trimming chap?

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GHT
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Joined: Mon Jan 26, 2015 3:09 pm

Re: trimming chap?

#11 Post by GHT » Sat Mar 12, 2016 7:36 am

rich. wrote:i like mercedes commercials, just cant afford them
One of my biggest contracts was with a pharmaceutical company. We collected from the companies main wholesale warehouse and delivered to their own shops as well as their independent clients like, proprietary owned shops, hospitals, prisons, nursing homes, military camps and so on. This client of ours, at some point, changed their livery colour from blue to red, the same red as Royal Mail.

Come the time when we had to renew our vans, (we were contracted to replace them every four years,) we found, quite by chance, a Mercedes Commercial Dealer who supplied Parcel Force, with a cancelled order. At the time, the seven meter van was about £27K with discounts for a cash deal. This dealer offered the cancelled order to us for £19K per van, as long as we could buy all six for cash. Having £115K makes me sound very wealthy, but you have to remember that money wasn't profit, only about 10% would have been profit.

My brother, who was my business partner, and I, bought the vans, and then we financed them, because it's very tax efficient to do that. We later learned that companies like Parcel Force get that rate by guaranteeing a given number of purchases per year, usually about 300 vans. Parcel Force then sell on the vans to their owner-drivers for top dollar, probably around £30K, the then price before discount. But it makes you think, exactly what is Mercedes break even price if they can afford to give large fleet buyers more than 25% discount?

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