A number of years ago I took a class on how to Charge More or Keep Your Prices Up (not the exact title of the class). The point was that if you wanted to make money you could not give your product or services away.
One of the examples used in the class was the question, how many car manufacturing companies had been started in the United States. The answer was over 500. The next question was who was the fourth largest car company in the United States. No one knew the answer. The point was that almost all of them had gone out of business. Very few for charging too much.
I was reminded of this discussion when I read this morning that GM was considering dropping or selling some of its brands as part of the multi million dollar bail out plan they were proposing to Congress.
According to the story, Saturn will remain for the next couple of years and then be spun off or sold. Hummer is being looked at and either will be sold or phased out. Saab is now up for sale.
The thought that I had was, who would buy these brands, and if GM was unable to make them successful, why would a new buyer believe that they could.
My Dad used to be a business broker. One of the things he said to me, was that every buyer feels that they know more than every seller. So it will be interesting to see if the buyers of Saturn, Hummer and Saab make it or become just one of the 500 plus who are no longer around.
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