It would be a major risk ... - Saab 9-5 Bulletin Board - Saabnet.com
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It would be a major risk ...
Posted by DougD [Email] (more from DougD) on Tue, 4 May 2004 09:36:07
In Reply to: Why not drop prices?, davecl [Profile/Gallery]
, Tue, 4 May 2004 05:23:40
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... to drop the deep discounts, and GM would have to be desperate to attempt it.. Rebates have conditioned many buyers to only shop for discounted cars. The gratifications of receiving a large discount and perceiving oneself as a smart consumer are large. Very few cars are able to sell without some form of discount, and the big three have not been able to wean consumers off the rebate nipple. Saturn has had mixed results with the no haggle strategy.
Saab would need to evaluate the risk of losing bargain hunters and the loss of image that comes from being a luxury-priced automobile against potential gain of broadening the potential consumer base by hitting lower price points. The biggest risk is if Saab would be forced to discount after moving to an everyday low price strategy. That would be disastrous.
posted by 206.102.16...
Posts in this Thread:
- Why not drop prices?, davecl , Tue, 4 May 2004 05:23:40
- IMHO incentive base selling works....., Mike Lynch , Wed, 5 May 2004 17:06:08
- Re: Why not drop prices?, saabnewbe, Tue, 4 May 2004 14:43:20
- Because every once in a while, Ells, Tue, 4 May 2004 13:53:57
- Saab's US Unique Selling Point (?), Jon in Chicago, Tue, 4 May 2004 11:56:36
- Re: Why not drop prices?, Davecl , Tue, 4 May 2004 10:21:02
- Re: Why not drop prices?, Gres718, Tue, 4 May 2004 10:00:13
- It would be a major risk ..., DougD, Tue, 4 May 2004 09:36:07 <-- Viewing This Message
- Paid $31K for '03 Aero, would not have bought..., Lynn, Tue, 4 May 2004 09:25:56
- Re: Why not drop prices?, aizzo , Tue, 4 May 2004 09:19:05
- I never would have bought my 04 Aero Wagon at 40k+, Mike, Tue, 4 May 2004 08:23:32
- I agree, jeff, Tue, 4 May 2004 07:05:28
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