$94,000 Profit On Each Car

If I could mark up my services by that much, I would for sure do so.
The larger question, discussed ad nauseam in many other threads, is if the pay to play is sustainable post-CV.
My crystal ball says yes, people will continue paying 4k for apple play. thankfully, sticky buttons will continue to be free.

 

Totally a cherry picked headline. Ferrari made an average 23.2% operating margin on each car sold.

This is actually LESS than what Walmart averages when they sell you boring everyday consumer goods.

 

Thats awesome. Good for Ferrari. Love to see companies make big profits

 

Comparing Ferrari to Walmart? Sacrilege, LOL. Shouldn't it be compared to OTHER car companies?

 

Com'on guys, we can get that up to $100K per car. You're just not trying.

 

How about using some of that $ to install a decent battery in the car and fix the poor paint quality.

 

Bully !!


Or should I say Benne !

 

Supposedly Ford WAS making 10K on each F-150

 

I can't even imagine the profit margin on high end designer apparel. The benefits of having a strong luxury brand.

Sent from my SM-G960U using FerrariChat.com mobile app

 

Humm..I'm quite surprised it's not higher then that. I have figured in the past based on my own sort of quasi math, that Ferrari would have to make upwards of 110k per car..

 

And not just recently. Pickups have been Ford and GM's cash cows for decades.

 

What's the average dealer profit on top of that? 30%? I'll never forget when the salesman at Beverley hills Ferrari said he just sold a LaFerrari for $1 million over sticker.

 

two words for you;

No, not "car play"

Carbon Fiber

or

Special Paint

And so on...

 

I'm indifferent on ferrari's profit here, but very (sincerely) thankful that there are people who line up to pay $300-500k for the cars (including the laughable options prices). Allows poorer folk like me to buy them for 50 cents on the dollar later on...after they are pampered and not driven in some guy's garage. Seriously works for me.

 

Walmarts number is gross margins.....Ferraris number is operating margin.....big difference

 

As someone who built their career in finance in the car industry, 23% OP margin on a vehicle is amazing stuff. Many are "happy" with 10% contribution margins (OP excluding any MFG costs). In a company that I won't name, their top sports car and top SUV made 2x% contribution margin. Average was single digits.

Yes, trucks do make about $10k/unit (again, contribution margin, not OP). Cars often lose or are very low single digits.

And finally, yes, options are grotesquely overpriced. The biggest thing I took away from working at a car company was to never buy a car "fully loaded", unless it was used.

 

Car option pricing, and their margins, reminds me of my days, long ago now, working in the electronics department of Sears: we lost about 2% on every TV we sold, but made about 42% on every extended warranty. We were, in effect, an extended warranty department which incidentally sold TVs solely as a vehicle to sell those warranties...

 

But then the detailer at my dealership that spent 10 hours doing paint correction on my car will be out of business...

 

Will Ferrari ever do what Porsche did and make truly obtainable mass produced cars to generate more reliable revenue?

 

Can't say for sure, but I'm guessing that decision would kill the goose laying the golden eggs.

Kevin

 

LOL... not even close. Most front end profit on trucks are 500 bucks or less... and more often than not negative.

 

Well Walmart and Ferrari both sell toilet seats.

Other manufacturers don't.

People tend to forget that Ferrari Licensing is what makes them ALL of the money

 

Don't get me wrong, Porsche makes a GREAT car, the 911 is spectacular and perfect, but they have made more than 1,000,000 of these models alone, so they should have perfected it by now. Ferraris TOTAL production since inception is less than a few hundred thousand so considerably rarer and more exotic.
You can find dozens of Porsches parked in Mall parking lots (In this area) and I have very rarely seen a Ferrari in one. (for whatever reason)
Passion is the taskmaster of our wallets, the heart wants what the heart wants.
I hope Ferrari doesn't bring out an "economy" model.

 

I think that if Ferrari salespeople told every buyer that there was a $94,000.00 profit on their car, almost all would still buy the car.