Everyone often says that imported cars are profitable and make money, thinking that several procedures must be followed from abroad to China. In order to earn a profit, everyone does not know that there is a hidden truth. This time to discuss the topic of the profits of imported cars, for everyone to further understand the profitability of luxury cars.

In the end, there are no profits in imported cars. First of all, it is necessary to give a definition of profits, and the profit rate will be considered to be a huge profit. After reaching a consensus, they will talk about profiteering. Forget who said, one of the biggest weaknesses of the Chinese people is not to pay attention to concepts, not to pursue accurate definitions, not to being true, and to being about to be the best. This is the enemy of science.

Some people say that at the beginning of last year, a luxury brand had a car with a price cut of 900,000 yuan, and how profitable it was! Isn't it profitable?

However, a price reduction of 900,000 proves that the profits are at least 900,000 yuan, on the grounds that the business will not make a loss. So the same reason, the price rose 1 million, is not it proved that the original loss of 900,000 businesses, so it must increase prices? What is the logic?

The huge profits of luxury cars are RMB 900,000. This is 3 times that of ultra-luxury brand Bentley’s RMB 30 million in cycling profits. Is it possible? Besides Bentley, someone who listened to Bentley’s bicycle profits amounted to several hundred thousand yuan, he exclaimed on profits, and never thought about the price of Bentley, the ratio of these profits to vehicle prices, that is, the profit rate. The price of Bentley in China is between 4 million and 10 million yuan. The profit of 300,000 yuan, even on an entry-level model, is only 8%; on top models, it is only 3%.

It is entirely possible for a luxury car to have a profit of several hundred thousand yuan, but it is not a bicycle profit. Bicycle profit refers to the average profit, and the concept cannot be confused. The dealer who brought the most profitable model to you bragging is not to mention those models with low profit margins or even losses. In fact, regardless of whether it is a general agent or a distributor, the various products sold will always have large profits, small profits, flat or loss-making. If you use large profits to make up for losses, you will earn money on the whole and earn more. better. Last year, the average profit rate of 17 key automobile enterprise groups in China was 9.9%, which was higher than the global average of around 4%, but far lower than those in the profit-taking list. It was also a downward trend; Mercedes-Benz and BMW dealers The luxury brand dealers have suffered large losses. Audi dealers have never heard of losses before. They also had last year.

Last year, manufacturers still made money, but the dealers lost money. Explain that profits have been taken by the manufacturers. This is also an unfair phenomenon criticized by people. In fact, manufacturers or distributors and distributors are a community of interests and are more concerned with the profitability of dealers than you. When a dealer buys a car, it will naturally lower the service standard and find ways to find it on the after-sales service. This will cause customer complaints, which will in turn damage sales and brands, and ultimately cause damage to the manufacturers. In the media, those who report justice for the customers, although the vast majority of dealers are provoked, always point to the manufacturers or brands. Therefore, it is impossible for manufacturers to ignore the interests of distributors. When dealers suffer large-scale losses due to poor market or price war, manufacturers will give some “business policies”. To put it plainly, it means disguised subsidies for money. Otherwise, just wait for the dealer to retreat to the Internet. The outside dealers did not dare to come in. Nobody dared to sell your car. The result was a complete loss.

Whether manufacturers make more money on imported cars, some experts say that the CIF of cars imported into China has already been raised, and huge profits have remained overseas.

In fact, “a Land Rover vehicle with an ex-factory price of no more than RMB 520,000” lacks basic knowledge. CCTV's so-called "ex-factory price" is actually a "cpa price," and the "cpa price" actually includes the profit of exporters, which naturally exceeds the ex-factory price. The ex-factory price also includes the profit of the factory. When a Land Rover vehicle is shipped from the United Kingdom to China Customs, how many links must it go through and how much human and material resources it consumes, people cannot do anything. Therefore, the exporter is actually a trafficker responsible for export and wholesale; the general agent is the second trader and is responsible for the import of wholesale; the dealer is the last profitable trafficker responsible for retail sales and services. Everyone earns money.

But in reality, exporters and import agents are all manufacturers. It is one thing. It is entirely possible to conspire to deliberately raise the price of landed shores and leave huge profits abroad. However, you should realize that although exporters and import agents are family members, they are usually accounted for independently and have their own sales targets. Exporters tend to overestimate the market price in order to achieve sales and profit targets, to illustrate that the wholesale price I give you is not too high, and there is a big difference between the estimated market price for you (general agent) and distributors. The profit margin is large enough; in order to highlight its own performance, the general agent is always trying to negotiate with the exporter to reduce the market price as much as possible, thereby lowering the wholesale price of the exporter, so as to give themselves and leave a greater profit margin. In addition, if there is fierce competition in the future and prices fall, there will be plenty of room for maneuvering. Especially in China, the market and competition will be unpredictable. This game is very interesting, you may wish to interview in depth, learn more about it, and then draw conclusions. In addition, raising the CIF price, the higher portion will also be subject to a higher import tax rate for imported vehicles, which will add a piece of cost out of thin air, leading to a further reduction in the use of profit and price strategies for general agents and distributors. Under such circumstances, how likely are they to conspire to deliberately raise CIF prices and leave profits abroad?

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