Market Philosophy

I read car manufactures are bring their inventory down to 30 days instead of 60-90
Yes. A 90 day inventory was always what a dealer wanted. It's great to have all that inventory/selection but it comes at a price. At a 30 day turn a dealer is more profitable. Last month we set a record for gross profit with less that a 30 day inventory in stock.
 
Car dealers are catching up with the rest of world. I've sold manufacturing production lines for over 30 yrs. It used to be that standard parts like valves, temperature controllers, instruments, etc. were on the shelf and shipped in a day or two when you ordered them. For the last 20+ years the lead times on these items has grown longer and longer. Now they don't even order the material to make them until they have an order for them. Car manufacturers have been on "just in time" inventories for years. They want the suppliers to stock things for them. They don't want to have that money sitting on a shelf. This system caused them problems with the chips. The car dealers are now getting their customers used to ordering what they want and waiting for it, as opposed to driving off the lot with it. I wonder how this will change car sales? The sales people would always do everything to not let the people off the lot without buying a car because they knew the minute they walked off the lot their odds of getting a sale went way down.
 
Car dealers are catching up with the rest of world. I've sold manufacturing production lines for over 30 yrs. It used to be that standard parts like valves, temperature controllers, instruments, etc. were on the shelf and shipped in a day or two when you ordered them. For the last 20+ years the lead times on these items has grown longer and longer. Now they don't even order the material to make them until they have an order for them. Car manufacturers have been on "just in time" inventories for years. They want the suppliers to stock things for them. They don't want to have that money sitting on a shelf. This system caused them problems with the chips. The car dealers are now getting their customers used to ordering what they want and waiting for it, as opposed to driving off the lot with it. I wonder how this will change car sales? The sales people would always do everything to not let the people off the lot without buying a car because they knew the minute they walked off the lot their odds of getting a sale went way down.
i remember in the 70's , my dad used to go to the dealer to order a car..4-6 week wait.. in stock was not a thing..
 
Fly into denver...It's a bubble...There is no way on this earth they will sell all those units..
from what i have heard the entire SW is like that too..

This all stinks like 2008...Everything was roaring along until it wasn't...I'm not saying someone young like MC shouldn't keep investing..
As far as the restaurant industry goes..5$ gas will slow that down..It's also real scary what is happening to grain prices..
It is nothing like 2008. Mortgage finance requirements are eons stricter vs pre 2008. Also, it is almost impossible to get whacky 'pay interest only' loans anymore, either. Most people with mortgages can afford them, unlike pre 2008. Employment is at 3.8%, and there are tons of jobs. The higher interest rates (not even that high) will slow down the market. The only oddity is how corporate buying of SFH will affect the market going forward.
 
I understand that
But something just doesn’t feel right.
Yeah I know that nonsensical.
 
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