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From: Mike Hunter on 6 Apr 2010 11:23 Maybe you should suggest that to Toyota. Perhaps then they would not have had to recall 9,500,000 vehicles all over the world and be facing million in fines and billions in litigation. "Ron Peterson" <ron(a)shell.core.com> wrote in message news:54c66386-6d27-44d0-ba9b-a60fb10ff888(a)z4g2000yqa.googlegroups.com... 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 |