Think of something you've bought recently from a publicly traded company. Now...go to their financial statements and find their advertising expenses on their income sheet. Next...go look at their revenues. Take the advertising expense and divide that by their total revenues. Take that percentage and multiply it by the price of the product you purchases. Now, subtract that total from the price you paid. Guess what...you paid that towards their advertising expenses. The difference is that it was completely hidden from you...but just as real.

 

WARNING, Start rant,

To those of you that don't feel you should see the numbers for the advertising and fuel cost,

DO NOT LOOK AT THE INVOICE! (it is for the dealer) That is why they have a WINDOW STICKER w/ MSRP that you should be paying. If you are paying less than that why would you complain?


End rant, I have nothing else to say on this subject!

 

The point is that you will pay all a companies overhead including advertising or the company will fail. The ultimate source of all the money they spend is the customer. In most cases advertising reduces your cost. The alternative is saving on advertising and spreading various costs such as development and tooling over fewer automobiles sold as a result. Also due to the reduced volume the local dealer would have to make more on each unit so not only would wholesale cost rise but retail by even more,

 

I know someone that works at GM dealer and he is a salesman for Camaro and Corvettes. He is a hardcore GM guy but he complains that GM charges like &700+ for advertisement fee for every Corvette they sell yet you don't see any ads anywhere for Corvettes. I don't remember seen an ad on the web either. It drives crazy but that is the way it is nothing they can do.

At least we see the $486 advertisement fee put to good use everywhere.