Lalitk,
Why would ARC let the dealer make more profit on a reference piece of 30k than they do. The dealers buy at 40 percent of the retail price.
So if the retail is 30k and the dealer get a 40 percent discount after that there cost would be 18k. So on a 30k sale the dealer would make 12k. And then you said ARC produces the piece for 12k. If your numbers are correct the dealer would make twice the profits on the piece than the manufacturer. It doesn't work that way. If the dealer is making 12k on the piece rest assured the manufacturer is making just as much or more.
Why would ARC let the dealer make more profit on a reference piece of 30k than they do. The dealers buy at 40 percent of the retail price.
So if the retail is 30k and the dealer get a 40 percent discount after that there cost would be 18k. So on a 30k sale the dealer would make 12k. And then you said ARC produces the piece for 12k. If your numbers are correct the dealer would make twice the profits on the piece than the manufacturer. It doesn't work that way. If the dealer is making 12k on the piece rest assured the manufacturer is making just as much or more.