If auto makers are having so much trouble, how do they afford all those TV commercials?
August 23, 2010 by admin
Filed under Automakers
The auto makers say they are having financial problems yet there is no shortage of TV commercials! How do they afford to put out all those commercials on TV?
You are the one paying for them luv
tax money
It is advertising – they deduct that expense. But still – they have to pay before they can deduct it. I guess it is just the cost of doing business. If they don’t advertise – they don’t get the business – so they have to advertise.
Because in this time of recession, commercials are really, really cheap.
commercials get them business
if the commercial is 1000dollars and they make 5000 $
from that commercial being broadcast it helps them
help the automakers buy an american car
Government bailout money
How do you expect them to make money if they stop advertising.
If you don’t advertise you get forgotten about and you lose to the advertising competitor.
In the grand scheme of things advertising is only a very small % of the issue. Revising structure, UAW agreements, lean processes etc will save more money much faster.
interestingly Ford just post a 2.1 billion profit for Q2.
Advertising works – it’s really as simple as that.
It’s part of the expense of operating a large market product which has lots of competition.
And if these dealers and manufacturers don’t start moving these vehicles off their lots and storage facilities, they’ll find themselves being flushed down the financial toilet.
Its a business expense,for one we pay for it when we buy a car,then they take a tax writeoff for it,if business get fined for anything illegal they also get to write that off as a tax deduction,if you or I get a speeding ticket we dont get to write it off on our taxes,so goes to show you the tax system isnt fair in this country,you want it to be fair? back Obamas tax plan to raise taxes on people making 250k a yr or more,and no it wont hurt small businesses because most small businesses are lucky to make 50k a yr.