Huge Mark Up !
Originally posted by shirokuma
You know, I don't support massive dealer mark-ups in any way, but a bit of reality does intrude here. Supply looks to be outstripped by demand by quite a bit. And when there is less supply than demand, prices do go up.
The problem here is that if the dealer is honest and sells all of their Evo's at only a modest profit - a large percentage of lucky buyers that did get them at that cost will turn around and resell them for a quick 5-10k profit. That's happened with quite a few hot car launches in the past, and will continue to happen in the future.
So on one side, you feel ripped off because of the high markups. But when the dealer who has invested the millions of dollars to open this business sees their customers buying the car and then turning around and reselling it for a profit, they too are frustrated.
There is no easy answer to all of this. I would suggest that people wait a bit for the initial frenzy to die down, there's no sense in doing something you really don't want to do just so you can be the first on the block with an Evo. For a 10 grand markup, you can buy yourself a fun, used Miata to drive around for the next year, have money left over, and then resell it and get most of your money back to buy a Evo at list with.
Cheers,
Paul Hansen
You know, I don't support massive dealer mark-ups in any way, but a bit of reality does intrude here. Supply looks to be outstripped by demand by quite a bit. And when there is less supply than demand, prices do go up.
The problem here is that if the dealer is honest and sells all of their Evo's at only a modest profit - a large percentage of lucky buyers that did get them at that cost will turn around and resell them for a quick 5-10k profit. That's happened with quite a few hot car launches in the past, and will continue to happen in the future.
So on one side, you feel ripped off because of the high markups. But when the dealer who has invested the millions of dollars to open this business sees their customers buying the car and then turning around and reselling it for a profit, they too are frustrated.
There is no easy answer to all of this. I would suggest that people wait a bit for the initial frenzy to die down, there's no sense in doing something you really don't want to do just so you can be the first on the block with an Evo. For a 10 grand markup, you can buy yourself a fun, used Miata to drive around for the next year, have money left over, and then resell it and get most of your money back to buy a Evo at list with.
Cheers,
Paul Hansen
Newbie
Joined: Nov 2002
Posts: 32
Likes: 0
From: Chicagoland
Mitsu is going to base future allocations upon how quickly these cars sell - not on how much we sell them for. If the first guy comes in and refuses to pay 5k over, we will work closer and closer until we earn his business. We will not hold out for 5k over if that means having the car sit for months. Keep in mind, dealers pay interest and insurance on new cars until they sell. The sooner they sell, the less interest and insurance we pay. If we are within a reasonable dollar amount from selling a car, we will do the deal. If your salesman says 5k over, no less...make him another offer, the last thing he wants is for you to get up and walk out. WORK THE DEAL!!!
Evolving Member
Joined: Aug 2002
Posts: 283
Likes: 0
From: FT.LAUDERDALE FL
"tuxedo" that may be something worth saying about the us spec. evo ,but if i recall correctly the comparable cars for the evo 7 is the m3 and wrx sti and for 20k less . i told people 2 months back there was going to be a 5k mark up and they though i was crazy,but how are they going to make the most $$ from a knot limited but limitedly available car .I feel there will be more than a hand full of people to buy it for 40k which is more than each dealership is getting in a year 4 to exact 1 every 3 months at least the one buy my area and it is a big one. for example they couldn't even have one on display at the miami auto show, the rep. told me it was at the boston show.What 1 car for all the shows .also notice the car isn't in any "2003 new cars magasines"
and the car is coming out next month the though boggles my mind.
and the car is coming out next month the though boggles my mind.
Newbie
Joined: Nov 2002
Posts: 49
Likes: 0
From: CA
JAY
ATTN: JAY C
I for one am interested in your feeling after hearing the responces from the general public. As you know, you will never have my business for the simple fact that you intended to mark up in the first place. Is this mark up worth the inevitable loss of customers that you will incure due to your unethical and "greed driven" policies? And please don't bother writing in back if your only responce is that "its a free country and we can charge what ever we want inorder to make a profit," because you will still be making a very reasonable profit at MSRP, which as you know takes into consideration dealer costs and fair profit margin.
I for one am interested in your feeling after hearing the responces from the general public. As you know, you will never have my business for the simple fact that you intended to mark up in the first place. Is this mark up worth the inevitable loss of customers that you will incure due to your unethical and "greed driven" policies? And please don't bother writing in back if your only responce is that "its a free country and we can charge what ever we want inorder to make a profit," because you will still be making a very reasonable profit at MSRP, which as you know takes into consideration dealer costs and fair profit margin.
Newbie
Joined: Dec 2002
Posts: 8
Likes: 0
From: SAINT LOUIS, MO
Okay,
Yesterday ( or last night rather ) I posted on this board for the first time and I think I was the one who coined the "price gouging" term ( or maybe not, who knows, who cares ). I was particularly pissed about this 5k-10k mark up issue since I've been waiting nigh on a year to have a chance to BUY an EVO.
After thinking about it for a bit it ocured to me: "Why is noone addressing Mitsubsihi Coporate over this "Limited Supply Initial Launch" bs?!" Mitsu has a direct example of what happened to Sabaru two years ago when they limited launched the WRX and got caught w/ their pants down on the supply and demand issue. Now the market has panned and you can walk onto the lot and test drive a WRX and roll off the lot at or below MSRP ( doesn't sound like a bad idea . . . Mitsubishi are you paying attention??? )
Are their memories really that short at Mitsubishi that they could really overlook the poor marketing tactics that seem to be employed here? Mitsu has a great advantage and opportunity here by getting to market ahead of the XTi but I would hazzard to say that many people would be willing to wait if Mitsu delayed the launch three months so that they could ramp up their production effort and get more cars on the lots.
A co-worker told me not too long ago that Mitsubishi is the fastest growing Japanese automaker taking market share away from Honda in chunks. I'm not sure how true that is, but it would seem that Mitsu has a sure fire, can't miss, golden opportunity w/ the EVO introduction in North America where Hondas rule the import market.
So you have to ask why are they shooting themselves in the foot w/ this "Limited Production" crap especially when there are so many other hot imports hitting the streets next year in the same or comparable price range, i.e; XTi, SRT-4, Mazda 6, Protege, SE-R, 350Z, etc.
What gives Mitsu?! Why are we playing these stupid pricing/shell games?!?!?!
Yesterday ( or last night rather ) I posted on this board for the first time and I think I was the one who coined the "price gouging" term ( or maybe not, who knows, who cares ). I was particularly pissed about this 5k-10k mark up issue since I've been waiting nigh on a year to have a chance to BUY an EVO.
After thinking about it for a bit it ocured to me: "Why is noone addressing Mitsubsihi Coporate over this "Limited Supply Initial Launch" bs?!" Mitsu has a direct example of what happened to Sabaru two years ago when they limited launched the WRX and got caught w/ their pants down on the supply and demand issue. Now the market has panned and you can walk onto the lot and test drive a WRX and roll off the lot at or below MSRP ( doesn't sound like a bad idea . . . Mitsubishi are you paying attention??? )
Are their memories really that short at Mitsubishi that they could really overlook the poor marketing tactics that seem to be employed here? Mitsu has a great advantage and opportunity here by getting to market ahead of the XTi but I would hazzard to say that many people would be willing to wait if Mitsu delayed the launch three months so that they could ramp up their production effort and get more cars on the lots.
A co-worker told me not too long ago that Mitsubishi is the fastest growing Japanese automaker taking market share away from Honda in chunks. I'm not sure how true that is, but it would seem that Mitsu has a sure fire, can't miss, golden opportunity w/ the EVO introduction in North America where Hondas rule the import market.
So you have to ask why are they shooting themselves in the foot w/ this "Limited Production" crap especially when there are so many other hot imports hitting the streets next year in the same or comparable price range, i.e; XTi, SRT-4, Mazda 6, Protege, SE-R, 350Z, etc.
What gives Mitsu?! Why are we playing these stupid pricing/shell games?!?!?!
Evolved Member
Joined: Jul 2002
Posts: 613
Likes: 0
From: CA: Sacramento
yeah fellas just wait it out, dont be a sucker and pay over MSRP, we've waited this long, whats another 6m to a yr. for 10K cheaper? Def. a bad move by Mitsubishi, they are going to lose a lot of customers to Subaru and the other competative car manufactures listed throughout this thread. oh well?! maybe i can get a test drive in the spring?!?! 
Evolving Member
Joined: Sep 2002
Posts: 416
Likes: 0
From: North America, North East.
Originally posted by Liv4Spd
I must say Jay, your lack of responces to our inqueries completely undermines your effectivness as a "internet manager"!
I must say Jay, your lack of responces to our inqueries completely undermines your effectivness as a "internet manager"!
Newbie
Joined: Dec 2002
Posts: 8
Likes: 0
From: SAINT LOUIS, MO
Originally posted by tryandcatchme
Sabaru doesnt make the WRX, Subaru does.
Sabaru doesnt make the WRX, Subaru does.
Working here at knight sometimes all theze keeze start luking the saim . . .Boi am I glad I tuk that huked on fonics cors!!!
Originally posted by MYSTYKRACER
Okay,
Yesterday ( or last night rather ) I posted on this board for the first time and I think I was the one who coined the "price gouging" term ( or maybe not, who knows, who cares ). I was particularly pissed about this 5k-10k mark up issue since I've been waiting nigh on a year to have a chance to BUY an EVO.
After thinking about it for a bit it ocured to me: "Why is noone addressing Mitsubsihi Coporate over this "Limited Supply Initial Launch" bs?!" Mitsu has a direct example of what happened to Sabaru two years ago when they limited launched the WRX and got caught w/ their pants down on the supply and demand issue. Now the market has panned and you can walk onto the lot and test drive a WRX and roll off the lot at or below MSRP ( doesn't sound like a bad idea . . . Mitsubishi are you paying attention??? )
Are their memories really that short at Mitsubishi that they could really overlook the poor marketing tactics that seem to be employed here? Mitsu has a great advantage and opportunity here by getting to market ahead of the XTi but I would hazzard to say that many people would be willing to wait if Mitsu delayed the launch three months so that they could ramp up their production effort and get more cars on the lots.
A co-worker told me not too long ago that Mitsubishi is the fastest growing Japanese automaker taking market share away from Honda in chunks. I'm not sure how true that is, but it would seem that Mitsu has a sure fire, can't miss, golden opportunity w/ the EVO introduction in North America where Hondas rule the import market.
So you have to ask why are they shooting themselves in the foot w/ this "Limited Production" crap especially when there are so many other hot imports hitting the streets next year in the same or comparable price range, i.e; XTi, SRT-4, Mazda 6, Protege, SE-R, 350Z, etc.
What gives Mitsu?! Why are we playing these stupid pricing/shell games?!?!?!
Okay,
Yesterday ( or last night rather ) I posted on this board for the first time and I think I was the one who coined the "price gouging" term ( or maybe not, who knows, who cares ). I was particularly pissed about this 5k-10k mark up issue since I've been waiting nigh on a year to have a chance to BUY an EVO.
After thinking about it for a bit it ocured to me: "Why is noone addressing Mitsubsihi Coporate over this "Limited Supply Initial Launch" bs?!" Mitsu has a direct example of what happened to Sabaru two years ago when they limited launched the WRX and got caught w/ their pants down on the supply and demand issue. Now the market has panned and you can walk onto the lot and test drive a WRX and roll off the lot at or below MSRP ( doesn't sound like a bad idea . . . Mitsubishi are you paying attention??? )
Are their memories really that short at Mitsubishi that they could really overlook the poor marketing tactics that seem to be employed here? Mitsu has a great advantage and opportunity here by getting to market ahead of the XTi but I would hazzard to say that many people would be willing to wait if Mitsu delayed the launch three months so that they could ramp up their production effort and get more cars on the lots.
A co-worker told me not too long ago that Mitsubishi is the fastest growing Japanese automaker taking market share away from Honda in chunks. I'm not sure how true that is, but it would seem that Mitsu has a sure fire, can't miss, golden opportunity w/ the EVO introduction in North America where Hondas rule the import market.
So you have to ask why are they shooting themselves in the foot w/ this "Limited Production" crap especially when there are so many other hot imports hitting the streets next year in the same or comparable price range, i.e; XTi, SRT-4, Mazda 6, Protege, SE-R, 350Z, etc.
What gives Mitsu?! Why are we playing these stupid pricing/shell games?!?!?!
Mark
Newbie
Joined: Dec 2002
Posts: 8
Likes: 0
From: SAINT LOUIS, MO
Originally posted by KK
I'm sure they want to use this car to attract potential customers for all Mitsubishis and the limited number they bring will sell for sure. They also create more hype for a car that is "limited", even though 5,000-6,000 is far from that IMO. If they sell like hotcakes I'm sure Mitsubishi will bring even more over.
Mark
I'm sure they want to use this car to attract potential customers for all Mitsubishis and the limited number they bring will sell for sure. They also create more hype for a car that is "limited", even though 5,000-6,000 is far from that IMO. If they sell like hotcakes I'm sure Mitsubishi will bring even more over.
Mark
I appreciate the intelligent resposne . . .
Evolving Member
Joined: Dec 2002
Posts: 487
Likes: 0
From: Minnesota
Originally posted by MYSTYKRACER
To be sure this is the case, more cars will be on the way. It just seems to me that this is as close as you get to a "can't miss" so whay not exploit that aspect of the marketing instead of doing this "Limited Production" thing and run the risk of having potential customers shop and possibly buy elsewhere? Especially if the dealerships are going to play these ignorant mark up games over MSRP. It just seems very poor marketing planning especially in light of the ver recent Subaru experince.
I appreciate the intelligent resposne . . .
To be sure this is the case, more cars will be on the way. It just seems to me that this is as close as you get to a "can't miss" so whay not exploit that aspect of the marketing instead of doing this "Limited Production" thing and run the risk of having potential customers shop and possibly buy elsewhere? Especially if the dealerships are going to play these ignorant mark up games over MSRP. It just seems very poor marketing planning especially in light of the ver recent Subaru experince.
I appreciate the intelligent resposne . . .
Newbie
Joined: Dec 2002
Posts: 8
Likes: 0
From: SAINT LOUIS, MO
Originally posted by Mark F
The EVO is a car that will have very limited market appeal, unlike the WRX. It will always be a limited production car.
The EVO is a car that will have very limited market appeal, unlike the WRX. It will always be a limited production car.
I think I'd have to disagree w/ that statement, although I could see it being a matter of conjecture at this point. It doesn't seem that the many other cars talked about in this category have limited appeal such as the 350Z, XRT-4 or even the M3/Z3 or S2000 are really hurting so much for a market. Even if you were to say these cars appeal to a niche market, they still sell and represent a significant brand performance anchor.
Like I said, it's mostly conjecture at this point so I'm not looking to get into a "flaming" war w/ anybody on this board. I'm just a little pissed that Mitsu won't even give me the chance to show up and buy one of the damn things!
