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How do 4s stores control gross profit margin?

as follows:

The first: the difference between the price of entry to profit 4%

Dealers selling cars generally put the profit in points, such as a car from the manufacturer's price is cheaper than the guide price of 4 points, you can use a formula to explain: price = manufacturer's guide price - manufacturer's guide price × 5%. Manufacturer's guide price × 4% is also a dealer from the manufacturer's profit margin.

The so-called point is the manufacturer's published guide price of a few percent. If you calculate according to four points, a car with a manufacturer's guide price of 100,000 yuan, the dealer's price from the manufacturer is 96,000 yuan, and if it is sold according to the manufacturer's guide price of 100,000 yuan, the profit of a car is 5,000 yuan.

The second: the manufacturer's incentives or rebates 1% -2%

In addition to the price difference, the dealer from the manufacturer's profit margins have incentives or end of the year rebate, and incentives or end of the year rebate is the manufacturer's dealers a number of assessments before returning to the dealer. A 4S store manager said this: "The annual assessment after the reward is generally 1.5 points, get the reward need to assess a lot of projects, such as the completion of sales, DBS assessment and other projects, but dealers generally do not get the full point."

Most brands at the end of the year incentives or rebates are generally 1-2 points, to calculate a such an account, if the dealer at the end of the year the assessment of all qualified, the rebate of 1.5 points, a manufacturer's guide price of 100,000 yuan, the end of the year, the manufacturer will be returned to the dealer of a car for the money as follows: 100,000 × 1.5% = 1,500 yuan. Price difference plus incentives rebate, generally a car dealer from the manufacturer to get a profit margin of about 5-7 points.

The third: auto insurance to give rebates

Insurance rebates are another source of profit for dealers. Consumers in the 4S store to buy a car, if through the 4S store on the insurance, then the insurance company will pay the 4S store agent fee or insurance rebate, it is understood that the OCI allows part-time agency fee for 8% of the cost of insurance.

That is to say, if the cost of an insurance policy is 4,000 yuan, then the consumer through the 4S store on the insurance, the insurance company will pay the 4S store fee = 4,000 × 8% = 320 yuan. In general, 4S stores will choose a large, reputable insurance company to cooperate, and in order to attract consumers, will also be a large part of the insurance company's rebate to the customer.