Cool, though I found, only half as:
Also, that's a lot of money to spend on a commercial... Do consumers
ultimately pay for it in higher car prices I wonder?
I thought about that, and since you mentioned it, just did a cursory google.
Here's one from http://www.freewarehof.org/tv.html :
"In advertising, the law of diminishing returns means that after sufficient
saturation, each further dollar spent is less effective than the last.
Automakers exempt themselves from the penalty of the law by adding enough
profit in every new car to cover every last advertiser. No matter how small
the return, they get the benefit. The car buyer pays the bill. Since the
last price break was way back down the line, there are no manufacturing
economies of scale at this level so the buyer only loses.
Precise figures are proprietary to the auto manufacturers and not released,
but informed estimates are that 1/2 the sticker cost of new cars is the
budget for merchandising and advertising. One-half. Perhaps worse, it
inflates the used car market because used car prices move in step with new
Auto merchandising sends a massive inflationary ripple through the economy
because cars and trucks are universal. Every other business buys them at
those bloated prices and passes the cost to us.
Vehicles are only one of the industries up to its neck in this, though they
are probably the most inflationary. Thanks to adding every imaginable cost
to the sticker price, GM, Ford, and Chrysler are respectively number 3, 4,
and 5 in total revenues on Fortune's current list of the world's 500
Automakers know a thing or two about making money, as anyone who has even
bought a replacement part knows. As Andy Rooney pointed out on 60 Minutes,
if you totally wreck a $20,000 car and want to rebuild it, the parts bill
alone will be $125,000"
I wonder how income has kept pace.
...Haagen Dahz ice cream has yet to double in price from its 1993 total of
$3.75 per 500 millilitre container, however, it's getting close. I've
resorted to making my own, which, if commercially sold might find a tidy
How many employees is the ideal number? Beyond which number a business
becomes evil. How do I calculate fair profit for goods offered? Services
rendered? Would it be best to have government determination and oversight of
these numbers? How many government employees is the ideal number?
Valid and important questions perhaps, much of which depend, too, on the
kinds of systems we are inferring or presupposing, which can, of course,
change or blur the meanings of such concepts as 'profit', 'evil',
'government', 'ideal' or 'employee/boss'.
Some systems make it very difficult to implement any fruits that may come
from similar questions and discourses, and their contstructs can be less
accountable on some levels. And before we can even contemplate some
questions, issues and changes, others are required.
The answer to your first, second and last question is 42.
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.