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Elio Dudes Are Smart, Aren't They?

lafrisbee

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So I looked at the board of whatever Elio wants to call them, and it seems like they have some intelligence and experience with selling cars. And when I apply who they are to the current scenario that Elio is acting out then I can put two and two together, here it is....

Elio has a very sound strategy going right now, one that is very well thought out, and superbly played. They are NOT making cars. No sir, making cars takes a lot of money...now selling cars, especially if you can keep your overhead down to say one or two cars, doesn't require anywhere near the outlay of cash that having a big ol plant and wrench-turners standing in it costs.
Ol Elio has some smart cookies working for him, or with him if you want to be all warm and fuzzy with the terms. Ya see he knows, or they know, that if he fires up the plant and then can't sell cars fast enough to keep it going he will not be there for long. But if he can do something on the cheap(once again compared to having a plant online and not selling all they can make) like pre-sell a lot of cars, then he has a better chance of having a fast start when he does release a car, and with all those pre-sells getting out there so fast he will get some whiplash going off of the exposure and word of mouth.
That that is pure genius..or just the understanding that I never thought of until I saw what was on the board of directors. I guess they may not be geniuses like me, cuz they live, and have lived in that world, so that is just common sense to them. They know that if they didn't have all these cars sold before they started making them then they'd have to open a plant and pay people to stand around, and also somehow fend off the rumors and negative comments while trying to get the ball rolling. This here, this is smart. We will get our cars lickety-split. And we will be a huge sales force generated overnight.
Sales of a product this big grow exponentially...if ol Elio opened a plant and a few hundred people got cars then the exponential growth would be too small in the beginning, this way they get to start off with a large number and have exponential growth from that...
I could be wrong, but I figure stuff out pretty good sometimes, and the little itty-bitty bit of money, even 50,000 all in at $1000 wouldn't amount to jack squat when it came down to what he needs to get this started...but it can pay for the sales crew to go out there and generate a large enough number of pre-sales to make the kick-off be a huge success and the growth from that is what they are banking on.
 
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goofyone

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This has been mentioned on here a number of times and I have thought about this myself and completely agree with you that the pre-order reservation system is a very smart business move. The pre-order system helps them in a number of ways. By itself it creates marketing buzz and encourages people who have already made reservations to stay tuned and tell others about Elio. It gives them a cushion between the time production starts up and new sales need to be coming in as well as getting the Elios on the road where people will see them and want one. It is also much easier to sell a new car in a new dealership if you can tell people the production line is already up and running and tens of thousands of people are already enjoying their new cars.
The pre-order reservation system also helps the business greatly from a financial perspective. 12,000x6800=81,600,000 and I suspect that number will increase greatly before production is actually set to begin. If they can hit 25,000 reservations that would equal 170 million in reservations at 6800 each. These are huge amounts of revenue set to start rolling in once you start production and begin delivering these vehicles. All that income not only allows them to pay their regular expenses (payroll, rent, utilities, part suppliers, etc...) but can also be leveraged to show potential investors that there is real demand for this vehicle so this is a business worth investing in.
 

lafrisbee

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now on to even a little more critical thinking...I am a dick. Even my friends know it and call me that to my face, except my lawyer friend, somehow she can't bring herself to say it, but she thinks it. Thing is I am more honest than I think most people can tolerate. Honesty makes me a dick. go figure. But I also look at things in a twisted but honest way...
IF Paul was trying to get money from us in some scam...well? really? ONE thousand bucks. Just one thousand? one stinkin' measly thousand bucks? I've already posted more than once....I want him to offer a $5000 plan...I give him 5 grand now and he ups it to $7500 at the register. now if he was really trying to screw us that would be the main carrot I would be dangling from the end of a stick. Screwing a buyer for $5000 over $1000 is what? Like 10x as lucrative. So if this was some scheme to take our money then he has got it wrong...
DAMN! Now I am really gonna have a hard time getting him to allow that option. Sometimes I am my own worse enemy.
OK OK Damage control mode....Mr Elios, Sir, um,well...since I have posted this in an open forum, and it was in defense of Sales/fiscal plan, well do you really think it is fair to hold it against me...Pleeeeeze let me give you five thou towards the autocycle, even if I am the only one you don't know that you'd do that for. I seriously don't need the money. it wouldn't hurt me to loose it(LOL). Come on, i'll let you borrow it when you want.

EDIT: By borrow "it", I meant Borrow my Elio when you are in town, if you need to...
 
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lafrisbee

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This has been mentioned on here a number of times and I have thought about this myself and completely agree with you that the pre-order reservation system is a very smart business move. The pre-order system helps them in a number of ways. By itself it creates marketing buzz and encourages people who have already made reservations to stay tuned and tell others about Elio. It gives them a cushion between the time production starts up and new sales need to be coming in as well as getting the Elios on the road where people will see them and want one. It is also much easier to sell a new car in a new dealership if you can tell people the production line is already up and running and tens of thousands of people are already enjoying their new cars.
The pre-order reservation system also helps the business greatly from a financial perspective. 12,000x6800=81,600,000 and I suspect that number will increase greatly before production is actually set to begin. If they can hit 25,000 reservations that would equal 170 million in reservations at 6800 each. These are huge amounts of revenue set to start rolling in once you start production and begin delivering these vehicles. All that income not only allows them to pay their regular expenses (payroll, rent, utilities, part suppliers, etc...) but can also be leveraged to show potential investors that there is real demand for this vehicle so this is a business worth investing in.
Good point about taking the total amount of the purchase and looking at what it can do, and yeah I thought about that too, but I just wanted the people that are yapping about it being a scam to have some unbiased logic without all the "Warm fuzzy" crap associated with it from a almost non-biased source that applies LOGIC.
 

goofyone

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now on to even a little more critical thinking...I am a dick. Even my friends know it and call me that to my face, except my lawyer friend, somehow she can't bring herself to say it, but she thinks it. Thing is I am more honest than I think most people can tolerate. Honesty makes me a dick. go figure. But I also look at things in a twisted but honest way...
IF Paul was trying to get money from us in some scam...well? really? ONE thousand bucks. Just one thousand? one stinkin' measly thousand bucks? I've already posted more than once....I want him to offer a $5000 plan...I give him 5 grand now and he ups it to $7500 at the register. now if he was really trying to screw us that would be the main carrot I would be dangling from the end of a stick. Screwing a buyer for $5000 over $1000 is what? Like 10x as lucrative. So if this was some scheme to take our money then he has got it wrong...
DAMN! Now I am really gonna have a hard time getting him to allow that option. Sometimes I am my own worse enemy.
OK OK Damage control mode....Mr Elios, Sir, um,well...since I have posted this in an open forum, and it was in defense of Sales/fiscal plan, well do you really think it is fair to hold it against me...Pleeeeeze let me give you five thou towards the autocycle, even if I am the only one you don't know that you'd do that for. I seriously don't need the money. it wouldn't hurt me to loose it(LOL). Come on, i'll let you borrow it when you want.

As far as I know you may be a dick but so far your comments have not come across that way to me but then again my friends say I can be a dick too so the very fact I like your comments could mean you are being a dick. :D

I think most of us have had had to consider the possibility that this could be a scam and there are threads on here which include a number of arguments for and against the scam theory. I personally do not believe Elio Motors is a scam but I am also in a good enough financial situation that I could afford to lose my $1K without it affecting my lifestyle at all.
 

drbob

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I did not even hear about an Elio until less than a month ago. I put my deposit down the very next day. Since then 3 of my friends put down a deposit after I told them about it. For me this car is a no brainer even at $10,000.00... If one of the big auto makers sees this as a viable design there is nothing to stop them from producing a similar machine, They already have the engine and transmissions ready to go, engineering on staff and the plants to build them.
 

lafrisbee

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It's actually only 5x as lucrative. (5 x $1,000 = $5,000);)
Nope, you got to factor in all the expenses...and I was just funnin'...a little let's say they spend about four hundred dollars to get a thousand dollar buy in... The percentage on return is close to 120%. Now four hundred bucks to get $5000 thou is right around 1200%. Which let's see...carry my one, bring down the ought ought.....hmmm 10x as lucrative.

And I was just havin a little fun.
 

Cali Chris

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Nope, you got to factor in all the expenses...and I was just funnin'...a little let's say they spend about four hundred dollars to get a thousand dollar buy in... The percentage on return is close to 120%. Now four hundred bucks to get $5000 thou is right around 1200%. Which let's see...carry my one, bring down the ought ought.....hmmm 10x as lucrative.

And I was just havin a little fun.
I was just havin a little fun too. If I typed it and it sounded serious, reread it in a sarcastic tone it will make much more sense the second time.
 
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