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Posted a lot
I won't be there when you cross the road, so always use the Green Cross Code.
Posts: 3,037
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build car for £6000
sell to dealer for £8000
dealer sells to punter for £12000 (er dunno what mark up actually , just guessing but the point comes later)
sell finance to stupid punter and pocket £5000 in interest over the term of the loan
sell finance to punter who buys car second hand from main dealer when it's returned £2500
so basically they make £200o profit building the car and £7500 profit on the finace for it!
btw can you guess who owns the Rover finance arm? (hint, it's not the car company)
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This space available to rent. Reach literally dozens of people. Cheap rates!
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Don't forget parts, repair and servicing.
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True that, although car companies aren't the only ones. The corporate obsession these days is for reducing the production cost of the product or service they provide without reducing, or in fact increasing, the bill they give to punters. Why do you think they move all these call centres to third world countries without lowering the bill the punters get? So they can double their profit by paying their staff ridiculous wages that are half what the British government would permit and keep the cash the save.
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"He's not the messiah, he's a very naughty boy!"
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True that, although car companies aren't the only ones. The corporate obsession these days is for reducing the production cost of the product or service they provide without reducing, or in fact increasing, the bill they give to punters. Why do you think they move all these call centres to third world countries without lowering the bill the punters get? So they can double their profit by paying their staff ridiculous wages that are half what the British government would permit and keep the cash the save. A common fallacy - Indian call centre agents are paid the same as UK call centre agents. The savings are made in overheads and land/property prices. </industry viewpoint> *n
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Top grammar tips! Bought = purchased. Brought = relocated Lose = misplace/opposite of win. Loose = your mum
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True that, although car companies aren't the only ones. The corporate obsession these days is for reducing the production cost of the product or service they provide without reducing, or in fact increasing, the bill they give to punters. Why do you think they move all these call centres to third world countries without lowering the bill the punters get? So they can double their profit by paying their staff ridiculous wages that are half what the British government would permit and keep the cash the save. A common fallacy - Indian call centre agents are paid the same as UK call centre agents. The savings are made in overheads and land/property prices. </industry viewpoint> *n If that's so then most of the companies are getting stitched up right royally! The indian call centres that I have spoken to (which is quite a lot) have all been absolutely curse word at their jobs.
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That's more to do with the company themselves than the agents. I know of (and have trained a few) Indian call centres who are better than most British ones.
Likewise, I know of UK call centres which are amongst the best in the world...and ones which I wouldn't call on principle.
At the end of a day, a business needs profit to survive. A means to increase profit is to minimise your overheads. If you could half your building costs and overhead costs whilst maintaining a strong level of customer service and results, would you?
*n
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Top grammar tips! Bought = purchased. Brought = relocated Lose = misplace/opposite of win. Loose = your mum
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on the indian call centre thing.... it does depend on the call centre, and the person taking your call! i've just had the 'experience' of talking to AOL support, after a billing muckup cut me off. Not only did he get everything right, but he was incredibly polite and downright good at his job. He was somewhere in India, i know this for a fact, AOL were one of the first companies to outsource. 3 mobile's indian handlers on the other hand are useless. They read from a script without fail - i called to report a physical fault with my phone, the volume button had broken. "Please take out your sim card and clean it" he said. I know for a fact this is just to get me to cut off and ring back - two short calls look better on their stats than one long one. I used to work in a call centre, i know all the tricks! back on topic - it's business! when i worked in an electronics shop, we found a secrety bit of the computer system that had all our stock prices in - we as a shop bought from our head office and then added on our own profit. TV scart cables, which we sold for 8.99, were bought in at 51p. if there was no profit to be made though, there'd be no point in trading. same goes for cars. i would never buy a new car with my own money.... however i'd never buy a scart cable from Maplin Electronics either
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Never trust a man Who names himself Trevor. Or one day you might find He's not a real drug dealer.
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At the end of a day, a business needs profit to survive. A means to increase profit is to minimise your overheads. If you could half your building costs and overhead costs whilst maintaining a strong level of customer service and results, would you? *n I agree, and it's the same with manufacturing. If you can get things made at a fraction of the cost, at a quicker pace and to a higher level of quality overseas, then obviously it makes sense to do that. It's all very well waving the British flag but if it's from the bow of a sinking ship it's pretty bloody pointless . Anyway.... I never really thought much about where car manufacturers' profits came from. All I know is once you're on the new car treadmill, you're on a loser. Personally I can't see why people are lining up to be the ones who take it in the balls with the depreciation . Just for the satisfaction of pulling the plastic off the gearknob? No thanks! ;D
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right call centre bods, I'm probably treading on the slippery path to racism(i hope not cos I'm really not) but why when an indian call centre worker fones you, do they say there name is david or susan? id really like to know why large corps treat us as infants and why in hell do we take. and you call centre bods prob hate my type cos cold callers get a v raw deal here. IF I WANT SOMETHING ILL F**CKING FONE U
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"quote hairnet"
I'm not paying nine pound for a pi$$!
[/quote]
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Not sure that they do get paid the same, unless they only get paid 250 quid for working a 12hr day everyady for a month in the UK... see hereBB
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Yesterday at 7:54, pogweasel wrote:
Nothing wrong with creature comforts. If I want masochism, I'll just go and slam my knackers in the fridge door for a bit.
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call center are a very bad way of selling stuff i make a point of finding out what they are selling and for what company then tell them not to call agian as i will not be using said compay ever because of there annoying advertising tacktics it as bad as pop up adds and spam emails and should be made illeagal
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If I'm mistaken then I'm sorry, call centres probably weren't the best of examples. But there are various industries and companies who farm their work out to third world countries to save money. All the companies who set up factories in Brazil for the sole purpose of taking advantage of the fact that people there will work for practically nothing spring to mind, I'm sure you know of a few yourselves, supposedly Fiat's Brazilian workers aren't all that well paid, even for Brazilian factory workers, who generally are paid peanuts, although I'm not able to confirm exactly what they do make, but the result of exploitation like that is clear to see, the workers live in bloody shanty towns! Of course they also like that they can buy land for f*ck all there too. And yes I do understand that a company needs money coming in to survive, but I think when it gets to the level of exploiting people to get your profit it becomes unacceptable (another example is the coffee industry, where certain brands continue to buy their raw materials from farms that openly exploit their labour, in some cases resorting to slave labour, or at the very least making them work obscene hours for terrible wages), which big western companies consider to be acceptable, because even though it causes a life of misery for a lot of people in Africa, it also saves western consumers a few pennies that they don't need anyway, which of couse makes it all worthwhile, doesn't it? A similar situation has been known to exist in India's carpet-making industry for a good few years now, but again western companies and governments are loathe to stop the exploitation because it wouldn't do to ask us in the west to pay a little more for a nice rug for the living room, oh no, we'd much prefer thousands of women and children in India to get awful wages and live in a shanty town. As I said, I understand perfectly that businesses need to pay the bills, but why should some of them get away with the stuff they're up to to save themselves and the consumer money? Admittedly this is getting hugely off topic, but car companies haven't been totally without blame when it comes to using dirty tricks to maximise profit at others' expense.
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"He's not the messiah, he's a very naughty boy!"
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Not sure that they do get paid the same, unless they only get paid 250 quid for working a 12hr day everyady for a month in the UK... see hereBB Taking into account the cost of living relevent to the UK, every Indian-based call centre I've been involved with has had an average wage equal to or higher than those in the UK. *n
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Top grammar tips! Bought = purchased. Brought = relocated Lose = misplace/opposite of win. Loose = your mum
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SkoCan
Posted a lot
Quando omni flunkus, mortati
Posts: 1,916
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why when an indian call centre worker fones you, do they say there name is david or susan? 1.Because with too many calls, if they'd identified themselves as Balvinder or Gurdeep, some yahoo would try to light a fuse through the phone line or such like. 2.Makes things a bit more familiar or comfortable to the caller. Easier to work out the problems that way.
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sell finance to stupid punter and pocket £5000 in interest over the term of the loan sell finance to punter who buys car second hand from main dealer when it's returned £2500 so basically they make £200o profit building the car and £7500 profit on the finace for it! btw can you guess who owns the Rover finance arm? (hint, it's not the car company) Ford Credit Europe makes more money than Ford Cars, but Ford Credit encourages brand loyalty to ford cars, the cars are a means of selling the Finance, have been for a long time....one needs the other to survive </industry viewpoint>
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Shortcut
Posted a lot
I won't be there when you cross the road, so always use the Green Cross Code.
Posts: 3,037
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sell finance to stupid punter and pocket £5000 in interest over the term of the loan sell finance to punter who buys car second hand from main dealer when it's returned £2500 so basically they make £200o profit building the car and £7500 profit on the finace for it! btw can you guess who owns the Rover finance arm? (hint, it's not the car company) Ford Credit Europe makes more money than Ford Cars, but Ford Credit encourages brand loyalty to ford cars, the cars are a means of selling the Finance, have been for a long time....one needs the other to survive </industry viewpoint> That's true. It's stil a profitable business though. (Unless your Rover and the bosses own the finance arm)
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This space available to rent. Reach literally dozens of people. Cheap rates!
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Have a look at this site www.insidercarbuyingsecrets.com I know it's american but there are a lot of things on there that are relavent wherever you are...I actually work for a main dealer and I know that the return on the money invested by the owner as a percentage is actually less than you would get from some saving accounts on the high street, most of the money from new car sales is now termed "back door money" which means it is only paid if the aftersales (service and parts etc) departments are maintaining a high leval of service. There defianatly isn't the same high profit margins of a few years back.
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mercmad
Posted a lot
Flush Hard,it's a long way to McDonalds.
Posts: 1,740
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[/quote]
Ford Credit Europe makes more money than Ford Cars, but Ford Credit encourages brand loyalty to ford cars, the cars are a means of selling the Finance, have been for a long time....one needs the other to survive </industry viewpoint>[/quote] In case you hadn't noticed the Ford motor company is now number two in the car world,Former leader GM is now three. The numero uno is Toyota. Ford and GM shares as of yesterday are now as valuble as junk bonds. I live in a suburb that is packed with dealers and franchises,a sort of rev head heaven. I was talking with a toyota boss tonight and we were discussing this very subject. In general Toyota makes,on each Camry sold to dealers,....$90. Ninety dollars. thats about 30 pounds. On cruisers they make thousands but on entry level crapola,they lose hundreds. Thats not why they make cars though,as you quite rightly pointed out,the REAL money is in the selling of finance. The next big earner is...REAL ESTATE. The dealers are in reality property developers,they own huge blocks of land ,often in high growth areas and in OZ the value of land climbs constantly as the population grows. Next is SERVICE,try buying a cheap toyota part for your SECA or Corrollla,No such thing!.Or how about a service on your J car at a dealer?Burn the plastic on that!. And Yet ford cannot sell focus in OZ,even with legendary service intervals and reliability.
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Many years ago I changed my driving style to cope with rising fuel prices; I have now reached the stage where I am contemplating keeping my eyes shut in order to lower wind resistance.
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A mate of mine used to work for a Suzuki dealer and he said that they made losses on most sales and made it back on the servicing. Proves how much they make in labour charges.
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BS Nymph Singer Chamois Coupe Series 3 Landy
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