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Re: pricing strategies: SAAB Vs. BMW (Honda Odessey) Posted by MJM [Email] (#872) [Profile/Gallery] (more from MJM) on Fri, 12 Jan 2001 14:25:11 In Reply to: pricing strategies: SAAB Vs. BMW (Honda Odessey), joshua harrison, Fri, 12 Jan 2001 11:12:51 Members do not see ads below this line. - Help Keep This Site Online - Signup |
The problem is that the value of an item, and therefore hopefully it's selling price, is dependent on what someone will pay for it. Saab states publically, by setting the MSRP, that the 9-3 has a certain value, a value close to, for example, what BMW states for the 325i.
Reality sets in when people are actually asked to pay money for those cars. The value of the Saab is shown to be much less than what is actually stated, while the BMW's value is apparantly accurate, as stated. The fault lies with Saab, for trying to pass their cars off as being of higher value then they actually are. I wonder how many sales Saab looses because people are turned off by that artificially high MSRP? They should either play the near-luxury game and produce a car whose value equals the MSRP, or admit that the 9-3 belongs in a lower segment and price it closer to reality.
Having said all this, I tend to buy used cars. After a year or two the pricing nonesense settles out and the true value of the car becomes more apparant.
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