Markups are all relative

[Chuck]

There are times that markup is worth it and times when paying for markup is just plain stupid.

When buying a car that is scarce, maybe even rare, it may be appropriate to pay the markup. It might even be argued that, depending upon the amount, the markup can be recovered when selling or flipping the car. Especially if the alternative to markup is waiting a year to get the car. In that case, it could be argued, paying markup may be worth it.

Then there's stupid markup: Coffee. I buy Dunkin' Donuts ground coffee. Costs me about 18 cents per cup of coffee. There are people that go to Starbucks and pay $1.85 for a small cup of coffee. That's a ten times markup. TEN TIMES. Over a year's time that's over $600 of markup paid. Over 10 years (the length of time I own cars) that would be $6,000 markup. FOR COFFEE! Just so you don't have to brew it. Now, that is simply stupid markup no matter how you slice it.

So, when you gripe about markup for a scarce, rare car, look around and see what other markups you're paying for that are actually stupid markups.

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[strangeengine]

Then there's stupid markup: Coffee. I buy Dunkin' Donuts ground coffee. Costs me about 18 cents per cup of coffee. There are people that go to Starbucks and pay $1.85 for a small cup of coffee. That's a ten times markup. TEN TIMES.

You are valuing your time at $0.

I don't know about you, but I charge more than that.

 

[entenna]

do we really need this thread???

 

[Chuck]

You are valuing your time at $0.

I don't know about you, but I charge more than that.

That's a straw man argument. The time that I spend brewing coffee is not time that I'd be paid for. When I was working from in the office instead of home the coffee was free and I was being paid to go get it. Yet, I saw people arriving with Starbucks in hand.

 

[dmastro]

Not really the same, but I'll bite. I'd dare say there's probably more markup on your ground coffee than the fancy coffee place. They are paying costs for wages, rent, operating expenses, cost of goods, etc that goes into your coffee. The actual markup over cost isn't as much as you think it is.

Plus the time savings for someone to make a latte for me vs me having to fire up an espresso machine, make the drink, and then clean everything... ahead of the game to pick up.

As far as automobile ADM, if a dealer can get it, great on them. Be glad more people won't pay ADM, or demand would be even higher as would the ADM.

 

[generaltso]

There are times that markup is worth it and times when paying for markup is just plain stupid.

When buying a car that is scarce, maybe even rare, it may be appropriate to pay the markup. It might even be argued that, depending upon the amount, the markup can be recovered when selling or flipping the car. Especially if the alternative to markup is waiting a year to get the car. In that case, it could be argued, paying markup may be worth it.

Then there's stupid markup: Coffee. I buy Dunkin' Donuts ground coffee. Costs me about 18 cents per cup of coffee. There are people that go to Starbucks and pay $1.85 for a small cup of coffee. That's a ten times markup. TEN TIMES. Over a year's time that's over $600 of markup paid. Over 10 years (the length of time I own cars) that would be $6,000 markup. FOR COFFEE! Just so you don't have to brew it. Now, that is simply stupid markup no matter how you slice it.

So, when you gripe about markup for a scarce, rare car, look around and see what other markups you're paying for that are actually stupid markups.

It must suck going through life never eating at a restaurant.

 

[strangeengine]

That's a straw man argument.

Really? In this thread you started? Please.

 

[AKgrampy]

Wait! I roast my own coffee from green beans. I must be really smart!

 

[Mach1E]

You are valuing your time at $0.

I don't know about you, but I charge more than that.

And isn’t the value of time the reason for markups?

Order a car, wait 6-9 months, pay x plan or MSRP.

Buy one off the lot, pay an ADM.

Buyers choice.

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