Someone in the automobile commercial operation not long ago told me the financial guys during the automobile lots get something similar to 40% for the lengthened guaranty cost as distinction for them. I was told if the lengthened guaranty is contend for e.g. $1,800, we can contend we will usually squeeze it for $900. The financial man substantially will do the deal, since he still gets the little arrange of flog behind for each lengthened guaranty he sales.
What I unequivocally need to know is genuine universe knowledge for operative out the cost for the lengthened warranty, as well as how most fool around we essentially have.
If they contend the lengthened guaranty is x, should I contend I will usually compensate 1/2 of x?
Thanks
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You can offer anything you want to. It does not mean they will accept it. That is the beauty of living in a free country.
Yes most warranties are marked up about $1000, and yes he may accept the lower offer, but he also may not, because his payplan may require him to average a certain amout of profit.
Example
avg$1000 profit and get 15%
avg$800 profit and get 12%
avg$500 profit and get 10%
so taking a lower price may actually cost him money(the % are not just for that 1 transaction but all money he earned for the month). The owner sets this payplan so that his finance manager does not give the produst away.
10 years in auto biz