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How to shoot yourself in the foot with "Value Pricing"

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Old Jul 20, 2006 | 08:54 AM
  #1  
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How to shoot yourself in the foot with "Value Pricing"

Wanna get off the incentives? Fine.

Wanna lower the stickers to more realistic pricing? Fine.

But stuff like this just blows it all out of the water.

Now, I undertsand that there will be price increases from one model year to the next on most models, and in some (many) cases, those prices raise several time during a model year itself ( )

But, this is a bit overboard:

2006 Impala SS base price: $26,990.
2007 Impala SS base price: $28,465.

That's a $1475 increase, and as far as I can tell, no content has been added or changed. $1475? C'mon.


Also, several of the options have raised in pricing as well. I noticed the polished wheel option has gone up, not sure about others, but I wouldn't be surprised.
Old Jul 20, 2006 | 09:00 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by Darth Xed
Wanna get off the incentives? Fine.

Wanna lower the stickers to more realistic pricing? Fine.

But stuff like this just blows it all out of the water.

Now, I undertsand that there will be price increases from one model year to the next on most models, and in some (many) cases, those prices raise several time during a model year itself ( )

But, this is a bit overboard:

2006 Impala SS base price: $26,990.
2007 Impala SS base price: $28,465.

That's a $1475 increase, and as far as I can tell, no content has been added or changed. $1475? C'mon.


Also, several of the options have raised in pricing as well. I noticed the polished wheel option has gone up, not sure about others, but I wouldn't be surprised.
That's about a 5.4% increase. The norm is usually around 3%.

BUT, Impalas are selling, and GM may be making hay while the sun shines.

Furthermore, I wonder what the improvements to the vehicle are.
Old Jul 20, 2006 | 09:12 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
That's about a 5.4% increase. The norm is usually around 3%.

BUT, Impalas are selling, and GM may be making hay while the sun shines.

Furthermore, I wonder what the improvements to the vehicle are.
Supposedly, these are the deletions, changes, and additions for MY2007.... nothing but paint color changes for SS (and others), and AFM capability for other models:




Chevrolet Car Impala

Deletions


(22U) Superior Blue Metallic exterior color
(63U) Sport Red Metallic exterior color
(68U) Glacier Blue Metallic exterior color

New Features


(27U) Precision Red exterior color
(37U) Imperial Blue Metallic exterior color
(49U) Bordeaux Red exterior color
(80U) Red Jewel Tintcoat exterior color
(LZ4) 3.5L 3500 V6 SFI gasoline engine (non-E85 compatible)

Changes


(LZ8) 3.9L 3900 V6 engine with Active Fuel Management replaces (LZ9) 3.9L 3900 V6 engine

Last edited by Darth Xed; Jul 20, 2006 at 09:17 AM.
Old Jul 20, 2006 | 09:20 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by Darth Xed
Supposedly, these are the deletions, changes, and additions for MY2007.... nothing but paint color changes for SS (and others), and AFM capability for other models:




Chevrolet Car Impala

Deletions


(22U) Superior Blue Metallic exterior color
(63U) Sport Red Metallic exterior color
(68U) Glacier Blue Metallic exterior color

New Features


(27U) Precision Red exterior color
(37U) Imperial Blue Metallic exterior color
(49U) Bordeaux Red exterior color
(80U) Red Jewel Tintcoat exterior color
(LZ4) 3.5L 3500 V6 SFI gasoline engine (non-E85 compatible)

Changes


(LZ8) 3.9L 3900 V6 engine with Active Fuel Management replaces (LZ9) 3.9L 3900 V6 engine
I think those are just option code changes. The list doesn't detail other changes.

Fbodfather could probably give us a better idea of what the other changes are...

But I can tell you that a critical change was executed on the DOOR HINGES, which have been vastly improved, mostly because my company makes 'em now!!!!
Old Jul 20, 2006 | 09:24 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
I think those are just option code changes. The list doesn't detail other changes.

Fbodfather could probably give us a better idea of what the other changes are...

But I can tell you that a critical change was executed on the DOOR HINGES, which have been vastly improved, mostly because my company makes 'em now!!!!
You bring up a fine point... but, for that substantial of an increase, I'd expect some rather noticable additions to the vehicle.

I can see them pumping up the MSRP's, and then having to go back to the bigger incentives they are trying to get away from.
Old Jul 20, 2006 | 09:28 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by Darth Xed
But, this is a bit overboard:

2006 Impala SS base price: $26,990.
2007 Impala SS base price: $28,465.

That's a $1475 increase, and as far as I can tell, no content has been added or changed. $1475? C'mon.


Also, several of the options have raised in pricing as well. I noticed the polished wheel option has gone up, not sure about others, but I wouldn't be surprised.
For $1475 they better have switched out the LS4 for a LS2, or at least upped the warranty to 7/75.

Oh, well, I guess the '07's will have a $1500 rebate in about a month
Old Jul 20, 2006 | 09:46 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
But I can tell you that a critical change was executed on the DOOR HINGES, which have been vastly improved, mostly because my company makes 'em now!!!!
Those are some expensive door hinges.
Old Jul 20, 2006 | 10:01 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by jrp4uc
Those are some expensive door hinges.
Hey, they're REALLY GOOD.
Old Jul 20, 2006 | 10:04 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
Hey, they're REALLY GOOD.

... and apparently made out of platinum!
Old Jul 20, 2006 | 10:14 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by Darth Xed
... and apparently made out of platinum!
We can't really take any credit for it since it's a GM design, but it IS the best hinge in the industry.

Integrated cam and follower, HUGE amount of close assist (it'll damn-near take your leg off), proven technology (the concept was originally designed by Fisher Body WAAAY back in the 1960's).
Old Jul 20, 2006 | 10:16 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Just checked Chevy's site.
The 28,465 includes leather seating surfaces (heated) which were optional in 2006. If you put them on a 2006, it comes to 28,115. You can option cloth in 2007 which will deduct the price to $27,340.

So it's really a price increase of $350 (price increase of approx 1.3%) which isn't really bad at all.

Chris
Old Jul 20, 2006 | 10:16 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
We can't really take any credit for it since it's a GM design, but it IS the best hinge in the industry.

Integrated cam and follower, HUGE amount of close assist (it'll damn-near take your leg off), proven technology (the concept was originally designed by Fisher Body WAAAY back in the 1960's).

What prompted the need for the change?
Old Jul 20, 2006 | 10:29 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by Darth Xed
What prompted the need for the change?
2 things, as I understand it:

1) Poor supplier performance with "Brand X".

2) We're more efficient, and hence we have a lower price.
Old Jul 20, 2006 | 10:37 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
2 things, as I understand it:

1) Poor supplier performance with "Brand X".

2) We're more efficient, and hence we have a lower price.
Both make sense.

I'm a bit suprised, though, that they just didnt go with you guys from the get-go with the 06 model since it was a new design unless the hinges are a carryover part from the old Impala... I suppose there is a reason, regardless, but just seems a little odd from the outsider standpoint.
Old Jul 20, 2006 | 10:54 AM
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Re: How to shoot yourself in the foot with "Value Pricing"

Originally Posted by PacerX
2 things, as I understand it:

1) Poor supplier performance with "Brand X".

2) We're more efficient, and hence we have a lower price.
Was "Brand X" Delphi and GM? Could be GM wants to switch critical components over to a supplier that isn't trying to get it to pay the supplier's employees?



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