Value Pricing?

[Guest buickman]

As forcast last week by GeneralWatch and reported in today's Automotive

News, GM once again proves why management has no credibility. Wait until the

folks who recently took delivery find out that they missed the boat as GM

gives another example of why LaNeve and Company are not to be believed and

should be immediately shown the door. How about the hard working retail

personnel who had planned family vacations with the kids before school? In

other words, thanks folks for working so hard, now choose between making

dough and spending quality time with loved ones.

Remember how GM lowered prices a few months back? The charade of "value pricing" was truly nothing more than a masqueraded manuever to cut dealer margin. This veiled effort was exposed by the subsequent raising of prices on '07's. Bottom line, the dealers once again get screwed. Managment is not to be trusted.

Toyota moves forward as GM leaps backwards. Time to face the facts, General

Motors is without question one of the world's worst run companies and the

blame needs to be placed squarely upon the ineffective and irresponsible

leadership.

GM adds $500 to $1,500 cash to incentives

Dale Jewett | | Automotive News / August 29, 2006 - 12:18 pm

DETROIT -- General Motors has added cash rebates that range from $500 to

$1,500 to many of its 2006 and 2007 models. In most cases, the rebates are

in addition to low-interest financing programs GM has been offering.

The one-week program, timed to coincide with the Labor Day holiday, started

today and is scheduled to end Tuesday, Sept. 5.

In general, the bonus rebates are $500 for cars, $1,000 for pickups and

crossovers and $1,500 for SUVs.

Edited August 29, 2006 by buickman

[mr.nice]

As forcast last week by GeneralWatch and reported in today's Automotive

News, GM once again proves why management has no credibility. Wait until the

folks who recently took delivery find out that they missed the boat as GM

gives another example of why LaNeve and Company are not to be believed and

should be immediately shown the door. How about the hard working retail

personnel who had planned family vacations with the kids before school? In

other words, thanks folks for working so hard, now choose between making

dough and spending quality time with loved ones.

Remember how GM lowered prices a few months back? The charade of "value pricing" was truly nothing more than a masqueraded manuever to cut dealer margin. This veiled effort was exposed by the subsequent raising of prices on '07's. Bottom line, the dealers once again get screwed. Managment is not to be trusted.

Toyota moves forward as GM leaps backwards. Time to face the facts, General

Motors is without question one of the world's worst run companies and the

blame needs to be placed squarely upon the ineffective and irresponsible

leadership.

GM adds $500 to $1,500 cash to incentives

Dale Jewett  |  |  Automotive News / August 29, 2006 - 12:18 pm

DETROIT -- General Motors has added cash rebates that range from $500 to

$1,500 to many of its 2006 and 2007 models. In most cases, the rebates are

in addition to low-interest financing programs GM has been offering.

The one-week program, timed to coincide with the Labor Day holiday, started

today and is scheduled to end Tuesday, Sept. 5.

In general, the bonus rebates are $500 for cars, $1,000 for pickups and

crossovers and $1,500 for SUVs.

186543[/snapback]

Give me a break. $500 from GM on $<30,000 cars for a whole week, and GM's managment is a bunch of crooks and liars?

Although in Canada, we have simsub cable, so we get feeds from Rochester NY and Seattle...I just saw a labour dale sale commercial for vaunted Toyota also giving "factory incentives only until Labor Day". How about those poor Toyota owners who just bought a Toyota, only to return to the dealership because of its crappy quality of workmanship this model year, and realizing they could've saved $500 this week?

Thankfully, I haven't paid enough attention to this board, but you certainly live up to your repuatation.

On a brighter note, and chance of GM Canada doing this?

[Guest buickman]

Give me a break. $500 from GM on $<30,000 cars for a whole week, and GM's managment is a bunch of crooks and liars?

Although in Canada, we have simsub cable, so we get feeds from Rochester NY and Seattle...I just saw a labour dale sale commercial for vaunted Toyota also giving "factory incentives only until Labor Day". How about those poor Toyota owners who just bought a Toyota, only to return to the dealership because of its crappy quality of workmanship this model year, and realizing they could've saved $500 this week?

Thankfully, I haven't paid enough attention to this board, but you certainly live up to your repuatation.

On a brighter note, and chance of GM Canada doing this?

186638[/snapback]

Actually the point is the continuation of ineffective marketing is spite of repeated promises to the contrary, not to mention the fact that this crap has been going on for years and is the single primary reason for the self destruction at GM.

Buickman

[regfootball]

incentives are needed to adjust the market price of the car to match what the consumer thinks its worth. the 07's are coming in also, so the worth of an 06 is less.

would you prefer dead inventory to more sales? In retail, turnover is important. Dead inventory costs money.

[regfootball]

as for expecting to get time off while working retail, you'll need to get out of retail. I spent many years working at a best buy and target. stores need to be open when customers spend money and want to shop. Folks with 9 to 5ers get time to blow serious money on holiday weekends. if you want some of that, and want to be in retail, then you better be there with bells on on that holiday.

Edited August 30, 2006 by regfootball

[Flybrian]

Single question...

How does this affect me, the buyer, in a negative way?

[PurdueGuy]

And my impression of dealers as a bunch of whiners grows...

[ellives]

Clearly he's clueless about the retail market (no matter how many Buicks he sold in his prior life.) Retailers change their prices all the time during the course of a product's lifespan. The car business has become just like every other high end retailer like Macy's etc. If the stuff doesn't sell, they drop the price. Simple economics.

The positive aspect of the rebates I see is they are $500-$1500 vs. the $3500-$5000 we've seen in the past. Things are definitely improving.

Go get 'em General!

[Guest buickman]

Single question...

How does this affect me, the buyer, in a negative way?

186681[/snapback]

Suppose you just took delivery last Friday of a new Trailblazer and were aware of the total value promise. Today the vehicle is $1500 cheaper. You'd be riding around in your brand new GM vehicle and be greatly upset. Who gets the call? The dealer of course who is powerless to do anything. There goes CSI and any level of trust.

Furthermore, the distressful merchandising has created the image of products only desirable during a firesale. This negates the best efforts of our designers, engineers, and production people. Image is everything in retail and GM's truly is horrible. People don't want GM vehicles without even identifying a particular brand. This situation is a direct result of the worst marketing imaginable. It's no wonder market share continues to drop. GM executives know virtually nothing about selling cars. In spite of a few previous comments here. let me assure you I do.

By the way, no whining from this quarter about working. I have only echoed the feelings expressed by others in the business. It's a shame the way GM announces and carries out promos though. Do you suppose any of the nitwits from the Ren Cen will be working over the Labor Day weekend? Real leadership would have them out on the streets helping dealers, joing the ranks. You'll never see that sort of action from those boys. They wouldn't understand leadership if you handed them a dictionary.

Buickman

Edited August 30, 2006 by buickman

[SableStyle]

Suppose you just took delivery last Friday of a new Trailblazer and were aware of the total value promise. Today the vehicle is $1500 cheaper. You'd be riding around in your brand new GM vehicle and be greatly upset. Who gets the call? The dealer of course who is powerless to do anything. There goes CSI and any level of trust.

People don't want GM vehicles without even identifying a particular brand.

186810[/snapback]

Suppose I bought a new TV for college at Best Buy on a Saturday, and the next day I see the weekly Best Buy ad for tons of TVs on sale. Do I distrust Best Buy now? No. (well, they generally are overpriced, but that's beside the point here.)

When newer stuff comes out, the older stuff gets discounted. This is economics. Every other market fluctuates a lot in order to bring different people in and cater to different crowds. Why are we crucifying GM for trying to do the same?

And if people don't want GM vehicles...I dunno. What does GM have, like 25% of the market share? Those people aren't being dragged by the GM KGB kicking and screaming, forced at gunpoint to buy their new vehicle.

[Guest buickman]

Suppose I bought a new TV for college at Best Buy on a Saturday, and the next day I see the weekly Best Buy ad for tons of TVs on sale. Do I distrust Best Buy now? No. (well, they generally are overpriced, but that's beside the point here.)

When newer stuff comes out, the older stuff gets discounted. This is economics. Every other market fluctuates a lot in order to bring different people in and cater to different crowds. Why are we crucifying GM for trying to do the same?

And if people don't want GM vehicles...I dunno. What does GM have, like 25% of the market share? Those people aren't being dragged by the GM KGB kicking and screaming, forced at gunpoint to buy their new vehicle.

186822[/snapback]

Your point is well taken but this is different. GM repeatedly pulls these marketing stunts, educating the public to wait for image ruining firesales. Most of the month we struggle to find business, waiting for the next big gimmick. As retailers, it's next to impossible to know how much inventory to carry, how much staff to have employed, when to plan advertising and for what purpose. This is no way to operate a business with continuing interference from the manufacturer. Again I'll emphasize it's the marketing which is destroying General Motors. Of course product is the key but ours aren't that bad. It's the lack of leadership and intelligence from VSSM which has killed the golden goose.

Buickman

[RBB]

Toyota moves forward as GM leaps backwards. Time to face the facts, General

Motors is without question one of the world's worst run companies and the

blame needs to be placed squarely upon the ineffective and irresponsible

leadership.

186543[/snapback]

By the way, no whining from this quarter about working. I have only echoed the feelings expressed by others in the business. It's a shame the way GM announces and carries out promos though. Do you suppose any of the nitwits from the Ren Cen will be working over the Labor Day weekend? Real leadership  would have them out on the streets helping dealers, joing the ranks.

186810[/snapback]

I'm not sure I understand - Toyota is not offering rebates or has been telling dealers that they should inform customers that if they wait x days to buy a car, they'll save $1000? And the employees at the Toyota Motor Sales, U.S.A., Inc. and Toyota Motor North America, Inc. will not only be on duty but will be leaving their office locations to help sell cars this weekend?

http://www.dfw.com/mld/dfw/classifieds/aut...ve/15351939.htm

Rebates cranked up for big SUVs, pickups

General Motors has begun offering $2,000 rebates on its redesigned, 2007 full-size sport utility vehicles, the first time such incentives have been available since these trucks went on sale earlier this year.

The rebates are in effect for the Chevrolet Tahoe, Suburban and Avalanche, as well as the GMC Yukon, Yukon XL and Yukon Denali. They are set to run through the coming Labor Day weekend, ending Sept. 5.

GM says sales of the big SUVs have fallen sharply since May, with sales down more than 40 percent over the past two months compared with the same months last year. These vehicles had been selling well until June.

The June and July declines are attributed more to the lack of large discounts than to rising fuel prices. Last year during those months, GM was offering its popular “employee discount” program on most of its vehicles, including the large SUVs, which temporarily boosted sales.

This year, the automaker has resisted offering large rebates or discounts, and did not follow Chrysler Group's employee-pricing promotion that began in June. Instead, GM has been focusing on its strategy of value-pricing, which brought significantly lower sticker prices for many of its vehicles in an attempt to try to wean consumers from large rebates. There are signs that the value-pricing strategy might be collapsing, however.

Even Toyota has significantly boosted rebates to up to $4,000 on some of its slower-selling 2006 truck products, including the full-size Tundra pickup and Sequoia SUV. The rebates run as high as $2,500 for the midsize, truck-based 4Runner sport utility, the automaker said.

-RBB

[GMTruckGuy74]

Your point is well taken but this is different. GM repeatedly pulls these marketing stunts, educating the public to wait for image ruining firesales. Most of the month we struggle to find business, waiting for the next big gimmick. As retailers, it's next to impossible to know how much inventory to carry, how much staff to have employed, when to plan advertising and for what purpose.

Buickman, I have to tell you that your statement is a bunch of B.S.!!! I teach Marketing to high school students. Even my students know that there's always a BIG sale in the retail market around holidays. This is a given. YOU should know that much, given your many years in the business. Tha means you should have known new incentives would be arriving for this weekend (remember the 4th of July "72 hours" sale???). Go cry boo-hoo somewhere else.

SableStyle, you hit the nail right on the head. If you have any common sense, then you know to wait for the holidays for big ticket items (cars, electronics, etc). My parents just took delivery of a new 2006 Pontiac G6 LAST NIGHT. So I'm sure they didn't get the new Labor Day incentives. However, they have been looking for a particular G6 model for two weeks and finally found one Monday. It was actually sold when they got there, but the deal fell through and they were able to buy it. If they waited for the weekend, then they would never have found the ONE they were looking for. You as a consumer have to take your chances. Buickman just doesn't get it.

[CARBIZ]

I understand that marketing 101 tells you not to bastardize your product by giving it away, but in this competitive market it is unavoidable.

There is a far cry difference between dropping prices to maintain market share versus trying to clear out last year's models. Every company on Earth must drop prices on older styles when the new ones come out.

I wish this weren't true but it is.

GM/Ford, etc. have always had clearance sales. The only thing that has changed is that with so much information out there customers can comparison shop more easily and, thus, realize they could've/should've bought last week.

Eaton's was once Canada's biggest department store chain. Over 100 years in business. They tried "lowest prices every day" a few years back and did away with weekly/monthly discounts.

Guess what? They went bankrupt and Sears bought them out.

I wish consumers were more sophisticated, but most aren't. It embarasses me that free hot dogs and clowns still bring customers in (not that we ever do that, but I know dealerships that do!) There are stores out there that are trying to sell at a "one price" and are failing.

People want to feel like they have gotten a "deal," something special that no one else gets. You know, the proverbial free oil changes, etc. I hate the games but they work.

[regfootball]

Suppose you just took delivery last Friday of a new Trailblazer and were aware of the total value promise. Today the vehicle is $1500 cheaper. You'd be riding around in your brand new GM vehicle and be greatly upset. Who gets the call? The dealer of course who is powerless to do anything. There goes CSI and any level of trust.

yeah, but you had that vehicle earlier in the model year, if even by a couple of days, and that's worth something. the model year is like a ticking clock, the prices get cheaper in the customers value schedule each day of the model year. Especially at year end when all manf's are unloading clearance product. the only time perceived values go up in a model year is high demand time....i.e. when the weather starts to get warm and more people go shopping, or say, for SUV's in the winter

Furthermore, the distressful merchandising has created the image of products only desirable during a firesale. This negates the best efforts of our designers, engineers, and production people.

Yeah but if the car is rotting on lots at the MSRP than the designers, engineers and marketers and accountants all f'ed up. to cover those mistakes and not have rotting inventory you have to drop the price. Its like at the meat counter in the grocery store. When the steaks start to turn brown under the shrink wrap and the 'sell by' time is like 6 hours away, they throw a sticker on the thing that says "2 dollars off today!". they have to do that to make ANYTHING on the meat, other wise they throw it away and lose money.

Image is everything in retail and GM's truly is horrible.

Now that I will agree with you on. Blame the beancounters and upper management who are completely out of touch with their customers and the culture of their home country.

People don't want GM vehicles without even identifying a particular brand. This situation is a direct result of the worst marketing imaginable. It's no wonder market share continues to drop. GM executives know virtually nothing about selling cars. In spite of a few previous comments here. let me assure you I do.

By the way, no whining from this quarter about working. I have only echoed the feelings expressed by others in the business.

Maybe those folks should get out. Do strippers ever complain about having to work at 2 a.m. in the morning to get the big lap dance money?

It's a shame the way GM announces and carries out promos though. Do you suppose any of the nitwits from the Ren Cen will be working over the Labor Day weekend?  Real leadership  would have them out on the streets helping dealers, joing the ranks. You'll never see that sort of action from those boys. They wouldn't understand leadership if you handed them a dictionary.

Well no, but they at some time figured out what to do to get and keep the fluff desk job. So in that aspect, they very few things they did to go on that path pays off huge. Memo to your teenagers, you have to plan those paths and decisions and do what the man says to get big bucks and weekends off.

Edited August 30, 2006 by regfootball

[regfootball]

Buickman, I have to tell you that your statement is a bunch of B.S.!!!  I teach Marketing to high school students.  Even my students know that there's always a BIG sale in the retail market around holidays.  This is a given.  YOU should know that much, given your many years in the business.  Tha means you should have known new incentives would be arriving for this weekend (remember the 4th of July "72 hours" sale???).  Go cry boo-hoo somewhere else. 

SableStyle, you hit the nail right on the head.  If you have any common sense, then you know to wait for the holidays for big ticket items (cars, electronics, etc).  My parents just took delivery of a new 2006 Pontiac G6 LAST NIGHT.  So I'm sure they didn't get the new Labor Day incentives.  However, they have been looking for a particular G6 model for two weeks and finally found one Monday.  It was actually sold when they got there, but the deal fell through and they were able to buy it.  If they waited for the weekend, then they would never have found the ONE they were looking for.  You as a consumer have to take your chances.  Buickman just doesn't get it.

186990[/snapback]

holiday weekends and retail are like keg parties in college.

You wait all week for the 'holiday' to go and hit on good looking women (or men ).

If a woman wants attention, then she will need to be competing for attention (sales) with all the other women at the kegger.

Sometimes chicks figure out that even if they don't have the biggest breasts (i.e. best cars), in order for them to hook up or get attention (sell) they need to market themselves (i.e dress slutty) in order to make a sale. Some chicks, the thin pretty ones with perfect facial features and massive racks and hourglass hips (say, BMW) can sell no matter what but also are going to be marketed to the hilt (dressed slutty) to maintain their superiority over the others. Every guy will want that hot chick; she has no problem getting a ride home after the kegger. So if you are not as attractive (GM), even though you are sweet and stuff, you are going to really market the snot out of yourself to even have a chance of a guy hitting on you (i.e dress even sluttier to accentuate what little you have). At 3 a.m. in the morning all the BMW's have found buyers and luckily through look at me shock marketing some of the not so hot chicks have left the party but hey, not nearly as many as BMW.

Edited August 30, 2006 by regfootball

[ellives]

holiday weekends and retail are like keg parties in college.

You wait all week for the 'holiday' to go and hit on good looking women (or men   ).

If a woman wants attention, then she will need to be competing for attention (sales) with all the other women at the kegger.

Sometimes chicks figure out that even if they don't have the biggest breasts (i.e. best cars), in order for them to hook up or get attention (sell) they need to market themselves (i.e dress slutty) in order to make a sale.  Some chicks, the thin pretty ones with perfect facial features and massive racks and hourglass hips (say, BMW) can sell no matter what but also are going to be marketed to the hilt (dressed slutty) to maintain their superiority over the others.  Every guy will want that hot chick; she has no problem getting a ride home after the kegger.  So if you are not as attractive (GM), even though you are sweet and stuff, you are going to really market the snot out of yourself to even have a chance of a guy hitting on you (i.e dress even sluttier to accentuate what little you have).  At 3 a.m. in the morning all the BMW's have found buyers and luckily through look at me shock marketing some of the not so hot chicks have left the party but hey, not nearly as many as BMW.

187057[/snapback]

Yikes. Hopefully there aren't any women reading this thread.

[CARBIZ]

.... or, you could put lipstick and a dress on a donkey (Toyota), turn down the lights and put ecstacy in the punch bowl (media koolaid)....then everyone would get a ride home by 3 a.m.!

[daves87rs]

holiday weekends and retail are like keg parties in college.

You wait all week for the 'holiday' to go and hit on good looking women (or men   ).

If a woman wants attention, then she will need to be competing for attention (sales) with all the other women at the kegger.

Sometimes chicks figure out that even if they don't have the biggest breasts (i.e. best cars), in order for them to hook up or get attention (sell) they need to market themselves (i.e dress slutty) in order to make a sale.  Some chicks, the thin pretty ones with perfect facial features and massive racks and hourglass hips (say, BMW) can sell no matter what but also are going to be marketed to the hilt (dressed slutty) to maintain their superiority over the others.  Every guy will want that hot chick; she has no problem getting a ride home after the kegger.  So if you are not as attractive (GM), even though you are sweet and stuff, you are going to really market the snot out of yourself to even have a chance of a guy hitting on you (i.e dress even sluttier to accentuate what little you have).  At 3 a.m. in the morning all the BMW's have found buyers and luckily through look at me shock marketing some of the not so hot chicks have left the party but hey, not nearly as many as BMW.

187057[/snapback]

Reg, that has the best point I've heard, like ever!

[haypops]

  Eaton's was once Canada's biggest department store chain.  Over 100 years in business.  They tried "lowest prices every day" a few years back and did away with weekly/monthly discounts.

  Guess what?  They went bankrupt and Sears bought them out.

187026[/snapback]

In case you didn't hear, K-mart bought out Sears. Blue light specials anyone?

[enzl]

.... or, you could put lipstick and a dress on a donkey (Toyota), turn down the lights and put ecstacy in the punch bowl (media koolaid)....then everyone would get a ride home by 3 a.m.!

187094[/snapback]

I don't know who is on what, nor do I care what they wore, but I can tell you for certain that it's been GM (&Ford)'s turn in the barrel lately!

That media...giving out roofies and cheap beer! How dare them lure innocent consumers into such hellish torture chambers.

Edited August 31, 2006 by enzl

[regfootball]

my favorite thing is when the dodge dealer by my house drags out the 20 foot tall lizard. JUST A RIOT! they are bound to do that this weekend I bet. A big green inflatable lizard brings them in!

[CaddyXLR-V]

So if GM raised prices, and lost marketshare, BM would complain, and say management needs to go.

If GM lowers prices, BM would complain, and say management needs to go.

If GM gives rebates to try to move product, BM would complain, and say management needs to go.

Nothing is ever good enough I guess

[tama z71]

As forcast last week by GeneralWatch and reported in today's Automotive

News, GM once again proves why management has no credibility. Wait until the

folks who recently took delivery find out that they missed the boat as GM

gives another example of why LaNeve and Company are not to be believed and

should be immediately shown the door. How about the hard working retail

personnel who had planned family vacations with the kids before school? In

other words, thanks folks for working so hard, now choose between making

dough and spending quality time with loved ones.

Remember how GM lowered prices a few months back? The charade of "value pricing" was truly nothing more than a masqueraded manuever to cut dealer margin. This veiled effort was exposed by the subsequent raising of prices on '07's. Bottom line, the dealers once again get screwed. Managment is not to be trusted.

Toyota moves forward as GM leaps backwards. Time to face the facts, General

Motors is without question one of the world's worst run companies and the

blame needs to be placed squarely upon the ineffective and irresponsible

leadership.

GM adds $500 to $1,500 cash to incentives

Dale Jewett  |  |  Automotive News / August 29, 2006 - 12:18 pm

DETROIT -- General Motors has added cash rebates that range from $500 to

$1,500 to many of its 2006 and 2007 models. In most cases, the rebates are

in addition to low-interest financing programs GM has been offering.

The one-week program, timed to coincide with the Labor Day holiday, started

today and is scheduled to end Tuesday, Sept. 5.

In general, the bonus rebates are $500 for cars, $1,000 for pickups and

crossovers and $1,500 for SUVs.

186543[/snapback]

Sounds like the rant of an upset dealer, because we all knew the incentives would still be there, just not in the great quantities they used to.