For many businesses even a 36% profit is pretty bad.
*shoots self in face for not being in the loop when the original deal happened...*
Rolling the Korean spiritual successor...
2019 Kia Stinger GT AWD
1991 Dodge Stealth R/T TT
I think you could get them for as low as $14xx at one point.
With all my respect to you Alan, I'm sorry but I totally disagree with you! They were :
6-Speed Tranny = $1478
6-Speed T-Case = $469
5-Speed Tranny = $2309
5-Speed T-Case = $298
So 1850$ and 2600$ for the combo and the RE-seller like IPS WERE ALREADY making an unknown profit!! I got my combo from Ray and he bought mine at his dealership and he made a profit.
So selling something 4800$ (4000+800$) when it's worth 1850$ to 2600$ minus the actual unknown profit that reseller where already comfortable to make, it may be even more then the 60% mark already mentioned for the 6 speeds and probably at least 50% on the 5 speed.
Plus a markup of 36% being a small margin is so false... on a 20$ part it's not big, but on a 4K$+ sale it's a lot. Usually the more expensive, the less the margin it is (unless it's high-end luxury). AKA when the dealer sell you a brand new car, they won't sell it at 36% profit.
Selling and shipping 200 parts at 20$ is a lot of work for your 36% profit, but selling and shipping 1 part at 4000$ is very well paid for a 36% (more like 50-60%) margin.
Do 3SX has the right to do that ? Absolutely! They probably bought all the 6 speeds out there before IPS could do anything, this is why they cannot get them, and it's very intelligent and a very wise business move.
But being covered saying they don't make a lot of money is not needed in my opinion.
Eric
Last edited by TT Eric; 08-22-2011 at 09:55 AM.
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