Quote:
Originally Posted by M3 Adjuster
" LOST profits of pricing the M2 comp too low " ... again I say.. the M2 ... whatever flavor you name it.. M2 base.. M2 comp.. M2 this.. M2 that.. they are ALL involve " lost profits " and less margin compared to the sale of a similarly equipped M240, M3 or an M4 . Those " losses" are controlled by a tightly limited production volume... (that's not limited )
if there is ONE thing to understand about MERCHANDISING is that not every product is on the sales floor to generate MAX PROFIT, and the ones that are designated to be profit centers are specifically designed, built, packaged, marketed , and sold as such.
it's easy to see by looking at BMW sales that BMW sells around 6-10X as many 3 series as they do 2 series. BMW has focused far more energy into the 3/4 compared to the 2 series and when it comes to the M cars... once this new car comes out.. they will have saved as much money as possible by grafting over the ENTIRE underpinnings of an M3/M4 onto the smaller chassis.... not just the suspension.. it's now the suspension and complete drivetrain and perhaps even the entire exhaust set up.
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I understand the business mechanics. My point is that the investment needs to pay off... in increased sales of the target offering to offset the lost profits of the sacrificial (or bait) offering. Merchandising is a business decision, and business decisions are always to ultimately achieve profit that outweighs the cost... at a percentage that is equal to or greater than other opportunities to invest that money. Not sure I see that with the M2 Comp as a vehicle to increase M3/M4 sales... at least to the degree that points to very aggressive M2 Comp pricing.