dealer markup

[Keyser Soze]

now if only Ford could get a million people to read these books they may be able to stay afloat.

There is a very big problem if you sell a consumer product that requires reading a 300 page book before you buy. What a great way to lose a customer. This strategy is as full of consequences as illegal dealer markups.

 

 

I'm going to try this one more time. ADDITIONAL DEALER MARKUP IS NOT ILLEGAL!!!!!!!

 

Don't believe me? Look here:

 

http://www.consumer.state.ny.us/clahm/clah...ndow%20Stickers

 

This is from the NY state consumer protection board. Since you say you bought a Taurus at Otis Ford, this should apply directly to you.

 

Monroney Window Stickers

• 15 U.S.C. §§ 1231-1233

Under the federal “Monroney Act,†every manufacturer of new cars is required to attach to the windshield or side window of the automobile a sticker prior to its delivery to the dealer known as the “Monroney†sticker.[22]This sticker must contain, among other things, the vehicle’s make and model, the final assembly point, its destination, the manufacturer’s suggested retail price for the vehicle, and the manufacturer’s suggested retail price for each accessory or item of optional equipment.

 

Willful failure to attach or willful removal of the required label on a new automobile is prohibited by 15 U.S.C. §1233, and subjects the offender to fines and/or imprisonment. Complaints regarding this law should be sent to the following address:

 

Office of Consumer Litigation

United States Department of Justice

P.O. Box 386

Washington, D.C. 20044

 

Dealers are not bound to charge consumers the manufacturer’s suggested retail price, and no legal limit has been set for the pricing of motor vehicles.

 

Please note the portion I have boldened. Does this clear it up for you?

 

Say that AMV is foolish and short-sighted. I agree. Stop saying it is illegal because it simply is not. If you disagree, show some evidence to support your position.

[Sporko]

That is a totally disengenuous(sic) and straw man arguement. But you already knew that.

 

Lots of big words in your responses. Spelled wrong, but big words nonetheless. Face it, your argument boils down to the fact that you can't afford the cars that the "posers(sic) and dillatantes(sic)" can afford. That's not any dealer's fault. Get a better job, start your own business, or win the lottery and buy whatever car you want. Just be sure to spell check your resume.

Edited November 5, 2006 by Sporko

[J-150]

Please note the portion I have boldened. Does this clear it up for you?

 

Say that AMV is foolish and short-sighted. I agree. Stop saying it is illegal because it simply is not. If you disagree, show some evidence to support your position.

 

 

okay.

 

that's NY state.

 

I have also read legislation from other jurisdictopns that speaks to double pricing a product.

 

 

But I really dont care to argue this anymore. Ford is the one on the verge of bankruptcy. I dont need to argue my position to save their sorry asses.

[mettech]

I want to preface this with I hate the way dealerships work and the way that the whole system works.

 

First, about the sears thing. Little known fact is..you can dicker on washer installation. Yes, you can. I have done it. I have dickered on free installation, 10% off, etc. Lowes has a big sign out front that says they will match any competitors price + 10% of the difference. So if you take the MSRP of a washer as bible, that's your bust.

But let's admit one thing. If not for the bonehead customers that buy off on the dealership stuff, we, the educated buyers, couldn't get the deals we do. In fact, the best deal you can get is at the most crooked dealer you know. If you know the tricks and know what you're doing and are willing to play, you can get a HELLUVA deal.

 

Case in point, my Ranger....this is a good one.

 

I called Ricart Ford in Columbus OH, the most crooked dealer in the USA. He even has a page dedicated to their dealership:

 

http://www.columbusconsumer.com/

 

Anyway, in 2002, I knew a couple of things. Rangers were at a dealer cost of around $9550 and they were being advertised in the Dayton area for $9995 after customer cash, rebates, etc. I called Ricart. They said "We can beat that, we'll sell you one for $8450 BUT this is the LAST DAY OF THE SALE!! Well, no auto sale ends on a Tuesday, so I knew he was trying to bate me, get me there, etc. Ok, let's play!!!

 

I said "I'll be over today!!" I got the financing set up at my credit union, had the wife go with me, and away we went. I asked wife what color she wanted and she sayd "Gold, might make the cheap truck look expensive if it's gold." We showed, up, met the salesperson, gave him a color, and he went and got the truck. We were blown away when we discovered the damn thing even had A/C!! I checked the truck over and said "It's a deal." What happened next was one of the most challenging and, if I may say so, enjoyable 6 hours of my life because I really do love this sort of thing. I know that THEY have to make up $1200 bucks. Where, oh where, are they going to get it?

 

It started with, after sitting for a half hour, I spent another half hour listening to one of the sales managers run over what dealers call "the menu." They even offered me fabric protection...ever see the amount of fabric on a Ranger XL? The headliner, perhaps.

 

They failed with everything. I still have my $8450 truck. I acted very naive, but I told them "gee, I just can't afford to pay anymore for extras."

 

Next, the finance guy got me in and he was good. I have to say that 95% of the people I know would have gotten caught by him. He ran this, that, here sign this, sign that...quick quick quick, run run run, this, that, hectic!!!! Well, he tried. I would get the piece of paper and deliberately and slowly read every one. I would ask what every piece of paper was for and make him explain it. Finally, he asked me what I was going to finance. I said "the price of the truck and I already have it set up. Please put the balance on my credit card" He said the balance was something around $2000 when the taxes and doc fee should have only been about $600-700 bucks. I an thinking (I found IT...I wanna see the PO!!) He started to frown, but picked it back up and started running again and he finally hit me with his last shot!!!...here it comes..the purchase order, which had...

Anti theft etching....$850

Preparation and setup of truck....$350

Service contract............$450

 

Ahh...there it IS!!! I took my pen and lined those three lines out. I smiled and gave the sheet back to him. CHECKMATE!!!! From this point forward, no one at the dealership was nice to us EXCEPT for the salesperson. This guy reprinted the PO, and grumbled as he put it in front of me.

 

Arrived at the dealership at 4PM. I left at 10PM..with a $10600 truck (REMEMBER, the $9995 trucks in Dayton didn't have air on em) for $8450. I drove the truck off the lot for $9300. So for six hours worth of BS and an hour drive, I saved a substantial amount of money.

 

The Honda was easier. I got a lowball price from a dealer out of Chicago and went to our big "beat anyone" dealer. Showed them the price quoted in Chicago which was $300 under invoice and $500 above dealer cost. The salesperson said "we can't sell it for that" and I said "Ok, well, off to Chicago." 4 hours later I drove off in the CR-V...for the Chicago price.

 

So if you can't beat em, JOIN EM!!!

Edited January 12, 2007 by mettech

[Deanh]

Sorry if this has been addressed before but...

 

Ford wants to sell cars right?????

STOP the dealers from marking up the "desirable" one's.

 

I'm a current mustang owner, and I'd love to put money down on a shelby or on of the other speciality cars comming down the pipe.

I can aford to pay the sticker price, HOWEVER I can't afford to pay 5-20k over the sticker. Futhermore, I won't, especially when their are equivlent offerings from other manufacturers that do not entail this kind of gouging.

 

The dealers make enough money, they don't need this kind of gift at the cost of ford sales and bottom line.

 

Consider going to a pricing scheme similiar to saturn for these types of cars. You'll sell em by the bushel

[Deanh]

Sorry if this has been addressed before but...

 

Ford wants to sell cars right?????

STOP the dealers from marking up the "desirable" one's.

 

I'm a current mustang owner, and I'd love to put money down on a shelby or on of the other speciality cars comming down the pipe.

I can aford to pay the sticker price, HOWEVER I can't afford to pay 5-20k over the sticker. Futhermore, I won't, especially when their are equivlent offerings from other manufacturers that do not entail this kind of gouging.

 

The dealers make enough money, they don't need this kind of gift at the cost of ford sales and bottom line.

 

Consider going to a pricing scheme similiar to saturn for these types of cars. You'll sell em by the bushel

Ok guys now it is time for an insiders look as I happen to work at a dealership and understand the consumers side of things completely but have tried to "justify?????' what can be construed as "gouging" Contrary to popular opinions a majority of dealerships are NOT I repeat NOT making anywhere near the $$$ 99 percent of the public beleive them to be. I have had several business's considerably smaller than my place of employ that make several times more capital than the dealership. Currently quite a few dealerships are in fact closing their doors due to lack of profit ( may go hand in hand with current product lineup...come on versions of the concept cars! ) As for the markup on several specialty cars....all that does is counter the losses taken on advertised ford Rangers and Focus's that the general public snaps up at reasonable "loss leader prices". You would be exceptionally surprized at the amount of, lack of mark up that Ford motor company feels is an acceptabl profit margin for their dealer base. So finally the dealers get the 500 Shelby on their floors with a supposed opportunity to counter the miniscule margins made on a majority of their lineup. I have a question...we have a vehicle of which the dealers get perhaps 2 or 3 max...and gues how much markup between invoice and window sticker they feel is adequate?...hoe does 3700 sound on a limited production $43000 vehicle sound. now do you blame the dealers? Would it be better if the vehicle stickered for $59000 and we sold them at window? Whilst i do not exactly ageree w the markup practice...the LAST people i blame are the dealers. You should also be aware of the incurred expense of "flooring" which is paid to Ford on a monthly basis ( 2 % of the window sticker..per car per month I beleive ) to keep such vehicles as the low profit Focus's Rangers setc on their lots....there is a LOT more to the business tahn meets the "disgusted by markup" eyes....

Edited January 13, 2007 by Deanh

[Deanh]

oh..and for all the Ford haters....Toyota Prius..$5000 over window sticker here, new tundra the same, FJ the same, also the gentleman very happy with his wifes experience at the Honda dealership...wonder if she tried to buy an S2000 when they first came out...or an Odessey? Nissan ...same boat when the Z first came out....don't make me mention Lexus...or perhaps the McLaren Mercedes...a whopping $200k over at fketcher Jones when it came out....

[J-150]

oh..and for all the Ford haters....Toyota Prius..$5000 over window sticker here, new tundra the same, FJ the same, also the gentleman very happy with his wifes experience at the Honda dealership...wonder if she tried to buy an S2000 when they first came out...or an Odessey? Nissan ...same boat when the Z first came out....don't make me mention Lexus...or perhaps the McLaren Mercedes...a whopping $200k over at fketcher Jones when it came out....

 

 

Let's just say this again... because you are not listening.

 

Toyota and Honda are not on the verge of collapse. They have the luxury of psiing people off.

 

Ford does not. Arguing Ford is right to other Ford fans on a Ford board does nothing to save Ford from bankruptcy.

 

 

I have said it many times... Ford dealers are the weak link in the chain and in my opinion the biggest single reson they are losing sales. Japanese dealer kiss your ass. Ford dealers treat you like shit.

 

So go ahead. Find a way to justify THAT.

[FLLMTR]

:reading: To everyone who keeps preaching that Ford is powerless to control dealer prices needs to take a class in business 101 and take the lecture on franchise contracts. Ford CAN CONTROLTHE PRICES THAT DEALERS SET by holding back the allocation that the dealer receives if the dealer does not play by Ford's policy on pricing. Why do you think the dealer has to abide by X-plan pricing if it accepts X-plan PINS??? Do you think the dealer can make up X-plan pricing rules at its discretion? No!

 

Ford burned a lot of people with the Thunderbird. Many went to other makers and have not returned. Then it is doing it all over again with the Mustang and the GT500. Frankly, if Ford continues to turn a blind eye to dealer markup, I could care less. I simply will not deal with a dealership that adds a mark-up, period. I will sooner go to Toyota for my next car or SUV and laugh my ass off every time Ford closes a factory.

Edited January 14, 2007 by FLLMTR

[Deanh]

Let's just say this again... because you are not listening.

 

Toyota and Honda are not on the verge of collapse. They have the luxury of psiing people off.

 

Ford does not. Arguing Ford is right to other Ford fans on a Ford board does nothing to save Ford from bankruptcy.

I have said it many times... Ford dealers are the weak link in the chain and in my opinion the biggest single reson they are losing sales. Japanese dealer kiss your ass. Ford dealers treat you like shit.

 

So go ahead. Find a way to justify THAT.

I am listening . There is consistently more markup aka "haggling " margins on imports than there are on domestics, that and the general public refrains from purchasing Domestics without "incentives' and subveened interest rates. Why? because the domestic manufacturers have used it to attract buyers for so long now it is accepted. The dealers are NOT the weaklink, their parameters are set by Ford Corporate beauracrats too far removed from the front lines..ie the sales personal shaking hands w the buying public. And if you think dealers treat you like $hit...look in the mirror, perhaps you may bring it on yourself by the persona you project, there is no need to cop attitudes and treat people rudely, they do not HAVE to sell you a car..as much as you don't have to buy one. So go buy an import, i am sure your transaction in particular will put Ford under, and I'm sure the manufacturer of your choice will take great glee in you becoming their headache. As far as the unjustified markups you are bleating about if you knew margins that Ford deems acceptable for their dealer base you may understand more...why don't you start bleating about how Toyota doesn't look after their workers as well as Ford? From what I understand Ford spends approx $1500 per employee on such things as medical benefits and retirement...and Toyota is less than half off that...hm thats not too patriotic..but hey gives a FAR superior bottom line....

[Deanh]

If they didn't learn from the Thunderbird markup fiasco they never will.

Problem with the T-bird is it took too long to come to market and the glitz had worn off..THAT and the release co-incided with Sept 11...timing could not have been worse. We had deposits on every incoming...99% were cancelled after that horrible day..and [eople were right to do so, the majority of buyers were major Stockholders rightfully worried about the market.

[Deanh]

yep. me and hundreds of thousands that have been screwed over by dealerships.

 

have fun on the unemployment line

Question...if your house was on the market with 3 others the same but for some reason everyone wanted yours...would you ask a little more perhaps or discount it substantially so as not to be labelled as you are labelling Ford Dealers? Oh, and Ford does sell cars and get their dollars to the dealerships...it is the dealers that sell to the public, Ford ALWAYS gets it's dollars...

[BlackHorse]

Why are you lads squabbling over the dealership's markup? Aside from the occasional much sought after collector car, the average markup on a car is somewhere between 8 and 11%. That's not much. The real markup in this industry is what Ford the company charges the dealer. You want to talk about a company getting greedy about it's products, take a look at that step in the process. But then all of the car companies do that so we can't really single out Ford. In the end, it's all of us that pay for that run away greed if we choose to buy a car. How do you think they can afford to offer 10 thousand dollar manufacturer rebates on Expeditions after the bottom dropped out of the SUV market? Think about it. Everyone gets mad at the dealers because that's who the average customer deals with, and sometimes it's justifiable or at least understandable. But if we are going to get upset about a markup, the real culprit is in fact Ford Motor Company, not your local Johnny-Be-Good Ford dealer.

[partsisparts]

Why are you lads squabbling over the dealership's markup? Aside from the occasional much sought after collector car, the average markup on a car is somewhere between 8 and 11%. That's not much. The real markup in this industry is what Ford the company charges the dealer. You want to talk about a company getting greedy about it's products, take a look at that step in the process. But then all of the car companies do that so we can't really single out Ford. In the end, it's all of us that pay for that run away greed if we choose to buy a car. How do you think they can afford to offer 10 thousand dollar manufacturer rebates on Expeditions after the bottom dropped out of the SUV market? Think about it. Everyone gets mad at the dealers because that's who the average customer deals with, and sometimes it's justifiable or at least understandable. But if we are going to get upset about a markup, the real culprit is in fact Ford Motor Company, not your local Johnny-Be-Good Ford dealer.

I have been saying it for years... The manufacturers retail the cars to the dealers, who then wholesale them to the customers.

Edited January 16, 2007 by partsisparts

[J-150]

yep. me and hundreds of thousands that have been screwed over by dealerships.

 

have fun on the unemployment line

Question...if your house was on the market with 3 others the same but for some reason everyone wanted yours...would you ask a little more perhaps or discount it substantially so as not to be labelled as you are labelling Ford Dealers? Oh, and Ford does sell cars and get their dollars to the dealerships...it is the dealers that sell to the public, Ford ALWAYS gets it's dollars...

 

 

 

You are a dealer trying to justify dealer tactics.

 

Go ahead. Tell me to go to a Toyota dealer. I'll see you there in a few years when your dealership closes its doors and you need a job from a Japanese dealer.

 

Go ahead and justify those tactics that have alienated millions of buyers.

 

Go ahead and jusitfy your actions by blaming the customer.

 

Like I said, Toyota and Honda are not the ones on the verge of bankruptcy. Ford is.

 

So go ahead. Blame the customer. Justify the actions that have lost you customers. And please dont insult my intelligence by blaming it on the product. That's only one small factor. Dealers are the biggest factor in pissing off customers.

[Deanh]

You are a dealer trying to justify dealer tactics.

 

Go ahead. Tell me to go to a Toyota dealer. I'll see you there in a few years when your dealership closes its doors and you need a job from a Japanese dealer.

 

Go ahead and justify those tactics that have alienated millions of buyers.

 

Go ahead and jusitfy your actions by blaming the customer.

 

Like I said, Toyota and Honda are not the ones on the verge of bankruptcy. Ford is.

 

So go ahead. Blame the customer. Justify the actions that have lost you customers. And please dont insult my intelligence by blaming it on the product. That's only one small factor. Dealers are the biggest factor in pissing off customers.

Not blaming the customer at all or even you, what I do have issues with is random stereotypical claptrap from an obviously bitter person whom has obviously had a bad experience at a dealerc somewhere. Hey it happens, sometimes I have seen practices I do nowt agree with here, unfortunately it burdens the business with a bad wrap. But heres a kicker, if you feel like you are constantly getting ripped then just pay sticker and realise that addendums WILL and always will be on low production flagship models. Prices on those are market driven and are NOT as you beleive solely Fords. Sorry if you have had a bd experience somewhere, your actions should be directed at the culprits.

[partsisparts]

You are a dealer trying to justify dealer tactics.

 

Go ahead. Tell me to go to a Toyota dealer. I'll see you there in a few years when your dealership closes its doors and you need a job from a Japanese dealer.

 

Go ahead and justify those tactics that have alienated millions of buyers.

 

Go ahead and jusitfy your actions by blaming the customer.

 

Like I said, Toyota and Honda are not the ones on the verge of bankruptcy. Ford is.

 

So go ahead. Blame the customer. Justify the actions that have lost you customers. And please dont insult my intelligence by blaming it on the product. That's only one small factor. Dealers are the biggest factor in pissing off customers.

Not blaming the customer at all or even you, what I do have issues with is random stereotypical claptrap from an obviously bitter person whom has obviously had a bad experience at a dealerc somewhere. Hey it happens, sometimes I have seen practices I do nowt agree with here, unfortunately it burdens the business with a bad wrap. But heres a kicker, if you feel like you are constantly getting ripped then just pay sticker and realise that addendums WILL and always will be on low production flagship models. Prices on those are market driven and are NOT as you beleive solely Fords. Sorry if you have had a bd experience somewhere, your actions should be directed at the culprits.

I have a solution. Everyone should just pay sticker price. If everyone did that the dealers would make enough money to survive and therefore would not have to markup hot models.

[Deanh]

I have a solution. Everyone should just pay sticker price. If everyone did that the dealers would make enough money to survive and therefore would not have to markup hot models.

Totally agreed, but unfortunately would never happen. However the better the product the more likely a vehicle can be sold for closer to MSRP..Ford seems to be on the right track, Fusion, Edge etc...then BLAMMO the "new" 500...the designer should be shot for bringing back the Toyota Avalon....

[partsisparts]

Totally agreed, but unfortunately would never happen. However the better the product the more likely a vehicle can be sold for closer to MSRP..Ford seems to be on the right track, Fusion, Edge etc...then BLAMMO the "new" 500...the designer should be shot for bringing back the Toyota Avalon....

Avalon...? I was thinking ten year old audi A6.

If you listen to all the complaints on this topic and then listen to all the " how I got over on my dealer" stories you get the picture. "I am a cheapo that will not step up to the plate for anything. " "I will not overpay" To all those people there is a saying in the car business," it is not the deal you get, but the deal you think you get" I sold and managed in a car dealer for more than 20 years and can count the times I actually lost money on on a car on one hand.

[ironhorse]

Nobody is going to convience the "Dealer Haters" on this board,that Ford dealerships as a whole struggle to break-even selling new cars and trucks today...they don't believe it. They have such a hard-on for dealerships,they cannot see the reality of how Ford dealerships struggle with new vehicle profitability.

[Deanh]

Nobody is going to convience the "Dealer Haters" on this board,that Ford dealerships as a whole struggle to break-even selling new cars and trucks today...they don't believe it. They have such a hard-on for dealerships,they cannot see the reality of how Ford dealerships struggle with new vehicle profitability.

their hatred is obviously based on their own experiences but as you well know ( especially if you work in a dealership ) there is NO making some people happy and the tendency is for those to be non-stop complainers. My wish is they would all attempt to make a living AT a dealership for a few months. It would give them newfound respect for what dealership personnel actually go thru....dealing with the public can be an eye opening experience...but for every HATER, there are some ( and thankfully a LOT more ) true gems of people that come thru the door. It has also been my experience that the people that are a pleasure to deal with get white glove after the fact help with a smile...the nastys I cannot say the same. Says a lot for treating others the way you would like to be treated yourself.

[J-150]

their hatred is obviously based on their own experiences but as you well know ( especially if you work in a dealership ) there is NO making some people happy and the tendency is for those to be non-stop complainers.

 

 

 

funny how many of these people that are never happy with a domestic dealer are extremely happy at a Japanese dealer. Look around. Ask people that drive Honda and Toyota how they are treated. They will tell you that is a huge reason why they switched to imports.

 

As far as treating those how you wish to be treated... has it ever occured to you dealer types that most do come in with open eyes, patience and trust? And when it disappears its somehow their fault that their trust was violated.

 

Keep the head in the sand guys. You're losing them through the bottom faster than the "way Forward" plans are bringing them in through the top.

 

Keep charging what you will and treating customers how you will. I will tell you that I have driven Fords for as long as I have BECAUSE of dealer relationship. But those days are starting to become numbered. So don't assume you know everything and that everyone with a gripe is unpleasable or brought it on themselves.

 

THAT is the thinking that loses customers.

[Deanh]

funny how many of these people that are never happy with a domestic dealer are extremely happy at a Japanese dealer. Look around. Ask people that drive Honda and Toyota how they are treated. They will tell you that is a huge reason why they switched to imports.

 

As far as treating those how you wish to be treated... has it ever occured to you dealer types that most do come in with open eyes, patience and trust? And when it disappears its somehow their fault that their trust was violated.

 

Keep the head in the sand guys. You're losing them through the bottom faster than the "way Forward" plans are bringing them in through the top.

 

Keep charging what you will and treating customers how you will. I will tell you that I have driven Fords for as long as I have BECAUSE of dealer relationship. But those days are starting to become numbered. So don't assume you know everything and that everyone with a gripe is unpleasable or brought it on themselves.

 

THAT is the thinking that loses customers.

Man you just don't give up do you.....it is obvious to me that you have had a bad experience...so blame the individual dealer ..don't BLANKET and stereotype every dealer out there, your problem was with them NOT every single Ford Dealer out there. And contrary to what you wish to beleive and emplore..this is NOT just a Ford issue...I have heard horror stories from pretty much EVERY franchaise out there...and the Honda dealer down the road and the Toyota dealer next door have service lines every bit as long as ours. Some people that change their bias due to a different manufacturer are based solely the product and desire ( something HOPEFULLY Ford will become more competitive in the near future...their product has been sub-par for too long in terms of desirability ) and sometimes even just a "I want something different". Some people like yourself are just damn bitter...sorry but you may have brought your "bad" treatment on yourself...I would love to hear both yours and the other side of what happened to you that has made you this hostile...

Edited January 19, 2007 by Deanh

[Deanh]

Keep charging what you will and treating customers how you will. I will tell you that I have driven Fords for as long as I have BECAUSE of dealer relationship. But those days are starting to become numbered. So don't assume you know everything and that everyone with a gripe is unpleasable or brought it on themselves.

 

THAT is the thinking that loses customers.............................................................................................I don't, but unlike yourself I do realise that there are TWO sides to every story....

[bilge]

I have been saying it for years... The manufacturers retail the cars to the dealers, who then wholesale them to the customers.

 

^^^^^Most accurate statement on this whole message board. ^^^^^^

 

 

Dealer sells 250 vehicles/mo and gross is $1000/veh = $250,000 and still has to train, buy those expensive red boxes full of tools from Ford, plus whatever is the diagnostic computer flavor of the year that costs $5k-$50k each and every year, plus work at an hourly shop rate set by Ford and paid warranty time set at different amounts at every different dealer, (plus pay the employees that do not produce income just as any other business so that is probably just a cost of doing business so not gonna count that in too much), plus pay floor plan interest of 2% over prime on unsold inventory.

 

Ford sells dealer 250 vehicles and gross average is $5000, (guessing at this number because Ford will never consent to give the actual amt) , that equals $1,250,000. Who is more efficient and who is wasting the gross profit that is made on a sale?