[M3 Adjuster]

Originally Posted by azfootdoc

I 100% agree. I think that if you want to get a M2 you will be able to if you are patient. That said I don't think they are going to be dime a dozen. Not 1M rare but certainly not like the M3/4. Only time will tell.

I find it hard to believe the BMW brass are sitting in Germany going "Wow this thing is really popular. We had no idea this would happen. Quick triple the production next week." Surely they had to have some idea about the demand from data analytic/marketing people. I think people are looking at it from at narrow point of view. They assume hey its popular they will build to suit demand. This I think would be true if it didn't come at the cost of building another car which has a better profit margin at the factory. I do think the M2 is a Halo car. It has done a great job of getting people to talk about the brand and in the door at dealerships. What more could they ask for. That said it would be interesting to know what the profit margin is on the M2 vs other cars built in Leipzig.

You are exactly correct. Most people are looking at this through the narrow prism
Of M2 sales.

Most people simply assume that BMW is trying to maximize profit on the M2 and would try and sell as many as possible.

While I don't have specific numbers, once again the answer is in volume.

The more that an item is produced, expenses to produce the item are reduced.

If BMW sells 10,000 cars. It will have a certain cost for making those 10,000 units. If BMW makes 100,000 of the same model then the cost to produce each unit will be lower.

2 series cars sell about 1000 a month in the US

3 series cars sell about 4000 a month in the US.

4 series cars sell about 3000 a month

After 2 years of production that is 24000 units of 2 series and 168,000 of 3/4 series.

Can anyone guess which vehicle is going to have a production cost that is continually falling as the years go on ? Would that be the vehicle that also can be heavily discounted ?


However it's a very common sales strategy to heavily a market a product with little or even NO profit, (read : M2) and instead sell FROM that product up or down to other products. (Read: sell down to M234 or sell up to M3 and M4).

I've seen in these forums a dealer CA state that there is $4500 profit to the dealer on the M2. I have *zero* reason to doubt that.

So... Let's hazard a guess at profits..or at least bear with me for my example.

I would bet that accordingly the profit on the sale of a stock M3 or M4 is probably close to $6500 and probably around $3500 on the M235. Of course, additional profit can be added to the sale ... For the M235... Via a healthy options list... The M2, a single option (!) and the M3 and M4 have a lengthy options list including extended leather and Individual.

So.... Sitting on the showroom floor, there is a loaded M235, loaded M2 and loaded M4.

Any decent sales rep will tell you that be selling UP from M2 all day long because there are more profit dollars available on the M3 and M4. ( more money in sales rep and the dealer pocket ). It also is going to be far more profitable selling a loaded M235 in comparison to the M2 on the floor.

Anyone here in sales ? What does a sales manager tell yo to sell ? Sell what is in stock !

If BMW limits the production of the M2 while the M235, M4 and M3 also are all plentiful, buyers will not have the option of buying an M2 unless they wait a loooong time.

As BMW ( artificially ) limits options on the M2,
It makes the other models all more attractive.

Let's see. How does BMW make the M2 less attractive to buyers ( some markets vary )

Only 4 Exterior color choices
No "M" seats
No "M " mirrors
Non glossy CF
No sunroof option -
No M buttons with memory
Fewer suspension options

Etc.

How about one more way to run buyers off - unfavorable lease terms !


I mean seriously , could BMW tilt the table for buyers any further away from the M2 ??!

What if BMW AG loses money on every single M2 they sold. ? What if all the additional costs in making the wider body, changing the line for bringing over the M4 suspension, and retooling the assembly line for wider vehicle mean that they actually lose money per unit.?

That used to happen all the time in sales by marketing a loss leader - an item that you know will actually lose money - and instead selling the customer a different item that is profitable.

It's a process some might call " bait and switch" .. However in order to not be caught in a bait and switch - the company must sell the customer a " loss leader " if the customer demands it !



Of course , if the customer that comes in looking for an M2 is easily swayed by an M3/M4/M235 that's " in stock" ... Then call it another win for ///marketing !



So how many people actually DEMAND an M2?