Re: NJ Transit's Millennium Transit's RTS ''Express'' (260101) | |||
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Re: NJ Transit's Millennium Transit's RTS ''Express'' |
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Posted by JAzumah on Fri May 11 01:16:45 2012, in response to Re: NJ Transit's Millennium Transit's RTS ''Express'', posted by BedStuyGuy on Thu May 10 17:48:59 2012. It can cost a manufacturer between 15 and 20% of the bid price to finance a group of buses for up to 6 months. The typical gross margin is around 25-30% for a transit bus (before development costs are factored in). So, a potential manufacturer has to snag a big order to attract contract financing and then they have to nail down a bunch of little orders to improve cash flow. I surmise that this is the strategy that Gillig is using.This is why I would buy Orion (I can say this publicly because no one will take me seriously). Orion just needs more orders and an expanded product line. I would license the bigger Sprinter model and gangbang everybody in the 7-10 year market with it. If you haven't seen the 5.9-7.7 meter Sprinter, go check out Mercedes-Benz's website. A good unibody minibus would take the transit market by storm. |