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GOUGING - Why is it tolerated?!?!

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Old Dec 10, 2004 | 11:08 AM
  #16  
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Re: GOUGING - Why is it tolerated?!?!

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Old Dec 10, 2004 | 01:47 PM
  #17  
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Re: GOUGING - Why is it tolerated?!?!

Only people too eager to throw money away or desperate to have the first "X" car on block are willing to take it up the rear from the dealers .

No one should tolerate it. Especially on something as mass-produced as a mustang.
Old Dec 10, 2004 | 02:37 PM
  #18  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by johnsocal
Its crazy out here in California isn't it?

I saw a Scion TC with some real nice 18inchers (they could have been 19's) and I have to say that was a clean looking ride so Im not surprised you bought one (they're also a good value for the money too).
Scion's Pure Pricing means no mark ups, even though it was a hard to find car when I bought it. The car comes stock with 17" rims, they're good enough for me.

Dealers also use markup like GM uses their inflated MSRP. They start the price high so people feel like they get a good deal when it's lowered/taken off.

The automaker could control it, it really peeved me when Red came in here telling us it was illegal to control what dealers charge, when Scion does it, and Saturn (a gm brand) does it. Scion has rules set that if a dealer charges, say, $1000 over MSRP for the car, they can, but have to charge that same amount for the entire model year. Most dealers who aren't retarded realize that they're not going to be able to move any cars at the end of the MY for that markup, so they don't at all. I've never seen a Scion dealer that marked the cars up. I'm sure Saturn is something similar, I am not familiar with the details of their plan however.
Old Dec 10, 2004 | 02:41 PM
  #19  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by MunchE
Scion's Pure Pricing means no mark ups, even though it was a hard to find car when I bought it. The car comes stock with 17" rims, they're good enough for me.
The tC is easily the best value in its class, with nothing else really coming close in overall value. I was even impressed with the standard equipment list.
Old Dec 10, 2004 | 02:58 PM
  #20  
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Re: GOUGING - Why is it tolerated?!?!

Pure Pricing is a marketing rip off. Sure the MSRP is lower than a lot of car, but you're still paying a fair amount over invoice. Pure Pricing is fine for those who don't mind paying a little extra cash to not have to negoiate.
Old Dec 10, 2004 | 06:14 PM
  #21  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by Z28x
Pure Pricing is a marketing rip off. Sure the MSRP is lower than a lot of car, but you're still paying a fair amount over invoice. Pure Pricing is fine for those who don't mind paying a little extra cash to not have to negoiate.
I don't know how it works with Saturn, but on the Scions the invoice price is $800 lower than the MSRP. I'd much rather know that my price is going to be $800 over invoice every time than $2-5k over invoice plus markup that I have to try to haggle off with some greedy *** sales person.
Old Dec 10, 2004 | 06:32 PM
  #22  
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Re: GOUGING - Why is it tolerated?!?!

I don't like price gouging anymore than anyone else, but everyone comlpains when a dealer marks up a vehicle over MSRP, and acts like they are ripping people off. These same people want to go into the dealer and get the vehicle for $4000 BELOW MSRP. Is that fair to the dealer? Why is it only a one way street?

If you don't like markups, then don't demand to be first in line for a new hot product. Let it be out for awhile, and the markup will be gone.
Old Dec 10, 2004 | 06:48 PM
  #23  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by snorkelface
I don't like price gouging anymore than anyone else, but everyone comlpains when a dealer marks up a vehicle over MSRP, and acts like they are ripping people off. These same people want to go into the dealer and get the vehicle for $4000 BELOW MSRP. Is that fair to the dealer? Why is it only a one way street?
I agree with you, it is a two way street. The problem on GM for example is the MSRP has inflated artificially high, to where it's an unreasonably high cost. Who's going to pay $29,995 for an Impala SS? With that sort of MSRP you have to knock $5000 off otherwise only fools would buy it. I think if GM had a more solid pricing it would help it's brand perception as well, which happens with the other brands. Every car is this price, no markup and no EVERYTHIGN MUST GO BLUE LIGHT SPECIAL REBATES! Customer knows what they're getting on the way in and that's it. I think customers appreciate that sort of thing. It'd work with Saturn if they managed to make remotely desirable cars. Set an MSRP that's a solid price and don't move it. Seems simple.

For me? Pure pricing let me get a car that was brand new, hot, and hard to find for the MSRP. Awesome

Last edited by MunchE; Dec 10, 2004 at 06:53 PM.
Old Dec 10, 2004 | 07:07 PM
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by ProudPony
It just curdles my milk to see the Mustang lose ANY potential sales because some dealer wanted to bag you for $5k.
After all, I'm wanting it to prove there IS a market for such a car - a huge market - to justify it's existence and endorse a Camaro/Firebird return.
And every sale makes a stronger case.
All of the whining about price gouging is rich coming from you. You've always defended Ford's policy of selling SVT product through a limited number of SVT franchises - a policy that's always encourages gouging on Mustang Cobras. At least EVERY Ford dealer gets to sell a Mustang GT and ultimately gouging will be discouraged (and final ended) by the fact that the non-SVT 'Stang isn't a limited production/distribution model.
Old Dec 10, 2004 | 07:15 PM
  #25  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by MunchE
I agree with you, it is a two way street. The problem on GM for example is the MSRP has inflated artificially high, to where it's an unreasonably high cost. Who's going to pay $29,995 for an Impala SS? With that sort of MSRP you have to knock $5000 off otherwise only fools would buy it. I think if GM had a more solid pricing it would help it's brand perception as well, which happens with the other brands. Every car is this price, no markup and no EVERYTHIGN MUST GO BLUE LIGHT SPECIAL REBATES! Customer knows what they're getting on the way in and that's it. I think customers appreciate that sort of thing. It'd work with Saturn if they managed to make remotely desirable cars. Set an MSRP that's a solid price and don't move it. Seems simple.

For me? Pure pricing let me get a car that was brand new, hot, and hard to find for the MSRP. Awesome
I agree with you on the MSRP thing. A good MSRP says great value, while pushing large rebates cheapens (sp?) the vehicles image. If it's all the same in the end, just lower the MSRP. I believe they use the rebates so that they can basically change the price at will based on the market. It think it's counter-productive, though.

When someone looks at a magazine articles, and they are comparing vehicles, the article isn't going to state the "great rebates" that are handed out on the vehicle to make it more affordable.
Old Dec 10, 2004 | 08:33 PM
  #26  
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Re: GOUGING - Why is it tolerated?!?!

One key to sales is that you have a reason why a potential customer should by today an not wait another week, month, or year. You could lower the
MSRP and get rid of rebates, but "limited-time" rebates create "urgency" and give a person a reason why they better buy tonight before the rebates are gone for good.

"Urgency " is needed to close a sale and often that urgency can be created by a limited amount of vehicles available, Super strong demand for a particular vehicle, limited-time rebates or sale, and/or the fact a persons car just broke down and they have no other choice and "Have" to replace it ASAP.
Old Dec 10, 2004 | 10:51 PM
  #27  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by johnsocal
One key to sales is that you have a reason why a potential customer should by today an not wait another week, month, or year. You could lower the
MSRP and get rid of rebates, but "limited-time" rebates create "urgency" and give a person a reason why they better buy tonight before the rebates are gone for good.

"Urgency " is needed to close a sale and often that urgency can be created by a limited amount of vehicles available, Super strong demand for a particular vehicle, limited-time rebates or sale, and/or the fact a persons car just broke down and they have no other choice and "Have" to replace it ASAP.
True, but rebates still diminish brand quality, IMO.

Also, when the rebates go down, you also have customers that decide that they no longer want to purchase, and will wait until the rebate goes back up. It can be a double-edged sword.
Old Dec 11, 2004 | 12:12 AM
  #28  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by snorkelface
True, but rebates still diminish brand quality, IMO.

Also, when the rebates go down, you also have customers that decide that they no longer want to purchase, and will wait until the rebate goes back up. It can be a double-edged sword.

True, but GM has such an enormous workforce that it would cost them alot more to have to idle or shutdown plant since they have contractual obligation to unions. Right now GM has to sell the products they have and consumers are "addicted" to rebates and low-% financing and until GM can get some hot new products that get consumers in long lines waiting to buy them GM is stuck with heavy rebates.

Last edited by johnsocal; Dec 11, 2004 at 01:13 AM.
Old Dec 11, 2004 | 02:45 AM
  #29  
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Re: GOUGING - Why is it tolerated?!?!

Yeah, I sorta had to deal with this BS when looking into buying my 04 GTO.
The dealer had 3 on the lot, and 1 on the way.
Then when I explained he could forget the Mark Up, because he couldn't justify the $3000 to me since there were atleast 20 GTOs in a 50 mile radius of my house. Doesn't seem like an exclusive product to me at that point. They took the mark up off all the GTOs by the 2nd time we came in to haggle. I don't think it was because of our statements, and most likely happened because they wanted to move the cars. But, it shouldn't have been there in the first place, IMHO.

GM shot themselves in the foot by letting dealers gouge, and by announcing the 05 too soon. Too many people are willing and able to hold out.
Old Dec 11, 2004 | 06:13 AM
  #30  
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Re: GOUGING - Why is it tolerated?!?!

Originally Posted by redzed
All of the whining about price gouging is rich coming from you. You've always defended Ford's policy of selling SVT product through a limited number of SVT franchises - a policy that's always encourages gouging on Mustang Cobras. At least EVERY Ford dealer gets to sell a Mustang GT and ultimately gouging will be discouraged (and final ended) by the fact that the non-SVT 'Stang isn't a limited production/distribution model.
Price gouging on SVTs???

Even out here in California, I've NEVER seen an SVT with a mark up any larger than a standard Mustang or F body (yep, some places marked up Camaros to the very end).

Part of a dealer winning an SVT franchise is to have outstanding, top drawer customer service.... and a history of not gouging customers.

I agree 100% that there SHOULD be a limited number of dealers selling SVTs. Any dealer with an SVT franchise is one of the list of best Ford dealers.



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