# It's nice work if you can get it **URL:** \ **Category:** General Discussion\ **Tags:** porsche\ **Created:** [March 20, 2017, 9:24pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862 "2017-03-20T21:24:34Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![VDCdriver](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/vdcdriver/32/30_2.png) [@VDCdriver](https://community.cartalk.com/u/VDCdriver)\ **Post date:** [March 20, 2017, 9:24pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/1 "2017-03-20T21:24:34Z")
…and Porsche is getting it! [https://www.bloomberg.com/news/articles/2017-03-20/the-porsche-premium-revs-up-to-17-250](https://www.bloomberg.com/news/articles/2017-03-20/the-porsche-premium-revs-up-to-17-250) ---
**Author:** ![Mustangman](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/mustangman/32/44130_2.png) [@Mustangman](https://community.cartalk.com/u/Mustangman)\ **Post date:** [March 20, 2017, 9:59pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/2 "2017-03-20T21:59:18Z")
Good for them!! Given the starting Porsche price of about $47K to $200K plus, the average price must be about $100K so a margin of 17.3% is pretty good by car standards. Lousy by iPhone standards, they get about 69% to 200% profit on each iPhone depending on who you ask. ---
**Author:** ![bing](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/bing/32/4619_2.png) [@bing](https://community.cartalk.com/u/bing)\ **Post date:** [March 20, 2017, 11:32pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/3 "2017-03-20T23:32:40Z")
Yep but going back to Bruce Williams again, is it better to have $3000 on 500,000 cars? ---
**Author:** ![George\_San\_Jose1](https://avatars.discourse-cdn.com/v4/letter/g/e5b9ba/32.png) [@George\_San\_Jose1](https://community.cartalk.com/u/George_San_Jose1)\ **Post date:** [March 21, 2017, 2:55am UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/4 "2017-03-21T02:55:49Z")
Porsche makes a good quality product, and quality sells, especially to the right customer; i.e. one with plenty of disposable income. Reminds me, there’s a pretty good car related movie from the 60’s titled “The Yellow Rolls Royce” and in one scene the customer who’s buying it at the dealership showroom is annoyed b/c the salesman keeps talking about the technical details of the engine. "6 cylinder, 4 1/2 inch bore … blah blah blah … " … lol… The customer is more interested in which side the telephone is on. Finally the customer says “I’ll buy it”, then says to the salesman : " I don’t want to seem disinterested in your enthusiasm for the engine on this marvelous vehicle, but it is a _Rolls_ after all? I have to presume it goes ok. " 😉 ---
**Author:** ![Mustangman](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/mustangman/32/44130_2.png) [@Mustangman](https://community.cartalk.com/u/Mustangman)\ **Post date:** [March 21, 2017, 12:24pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/5 "2017-03-21T12:24:02Z")
No, I don’t think so. $3000 on mass market cars, the average car sold now is $33,600, is only 8.9% profit before taxes and roughly 6% taxes. An OK return but not a great return. Probably better than GM and Ford get right now. Porsche makes a higher margin on lower volumes because it is somewhat exclusive much like Ferrari. Hard to get investors excited about launching a new car company with all the risk with such a low return. It’s OK for investors in old-line, established companies like Ford or GM but it won’t generate the potential upside like a Tesla. That is the real barrier to launching a brand new car company that just makes mass market cars without some real market distinction. ---
**Author:** ![TwinTurbo](https://avatars.discourse-cdn.com/v4/letter/t/8baadc/32.png) [@TwinTurbo](https://community.cartalk.com/u/TwinTurbo)\ **Post date:** [March 21, 2017, 1:30pm UTC](https://community.cartalk.com/t/its-nice-work-if-you-can-get-it/101862/6 "2017-03-21T13:30:21Z")
Assuming the company makes the same magnitude of profit in either scenario, I would choose the path with fewer units. It has less risk overall to profitability for things like; warranty expense, material scrap (E&O) due to required mid-stream changes to fix issues and so on.