I don't think Joshua was questioning Saab's right to follow a risky pricing strategy, only their wisdom in choosing it.

Risky? While Saab is obviously keeping the MSRP high to protect their image, this artificial pricing strategy has the unwanted effect of galvanizing public opinion of poor resale. I am concerned that when this public opinion is combined with the lower price that people are actually paying, the actual resale value will fall below the already low value expected. Furthermore, in today's market, it is becoming harder and harder to argue that future buyers will be unaware of the artificially high original price. Mainstream car magazines are already commenting about Saab sustaining sales through subsidised leasing, and I doubt that Edmunds or Kelly will ignore this either. Note that Saab is already lowering their expected residual on certain models. This can only serve to hinder future new car sales, as the expected resale of those cars will be even lower.

Good news for us, I guess. Maybe we'll get to buy our Viggens at lease end for a few thousand less than the agreed buyback.

-jd
'00 Viggen, registered Democrat
'89 900t, registration status unknown
(Just so you know)

• pricing strategies: SAAB Vs. BMW (Honda Odessey), joshua harrison, Fri, 12 Jan 2001 11:12:51
  • They could sell more cars is they lowered the MSRP, Larry, Fri, 12 Jan 2001 15:25:36
  • Re: pricing strategies: SAAB Vs. BMW (Honda Odessey), MJM , Fri, 12 Jan 2001 14:25:11
  • Re: pricing strategies: SAAB Vs. BMW (Honda Odessey), Rafe, Fri, 12 Jan 2001 12:04:30
    • What you're suggesting..., Andrew , Tue, 16 Jan 2001 00:15:27
    • Rafe, jd, Sat, 13 Jan 2001 14:03:53 <-- Viewing This Message
    • Can we stick to cars and cut the political swipes?, John N., Sat, 13 Jan 2001 11:55:54
      • personal reply to John N., Rafe, Sat, 13 Jan 2001 17:48:03
      • Re: Well said! (n/m), Dan Wyman, Sat, 13 Jan 2001 17:14:21
    • you want to get personal?, Joshua HArrison, Fri, 12 Jan 2001 17:30:34
      • Re: you want to get personal?, Rafe, Fri, 12 Jan 2001 20:09:11
        • Point of Order, SS, Sat, 13 Jan 2001 00:16:52
          • Re: Point of Order, Rafe, Sat, 13 Jan 2001 11:34:08
        • This isn't a political BB..., SS, Fri, 12 Jan 2001 21:29:44
          • Re: This isn't a political BB..., Rafe, Fri, 12 Jan 2001 21:56:22
        • Re: you want to get personal?, Erik, Fri, 12 Jan 2001 21:13:01
          • The world needs more wise counselors such as you. :> n/m, Rafe, Fri, 12 Jan 2001 21:57:29
    • Re: pricing strategies: SAAB Vs. BMW (Honda Odessey), EJ, Fri, 12 Jan 2001 16:56:55
      • No, you haven't seen me driving an Odyssey. Note spelling. ) n/m, Rafe, Fri, 12 Jan 2001 17:12:43

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