Price increase?

[Peyton77]

I heard all the same answers when I was at the dealer the other day...

The best was when I asked how long it would take if I were to order one exactly the way I wanted it and he told me that it could take even longer bc the factory will make the general production vehicles first, and group the ordered vehicles together at the end...

Makes sense, the ones that are pre-sold you build last..

Peyton

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[MAC]

Escalade may have a slightly higher MSRP but it is discounted by thousands $ cash back and whatever deal you can make, plus zero percent, zero down, in the end, it is much cheaper than Hummer.

Around here Hummer dealer lot has no Hummer, period.

From the business bean counter' view, having lots of new Hummers on the lot not selling is very expensive and dangerous, the natural thing to do is to cut price and bargain downward, unless Hummer has rule against that, but not sure if that is legal. You have to remember the dealers pay interest on all the cars on the lot, their job One is their own survival but Hummer brand image, if they have to, they can make all sorts of quiet deals. Once sales REALLY slows down, the jungle rule of "Supply & Demand" applies, the evidence will show: Discount. You have to move the merchandise as fast as possible, basic rule. So I am not sure having lots of Hummers on the lot but faking strong demand is a logical guess.

Of course, Hummer can and do limit production to create a short 4-8 weeks wait. Current wait for MB new E class is 6 months.

[HeeHaw]

cognitive, really enjoyed your thread and it is very true and insightful of dealers. You brought a lot of good points to light and the members of this forum can benefit from your prospective.

I still think the price will rise........but that is not based on scientific data, just the fact I think they will rise. 2004 will sell for about 60 and then the nicer model about 75. Just a GUESS!

See ya...............

HeeeeeeeeeeeHawwwwwwwwwwwwwwwwwwww [img]/infopop/emoticons/icon_cool.gif[/img]

[SOFTTAILJC]

h2's just went up a $1,ooo. next year they estimate 3 more. they created a feeding frenzy. now if you want one ...anti-up......soft

[H2Norcal]

I am glad to see some of you agree on what is going on with this vehicle. All the post-delivery folks hate to hear it I know, but the H2 is a marketing-hype feast right now. The reality is that it is a hot new vehicle and they are playing all the new launch games.

This was fine about 18 months ago when we all were paying MSRP + 10% mark-up to give the dealer some extra spending money for the deal. But the economy does not work that way anymore.

My dealer has $5k markup in mine. I told him that I have no plans on giving his dealership extra money for absolutely nothing. He said we will work it out.

[H2Norcal]

That is not even worth their trouble for a $50K+ vehicle.

If it is a real increase, I think it is a test buoy that can be easily removed when you sit down to do the deal.

Stupid.

[cognitive]

$48,800 base when it came out
$49,190 base current price

That's a $390 increase. I believe there were increases in the package prices as well but I'm too lazy to track down the exact numbers. I don't think the increase exceeds $1000 and I don't know which particular options were increased but just do your homework before going to the dealer. It's such a pain to add numbers in front of a dealer... and if you ask them to do it, they hem and haw as if they've never used a calculator.

So which dealers are actually talking about the price increase from GM?

I only care about this because if the price does go up to 60k, the H2 SUT will most certainly cost $50k as opposed to the $40k originally planned.

[Steve R]

It's like trying to guess the stock market..nobody has a crystal ball. My thoughts parallel Heehaws...but that's mostly based on having seen behind the curtain at Hummer's marketing research & development: Price is heading up.

Keeping it simple and implementing typical marketing strategies...the first "wave" of consumers on a new concept are referred to as "innovators". We are innovators: we are willing to pay a premium, take a risk and economically speaking allocate a greater degree of marginal utility towards the aquisition of this good.

(Like....oh my God....in the midst of bong-resin, barley, rye & hops...it would seem some of my college education stuck with me!!??)

Bottom line, GM could have easily taken advantage of our willingness to blow coin in order to get into these bad-ass toys. A typical marketing ploy would be to release these things at $58K and sell as many up until demand slowed....THEN, GM starts offering their oh-so-typical "incentives & rebates" to cheapen the price and bring the next wave of purchasers to the table.

So what happened? I spoke with some Hummer-boys, and what happened was a gross under-estimation of what is now regarded as a sales phenomena. The H2 is a hit well beyond their expectations. They only asked a reasonable price HOPING these things would find a market. When pricing it never occurred to them "How much will people be willing to pay for a Hummer made practical for daily use"...instead they figured what a reasonable mark-up would be and gave it their best shot to get this thing in garages.

I've said it before: some body changes, some interior upgrades, a bigger engine...and through "innovation & improvments" the new H2's will be soaring just under the Range Rover price. And ya know what...they'll sell 'em all!