Re: DEER BUSINESS BRANES

Steve Cutchen <maxfaq@xxxxxxxxxxxxx> wrote:

In article
<6a5177ac-5016-4b53-b955-49d4a81f0044@xxxxxxxxxxxxxxxxxxxxxxxxxxx>,
Mercellus Bohren <mercellusb@xxxxxxxxx> wrote:

On May 16, 10:18 am, "deemsb...@xxxxxxx" <deemsb...@xxxxxxx> wrote:
On May 16, 11:10 am, Mercellus Bohren <mercell...@xxxxxxxxx> wrote:
I don't quite understand why they need to close these mom and pop
shops in one-dealership towns. The whole thing seems harsh; but, that
seems like it's going one too far. Poor performers, I guess. But,
like, who's going to sponsor the Little League and pay for the new
water tower? Maybe this is some anecdotal information that I've
gotten, that just isn't true.

The competitive side is described well above. Also, as the dealers
have cars pile up, the manufacturer comes under pressure to pay
incentives to move them. Some rebate-type incentives are dealer
funded. But most are manufacturer funded.

Another side of the dealership issue is the costs associated with
supporting the dealers. The manufacturer has to have reps and home
office folks to support the dealer, has warehouse and distribution
costs associated with getting goods to and from the site, and also
shares in operational and promotional costs. The franchisee spends a
lot on the business and ultimately buys product from the manufacturer,
but the manufacturer also has a lot of costs and shares in the dealer's
expenses.

So if you live in a small town in Montana, Colorado or Utah you are just
fucked?
.