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Incentive selling works for alternative brands....long. Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Fri, 16 Aug 2002 22:15:03
In Reply to: incentive based selling and the future of Saab, MJP, Thu, 15 Aug 2002 22:55:52 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Hey I'm a former Saturn sales consultant so nobody appreciates one price selling more than I do, but one of the major elements that makes Saturn one price selling work is the 30 day money back guarantee so that if a dealer did discount you could give your car back and buy from them. No chance for Saab to do the same.
Individual Saab dealers can pursue a one price strategy by disclosing the incentives up front. I realize that Saab makes it tought with a different price struture for every model and for lease, purchase or low rate financing, but Saab buyers are pretty intelligent and can follow along.
I'm trying to convince our dealer principle to adopt a one price strategy. They already embrace this philosphy with the Cadillac, Buick and GMC lines i.e. "All 2002 Yukons $4,700 off", but with the Saab they get greedy and they try and retain some of the massive incentives into dealer profit. I get accused (quite deservedly) of "giving it away all up front", but I can fade the heat as long as I produce and I do.
Meanwhile the incentive style of selling does appeal to the Saab buyers as they are very value conscious (read between the lines) and the incentive of the month can be very compelling.
If Saab were the segment leader, than we could price and sell our cars for what we really want for them. Until then all the incentive games gives us a value story to tell that, in my opinion works. In some cases such large incentives blur the boundaries of appropriate customer behavior, but i can deal with that too.
posted by 207.158.49...
, Fri, 16 Aug 2002 22:15:03 <-- Viewing This Message
, Fri, 16 Aug 2002 10:02:35
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