Thread: Delivery dates
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Old 01-17-2009, 09:42 AM
bobstcyr bobstcyr is offline
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Default Re: Delivery dates

To some degree I agree, scarcity works well in normal markets with built-up demand. However in the current and foreseeable market, new product in reasonable availability can drive incremental sales because the Venza meets a demographic interest - a wagon for the boomers (who have the money to buy).

Although Toyota dealer inventories are lower than other dealers, it's obvious that they are trying to move excess inventories of current models while half-heartedly rolling out a new product.

I will tell you that I have been offered a Venza by two dealership at a $3K discount off sticker. Unfortunately that still does not meet my needs (i.e., I don't need a fully loaded vehicle) at high price (loaded cost) point.

I am ready to buy but won't be forced to buy what I don't want at a price I don't want to expend. I'm hearing the same form other people I meet at the dealerships and even from some of the sales people.

Developing a viable sales model in these market conditions can't be easy but I sense that the flash of a new product rollout is going to go for not if enough customers are turned away because of the price point of available Venza inventory at their dealers. Once these customers move on to a deeply discounted competitor product, they are gone for several years - if they ever come back. Marketing 101: It costs exceedingly more to capture new customers than to retain customers in the base. For the first time in Toyota's recent history, their brand premium can be effectively challenged by competitors because the buying behavior is being driven by price versus marginal variances in perceived qualirty.

This is by no means a criticism of Toyota - just an observation from my experience. The time-proven sales models are broken and nobody really knows what will work going forward. Retrenching works in the short-term but may not carry the day in the long-run against competitors who are dumping inventories.

At any rate, the Toyota marketing team must have an end-game in mind.
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