GM Over Charging For Interior Packages
#62
Safety Car
Member Since: Oct 2012
Location: Austin Texas
Posts: 4,794
Received 676 Likes
on
480 Posts
St. Jude Donor '15
Yes, the options are costly. In 1998 my C5 base was $37,500, with sport seats, memory, upgraded stero, F55 suspension, and a couple of other items the sticker was $44,750. This was 16 years ago, so to days Corvette seems like a steal. I understand the cost of these items and, yes, GM is trying to make a profit, it would be nice to be an automobile mfg. and not be owned by the government. I understand what you are saying but it is your opinion and not shared by many on this forum, even though it is valid. So, if you don't like what is being said mayhaps you should just ignore, or accept that what you wrote is not what many feel is a good thing. I can't afford to drop $72,000 on what I want but $63,000 still gets me a lot of car, and as you said " they got me for $60,000" so you must have found some option that you liked, and felt was worth the money. Because you know, GM is going to make money on that option also. Enjoy your new Corvette!
#63
Guys,
As they say, "time passes, things change".
It is true that many years ago car manufacturers in the US allowed you to order options individually, and those options were typically priced on a cost of goods sold plus mark-up type of deal. But as businesses evolve, so do their pricing models.
What they are doing now is bundling options together, which as an earlier poster said makes it cheaper for oem's to build. But they are also charging more for options because they know that most people will not actually buy these items in an after-market setting. So they are charging you more for the convenience of having them installed by them. That has value, they are charging for it. Simple as that, nothing sinister about it.
If you think about it, pricing models are changing all over the place. The airline industry has done it very successfully. They have unbundled all their services, charging separately for each one, making a ton of money doing it ($27B last year, I think). If you go to Best Buy and purchase a TV, you get a great deal on a TV, but they try to get you to buy the extended warranty, which is a huge money maker for them. 15 years ago no one was buying extended warranties on TV's, now it is the chief source of profit for Best Buy. As mentioned by others earlier, Porsche charges a huge amount of money for their options, knowing that the price of the base car gets the buyer in the show room, then they make a bunch of money when the guy adds in the options (but still really wants the car).
This is just an evolution in how businesses try to get money out of you in a very competitive environment. Our tools, as customers, has evolved tremendously as well. Think about this: 15 years ago how much did you know about the price of a car before you walked in to the dealer showroom?? Now, with the web, you likely know what the dealer paid for the car, you know what your trade-in is worth, you know what all the options cost, etc...
time passes, things change. Do your research and go make the best deal you can on the car you want.
As they say, "time passes, things change".
It is true that many years ago car manufacturers in the US allowed you to order options individually, and those options were typically priced on a cost of goods sold plus mark-up type of deal. But as businesses evolve, so do their pricing models.
What they are doing now is bundling options together, which as an earlier poster said makes it cheaper for oem's to build. But they are also charging more for options because they know that most people will not actually buy these items in an after-market setting. So they are charging you more for the convenience of having them installed by them. That has value, they are charging for it. Simple as that, nothing sinister about it.
If you think about it, pricing models are changing all over the place. The airline industry has done it very successfully. They have unbundled all their services, charging separately for each one, making a ton of money doing it ($27B last year, I think). If you go to Best Buy and purchase a TV, you get a great deal on a TV, but they try to get you to buy the extended warranty, which is a huge money maker for them. 15 years ago no one was buying extended warranties on TV's, now it is the chief source of profit for Best Buy. As mentioned by others earlier, Porsche charges a huge amount of money for their options, knowing that the price of the base car gets the buyer in the show room, then they make a bunch of money when the guy adds in the options (but still really wants the car).
This is just an evolution in how businesses try to get money out of you in a very competitive environment. Our tools, as customers, has evolved tremendously as well. Think about this: 15 years ago how much did you know about the price of a car before you walked in to the dealer showroom?? Now, with the web, you likely know what the dealer paid for the car, you know what your trade-in is worth, you know what all the options cost, etc...
time passes, things change. Do your research and go make the best deal you can on the car you want.
#64
Le Mans Master
I do miss the days when you could order a totally unique car, and could spend lots of time going over options. That was really fun.
On the other hand, I like the fact that you guys buying these expensive packages will be subsiding my base car purchase.
By the way, my 2000 Corvette HUD option was $375. Z51 was $300.
Michael
Last edited by Michael A; 09-15-2013 at 11:08 PM.
#65
Melting Slicks
I've always thought that was odd as well. Why do people click on things they don't want to read about? And then if they do click, after they realize they aren't interested in the post, why do they take the time to type a response?
#66
My theory...GM is overcharging for some of the popular, less expensive options (such as red calipers) so they can offset/lower the price of more expensive options (such as the exposed CF roof) that may otherwise cost buyers double. How many guys would spring for a $4K exposed CF roof? Additionally, I'm sure GM wants some CF roofs out there so it shows off the C7's high-end potential (good for competition with the Euro cars).
#67
AIR FORCE VETERAN
Maybe their spouse ( either gender please) has given them a hard time. Maybe it is their boss or job that is upsetting them. The only advantage to responding to a post they really do not care about, is to stir things up and give someone else grief for a change. I have been guilty of stirring the pot.
#68
Race Director
I appreciate the economies of scale with the packages. That said, Porsche, very successfully, makes it work and, between all the 911 variants/Boxster/Cayman, they produce a bunch of cars. Maybe the packages do force most into buying, in my case, GM lost money as I ordered 1LT. If the option list was also available "a la carte", they would have gotten more money out of me.
As always, YMMV.
Jimmy
PS. Please don't take the above as bitching, it is not. In a perfect world (which it's not), I would like a few things in 2LT, I just don't want all the stuff so I am willing to do without. Every car maker makes these decisions armed with way more knowledge than I have. So, as I hold up Porsche as an example, you also have to look at the other side....HID headlights are an OPTION (part of a $2,000+ PACKAGE!!!) on a Boxster, standard on a C7 (and the C6 as well).
As always, YMMV.
Jimmy
PS. Please don't take the above as bitching, it is not. In a perfect world (which it's not), I would like a few things in 2LT, I just don't want all the stuff so I am willing to do without. Every car maker makes these decisions armed with way more knowledge than I have. So, as I hold up Porsche as an example, you also have to look at the other side....HID headlights are an OPTION (part of a $2,000+ PACKAGE!!!) on a Boxster, standard on a C7 (and the C6 as well).
Last edited by jimmyb; 09-16-2013 at 12:15 PM.
#69
Le Mans Master
Member Since: Oct 2004
Location: Haymarket Virginia
Posts: 8,615
Likes: 0
Received 56 Likes
on
30 Posts
I appreciate the economies of scale with the packages. That said, Porsche, very successfully, makes it work and, between all the 911 variants/Boxster/Cayman, they produce a bunch of cars. Maybe the packages do force most into buying, in my case, GM lost money as I ordered 1LT. If the option list was also available "a la carte", they would have gotten more money out of me.
As always, YMMV.
Jimmy
As always, YMMV.
Jimmy
So instead of getting maybe $1000 from me for the two they got $4200 from me.