That is how big auto dealerships make their profits. Sell at $50 below invoice. Get a $500 per car rebate if they meet quota. Get another $100 per car if they sell x number of cars that month. Get an incentive of $500/per car if they move 10 slow moving models. Get $50,000 if they sell 3000 cars a year.
The only one who has an incentive to sell above that figure is the poor salesman who only makes $75 a pop unless he sells above invoice then he gets 10-15% of anything over invoice. Got any idea how many cars you have to sell at $75 a pop to make a decent living?
graywolf http://www.graywolfphoto.com "Idiot Proof" <==> "Expert Proof" -----------------------------------
Tom C wrote:
At one time I worked for a Membership Warehouse business similar to Costco. I designed a Rebates Receivable system which tracked purchases and rebate agreements the comany had negotiated with its vendors. When certain quotas were reached, a rebate was 'earned'.
What I'm suggesting is, the invoice may show the the same price being charged to large and small businesses alike. Behind the scenes, the larger businesses may receive cash back. Speculation, but I've seen it first hand. The biggest rebates given were on purchases such as automobile tires, IIRC. In any case the system tracked rebates of over $2 million annually. Not a large number, but nothing to sneeze at either in 1987.
Tom C.
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