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Dealer Markup

Hi All,
I posted this letter previously on Yahoo solstice group. I myself feel like I should not have to pay $5,000 for the priveledge of buying one of the 2nd 1000 Solstices. That makes my fully loaded $25,000 cost $30,000. I may be just as well off buying one of the ones currently on e-bay
What do you'all think?
GG
ps I will scan and post the June 2005 memo if you let me know how to do it...


Here is the letter I wrote to John Larson, General Manager of Pontiac
and Mark Hans Richer head of the Solstice Marketing on the
GM website and the response I received. I'd be glad to hear
what other buyers and thier dealers are doing about the markup over
MSRP.

Hi,
I would like to address this to John Larson and Mark Hans Richer at
Pontiac. I received a copy of your June 2005 memo to Pontiac
Dealers "strongly encouraging them not to sell the (new Solstice)
above MSRP" from a fellow in Humble,TX who sold his Solstice on EBAY
for $3,500 over his cost. His dealer promised that he would be
charged MSRP even though he did not "win" one of the first 1000.
I was not one of the first 1000 early order program orders either
but I did manage to secure one of the Solstices that my dealer has
been allocated. He informs me that the car will be marked up
$5000! That is a 25% markup! I fall into the catagory you described
in your memo. I drove my mom's 1965 Bonneville convertible but have
never considered owning a Pontiac until now. I have visted Pontiac
showrooms but quite honestly I own a Ford Ranger. I am disappointed
by what I consider greed on the part of my dealer. I was impressed
by the Solstice when I first heard of it a year ago and have been
following it's development. I was particulary impressed with the
great job you did with the marketing and product launch. I read about
the "existing parts bin" approach you took in the design of this car
and am eager to hear from Road and Track also Automobile magazine on
how that pans out for you. I am writing you because I don't want
to throw myself on the mercy of my dealer. Do you have any
suggestions as to how I can get the dealer to sell me the car for
MSRP? Or at least reduce the markup? On your Solstice website,
where the price is listed there is mention of "before incentives"
Are there incentives associated with the Solstice? I don't mean
to sound like a whiner and I do realize you can sell this car for
whatever you desire. I was originally attracted by the $20,000 price
because it will be a lot more affordable than a Porsche Boxster for
example. I would appreciate hearing back from one of you guys. I am
a loyal Detroit car buyer and am really glad you decided to build a 2
seat roadster.
Yours Truly,
John Kearney


Dear Mr. Kearney,

Thank you for contacting Pontiac and for your interest in the
2006 Pontiac Solstice! We apologize for any inconvenience. You
do have a feel from the memo for Pontiac's position regarding
M.S.R.P. (Manufacturer's Suggested Retail Price) pricing for the
Solstice. Dealers are independent franchises and, as such,
determine the final price paid by the customer.

To obtain more information and updates regarding the 2006
Pontiac Solstice, please visit www.pontiac.com or contact your
preferred dealership.

We hope that this information answers your questions. If you
need additional information or have further questions, please
let us know via email or by calling Pontiac at 1-800-762-2737,
between 8:00 AM-11:00 PM Eastern Time, seven days a week.
Again, thank you for contacting Pontiac!

Sincerely,

Ann McManamee [email protected]
Customer Relationship Manager
Pontiac
 

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Sounds like the same answer i got when i complained about the early order computer fiasco.

Thanks for your interest, blah blah blah...

We apologize, blah blah blah...

Contact your preferred dealership, blah blah blah...

Hope this answered your question, blah freakin' blah... :brentil: :brentil:
 

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Cough cough bullsht cough cough
 

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Man, do some shopping, my dealer has sold 5 more sols since mine arrived, Friday 9-9-05. The people who bought the other 1st 1k arrived the same day as mine and they were going out of town. They let the dealer put there car on the " hill " for customers viewing. Since then they have taken 5 additional orders over and above the 1st allotment. They think they will not be delivered untill 9/06 and that is just a guess, but the customers are willing to wait. All of these cars were sold at MSRP. My dealer was great throughout the whole process. I recommend you find another reputable dealer.
 

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Shop around - please! There are dealers that are selling at MSRP. As much as I hate to say it (being that I have never, and never will), I'd rather see you buy a new MX-5 (maybe for a few bucks off list) than pay several grand over sticker to a dealer. :cuss:

If you go the MX-5 route, please send a copy of your order to misters Larson and Han Richer - and invite them to shove it up their a**es.

Anyone who is willing to get in line and wait there turn, should not get screwed by their dealer - on the other hand, I understand a dealer making a reasonable markup on a car they have sitting on the lot (spec car / abandoned order).

If you've had money down for 6-months (or whatever), you should get MSRP
 

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As I was driving home this evening, I heard a spot on the radio from a local Chevy dealer. I got to thinking about how my dealer is marking up the Solstice 5g also. Anyway, GM had extended the employee price to several 2006 model Chevy's. If Pontiac were to do the same thing for the Solstice, the dealers have no choice in the matter.

:rant: I too was drawn to the low price and the awsome looks. I've been following the car since I found it in Sep 2004. I started begging to give my down payment in Jan this year. I was told nothing about being able to order in mid March and my order didn't even get placed until 3 days after the apprentice thing. My salesman told me at the time that I would still get the car at MSRP, but when I gave them the check for the down payment, he told me I would have to pay $2,500 over MSRP and to consider myself lucky that I'm not paying the 5g like the rest of the guys that ordered one. :devil: :rant:

SO, PONTIAC, if you guys are listening, Employee Pricing for all Solsti until at least the end of the 2nd quarter (mar 2006) please. :blueangel :yesnod:
 

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SgtMilburn said:
SO, PONTIAC, if you guys are listening, Employee Pricing for all Solsti until at least the end of the 2nd quarter (mar 2006) please. :blueangel :yesnod:
Why in the world would they do employee pricing when they have taken 13,000 preorders?
 

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Because they told the dealers that they should sell the cars at MSRP. If the dealers refuse to do so, then Pontiac should cut their feet right out from under them. Cudos to the dealers that are selling at MSRP.
 

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SgtMilburn said:
Because they told the dealers that they should sell the cars at MSRP. If the dealers refuse to do so, then Pontiac should cut their feet right out from under them. Cudos to the dealers that are selling at MSRP.
But selling at employees discount would be cutting their feet out from under themselves. I understand the frustration, but this isn't a car that Pontiac willbe discounting anytime soon.
 

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I guess you're right. I just don't like being taken advantage of. I'm sure I'll just suck it up and drive on. Thanks.
 

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First, for the hundredth time or so the employee discount is for 2005 cars. The Solstice is a 2006 model.

Second and more importantly, Pontiac isn't going to make money on the Solstice for a very long time if ever given the investment. But they might make money on spin-of sales. You go in to look at a Solstice and end up with a Vibe, for you daughter, for example.

So don't hold yur breath for discounts. The line producing Solstices isn't going to be cranking them out much faster than right now.
 

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Editguy said:
Why in the world would they do employee pricing when they have taken 13,000 preorders?
Editguy said:
But selling at employees discount would be cutting their feet out from under themselves. I understand the frustration, but this isn't a car that Pontiac willbe discounting anytime soon.
Why in the world would YOU ask such a question??? In case you haven’t noticed you’re in a thread called “Dealer Markup Revolt.” It’s a thread where people discuss their thoughts on what they can do to keep prices down.

Are you saying that YOU want the prices to be up? Are you a dealer?

Let me explain… Pontiac won’t lose a penny by dealers selling the car at MSRP, because they will sell lots of them that way. It’s the dealers that profit on markups.

The biggest reason they should keep the price down is because at $28,000 the car is a VERY poor buy when compared to the competition. Trunk space, leg space, turning and mileage are all second-rate when compared to other sports cars of that price.
 

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Fortyninenorth said:
First, for the hundredth time or so the employee discount is for 2005 cars. The Solstice is a 2006 model.

Second and more importantly, Pontiac isn't going to make money on the Solstice for a very long time if ever given the investment. But they might make money on spin-of sales. You go in to look at a Solstice and end up with a Vibe, for you daughter, for example.

So don't hold yur breath for discounts. The line producing Solstices isn't going to be cranking them out much faster than right now.
For the hundredth time we’re not asking for a discount! We’re asking for it at its promised price!

Second, if you don’t think that they’re going to make money on it anyway, why not sell it at its promised price. Upsetting the potential customers is never good for business…
 

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If GM wanted to they could put some teeth in the selling at MSRP. The dealers who sell for more would be the first to yell if they went to buy something for their buisness and had to pay over MSRP. Example say their computers, software or such items. GM did not allow Saturn to sell for over MSRP or even under MSRP. They are indepentent franchise's. Manufactures most industries set the selling prices of their product. GM could if they realy wanted to, but they do not, plain and simple.
 

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Fortyninenorth said:
Second and more importantly, Pontiac isn't going to make money on the Solstice for a very long time if ever given the investment. But they might make money on spin-of sales. You go in to look at a Solstice and end up with a Vibe, for you daughter, for example.
But that plan backfires when you get so pissed at the dealer mark-up that not only do you NOT pay the price for the mark-up on the Solstice, but go down the block to get yourself an MX-5, and decide to get your daughter one of those cute Mazda 3's while you're there.

The whole plan of the Solstice being a halo car to increase desire for a Pontiac goes down the drain when you are alienating potential customers instead of luring them into the showroom.
 

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Customer Service?

SgtMilburn said:
SO, PONTIAC, if you guys are listening, Employee Pricing for all Solsti until at least the end of the 2nd quarter (mar 2006) please. :blueangel :yesnod:
The dealers don't have to honor Employee pricing or MSRP....... :(
 

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You guys are talking about 2 diff things, employee pricing and sticker.
 
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