When it Comes to Sales, Ferrari can Afford Quality over Quantity

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While every car manufacturer is going for market share, Ferrari is doing the exact opposite – they limit their global sales output to only 7,000 units per year. To put into local perspective, that’s less than the average monthly – repeat, monthly – sales of Toyota in the Philippines.

After reaching ‘Peak Ferrari’ in 2012 with a record 7,318 sales, the Italian brand decided to limit sales in order to boost exclusivity and in the process help protect margins and residual values for customers.

Ferrari has now revealed that it sold 6,922 cars in 2013, which was down 5.4 percent on 2012’s figure. Despite the decrease in sales, revenue actually rose 5 percent on the previous year at around $3.16 billion. The company also ended 2013 with $1.87 billion in the bank, its highest net cash position ever.

No wonder British research firm Brand Finance named Ferrari the world’s most powerful brand for the second year in a row, putting it ahead of much larger firms such as Apple and Google. The brand rating not only takes into account financial metrics, such as average revenue per customer and investment, but also a complex array of other parameters, including brand affection and loyalty, client management and human resources.

Going for quality sales instead of quantity ain’t a bad thing, it seems. And this is why the most expensive vehicle in the planet right now is a 1964 Ferrari 250 GTO which sold at $52M in a recent auction.

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