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Old Feb 19, 2006 | 05:49 PM
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Default List Pricing Helped Scion Succeed

Considering how much people hate to haggle, I think there is more than a grain of truth to this...

Paul
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http://www.tmcnet.com/usubmit/2006/02/19/1386244.htm

SCION OF THE TIMES: Part of Scion's success with young buyers has been non-negotiable prices. Toyota Senior Vice President Don Esmond expects more dealers to adopt a similar practice.

"It wouldn't surprise me to see some of the same process integrated on the Toyota side," Esmond said, adding that a Phoenix area dealer recently set fixed prices for his Toyota franchise.

That doesn't mean Toyota plans to institute a one-price policy to keep those buyers in the family. That will be up to the dealers, but Esmond sees the practice evolving.

"If we can learn about that young buyer through Scion, our dealers are smart enough to change their process to handle them the right way as they get older," he said.
Old Feb 19, 2006 | 09:22 PM
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I hope this does happen, with the no haggle price thing, so that I can upgrade my xB to that NEW BADA$$ looking Lexus IS... :D
Old Feb 19, 2006 | 09:37 PM
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It all depends on the market. Right now, it's a buyer's market, and I felt stupid not haggling over price when dozens of other cars could be had at a big discount. It was really hard to not go for another car, but I had my mind set on a tC.

Now, if things change, and it's a seller's market, then yes, it's good.

The one positive thing for me was that having bought about a dozen cars over the years, and almost as many motorcycles, it did take much less time than ANY of the other purchases...which is a good thing.

Scott
Old Feb 20, 2006 | 12:49 PM
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^^^ I felt similar as well. When we got my girlfriends Civic (whatever trim level is just under the Si), we got them down about 2.5k off the sticker price. I think Scion has a big 'first time buyers' market, but when they become more comfortable and knowledgable as to what you can REALLY get cars for, you'll see us switch from a pure price to a haggle system just like most people.
Old Feb 20, 2006 | 05:41 PM
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Originally Posted by Serialk1llr
^^^ I felt similar as well. When we got my girlfriends Civic (whatever trim level is just under the Si), we got them down about 2.5k off the sticker price. I think Scion has a big 'first time buyers' market, but when they become more comfortable and knowledgable as to what you can REALLY get cars for, you'll see us switch from a pure price to a haggle system just like most people.
Most of my customers ARE "comfortable and knowledgable." To be sure, haggling is an old-school, time-honored tradition for doing business, but Scion is a direct reflection of what people starting to expect in their car-buying experience: online, point and click for price, product, everything. And BTW: $2.5k off sticker is not a bargain. That's just a way saying the product was $2.5k overpriced to begin with.
Old Feb 20, 2006 | 05:51 PM
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My xB was the 9th car that I've purchased from a dealer and the 6th one that was brand new. I like the no haggle, no BS way that they do things. The pricing structure, gas milage and room in the xB were my major reason for purchase. That and I just can't see why anyone would drive a gas guzzling v8 truck or SUV ( I got rid of mine)when gas is over $2 a gallon. And it's not that I can't "afford" it, I just can't bring myself to blow that much $$ on gas to drive back and forth to work...hehe /rant off ( I live in a small town, lot of rednecks)
Old Feb 20, 2006 | 06:15 PM
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2xB: Exactly. I have posted that I was looking at many other, more expensive cars. I was given a hard time - "why did you buy a tC if you have so much money" type replies.
It's simple, and you hit it on the head. I CAN afford to waste money on a more ritzy car, and spend more on insurance and gas, etc. But why?
I love my tC, and I even spent a lot more on a lot of options as I don't have the time/desire right now to do it all myself.
It was a great buying experience overall.

Scott
Old Feb 20, 2006 | 06:33 PM
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Originally Posted by Ergo_Scion
That's just a way saying the product was $2.5k overpriced to begin with.
I totally agree with you on that. I also agree a lot with those of us who bought a Scion and didn't have to dick around to get a great car at a great price. It just also stands to reason that you could do the same with a Scion? I mean, all the no haggle really does is ensure that the price is the price and just that. If I could have haggled on the Scion you bet yer sweet **** I'd have done the same, because I don't believe Scions are so close to cost there is not SOME room for negotiation.

reguardless, I think we're right in saying the market is moving into a a pure pricing model, whatever it is called by a dealership.

What I want to know, other than what the Pope has locked away in his basement at the Vatican(sp) is what a car dealer ACTUALLY pays for a car. I've a feeling that will never be known unless I buy a dealership

Cheers to Scion for setting a trend that works in more than just pricing.
Old Feb 20, 2006 | 06:42 PM
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^^^ I think Saturn started this...
Old Feb 20, 2006 | 06:51 PM
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I think you're right!
Old Feb 20, 2006 | 11:46 PM
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What bothers me about this whole article is that dealers latch on to the "pure-pricing" method of Scion with all their add-ons. They refuse to budge on the price of dock-installed add-ons when it wasn't a factory installed option to begin with. However, I so dearly wanted my RS1 xA, and it was #1530 of #1550 so I was at a disadvantage to begin with...
Old Feb 21, 2006 | 12:19 AM
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Just an afterthought, Toyota dealers in Canada work their toyota's off a pure pricing philosophy also. BUt now pure pricing doesn't mean all dealers have the same price, pure pricing means that everyone at that dealership pays the same amount of money for the same car and accessories. To many people mistake that concept thinking every dealer has the same price, not true.
In the end customer service and the way your dealer treats you will determine whether or not you come back. I for one love the pure pricing philosophy, and think that even in a competitive market it would succeed, however, greed drives alot of dealers and getting them to settle on a fixed profit will be a hard pill to swallow. It would take a bold strike from Toyota itself to get everyone to change at once in order for this to even succeed.
Old Feb 21, 2006 | 05:44 PM
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$0.02...
Pure pricing: ,
but at the same time if ur enphasizing "customization" and charge a grip'n'a'half for these "add-ons" isn't that a contradiction to "pure pricing" (that is how the "stealership" got its name right?)? In other words.. U get an awesome price for the car itself, and overpay WAAAY too much for add-ons..
Old Feb 21, 2006 | 06:00 PM
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^^^ Werd.
Old Feb 21, 2006 | 09:55 PM
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To some extent you're right, the dealer can charge $100,000 for a sunroof, as long as everyone pays that price, it's considered pure pricing. Remember it doesn't mean equal pricing between dealers, just equal pricing for all customers within that dealership.
Old Mar 2, 2006 | 03:07 PM
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Originally Posted by R2D2
$0.02...
Pure pricing: ,
but at the same time if ur enphasizing "customization" and charge a grip'n'a'half for these "add-ons" isn't that a contradiction to "pure pricing" (that is how the "stealership" got its name right?)? In other words.. U get an awesome price for the car itself, and overpay WAAAY too much for add-ons..
You don't have to buy the add ons. Personaly, I think most of them are junk. I never understood the point of stuff like neon lights or giant wheels that cost five grand.

Only add ons on my xA were stuff the port put on (spoiler, floor mats, center arm rest), all of which I like, and keyless entry which I added later.
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