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inventory cost...
Posted by James [Email] (more from James) on Wed, 12 Oct 2011 00:41:28
In Reply to: curious factoid, derf, Tue, 11 Oct 2011 10:54:47
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true, there is a cost to storing product... slow moving product is being stored...
I suppose for that reason it is smart to partner a higher priced lower volume line with a higher volume lower priced line (eg in Canada, Saab/Saturn, or nowadays, often Saab/Suzuki)...
Our local dealer (Ottawa) stopped selling Saabs (+ Suzukis) a couple months ago and consolidated to a service operation. I doubt they sold a single 9-5 and few if any Saabs at all since Saab was reintroduced to Canada... the location was so out of the way... it was a ghost town every time I was there... sad...
I wonder if there is a different business model for a dealership that a company like Saab could use, at least in small markets... maybe turn it around: make it possible/attractive for Saab indy mechanics to order new cars... many sell used ones already... most research is done on the internet so a "dealer" only needs to stock a very small subset to test drive... I'm just "thinking out loud"... probably many complexities... but the gist of it is there are many great Saab indies who have built a business around great service (as compared to many existing dealers)... that business model works... so why not do low overhead sales in a predominantly service oriented environment? minimalist... isn't that the Scandinavian way?
James...
posted by 69.63.5...
Posts in this Thread:
- last saab dealer is gone, derf, Sun, 9 Oct 2011 19:40:37
- Done with SAABs in Albany NY, ChuckD , Sun, 16 Oct 2011 09:07:02
- Re: last saab dealer is gone, Dan springman, Wed, 12 Oct 2011 09:27:53
- Re: last saab dealer is gone, Springman's Saab, Wed, 12 Oct 2011 09:10:25
- New Saabs going to auction in Detroit area?, MI-Roger , Mon, 10 Oct 2011 07:45:23
- A disturbing trend., Noel, Mon, 10 Oct 2011 07:28:29
- Vera Saab in Hollywood FL, JustinHiFi , Sun, 9 Oct 2011 21:37:27
- Still have two in my area, JerseySaab , Sun, 9 Oct 2011 19:48:00
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