Guess how much money Ford makes on each Explorer...

[IgotTwo]

I think we have “talked past” each other: “Expensive” as in consumer retail price. Stay with me.

Exxon analog:
Highly capitalized business subject to volatile price and supply fluctuations in a worldwide economy. Raw material sourced in areas of the world which are, arguably, politically unstable, climatically adverse, often resulting in significant supply and production interruptions, not to mention price fixing by well established cartels (and with other major competitors)…..subject to strict governmental regulation and taxing …la te da… la te da
A very complex business model
Arguably, $1.35 -$1.60 per gallon, subject to regional variations.

Bottled Water:
Cheap, abundant, raw material supply, production facilities synergistic to well establish low cost consumer packaging production methods, thinly capitalized.
Retail price per gallon average $2.25–2.99 per gallon increasing “significantly” based on container size and branding. Arguably, consumer product preference and differentiation would not vary if manufacturing processes utilized a garden hose and cheesecloth filtration system. (Anyone who has gone to the Jersey shore and has bought a lemonade, knows how that one works)
A straight forward business model.

Gross margin, gross profit, incremental, direct, indirect costing method...... whatever?

Go were the bucks are!
Turn on the water facet? or freeze you a#% off in the North Atlantic?
I’ll say it again haha “Don’ tell EXXON!
We’ll be polishing our cars on weekends rather than driving them.

 

[roadkill]

I recently read the Explorer accounted for 40% of all Ford's profits!

 

[rpenner54]

Originally posted by roadkill
I recently read the Explorer accounted for 40% of all Ford's profits!

And people on this site wonder why they are making this vehicle more trendy/less off-road capable!

LOL

 

[mattadams]

I just caught this thread and I'm guessing I'm wondering what's wrong with Ford making a profit? If they couldn't sellt he vehicles they were producing, they'd lower the cost. The more efficient they run their business, the more profit they can make. The more money they can make the more then can put into research and development and making safer vehicles. Don't forget they also total hundreds of vehicles a year doing government regulated safety tests. The company I works for sells software. What we send out is nothing more then a CD and a manual (as well as a server which I'm not including for this purpose), but that software costs approximately $50,000 up to about a million. Hypothetically, we are making $49,998 to $1,999,998 profit on each sale right?
How DARE Ford make a profit on their vehicles! How dare they follow the american dream of a successful business which makes their owners rich? If you don't like it, don't buy Ford. Buy a KIA who's owners are struggling to startup there company. I hear there sportage is just as capable as the CRV from Honda!

 

[aldive]

Originally posted by mattadams
The more money they can make the more then can put into research and development and making safer vehicles!

And be able to return a dividend to me and other stockholders....

 

[Chief]

Originally posted by Stephen
Trust me guys, the profit margin is the same or larger on a lot of other vehicles, especially SUVs. The Lexus LS430 I ordered MSRP's at $69,800 and the cost is about $48,000. Thats a $20,000 profit per vehicle.

No, it's a $21,800 profit per vehicle, nearly $2,000 more than you quoted. Shame on you.

That's a lot. Imagine what Mercedes-Benz and BMW makes for profits.

 

[aldive]

Originally posted by Chief


No, it's a $21,800 profit per vehicle, nearly $2,000 more than you quoted. Shame on you.

That's a lot. Imagine what Mercedes-Benz and BMW makes for profits.

I think you will find these figuers to be GROSS Profit not NET.....

 

[Stephen]

Oh they're gross, as stated several times previously in this thread.

 

[///AMG Power]

Where'd My Post Go??

Anyways, doesn't the Expedition have an even larger profit margin?

 

[Bryce]

This is not related to Ford, however its an interesting thought.

Porsche has recently released a new car. The GT2. This is very closely based on the 911 Turbo. What Porsche has done is removed the all wheel drive system, removed some creature comforts, and made some previously optional items like upgraded brakes standard. This new car being less civilized and requiring more driver skill to operate because of the lack of all wheel drive and computer controlled traction controll is supposed to be more appealing to the driving enthusiast. The folks at Porsche added $70,000 to the price of this Turbo which costs less to manufacture.

The pricing/profit of any product has NOTHING to do with what it "should" cost, but simply what consumers are willing to pay. In this case, seventy grand is for a different image.