Originally Posted by sukeshs
Maruti has been seeing sales chart of Swift for 5 yrs now. I dont buy the argument that they still cant predict sales figure to maintain an inventory for quicker deliveries. Maruti have the biggest product portfolio and highest sales figure, if they cant manage it who can?
It's very easy to say that, compared to actually putting it in practice. In today's world, you have got so many new products and models being launched, you just cannot be sure the Swift will continue selling the same as it sold last month or last year. They have to produce against a forecast, which is a guess (though it may be an educated one). Any stocks lying with the dealer are going to be a direct monetary loss to the company.
While you expect the stocks to be readily available, if you went to a dealer and asked for a Swift, and if he replied that he has a December 2009 model ready with him, would you buy it at the same price as for a March 2010 model? I doubt it. Any discounts that you are going to claim on this model only because its manufacturing date is four months older is a loss to the dealer and in turn Maruti.
You see, a December 2009 model is still regarded as 2009 model, while a Jan 2010 model will be a 2010 model. Even if they are separated by just a month, the price differential they will command will be quite significant.