12-31-2003, 10:31 AM
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Senior Club Cobra Member
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Join Date: Aug 2001
Location: Rocky River, Ohio,
OH
Cobra Make, Engine: Everett-Morrison, 347 Tri-power Stroker
Posts: 678
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Not Ranked
These guys have probably forgotten more about running a business than I have ever known... but a quick calculation shows;
A price cut of 20% with a gross margin of 25%, (just pulling numbers out of the air... it looks like the price cut was more like 33% and I have no idea of their margins), would require an increase in units sold of 400%.
The point is only that when you reduce price you have to sell more just to get back to where you started... course it all depends on maintaining or lowering your cost, but it looks like it's working; 7 cars in a couple of hours.
Congrats to the Kirkhams and the buyers - wish I could be there too.
- Dan
Last edited by Dan Stryffeler; 12-31-2003 at 10:34 AM..
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