motorcycle salesmen—is it just ME??

Discussion in 'The Perfect Line and Other Riding Myths' started by sshbsn, Aug 1, 2019.

  1. rickr84

    rickr84 Been here awhile

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    If Tesla builds a Model S for $60k and sells it for $80k, and then takes that $20k and builds a plant in Nevada to make more batteries faster even if it means going into the red for that year, you can't say they didn't make $20k on that specific car.

    Similar to how if a BMW dealership buys a car for $40k and sells it for $45k, they made $5k on the car. (were mixing things now obviously, because were talking about retail sales profit and not manufacturing profit)

    If that BMW dealership then takes their money, and puts all their money into advertising during the superbowl for some reason, and thus loses money for the year, you wouldnt say they lost money on every car sold. They make income from one thing, and have many different kinds of expenses and investments.
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  2. liberpolly

    liberpolly Nu, shoyn, nudnick!

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    This is seriously dumb at this point. Tesla is losing money not because it spends on advertisement - it doesn't, but because it invests a lot in R&D and expansion to satisfy demand, which is not specific to a vehicle model but amortized over series of the models. To "make more batteries faster" is necessary to satisfy the demand on their cars, which currently exceeds supply; so it is a part of the cost of building the car. When you say "Tesla builds a Model S for $60k", you are plainly bullshiting, because you are failing - or refusing - to understand what it takes to "build a Model S".

    To type even slower: IF THE CAR WOULDN'T BE BUILT WITHOUT THESE EXPENDITURES, THEY ARE PART OF THE COST OF BUILDING A CAR.

    Don't mix things between dealership that produces nothing, and a company that produces something new.
  3. rickr84

    rickr84 Been here awhile

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    So would you say Amazon makes money on every item sold, or does it lose money because it decided it needs 32 distribution centers and not 4?

    Also, if you sell one less Model S, did you save money or lose money?

    And finally, if you can buy a Panasonic battery pack for your cars, but instead you decide to build a battery plant, does that increase the cost of each car?
  4. liberpolly

    liberpolly Nu, shoyn, nudnick!

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    Since Amazon is not manufacturing anything, it is not relevant to the Tesla discussion.

    But in general, if they cannot sell these items without more distribution centers, yes they are part of the cost.

    You lose money because you've already made upfront investment.

    Not enough information. And in general, why do I care about their internal trade-offs between short term cost cuts vs. long term cost savings? If they believe they'll have higher profits by building a battery plant, let them, the history will be the judge. I care about whether their car provides better value for my money compared to the competitors. That's how capitalism works.
  5. rickr84

    rickr84 Been here awhile

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    I hope you're just messing around. Neither of us are probably accountants so I'm not sure exactly how it's done...

    But if you build a battery plant for $1b, you can't just say you lost money on every car that year, because 3 years from now, the company still owns a damn battery plant. While you may spend money one year to make a battery plant, it doesn't make sense to say it made your car way more expensive that year alone. And in 5 years when you sell the battery plant, you don't go around saying you made $40k per car since you had an extra $2b of income from a battery plant.
  6. liberpolly

    liberpolly Nu, shoyn, nudnick!

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    Of course. As I said, it amortizes over the years - lifespan of the plant in this case, lifespan of an innovation in case of R&D expenditures. What's your point here? It definitely does not support your idiotic claim that "Tesla builds a Model S for $60k and sells it for $80k".
  7. ChopperCharles

    ChopperCharles Long timer

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    Well, this thread WAS interesting. The pedantic fanaticism has kinda turned me off now though... and I’m pretty pedantic myself! o_O

    Charles.
  8. rickr84

    rickr84 Been here awhile

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    Im so confused by this thread I dont even know if Im the one being pedantic.
  9. liberpolly

    liberpolly Nu, shoyn, nudnick!

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    TL;DR: car salesmen don't like it that Tesla sells their cars without letting car salesmen to use car salesmen tactics to screw up customers, so they boolshit about Tesla.
  10. B02S4

    B02S4 Aye

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    It's not you.
  11. mwzl

    mwzl mwzl

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    I get your taught process, which in principle makes sense. Nevertheless, that’s not how accounting works. Assuming Tesla builds a vehicle for $60k and sells it for $80k then they do have a $20k profit on that vehicle.
    From an accounting and tax perspective, what they do with that profit is a totally different discussion.
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  12. borderlinebob

    borderlinebob Been here awhile

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    Rickr
    You are arguing with a knowitall and you will not win or get him to understand or get an admission of error or even ever get the last word.
    Your pissing into a hurricane force wind here.:becca

    Like I said in an earlier post.
    He would be a hoot around the campfire
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  13. liberpolly

    liberpolly Nu, shoyn, nudnick!

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    That’s not the issue. The issue is that $60K figure is bullshit to begin with - from the accounting point of view - because it doesn’t include amortization of R&D and capital investments.
  14. Tool.Nerd

    Tool.Nerd An idiot that owns a bike

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    Unsubscribing. Came to read bitching about motorcycle salesmen, not read about Tesla.
  15. klaviator

    klaviator Long timer Supporter

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    Maybe Tesla will hire a bunch of Motorcycle salesman to sell their cars?
  16. david61

    david61 Queue, a word with 4 silent letters....

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    I think I have a pretty good relationship with the local dealers, and having recently bought 2 motorcycles [ 2nd hand Hayabusa and a new WR250R ]. I try to buy stuff locally if possible, stop for a quick chat, be polite blah blah. I then set REALISTIC expectations about a trade-ins worth, go in have the chat and I've been reasonably happy with the results for my last 2 experiences.

    Tip, if you trade a bike, make sure it's gleamingly clean and shiny, mechanically reasonable, $20 clean oil!!! give them nothing to pick on come trade price

    As a result, I seem to get a reasonable discount of bits and pieces when I go in [ probably not quite "online shopping" cheap ] but I get the bits I want right then and now, no waiting or having to return fuck-ups.

    To sum it up, establish a "relationship" and nurture it for the long term, works for me.....
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  17. MatatuPuncher

    MatatuPuncher Adventurer

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    How am I imposing my financial situation on someone else? How do you know what my financial situation is?
  18. MatatuPuncher

    MatatuPuncher Adventurer

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    Yeah, upon re-reading I guess it sounds that way which I didn't intend for it to do. A motorcycle is essentially a toy except to a small percentage of people who do not own a car and use a motorcycle to commute to work. It just sounds irresponsible to me to buy a toy if you can't pay cash for it. I'm in my 40's now so maybe it's me being an old codger.
  19. wb57

    wb57 Long timer

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    I own a car, a truck, my house and two bikes. I don't consider any of the above "a toy". And I've financed at least half the bikes I've bought over the last 20 years.
  20. ChopperCharles

    ChopperCharles Long timer

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    I've financed three bikes I've bought in the last 20 years. I'll finance the next one too. I don't have a problem with that. While I would rather spend cash, accumulating $8000 or so for a motorcycle I find always ends with the money going somewhere else before I reach the full amount. Some emergency, roof leak, broken HVAC, you name it, something is going to come up and that saved cash is going to disappear. So I keep the cash, and buy a bike with a loan, so my backup isn't depleted.

    Charles.
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