Isn't if a "Golden Rule" of Business overall, that whatever the price of the product for sale, it costs roughly 1/5 to actually make it? The rest going to Marketing, R&D, etc... I hope I am wrong on this one because knowing a 100k car cost roughly 20k to 25k to make would leave a bad taste in my mouth.

 

pics?

 

This is an interesting thread.
First, the MSRP is a suggested price only. When a manufacturer produces a product (car) that is not a hot seller do buyers come in and pay MSRP. Of course not, they come into a dealership armed with invoice and cost information (usually not accurate) and try to grind for every last penny of the dealer's profit. Do their bleeding hearts consider the costs of owning and operating a business like an automobile dealership? No way. They are out for blood...period. So when a product (car) is in high demand and in short supply, and the dealer charges a premium, more power to him. Just because a few self righteous guys get bent out of shape the system will never change, fortunately.......it's the American way.

People pay stupid money, in some people's opinion, for lots of things. Often these items have no invoice or cost information available. How about a bottle of wine for hundreds or thousands of dollars. Anyone know the invoice and MSRP on a bottle of 2000 Opus One? Get the point? Life is not a rehearsal. Drive what ever floats your boat and quit being so judgemental.

 

Spoken like a true person who has been brainwashed with first semester economics, swallowed some yummy BS from smooth-talking car salesmen, and paid over msrp multiple times. I feel that people who try to screw the dealer are just as culpable as people who let themselves get screwed by the dealer, just to get the record straight. What ever happened to having the ***** to know what the price was for a car, going in and paying it? It might be the american way, but the people running the show are german.

Bottom line.... if the car is used, and I mean truly used, then buyer beware. if the car is new, then it should be sold at a price which the manufacturer intends.

Mercedes doesn't get any extra money when a car is sold over msrp, they just get a bunch of pissed off people who will look elsewhere next time.

If the dealers don't like it, they don't have to sell new mercedes vehicles. Nobody is holding a gun to their head requiring them to sell the marque. And, there are many dealers out there who do get it. All you have to do is stop supporting the few dealers that are this way.

And if you are calling me self-righteous, then I will have you know you could not be further from the truth. This is grass roots not self-righteousness. I have never paid more than msrp for the cars that you probably have paid more than msrp for.....the difference, I don't put up with other people's crap like "what the market will withstand"...."taking offers over a minimum bid of two times the msrp"....all this leads to is a bunch of people who have little idea of the true value of their car rubbing it with a diaper in the garage because it cost three average houses to get instead of one and inviting their buddies over in a big dong-swinging display of mine is bigger than yours.

You know who you are, the type that only drive the car less than 2000 miles a year and have only two cars, have it detailed once a month even though you didn't drive it in the month so that it will look that much better in the garage, and will sell it five years later with five thousand miles on it to retain "good resale". Makes me want to puke. The problem is that the guy who was willing to pay the price of an average house would have gotten a lot more use out of it and would have given it a better home. Nobody says you can't charge what a vehicle is worth. I am talking about OVERCHARGING. There....now you can call me self-righteous if you want to do so. Personally, I see this continuing forever without resolution, so I am bowing out of the thread. Get screwed if you want, do the screwing if you want, I say lets just try to destroy any remnants of loyalty and professional relationships left in this country.

 

Ross, I was thinking along that line too that most products only cost 20/25% of what they sell for.
You guys are right, when the new S came out, there were some new toys that I am sure cost money to test and make....but at the same time, what has Benz put into their cars in the last few years that is brand new tech. wise, I mean since 2000? That isn't a knock, but cars are so advanced nowadays, there isn't much they don't have, and especially Mercedes, which is ahead of alot of other car companies. I saw a Mitsubishi ad in the paper maybe last year for the Montero...how it had 1 touch windows and sunroof....christ, many years ago I had a 1989 BMW 525i that had that. It shows you how technilogically advanced our cars are.
$25k over MSRP for a CLS?!? I have a bridge in London I can sell them too.

 

Invoice on a bottle of 2000 Opus One is $100 and retail is $140 in my store. Can I charge over my regular markup on this bottle because it is in short supply if I wanted to? Sure I can. I markup all my wine the same % and will even discount the hard to get stuff for a good or repeat customer. I know my customers will remember that I didn't gouge them on the wine and will come back and buy more next trip. Mercedes dealers need to learn this rule.