scotland
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i feel the market is not about pricing at all
infact i know its not. its about service, quality, speed, accuracy, and cost rolled into one.
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Donna Corsa GSi
Registered: 1st Jan 70
User status: Offline
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You can't just go round under-cutting. Suppliers don't like that, ever heard of RRP?
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antonOO2
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Registered: 17th Sep 02
Location: Midlands
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yeh its not all about costs,but at the end of the day how many people who modify cars are students ,they are going to look for a low price ,okay the quality does have to be there too i agree,And delivery times do play a big part
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Donna Corsa GSi
Registered: 1st Jan 70
User status: Offline
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Scott this is very true, to be sucessful you have to keep the customers coming back and good service is how you're going to keep them coming back. Branding is also very important and getting your name out there. Also, finding new products and having a good relationship with suppliers to get better discounts.
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antonOO2
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Registered: 17th Sep 02
Location: Midlands
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yes donna its RRP recomended no RP retail price .if you buy 100 items and get them chaeaper so can sell lower the suppliers dont give a monkeys ,they got the trade price they were after
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Donna Corsa GSi
Registered: 1st Jan 70
User status: Offline
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quote:
Originally posted by M2RV H
donna sounds like my uni lecturer
ever fancy a career change lol?
 loads of people say I should be a teacher what does this say about me 
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Donna Corsa GSi
Registered: 1st Jan 70
User status: Offline
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I know for a fact they do give a shit because I know suppliers that have complained about it. Some suppliers don't like you to undercut because it upsets other companies (their customers) the idea of getting bigger discounts is so that you can offer a competitive price and make more money. You can also give out good discounts and special offers. It all depends whose supplying you the product at the end of the day.
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M2RTY
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Registered: 25th May 01
User status: Offline
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quote:
Originally posted by antonOO2
yes donna its RRP recomended no RP retail price .if you buy 100 items and get them chaeaper so can sell lower the suppliers dont give a monkeys ,they got the trade price they were after
depends on what the products are
ferrari's, prada, expensive perfummes sell at expensive prices to hold their "exclusivness" and if they were sold cheaper then not as many people would by them belive it or not
price elasticity of demand
plus, if you know anything about pricing, selling cheap and undercutting is not always the best way
[Edited on 01-12-2003 by M2RV H]
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antonOO2
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Registered: 17th Sep 02
Location: Midlands
User status: Offline
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i agree with you marv but a combat kit aint exactly what you would call exclusive is it
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M2RTY
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Registered: 25th May 01
User status: Offline
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quote:
Originally posted by Donna Corsa GSi
quote:
Originally posted by M2RV H
donna sounds like my uni lecturer
ever fancy a career change lol?
loads of people say I should be a teacher what does this say about me
a lot of my lecturers retired early and then started leacturing and working for themselves/selling their companies off, working 1 or 2 days a week
they know what they are talking about better then anyone as they have been doing it in the real world for many years
your not a teacher as such as u dont have to bother about people turning up etc like a college/school teacher
id love it!
just a thought 
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M2RTY
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Registered: 25th May 01
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quote:
Originally posted by antonOO2
i agree with you marv but a combat kit aint exactly what you would call exclusive is it
agreed, old stock/last years fashion will sell at a lower price because no1 wants it
but when it comes to things like carisma retrims etc, they can charge a higher price as they know people will be willing to pay for it as they are not only buying the retrim, they are buying the brand
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antonOO2
Member
Registered: 17th Sep 02
Location: Midlands
User status: Offline
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quote:
Originally posted by M2RV H
quote:
Originally posted by antonOO2
i agree with you marv but a combat kit aint exactly what you would call exclusive is it
agreed, old stock/last years fashion will sell at a lower price because no1 wants it
but when it comes to things like carisma retrims etc, they can charge a higher price as they know people will be willing to pay for it as they are not only buying the retrim, they are buying the brand
you have just hit the nail on the head i believe mate ,BRAND / NAME thats what people pay for .
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M2RTY
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Registered: 25th May 01
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true under cirtain circumstances
all boils down to what other products are available, competiton, and how much u want the product
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M2RTY
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Registered: 25th May 01
User status: Offline
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ttt lol
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Scott
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Registered: 11th Mar 01
Location: Kilmarnock,Scotland
User status: Offline
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marv !!!!!! im busy today no time to argue
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M2RTY
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Registered: 25th May 01
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lol, i want a debate
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miles
Member
Registered: 25th Mar 02
Location: plymouth Drives: Astra Sport
User status: Offline
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Just found this thread seeing if the copy of PVD's accounts had made it onto here.
Obviously not.
Seems like Donna's not been giving PVD good news! Hope they dont blame the accountant! Afterall, by them being a LTD they have put this info into the public domain, which will loose them loads of business!
Isn't it price fixing (and illegal) if manufacturers complain about deviation from RRP's?
If im buying mail order I will make my supplier choice purely on price.
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miles
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Registered: 25th Mar 02
Location: plymouth Drives: Astra Sport
User status: Offline
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Oh, and do you really think £100k net has been spent on this car?
£100k worth if they had charged there full rate for all the time put into it and paid RRP's. It would also be a tax loss.
Spending 3 weeks turnover on a marketing tool could be foolish, as 3 weeks turnover could easily be a years profit (or 10 years if your PVD)
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