{"id":6292,"date":"2010-02-27T07:14:21","date_gmt":"2010-02-27T13:14:21","guid":{"rendered":"http:\/\/caddyinfo.com\/wordpress\/?p=6292"},"modified":"2010-02-27T07:27:22","modified_gmt":"2010-02-27T13:27:22","slug":"understanding-bmw-salesprofits","status":"publish","type":"post","link":"http:\/\/www.caddyinfo.com\/wordpress\/understanding-bmw-salesprofits\/","title":{"rendered":"Understanding BMW sales\/profits"},"content":{"rendered":"

I am still fascinated by the quoted statement from BMW in the LA Times that 50% of their profits come from the 5-Series<\/a>.<\/p>\n

Here is a chart of BMW 2009 Sales from back in January 2010:<\/p>\n

\"\"<\/a><\/p>\n

BMW sold 40,109 5-Series vehicles, of a total of 196,502 vehicles.\u00a0 For the moment let’s assume the BMW Marketeers excluded Mini sales from their figures.<\/p>\n

Normally I would have expected the profit rate on the SUVs was very high, but BMW sold almost the same number of SUVs as 5-Series sales.\u00a0 So their profit margin on the SUVs are much lower than the 5-Series?\u00a0 The profit level on the 3-Series and 1-Series are lower as well?<\/p>\n

Certainly because the price tag of the vehicles differs sharply:<\/p>\n

3-Series: $33-45K<\/p>\n

5-Series: $45K-$63K<\/p>\n

SUVs: $39K-$67K<\/p>\n

So something seems odd here, if the SUVs have the same price range as the 5-Series but are much less profitable?\u00a0 It may have to do with pedestrian issues, such as the 5-Series is an older model and so has already paid off its tooling costs (a new model is on the way now).<\/p>\n

Or it could simply have been the type of thing Marketing people say to emphasize that BMW 5-Series Buyers don’t mind spending a lot of money on accessories.<\/p>\n

One final theory — perhaps BMW’s profits on the 5-Series and the SUV are both healthy, and their profit margin on the 1-Series and 3-Series are near 0?\u00a0 That would fit the quote, and fit the pricing.\u00a0 Still is worthwhile to HAVE the 1-Series and 3-Series in the mix, as they drive traffic.\u00a0 But even at the high (to me) 3-Series prices and healthy sales BMW may not be making much money on them?<\/p>\n","protected":false},"excerpt":{"rendered":"

I am still fascinated by the quoted statement from BMW in the LA Times that 50% of their profits come from the 5-Series. Here is a chart of BMW 2009 Sales from back in January 2010: BMW sold 40,109 5-Series … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":69,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[260,6],"tags":[499,500],"class_list":["post-6292","post","type-post","status-publish","format-standard","hentry","category-monthly-sales-reports","category-site-info-news","tag-bmw-sales","tag-suv"],"_links":{"self":[{"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/posts\/6292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/comments?post=6292"}],"version-history":[{"count":17,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/posts\/6292\/revisions"}],"predecessor-version":[{"id":6310,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/posts\/6292\/revisions\/6310"}],"wp:attachment":[{"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/media?parent=6292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/categories?post=6292"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.caddyinfo.com\/wordpress\/wp-json\/wp\/v2\/tags?post=6292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}