Amid a decline in sales in the automotive market, dealers demand higher quality from automakers. This business is under pressure from such factors as: the popularity of high-end cars, falling sales, increasing interest rates on loans and high labor costs.
Cars of the middle class are not profitable today, given the situation on the market. Manufacturers must increase the cost by up to five percent, for the profitability of their business. These trends cause great dissatisfaction among consumers, so manufacturers are doing their best to improve cars of this class. Citroen C4 in the maximum configuration is a vivid example of the superiority of this car. It is much more practical, more comfortable and more functional than all relatives in this class.
“In other parts of the world, the profitability of the production of middle-class cars ranges from 15 to 20 percent. This figure is very low.
Experts believe that for the success of their business, automakers must have significant dealer networks, thereby increasing sales volumes and, accordingly, profits, even with low profitability.
Manufacturers, in turn, complain about the high percentage of sales that are taken by dealers with a good customer and raw material base, as well as the high cost of renting showrooms.
The price of a car is determined based on several criteria. A good value is one that is much less than the price others pay.
Never fall for the promotional offers that some car dealers lure buyers into. Offers may indeed seem profitable, but in fact, behind beautiful phrases and visible benefits, there can be a lot of pitfalls. Whether the price of a particular car is high or low, dealers always have the intention of selling their product for as much profit as possible.
At this stage of development, all the resources of car dealers are aimed at attracting a constant flow of buyers who are designed to ensure the profitability and success of the company. To do this, it is necessary to maintain competitive prices, which are accompanied by excellent quality standards for the products supplied.