[Subscribe to Daily Digest] |
Members do not see ads below this line. - Help Keep This Site Online - Signup
This may be a little incoherent as I’m tired, but here’s what I’m thinking.
As we all know, having massive incentives on Saab cars is great for the educated consumer, but terrible for expanding your customer base. This is all too evident in conversations I have with others concerning my Saab. I continually hear how others think that my 9-3 is a $32K+ car when we all know the actual selling price was significantly less. Same goes for the 9-5 line. The high price invariably dissuades these people from even considering a purchase when in fact, actual sales prices are VERY attractive for these cars.
The current incentive program is hurting Saab sales.
OK, this sounds counter-intuitive and is in direct contrast with the sales figures for the last year (since incentives began). However, I would argue that Saab could sell more cars by lowering MSRP figures and offering moderate (yet still attractive) incentives.
So how will future sales proceed after introduction of the new 9-3?
In a supply and demand world, Saab would love to have a hot product that they wouldn’t have to “incentivize” to make attractive. My only point here is that by pricing the new 9-3 as they have, they clearly have decided NOT to take the introduction of the new 9-3 as an opportunity to firm up the existing sales prices. Therefore, I fully expect to see that the new 9-3 and the 9-5 continue to be discounted.
A few probable scenarios support this theory;
1. Let’s say they continue to offer incentives on 9-5’s and leave the 9-3 to sell as MSRP. Effective sales prices for the 9-3 and 9-5 would be about the same and would likely drive sales of 9-5 over the 9-3.
2. Let’s say Saab will no longer offer incentives on either car. In this case, they have to hope that demand is very high . . . a risky move for a car with so much riding on it.
3. Finally let’s say Saab offers large incentives on both cars. In this case, we’re back to the same problem of “sticker shock” for the uneducated consumer.
In any case, I will watch closely.
-mark
posted by 65.37.51...
, Fri, 16 Aug 2002 22:15:03
, Fri, 16 Aug 2002 10:02:35
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
 |
 |
 |
 |
 |
