Word: premiums
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...profits, up from a current 13%. To accomplish that, overall sales of the five brands must soar 51%. That's a tough goal, but PAG president Wolfgang Reitzle is confident. "We have a robust strategy in place, as well as a convincing and unique setup of premium brands, all with a very distinct profile...
Ford's recent strength has been U.S. truck sales, but that's a market that's losing pep. So it makes sense to turn to its premier line - cars that don't sell in huge numbers but have high prices and wide margins - to more than compensate. "Only with premium brands can you make margins of around 8%" in an industry where the average is 3% to 4%, says Phil Dunne, auto consultant at A.T. Kearney in London...
...aspirational." Demand has to be kept high and slightly ahead of supply. Rivals like Mercedes-Benz, BMW and Lexus have moderate to expensive models under one brand, but with its PAG cars, Ford offers a similar price range divided among four brands. Reitzle says his products fit into every premium niche and still retain their exclusivity. While competitors are stretching - and possibly overstretching - their brands from the top to the bottom of the premium market, PAG can use Volvo to tap the (relatively) lower end while Aston Martin caters to the very wealthiest buyers...
...HSPDS’s contribution is significant, but it comprises a fraction of the work. And for that fraction, the HSPDS earns handsome compensation. For each round judged by a team member, the HSPDS receives compensation at a $5 premium compared to the compensation offered to independently-associated judges. The HSPDS’s compensation for running the ballot table approaches a thousand dollars. A generous and devoted alum of the policy team runs the individual events ballot table for free...
...space crisis. They acknowledge that student groups are crammed into the basements of first-year dorms and 6,435 undergraduates currently make use of only eight (EIGHT!) treadmills at the Malkin Athletic Center. (That’s 804.38 students per treadmill.) But “space is at a premium,” these deans say, and then get really excited when Harvard has the opportunity to take control of any land on this side of the Charles...