Does Toyota lose money with each Prime sale?

They all are looking for an excuse to raise everything. It is more greed than anything else. Lol

Posted via the PriusChat mobile app.

 

Only on Hindu business websites. So applicable in India only?

 

Didn't spot that but you are right. Looks like India only at present.

Posted via the PriusChat mobile app.

 

Regarding the question posed in the title, just some thoughts: maybe they're not "losing" money, but perhaps making precious little, or just breaking even. It does seem to be a compliance vehicle.

 

they only have to price it cheap enough to sell in quantities they desire.

 

There is a very old piece of business wit: "We may lose money on each sale, but we make it up in volume!"

One of the first things one learns in business school is that "there's no such thing as the true cost." The concept seems simple, but complexity creeps in when one tries, for instance, to allocate the fixed costs of running a factory over many different models being produced in that factory.

For example, if the factory makes 1,000 cars priced at $25,000 and 1000 cars priced at $50,000, and the factory needs to spend $120,000 to maintain its building. Does that add $60 to the cost of each car, or does it add $40 dollars to the cost of each $25,000 car and $80 to the cost of each $50,000 car?

The-Allocator by Old Bear posted Dec 2, 2017 at 11:23 PM

With no offense to cost accountants: "When you're up to your nice person in allocators.... it's difficult to compute what it really costs to drain the swamp."

 

Tesla-nomics?

Bob Wilson

 

Posts from Daniel Whitmore, a Ca dealer, made it sound like the margins were very thin, at least less than the Prius.

Then throw the effect of regulations, and you get a real mess.

Toyota could be losing money on the Prime when looking at just costs vs sales price, but can be making it up when factoring in the cost for complying to CARB and CAFE. That's how Ford and GM are offering the deep discounts on cars this year; negating the loses of CAFE fines from truck profits.

 

dianne also so margin was thin, but that doesn't explain dealers in the northeast discounting upwards of $5,000.

 

To match California state credits, or it is harder to sell them in those CARB states and the ZEV program requires them too. Or Toyota wants to beat Volt sales.
The PiP saw the same difference in incentives.

 

Wow, I feel bad for Toyota if they are losing money on the Prime. I might have to cut them a check.

 

Or you could send it to me instead.

 

The day I picked mine up, the business mgr told me they only make $250 on the special order Prime. I kept an Oscar winning straight face.

 

Does Toyota lose money with each Prime sale?

Statistically or 'real-world'??

Yeah....they probably lose a little on each sale but they make up for it in volume.

Think: CAFE ... or "statistically" green.

 

you think toy is cutting northeast a better deal to allow them to discount beyond the already higher rebate?

 

There is also the HOV sticker. That alone is enough to shift Prius sales to Prime in Ca.

 

right. but if they are only making $250. in cali, how can they discount thousands in northeast?

clearly, i don't understand the automobile business.

 

<GACK, SPUTTER, GASP>If someone at a car dealership pointed and said the Sun rises in the East, I would have to take out a compass.

Bob Wilson