Dealer godowns, is it the same horror story everywhere?

[MARCUS_520i]

[quote=hollywoodhogan;1323252] a basic tin roof to cover a plot that can hold a few hundred cars will cost several 10s of lakhs. and that will mean that the cars will cost more. now, you may be willing to pay a little more for your car but may not be all.


1. I don't think it'd actually cost 10's of lakhs. And even if it does, it's going to stay there for a matter of atleast a few years!!! So, it's worth the expense.

2. The installation of a tin-shed at a showroom's godown won't affect the cost price of a vehicle. Coz as far as i know, it's not the dealers who decide the price of a product!!!

[tsk1979]

Originally Posted by hollywoodhogan

yeah. but at the end of the day its economics my friend. a basic tin roof to cover a plot that can hold a few hundred cars will cost several 10s of lakhs.

Huh? WE have a temp roof in our farm for holding produce, the size is about 1/2 of that of a common dealer stockyard, and it cost us 20,000rs
Even cement tiling costs around 8rs/sqft, so if you have a 10,000sqft yard, it will cost 80,000rs. For 2L rs the dealer can build a proper yard.
Construction of a showroom can cost upwards of 5 crores if you include land price, so 0.5% increase in price for dealer is not really a big deal, is it?

[quote=MARCUS_520i;1323279]

Originally Posted by hollywoodhogan

2. The installation of a tin-shed at a showroom's godown won't affect the cost price of a vehicle. Coz as far as i know, it's not the dealers who decide the price of a product!!!

Exactly. Atmost the dealer will offer lesser discount.
Moreover there are a few dealers who actually provide a covered yard. They are making a living, arent they?

[Spitfire]

They should try and have better inventory control and logistics, so the number of parked cars catching dust is reduced.

[hollywoodhogan]

Originally Posted by MARCUS_520i

Coz as far as i know, it's not the dealers who decide the price of a product!!!

but its them who decide their expenses!!!

Originally Posted by tsk1979

Huh? WE have a temp roof in our farm for holding produce, the size is about 1/2 of that of a common dealer stockyard, and it cost us 20,000rs

huh?? farm produce = new cars??

you find it economical and useful for your work. but perhaps the dealers feel that even the 0.5% increase in their cost is not worth it. be it 0.5% or 5%, an expense that does not give returns must be eliminated.

[DieselFan]

Originally Posted by hollywoodhogan

you find it economical and useful for your work. but perhaps the dealers feel that even the 0.5% increase in their cost is not worth it. be it 0.5% or 5%, an expense that does not give returns must be eliminated.

In my opinion dealers do not spend any money on Godown/yard because no customer see it. even if they see it, it is after the sales has consummated. So they do not feel the need for such a spend.

[tanwaramit]

we are concentrating on dealers only, how about factories ? I understand cars are kept in the open in the factories before being transported in trucks. In that case the manufacturer itself is pushing the stock to dealers to clean up before the delivery.