Make whatever kind of hideously dangerous, highway safety act non conforming car you want

loss leaders are different, like the 1.50 hotdogs at costco

the hot dogs make no money for costco but they get people in the store

the word you're looking for is halo product

Most upscale performance cars lose the company money, but they get people in the door to buy a base model.

Honestly these things look cool and I wanna buy one, or at least a car in the same class. Redpill me on why they're so bad and I'll buy an Ariel Atom or Caterham instead

Exactly.

That's why Polaris sells heavily rebates all their ATVs and lower end motorcycles. Those are the loss leader. The sportsman 1000s, the RZR line, the Indian Chiefs, and the slingshot are the money makers. They're pretty open about that if your allowed behind the curtain.

What's the profit margin on a slingshot?

possibly, but the Polaris has no base model that is affordable

These aren't performance cars from a major manufacturer, these are niche items from a relatively small manufacturer of expensive toys for middle aged white men.

>Calculate profitable price on a cheap product
>List MSRP as over that price
>Rebate MSRP down to regular price
>Plebs think they got "such a great deal!"

Loss leaders are a retailer strategy very rarely used by manufacturers unless they do a lot of B2C.
Do you even marketing bro?

Margins on slingshots are between 5% and 7% of MSRP depending on model, accessories are between 42% and 50% of retail and all the extended warranty stuff typically earns a dealership around 50% if not more if you've got a dumb customer.

This doesn't take into account goal and volume bonuses that bring your cost on a machine down, plus service on a machine that almost unanimously is brought to the dealership for, which is almost entirely profit. (Cost on oil is 4.00/qt retail is $12.00) and shop labor is huge money.

Stack financing kickbacks in and you can look to fetch near $10,000 in a dealerships pocket after the dust settles on a good sale, $5000 on an average one.

How does that compare to margin on the other stuff in

>Sell your base line stuff at astronomically low prices compared to competition like Honda and Yamaha (sportsman 450 or 570 vs yamaha Kodiak 700 or even the 450)
>Rednecks eat it up because it's cheap shit
>Upsell the rich guy because he "heard Polaris was good"
>Upsell bullshit accessories that rednecks will never use like junk bumpers and winches that fail immediately
>Upsell warranties to rednecks who don't have the money to fix the junk they buy
>Suddenly the loss leader is profitable

The rebates put Polaris in the red, but their market keeps them afloat with their lack of brains.

Polaris' strategy is to maintain that same strategy across the board, but ATVs, UTVs and snowmobiles have all had volume dealerships and poor sales years eat into the market. Those are all markets that you absolutely have to sell shit as cheap as possible otherwise the dealership 30 miles away eats your lunch.

Slingshot and Indian still have strong margins so dealerships are being very careful to protect this with things like agressive MAP policies and very aggressive showroom plans.

The big benefit of these is that they're legally motorcycles so they have cheaper insurance and fewer emissions/safety restrictions. They're not going to put their power down as efficiently as a Catherham or a Crossbow, but that doesn't mean they're not fast.

It amazes me how many companies leave a shit ton of money on the table by not having or enforcing a MAP policy

They are quick, but a catharham, crossbow, or Miata will out performed them, can be tuned easier, and at least in the case of the Miata, are cheaper to buy (used at least).

Plus you wouldn't look like such a fag driving something with 4 wheels.

It's a tough thing to enforce, it's got to be policed by other dealerships and it's got to be in a market where the things can be compared apples to apples like powersports. It's also why every brand recommends putting as many accessories on a floor unit so they're as hard to compare as possible.

I was thinking more about appliances but applies to automotive sector as well.
Much easier now since so much pricing is put online and scraping that can be pretty automated.

If I had a gun to my head over it I'd get a Morgan 3-wheeler instead, because at least you'd get some quirk-cred in exchange for lack of performance.

For track driving an Atom or upper spec Catherham will rape a slingshot.
For real world driving a Catherham 160 or a Miata will be cheaper and more comfortable.
They're a basically a $20k toy that excels at nothing.

Was it hard telling your parents you're gay?

At least it's significantly less edgy than a slingshot.

That's why I said "if I had a gun to my head"
I don't really want either, but if I had to pick one I'd pick the Morgan.
If you're gonna be a fag, be the biggest fag you can.

You're an user after my own heart. Do it right, do it once, and do it 100%

I mean I'd honestly like to have a Catherham, but I still know I'd look like a raging knob driving it around.

if these were designed in the mid 80s id believe it.

every person ive seen driving these is black. and they roll in packs.