[Main 95 Bulletin Board | BBFAQ | Prev by Date | Post Followup ] Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos Why not drop prices? Like This Post: - Subscribe to Daily Digest for this Bulletin Board Posted by davecl [Email] (#1994) [Profile/Gallery] (more from davecl) on Tue, 4 May 2004 05:23:40 Alert me when someone posts in this thread: Members do not see ads below this line. - Help Keep This Site Online - Signup

I was reading the exchange about incentives, which Mike Lynch answered, and it occurred to me: are there any advantages to Saab maintaining the fantasy that these are $40K cars, when everyone gets huge discounts? I know that rebates are the name of the game for most brands these days, but for years Saab has been giving giant discounts on 9-5s. I got nearly $10K off on my Aero. I bought it because, at the "real" price, it was againt a 1.8T Audi A4, not a BMW 330. No contest.

So there's this whole game of rebates, secret incentives, etc. that drop the price to the "real" ie. market price. Good for Saab buyers, but I wonder:

Is there some business advantage for Saab to maintain the fantasy "list price"?

Do these endless, large discounts diminish the brand?

If Saab said, for example, a 9-5 Aero has an MSRP of $34K (not $40K), would this drop the car a class, put it against cars that it will blow away on features, and therefore attract more showroom traffic?

Mike, and others -- is there a real business reason to keep prices high and then discount big time, year after year?

posted by 12.30.2...

• Why not drop prices?, davecl , Tue, 4 May 2004 05:23:40 <-- Viewing This Message
  • IMHO incentive base selling works....., Mike Lynch , Wed, 5 May 2004 17:06:08
    • Thanks for the realistic input, as always. n/m, Jon in Chicago, Thu, 6 May 2004 11:06:57
    • I agree on some points, jeff, Thu, 6 May 2004 05:16:02
  • 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
    • Interesting dilemna, Davecl , Tue, 4 May 2004 13:32:05
      • If Saab does it alone, then No...., Jon in Chicago, Tue, 4 May 2004 14:48:42
    • risk, jeff, Tue, 4 May 2004 12:06:04
      • Unrealisitc, maybe, Jon in Chicago, Tue, 4 May 2004 12:54:19
  • Re: Why not drop prices?, Davecl , Tue, 4 May 2004 10:21:02
    • Re: Why not drop prices?, jeff, Tue, 4 May 2004 11:37:48
  • 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
    • Re: It would be a major risk ..., jeff, Tue, 4 May 2004 10:07:58
  • Paid $31K for '03 Aero, would not have bought..., Lynn, Tue, 4 May 2004 09:25:56
    • Re: 31k taxes aside right?, 3PinFever, Tue, 4 May 2004 10:18:13
      • Seems a little low, Mike, Tue, 4 May 2004 10:35:32
        • $31,220 for 413 miles on clock, lightly used..., Lynn, Tue, 4 May 2004 12:40:11
  • 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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