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|3rd May 2006, 12:05||#16|
Join Date: Sep 2004
Location: Toronto / Kurukshetra
Thanked: 135 Times
But the only reason people still go to dealers/authorized service stations is that that spares are atleast genuine. You can't say the same for regular market products.
|3rd May 2006, 14:08||#17|
Join Date: Jan 2006
Thanked: 137 Times
For most consumer durables, apart from the usual dealer margin, there is a BONUS component. Basically, you sell 100 CTV, they will get some free... and this is where they make all the money. (Remember last week of december? one can even see these dealers selling products at loss, cos once they meet targets for that year, the returns are aplenty!) I believe the same works even in case of Automobile industry too.
Otherwise, considering the overhead costs they have, it may not be a feasible business.
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