So how is it good business for walmart to not sell things for less than a certain profit margin....but its bad business for ford to not sell trucks for less than a certain profit???

 

You... with the logic.... get out of here! Seems to be alot of very odd opinions and thoughts in this thread. There are very basic economics at the heart of this topic. Being an American manufacturer (yeah, there are actually a couple of us suckers still around)... I see exactly where Ford is coming from. Sometimes you have to make business decisions that no one wants to. You think ford WANTS to raise the base? How about HAS to raise?

 

But being illogical is what the internet is based on....

 

what is it you manufacture?

 

We are a company of many facets. We produce inspection equipment for various industries (magnifiers, microscopes... stuff like that). Our other big line is actually broadcast. If you have ever seen someone in a radio studio (Howard Stern, Rush, etc).... there is a 90% chance (globally) that their microphone was on our armature. We have been supplying American made goods to Americans (and even a quirky European or two) since 1894.

But I digress.... back to everyone failing Econ 101.

 

Dealers make huge profits selling parts, accesories, and doing general servicing and repairs.

The less vehicles sold by ford, the less ford going to the dealer for servicing, so it crushes the dealers as well.

Not too mention that ford itself sells less parts and accesories if they sell less vehicles.

Rather like shooting themselves in the foot to me.

But I like to have lots of customers, and happy customers.

Not just a few customers, and even those I have feeling rather ripped off.

 

Ford couldn't care less about the dealers right now....ford needs to close alot of dealers and streamline....theres 9 dealers within 20 miles of me....is that necessary?

And while ford sells parts and accesories for alot, theres a very high cost to carrying all that inventory....ford buys a left door handle for a 2009 pickup truck...and it may sit there in a warehouse for the next 10 years.....is that profitable? It may be if it sells next month....but if it sits there for there for 5, 10, 15 years.....they may loose money selling that door handle.....but they have to carry it because if they don't, no one will buy the next new model.......thats the difference between ford and walmart.....walmart doesn't stock the parts for that tv you bought there at a huge discount....when it leaves their door, they're done with it.....when your truck rolls out of the factory....ford starts carrying costs related to the upkeep of your vehicle....


Now...if they raise the price and sell 200,000 less vehicles....but sell the ones they do sell for an extra 2500 dollars......now they carry less parts, service, and support costs.....and they made more money on the ones they did......


This is where right on time supply chains come from.....the less carrying costs you have, the more profitable you are......