Quote:
Originally Posted by Mako
I think thats it, even while getting a fully loaded X3, its still the bottom tier to them, they would rather have that 5 or 7 series buyer and not just because of the higher MSRP but they are more likely to pay more over invoice than the 3 series and X3 buyers. So a $60K car with a guy okay getting 3% off is a much better customer for that salesguy. of course I could be making $1 million a year and looking to buy a fully loaded M6, I am still going to nickle and dime the dealer because thats what I do (they do it right back to us) I don't want to pay more than $1,000 over invoice on any car I buy, you know BMW makes more gross profit the more expensive the car is, even if they say its still 7% margins...
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I agree. But also consider that if BMW only sold 5 and 7 Series vehicles, they would be, at best, a very small 'specialty brand' company. The 3 Series is their bread and butter. There is something to be said for lower margin and higher volume. The 1 Series buyers are quite likely to be those new to the brand, and therefore should be nurtured to become lifelong loyal customers. BMW recognizes this, and the dealership owners and general managers most likely do too.... they just don't do a good job of getting the rank and file sales staff to.