Saturday, November 19, 2011

How do expensive car companies like Rolls Royce and Bugatti stay in business?

Since there cars are so expensive, I can't imagine that they sell alot of cars. How does their company stay a float, especially during a recession?|||It's not like they are a regular production car company that produces 50,000 of a given car. They only make a handful to sell to the super rich. It isn't very surprising at all that these two are successful.|||Well, several reasons. First, just because a nation is in a recession, doesn't mean everyone is. I'm making more money during this so-called recession than I ever have. If this is a recession, I can't wait for the recovery. So while the average working person like you or I might have to take a pay cut, so we have to keep our 8 year old car another 5 years instead of getting a new car, the rich people don't have those worries. They are still making millions upon millions. There are still plenty of basketball and football players to buy them. And at a price of $300,000 or more each, do you really think there's $300,000 worth of parts in those cars? Of course not. They spend less than $10,000,000 designing these cars because they don't need to. They don't have some huge assembly line building them constantly, since they don't plan on selling 175,000 of them a year, but rather 700 a year or so, so they hand build them. This is also how they can custom tailor the car however the buyer wants directly from the factory. And the salesmen can charge a premium for those custom services as well.Ultimately, I'd bet there's less than $30,000 in materials in those cars, and they are sold for 10x that much. Sell 40 cars and you pay for the parts for all the cars, labor and the design of the car.|||because Bugatti is owned by Volkswagen and Rolls Royce is owned by BMW. just because our country is in a recession doesn't mean that rich oil sheiks in Saudi Arabia aren't buying these things left and right. you also need to understand that these cars are hand-built, very few are produced on an annual basis and demand is still high among uber-rich bastards.|||Its because cars like bugatti are made by there father company. bugatti is made by volkswagen. just like audi is.





Cars like Hummer, Pontiac, Chevy, GMC, and Cadillac are all owned by GM. Thats why the Chevy Tahoe, GMC Yukon, and Cadillac Escalade all look the same, cause they are the same.|||It helps when your product is in sufficient demand to justify a waiting list. Bugatti never planned to build more than a few hundred Veyrons in the first place, and there won't be any leftovers: the entire production run is pretty much spoken for.|||They make a lot of profit for each sold and they sell every one one of them. The rich don't feel recession as the working person do.



When they are losing money they layoff people. They don't make as mush as before but they still make money.|||The uber rich never run out of money, and always have plenty of things to spend it on.


Custom built cars are just one item for them.|||Other investments.|||Fossil Fuels, Precious Gems and Art, Real Estate.|||rich people buy then

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