[Main 93 Bulletin Board | BBFAQ | Prev by Date | Next by Date | Post Followup ] Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos Re: Options packages on SC Like This Post: - Subscribe to Daily Digest for this Bulletin Board Posted by Caarma [Email] (#592) [Profile/Gallery] (more from Caarma) on Thu, 2 Mar 2006 14:17:14 In Reply to: Options packages on SC, Erica, Thu, 2 Mar 2006 09:26:09 Alert me when someone posts in this thread: Members do not see ads below this line. - Help Keep This Site Online - Signup

Having worked in this area for Saturn, I can tell you that option packages are a complicated matter. A lot of it depends on profitability, manufacturing supply, customer preferences, competition. Some companies do it better than others. If it is oversimplified as I think it is with Saab, (although this is because of low volumes), people can't get the exact minor features that they want or they have to buy option A in a package to get option B.

On the other hand, if a company allows you to pick and choose individual options, their manufacturing complexity goes up (profitability goes down), they have higher risk in not selling the feature because it's more difficult to forecast demand for 25 different options than it is for 5 option packages. Also, if the company wants a low advertiseable base price, they have to make more things optional to get people in the door for that car listed at $24,995. Options are marked up and that brings profit. BMW's are notorious for making so many things optional.

A whole other dimension is optioning vehicles so that dealers will order them with certain options. A prime example is OnStar. When sold separately, it doesn't penetrate well, partially because the dealers won't order vehicles with it. When sold as part of a package, it does better. Eventually, it became standard on many brands' vehicles. The same could happen with Saab and sunroofs.

You'll also notice that some companies provide special edition vehicles that have a group of options in a cheap package so that they can clear out volume.

Option packaging is just one important aspect of marketing that product planners have to figure out.

Atul

posted by 68.145.1...

• Options packages on SC, Erica, Thu, 2 Mar 2006 09:26:09
  • Re: Options packages on SC, Caarma , Thu, 2 Mar 2006 14:17:14 <-- Viewing This Message
    • Interesting, Erica, Thu, 2 Mar 2006 15:23:25
      • Constant change...., Mike Lynch , Thu, 2 Mar 2006 16:10:08
        • Re: Constant change...., Erica, Fri, 3 Mar 2006 06:40:39
          • No problem..., Mike Lynch , Fri, 3 Mar 2006 12:27:12
            • Tires, Erica, Fri, 3 Mar 2006 12:36:20
              • Re: Tires, speedingswede!, Tue, 14 Mar 2006 19:11:04
              • 17's won't handle better either..., Mike Lynch , Fri, 3 Mar 2006 12:51:37
                • Re: 17's won't handle better either..., Erica, Fri, 3 Mar 2006 15:10:13
              • DC, washaero, Fri, 3 Mar 2006 12:47:14
                • Dealerships, Erica, Fri, 3 Mar 2006 15:07:16
          • Re: Constant change...., Caarma , Fri, 3 Mar 2006 10:32:17
            • Brain Lock, Erica, Fri, 3 Mar 2006 12:31:38
        • That's great, Timmins, Thu, 2 Mar 2006 17:12:44

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