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>Hi Hank, > >Thank you for giving me a chance to clarify what I >wrote & didn’t write. >Since you included my request in this quoted text - >>Either way, please let me know if I should clarify >>this. >I hope you’re giving me a chance to expand on what I >wrote & not just giving up on me. > >I realize I didn’t complete every idea I wrote. >Sometimes I write too much, other times I don’t write >enough. >I apologize if I spread inaccurate information. I >wasn’t thinking of big-ticket product/ services when I >wrote the part that frustrates you. > >There’s a difference between prices people or firms >pay & gross margins, gross profits & net profits. > >The current credit crisis is hitting sellers in at >least 2 ways—They pay more to finance their >inventories & it’s harder for buyers to qualify for >loans. Even if buyers qualify, they may opt not to buy >now because the finance charges would increase the >payments—monthly & total. > >I know what I wrote below can be interpreted as >negative or insulting. I don’t mean it as a criticism; >it’s a warning of what can happen for the duration of >the bad economy. >A problem for any used product dealers is apt to >be—some of their inventory is behind the fashion >curve. They get what consumers don’t want or can’t >afford anymore. These products are probably one or >more trends/fads behind. > >When people want to save money on fuel or be >environmentally responsible, they sell what they have >& buy new (or newer but used) products, which are apt >to be closer to what’s in fashion. > >For vehicles, those that are traded in usually don’t >fit what consumers currently prefer. When people >traded in smaller vehicles because they wanted/needed >more capacity, demand for smaller vehicles was >smaller. But what used vehicle dealers were able to >get was small vehicles. > >Now people want smaller vehicles with fuel-efficient >engines, so used vehicle dealers are able to get many >big inefficient vehicles, while new vehicle dealers >have access to smaller fuel-efficient vehicles. >Small used vehicles aren’t apt to be as fuel-efficient >as new cars. > >Those vehicles (new & used) are collateral for vehicle >loans. But the demand & market value for undesirable >used vehicles may be too low to be worth the risk >financial institutions bear. They increase the finance >charges for “risky” loans, which means it’s harder to >get a loan because the payments are higher. The credit >crunch aggravates these problems for dealers & >consumers. > >Dealers, who have service departments, have another >source of income. Many dealers are sales people with >limited mechanical training & they don’t employ >mechanics. They don’t have income from repair service. >They may have a hard time finding vehicles people want >& can afford to buy. > >A used car dealer I know bought some scooters (like >small motorcycles). Selling scooters helps him bridge >the sales gap until he can get some used >fuel-efficient cars. > >Used Sport Utility Vehicles are relatively cheap now, >but they’re expensive to use. For somebody who >commutes short distances, the cost of fuel may not be >so bad. But many short trips can be hard on engines. >They may require more maintenance & repair which can >be an opportunity for some business owners, but only >if the SUV owners can afford & will buy the >products/services. > >A used car dealer who doesn’t have any >repair/maintenance equipment may be able to make >arrangements with a mechanic/garage owner who doesn’t >sell cars & doesn’t have space for many cars. > >Some mechanics are frustrated because they need to fix >vehicles quickly, but they have frequent phone calls. >If a car dealer’s business is slow, s/he may be able >to help a mechanic with phone duties, setting >appointments & providing loaner vehicles. > >Phone calls can be forwarded to another phone line or >cell phone, so a person handling phone duties doesn’t >have to be in the same building. But communication >between the people in different buildings is vital. > >Some people own mobile service equipment, they may >welcome a chance to work in a corner of a car lot. >Expenses & income can be split. > >Price Sensitive Buyers >Sometimes, people are more price sensitive when buying >some products, but they’ll pay extra for others. It >depends on the overall price, how much they think the >product/service is worth, how much they value the >benefits, among other things. > >Are there products or services—maybe a service >plan—you can offer & which people are willing to buy? >If these products or services don’t require much of an >investment from you, you may get more profit without >having to borrow money. > >Dennis S. Vogel >thrivingbusiness@email.com >Improving your marketing will reduce your risk. You >can learn better methods from my free information web >site & this blog. >http://www.lakefield.net/~thrivingbusiness/ >http://www.voy.com/31049/

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