It's amazing the dealers only make 40%.
03-21-13: Taters
Taters,
They don't make 40%
From the remaining 40%
Deduct shipping cost.
Deduct overhead costs.
Rent,
utility bills,
Phone bill,
Yellow page ad,
liability insurance,
content fire insurance,
wages,
FICA taxes,
Unemployment insurance,
local, state, federal income taxes,
Health insurance?
The Banker? The dealer may have a line of credit with a bank. Manufactures require payment upfront before shipping product.
deduct discount to customer, if any?.....
Like I said the dealer is lucky if he makes 5% to 10% profit.
That means the manufacturers are making most of the money.
High quality parts aren't cheap....
In some cases there is middleman, the distributor, he also gets a cut.
.