AMD's response to discontinuing some MoPar product
I've seen this explain before and that's a simple answer they can't do just short runs. Let's just say that a normal run is 100 fenders and they have to sell 60 fenders to just pay for setting up the tooling the labor the metal the boxing them up to getting them over to storage I mean all of the logistics to make it happen. Now let's say they set that all up to do like you said it short run a 40... They've already lost money....
Just to be straight up with you, I have nothing against you or your opinions, as a matter of fact, I like your posts and the discussions they create!
Oh, I know what you are saying, and I agree with it.............to a point.
I work at a plant that produces products (mainly Canola oil, shortening, and margarine) and we have runs of 10,000 units per week to 300 per month.
The volume ones are the most profitable for sure, but the low volume ones are still deemed necessary to keep the customers happy.
To my employer, it is all about keeping the wheels turning and producing something instead of the machines sitting idle, and to keep people moving.
My point is, that sometimes companies need to cater to the low volume stuff to keep their name out there even if the profit margin isn't that high, and that is what keeps the consumers happy............to a point.
Also, by having a wider variety of products for sale, there is potential for future growth to the low volume buyers if they decide to expand their product line and grow their business, and then they are the first ones to approach the company that provided the short runs with their increased needs. I've seen it happen several times in the 18 years that I have worked there.
Sure, supply and demand shapes companies and their profits, but if a company like AMD sells (for example) Nova fenders like hotcakes, then why produce the slower moving parts for the same car (or other cars) at all?
There wouldn't be as much profit in them as the fenders.
They do produce the other parts as well to support the fender sales, and to keep the consumer happy buying their brand exclusively.
It needs to be more rounded to keep the customers happy and buying their products and only their products.
So, it follows in my opinion that if AMD takes a small hit in profits on quarter panels, then the floor pans etc. will still sell because people are more apt to save cars and fix them if you can get reasonably common rust out or damaged panels for them.
I'm sure you remember the days of when there was NOTHING available for Mopars in general when it came to body panels, and your only option was to go to a junk yard (or 20) and scrounge for parts.
This of course was way before the internet!
Just think of all the cars parted out and crushed because it's all that there was to choose from.
(Again, supply and demand)
Now, we are blessed with a lot of reproduction parts for our cars, and that's awesome because the older cars in junk yards have all but dried up now...........
You won't have the demand if you don't have the supply, it's a vicious circle...........
A good example of my point is with the new(ish) Trick Flow heads for Mopars.
I'm sure that they sell a lot more heads to Chevrolet and Ford guys, but they tapped into the Chrysler market i'm sure to take away business from Edelbrock and others, and continue their name and to build their market share.
They have arguably the best product out there at this time for the money.
Why did they do this?
My speculation is it's the same as what AMD did, they were willing to take a chance on tapping into a market hoping that a lot of people wanted better quality parts for their builds, and were willing to pay more for them.
Brand name marketing at it's best!
Who knows what the future of cars and parts will bring with us baby boomers getting too old to restore cars or dying off?
I guess time will tell............
