• Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

longtomsilver

Representative Example

Recommended Posts

Get the Mac you really want with monthly payments to suit you.

MacBook Pro for £57.52 a month.

Cash price: £1,149. Spread the cost over 24 monthly payments of £57.52 - total amount payable £1,380.48

This is one example and I'd welcome more on this thread. Provident Loan anyone ;)

The retailer profit margins on Apple products is an unknown quantity (to me anyway) but I believe it to be a wafer thin ~2% that in itself discourages discounting of what is IMO an over priced product so in this example the retailer earns ten times more profit through it's finance arm than the sale itself. It all feels a bit subprime to me in the same way people have cars on PCP and when the wheels stop this is just another deck of cards set to fall spectacularly.

Share this post


Link to post
Share on other sites

Isn't this the same in..

Estate agents - especially with gullible first time buyers - there used to be a 'mortgage advisor' with a kickback for the EA if you went through them to take the mortgage which they would attempt to push you to do;

Used car dealers - finance deals - cut for the dealer if you took their deal which would be more expensive than a private self-sourced loan;

Furniture - pay nothing for 2 years then 26% APR type things with the interest back-dated to the purchase date if you don't pay it off in the 2 years;

Dell computers - as above

Basically anything where price might be a barrier to purchase - the finance provider and the retailer 'collude' to offer a single all-one-means to purchase. The relationship between them is symbiotic but rarely works out in the customer's favour.

Share this post


Link to post
Share on other sites
8 minutes ago, longtomsilver said:

Get the Mac you really want with monthly payments to suit you.

MacBook Pro for £57.52 a month.

Cash price: £1,149. Spread the cost over 24 monthly payments of £57.52 - total amount payable £1,380.48

This is one example and I'd welcome more on this thread. Provident Loan anyone ;)

The retailer profit margins on Apple products is an unknown quantity (to me anyway) but I believe it to be a wafer thin ~2% that in itself discourages discounting of what is IMO an over priced product so in this example the retailer earns ten times more profit through it's finance arm than the sale itself. It all feels a bit subprime to me in the same way people have cars on PCP and when the wheels stop this is just another deck of cards set to fall spectacularly.

Noooo, the profit margin is huge. Without wanting to get into an argument with any Apple fans here, they sell yesterday's tech at inflated prices, wrapped up to look pretty. THe profit margins aren't public knowledge but there is plenty of analysis of this, where it's believed to be between 30 and 50%. https://www.quora.com/What-are-the-profit-margins-on-Apples-products

 

Edit: Sorry I see you said retailer margin. Ignore the above. Most retailers pay out a special low rate for Apple products online, as you state they exclude them from promotions etc, so I'd say the gross margin for the retailer is as you say.

Share this post


Link to post
Share on other sites
1 minute ago, spunko2010 said:

Noooo, the profit margin is huge. Without wanting to get into an argument with any Apple fans here, they sell yesterday's tech at inflated prices, wrapped up to look pretty. THe profit margins aren't public knowledge but there is plenty of analysis of this, where it's believed to be between 30 and 50%. https://www.quora.com/What-are-the-profit-margins-on-Apples-products

and those margins are after you remove the huge advertising budget which as a % of your purchase price probably cost more than the components.

Share this post


Link to post
Share on other sites
8 hours ago, eight said:

I have a suspicion that cars cost max £2-3K to produce, meaning they don't have to get many payments out of you before you default for them still to be up on the deal.

The development costs of designing and building the first car must be in the millions. You are literally driving a million pound car that cost you £20,000

It's a bit like buying a game on the PS4. As the disc only costs £0.50 why are they priced at £40.00?

And don't get me started on 4 cans of Pepsi!  xD

Share this post


Link to post
Share on other sites
8 hours ago, eight said:

I have a suspicion that cars cost max £2-3K to produce, meaning they don't have to get many payments out of you before you default for them still to be up on the deal.

24 minutes ago, XswampyX said:

The development costs of designing and building the first car must be in the millions. You are literally driving a million pound car that cost you £20,000

Not if its development costs are very low as its based on an old renault floorpan and motor.

Might not be a good example but a Dacia Sandero is Eu 7150 in Romania and £5995 over here.

So some cars do actually cost £2-3K to produce otherwise the company, the government and retailer would make nowt.

NOUL SANDERO

Pentru că românii vor mai mult

  • de la

    7.150 €
    TVA inclus

 

image.thumb.png.9e305dceaa36ef6cddbaf5193ba0fe5d.png

 

  •  

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.