How Mercedes-Benz Is Losing Its Prestige Image

feelosofer

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This is because both BMW and Mercedes are trying to grab more of the middle class consumer because they can sale those cheaper models at higher profit margins. I am not saying there is anything wrong with that per se, but it diminishes the prestige of both brands.
 
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This is because both BMW and Mercedes are trying to grab more of the middle class consumer because they can sale those cheaper models at higher profit margins. I am not saying there is anything wrong with that per se, but it diminishes the prestige of both brands.


I don't think the cheaper cars have higher profit margins than the more expensive ones. These cheaper cars exist to get more people into the brand so they will cop a more expensive car later.
 

feelosofer

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I don't think the cheaper cars have higher profit margins than the more expensive ones. These cheaper cars exist to get more people into the brand so they will cop a more expensive car later.

The lower end vehicles most people lease. It's a lot easier to make a profit on leased vehicles per unit in volume sales. Once you pass the 5 series, E class relative in price tag the volume goes down even if you tend to make more per vehicle.
 

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The graph at 9:55 is crazy. :ohhh: Look how tight that race is in the top 3.

68.png


:ohhh: :ohhh:
 
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