Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: LOW DEMAND PERIOD SEGMENT
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 3711 | 1990 | Chrysler offered $1000 rebates on its 2 minivans during December & January. |
| 2 | 3711 | 2004 | In response to a steep decline in U.S. sales, luxury brands such as BMW, Mercedes-Benz and Jaguar are jumping into the U.S. price wars with deep discounts. Luxury dealers dislike this practice as it undercuts the brand's reputation. Mercedes-Benz averaged $2,222 in incentives, more than double when compared with previous years. |
| 3 | 5511 | 2002 | Then there's the "invoice price". It is not the price the dealer pays, only a starting point for calculating the price. Manufacturers pay dealers for every car they sell to help cover cost. The Big Three pay 3% of the sticker price; foreign makers, from nothing to 3%. Carmakers offer cash to entice retailers to move certain products at certain times-incentives that buyers don't hear about. Resourceful buyers may uncover this information for a price from Consumer Reports, but there is only so far a dealer can be pushed. |
| 4 | 5511 | 2009 | Plunging auto sales are making this one of the worst times ever to sell cars. Auto dealers are offering tons of new incentives: Until recently you could get $12,000 cash back on the purchase of a leftover Range Rover. Cadillac's slick, sporty CTS sedan comes with $7,000 in incentives. Ford Motor Co. has barely begun selling its 2010 Transit Connect Van, and is already offering $300 cash back. Falling prices and rising rebates reflect the economic uncertainty that has kept many people away from the auto showrooms since late last year. |
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