Quote:
Originally Posted by PhantomX
You're right to a degree. Pure Price's policy is if you knock $1,000 off MSRP off of one 2015 FR-S in your lot, you knock $1,000 off of MSRP for every 2015 FR-S in your lot. That's one of the stipulations of Pure Pricing. So if there's a $1,000 dealer markup for one, they all get it. But, at the same time, the dealer can do away with the $1,000 off at any time, returning the price to MSRP and vice versa for dealer markup. That also means they're not budging on the price. "What you see is what you get." The only way dealerships can/will hand out discounts is after the vehicle has been on their lot for a good amount of time that Pure Pricing no longer applies.
One thing I've noticed you're claiming is there's "bank" on the Scions. The MSRP to dealer invoice difference is a little over $1,000 at best. They'd be lucky to reach $1,500. I'm sure someone will point out there's dealer holdback. For Scions, there isn't any unfortunately. With Toyotas, at MSRP, there's usually a $2,000-$3,000 dealer invoice difference. Lexus has even more. From a greedy standpoint, yes, Scion doesn't make the dealership much money, so they neglect it to a degree. I've ranted enough in another thread how some sales consultants will even try to steer customers away from Scion because it won't make them as much money as a Toyota, Lexus or used vehicle would, contributing to the statement that Scion is a dying brand. It upsets me, and trust me, Toyota is aware and isn't happy.
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Considering how little work is put into selling Scions, every one sold probably makes a decent amount of money. Just looking at it from a $ earned:time invested perspective. The sale is very binary: yes or no. It seems like dealerships are pretty content to move a few Scions a month for their $1000 or so and send their salesmen workforce to move Toyota metal. I wasn't saying that Scions were cash cows; they'd try to sell more if they were. I'm just saying that they are content
passively selling a few Scions a month and it stinks because I feel like their passive way of setting the Pure Price at MSRP hurts this car and the future viability of the car.
I looked at picking up a leftover 2013 Series 10 back in the spring. The pure pricing on this particular dealers website shows sticker even though Monograms and 2014s are on the lot. When I sit down and start talking to the salesman, he pulls out this sheet from TMS showing what the Series 10 is marked down. It had like $2000 off. So, Toyota is giving them money to get them off the lot, but the dealer doesn't even update the "Pure Price" on the website or the board (maybe hoping someone comes in and pays sticker for it so they can pocket the $2k?). So, everyone that doesn't go to that salesman thinks they have to pay sticker for a car that has been on the lot for 18 months and has a dead battery. I bought my wife's RAV4 from the same guy a few months prior and they were mostly fine to deal with. It just drives me crazy that they do the bare minimum with the brand.
I think that Scion has potential to be a good brand. Unfortunately there is a disconnect between TMS's vision of pure pricing and how it is implemented at the dealer side.
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