So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!!!!
08-26-2005, 08:02 AM
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So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!!!!
Originally Posted by The Car Connection
GM Discounts Boosting Image, Too
GM is getting sales mileage out of employee discounts, but the program is also helping the company's image, according to an index compiled by a media research firm. The Delahaye Index, a measure of media repercussions on corporate reputations, had ranked GM as low as number 13 as recently as the fourth quarter of 2004 - but in the wake of employee discounts, the company has risen to fourth in estimation, above companies like Coca-Cola and Bank of America, and right behind Microsoft, Wal-Mart, and Time Warmer. GM competitor Ford ranked number 21 in the survey. The survey bases its rankings on the amount of media coverage received by companies in outlets like the New York Times and television news.
GM is getting sales mileage out of employee discounts, but the program is also helping the company's image, according to an index compiled by a media research firm. The Delahaye Index, a measure of media repercussions on corporate reputations, had ranked GM as low as number 13 as recently as the fourth quarter of 2004 - but in the wake of employee discounts, the company has risen to fourth in estimation, above companies like Coca-Cola and Bank of America, and right behind Microsoft, Wal-Mart, and Time Warmer. GM competitor Ford ranked number 21 in the survey. The survey bases its rankings on the amount of media coverage received by companies in outlets like the New York Times and television news.
08-26-2005, 08:08 AM
#2
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!!!!
It's such a complicated issue. It's a long climb to change public perception. The only way is to deliver the goods and let the public figure it out on their own.
Wall Street is going to bark about the decreased margins, so short term, it wont help GM stock. But there is a silver lining.
Besides moving a ton of cars out of dealerships, the EP program has created a whole bunch of "conquest sales". Sales to folks whose previous car was not a GM. This is the real silver lining, and the only way to change public perception.
Wall Street is going to bark about the decreased margins, so short term, it wont help GM stock. But there is a silver lining.
Besides moving a ton of cars out of dealerships, the EP program has created a whole bunch of "conquest sales". Sales to folks whose previous car was not a GM. This is the real silver lining, and the only way to change public perception.
08-26-2005, 08:09 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!!!!
Originally Posted by chrisL
It's such a complicated issue. It's a long climb to change public perception. The only way is to deliver the goods and let the public figure it out on their own.
Wall Street is going to bark about the decreased margins, so short term, it wont help GM stock. But there is a silver lining.
Besides moving a ton of cars out of dealerships, the EP program has created a whole bunch of "conquest sales". Sales to folks whose previous car was not a GM. This is the real silver lining, and the only way to change public perception.
Wall Street is going to bark about the decreased margins, so short term, it wont help GM stock. But there is a silver lining.
Besides moving a ton of cars out of dealerships, the EP program has created a whole bunch of "conquest sales". Sales to folks whose previous car was not a GM. This is the real silver lining, and the only way to change public perception.
So nice to hear the voice of logical reason!!
08-26-2005, 09:57 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!
If their cars truely are poised to impress not only for the present but long into the future then this program will do great things for them by brining people loyal to other brands into the GM family and then hopefully for GM, impressing them enough to stay with GM.
If it's just boosting sales but the cars they're selling aren't poised to impress then this is just going to hurt their image more.
But whatever the case this is more of a long-term sales improver... not anything that's going to make a dramatic difference in the next year or two.
If it's just boosting sales but the cars they're selling aren't poised to impress then this is just going to hurt their image more.
But whatever the case this is more of a long-term sales improver... not anything that's going to make a dramatic difference in the next year or two.
08-26-2005, 10:00 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!
Originally Posted by Threxx
If their cars truely are poised to impress not only for the present but long into the future then this program will do great things for them by brining people loyal to other brands into the GM family and then hopefully for GM, impressing them enough to stay with GM.
If it's just boosting sales but the cars they're selling aren't poised to impress then this is just going to hurt their image more.
But whatever the case this is more of a long-term sales improver... not anything that's going to make a dramatic difference in the next year or two.
If it's just boosting sales but the cars they're selling aren't poised to impress then this is just going to hurt their image more.
But whatever the case this is more of a long-term sales improver... not anything that's going to make a dramatic difference in the next year or two.
I agree... except that I'd say they are getting the immediate short term results.... and, if the products stand on their own... they'll see more dividends paid in 3-4 years...
The 1-2 year period could be a bit of a lull, but I think it is worth it overall.
Who knows... if enough of the conquest buyers spred the word, maybe some good word-of-mouth advertisig can occur too.
08-26-2005, 10:21 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!
Originally Posted by Darth Xed
I agree... except that I'd say they are getting the immediate short term results.... and, if the products stand on their own... they'll see more dividends paid in 3-4 years...
The 1-2 year period could be a bit of a lull, but I think it is worth it overall.
Who knows... if enough of the conquest buyers spred the word, maybe some good word-of-mouth advertisig can occur too.
The 1-2 year period could be a bit of a lull, but I think it is worth it overall.
Who knows... if enough of the conquest buyers spred the word, maybe some good word-of-mouth advertisig can occur too.
When I open up my restaurant later this year I'll be having a "everybody eats free" opening weekend and then after that will be sending out all SORTS of buy one get one free coupons and other promotions. Could I reasonably operate that way indefinitely? No. Would I be really excited if I had 300 customers a day buying 'buy one get one free' meals? Even though I'd still be making a small profit, no I wouldn't. What I *would* be excited about though is that so many people were becoming familiar with my place, what it offers, where it's located, and these people will probably come again, tell their friends, etc.
08-26-2005, 10:24 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!
Originally Posted by Threxx
Yeah but these immediate short term results aren't really helping that much financially. It's, in a way, kind of like a loss leader.
When I open up my restaurant later this year I'll be having a "everybody eats free" opening weekend and then after that will be sending out all SORTS of buy one get one free coupons and other promotions. Could I reasonably operate that way indefinitely? No. Would I be really excited if I had 300 customers a day buying 'buy one get one free' meals? Even though I'd still be making a small profit, no I wouldn't. What I *would* be excited about though is that so many people were becoming familiar with my place, what it offers, where it's located, and these people will probably come again, tell their friends, etc.
When I open up my restaurant later this year I'll be having a "everybody eats free" opening weekend and then after that will be sending out all SORTS of buy one get one free coupons and other promotions. Could I reasonably operate that way indefinitely? No. Would I be really excited if I had 300 customers a day buying 'buy one get one free' meals? Even though I'd still be making a small profit, no I wouldn't. What I *would* be excited about though is that so many people were becoming familiar with my place, what it offers, where it's located, and these people will probably come again, tell their friends, etc.
Also, I still say the alternative to the promos (shutting down assembly lines to cut down on building overstock of vehciles, etc) would be as costly, if not more costly, than running the incentive programs.
But, this thread was intended to show that the Employee Discount program was not hurting GM's image , and quite the opposite, it was actually helping it... and I think that all falls in line with your restaurant example... get people familiar with you and what you offer.
08-26-2005, 10:40 AM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!!!!
whatever increases the likely hood of the Camaro being back on the streets in 07' im all up for.
Public perception can help do that, so to GM.
Public perception can help do that, so
to GM.
08-26-2005, 12:29 PM
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Re: So you say GM's Employee Discount Pricing is hurting their image? WRONG!!!!!!!!
Originally Posted by 91Z28350
Hey Threxx, good luck in your restaurant endeavor! I wish you success, and hopefully a Camaro in your future 
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