C7 PRICE INCREASE & EXISTING ORDERS

[Richardlord]

For those of you who have viewed some of my threads, you may recall I have had a highly optioned Z51 Vert with the Carbon Fiber Dash (FAY), both on constraint, on order for about 8 months. By now, you know there is a price increase. Some may consider waiting 8 months an injury, and a price increase on top of the wait adding financial insult to injury.

But, it appears not so - maybe. I spoke with Chevy this morning, and the rep looked up my order and said that as I had a C7 on order in the system, I likely would not be subject to the price increase. I did not like the term "likely" but I accept it as a positive response - for now.

Also, the rep said my order now has been "Batched" but not yet scheduled for production. I tried to get a sense what Batched meant, but came away with the understanding that it at least appears to be part of a production plan for a run of C7s.

Perhaps some of you up on what Batched means can better enlighten us.

So, maybe a not so expensive light at the end of the C7 production tunnel.

[Stingray]

Technically, you should be okay... the dealer should close it at your documented previous price when your secured your order: http://www.corvette7.com/forums/showthread.php?t=345508

From GM: (We spoke with a representative from Chevrolet who told us that) “customer demand for both Stingray models and especially the Z51 has exceeded expectations and we are trying to meet that demand.” The Chevy representative added “Customers who have an order in the system are not subject to the price increase.... The bad news, unless you got an order already in the system or you buy an existing Stingray off a dealer’s lot, prices are going up to meet that demand head-on.”

I'd discuss and hold that to the dealership... perhaps get it in further writing too. Wouldn't hurt to ask...

[Richardlord]

Originally Posted by Stingray

Technically, you should be okay... the dealer should close it at your documented previous price when your secured your order: http://www.corvette7.com/forums/showthread.php?t=345508

From GM: (We spoke with a representative from Chevrolet who told us that) “customer demand for both Stingray models and especially the Z51 has exceeded expectations and we are trying to meet that demand.” The Chevy representative added “Customers who have an order in the system are not subject to the price increase.... The bad news, unless you got an order already in the system or you buy an existing Stingray off a dealer’s lot, prices are going up to meet that demand head-on.”

I'd discuss and hold that to the dealership... perhaps get it in further writing too. Wouldn't hurt to ask...

Hopefully so - My total price before the price increase was $76,155 and after the increase $79,355 or a $3,200 increase.

Chevy said it would call my dealer to discuss and clarify. I called my dealer and informed it to expect a call from Chevy. I also have an appointment tomorrow to meet with my dealer to discuss following its call from Chevy. My dealer said it also may call Chevy as I am not its only customer with a C7 on order mostly like mine with constraints, and it is sure it shall get lots of calls from those with C7s on order. Good thing my dealer is selling my C7 to me $1,000 below MSRP if the price increase becomes a problem. Still, the bottom line is what Chevy charges my dealer - the old or new dealer price.

Oh, and increasing prices to meet demand - Paalease - No one is buying that bit of pseudo economics - One meets demand by increasing production not prices - Price increases if anything lower demand - I am sure Chevy does not want to lower demand, and is increasing prices to increase profits, and/or maybe cover some some higher costs, although I doubt the latter as the more a part is in demand and the more it is produced, the economies of scale kick in that should lower the part price. I don't necessarily fault Chevy for increasing prices if it can get asking, as it is a great car much in demand, but call it what it really is. The price increase is definitely not to meet demand as I for one am certainly not demanding a price increase.

[Stingray]

^Well said.

What's unfortunate was no advanced public warning was broadcasted. Not that it is required, but as a courtesy perhaps since the car is such high demand and this mid-year price hike came out of the blind side. Whether 2 weeks or 30 days prior to price increase effect, it will at least prepare serious buyers who are planning to buy a C7 or were about to place an order. This was certainly unexpected and I'd be disappointed too if I was going to buy one now... unfortunately it is what it is.

[Richardlord]

Also getting back to my original question, the Chevy rep told me my car has been "batched." I never heard that term before. I tried to get a definition of Batched, but neither his command of English nor his attempted explanation made that possible - Almost like I reached a call center in the Crimea - No more comment on that. So, can anyone give me a definitive explanation of Batched. Or, is it just as simple as it appears to be - my car order is Batched (matched and grouped ) with like orders for pre-production planning purposes. Is there a processing number associated with this?

Thanks

Richard Lord (recently retired US ICE)

[OldJedi]

Originally Posted by Richardlord

Oh, and increasing prices to meet demand - Paalease - No one is buying that bit of pseudo economics - One meets demand by increasing production not prices - Price increases if anything lower demand - I am sure Chevy does not want to lower demand, and is increasing prices to increase profits, and/or maybe cover some some higher costs, although I doubt the latter as the more a part is in demand and the more it is produced, the economies of scale kick in that should lower the part price. I don't necessarily fault Chevy for increasing prices if it can get asking, as it is a great car much in demand, but call it what it really is. The price increase is definitely not to meet demand as I for one am certainly not demanding a price increase.

You are 100% correct !!! Raising the base price $2000.00 and the Z51 option that is in 75% of cars produced by $1200.00 has nothing to do with meeting increased demand. If that was the case they would have increased the price of the exposed CF roof and CF dash, both high dollar constraint options. Having suppliers increase the number of parts needed to keep up with demand would have decreased demand and lowered constraint wait time by actually putting more cars into more owners hands.

No this is very simple economics fueled by greed. Take a car that is very high demand and keep increasing the price of it until sales begin to decline because it has reached it's maximum high dollar tolerance limit. That is the point when the majority of perspective buyers no longer feel that the product is worth the dollar amount requested. GM knows that that point is still years away based on the current competitive car market. As many people have stated, it is a hell of a car for the price. And it will continue to be until it reaches it's maximum saturation point or another company steps up and offers a better product at a lower price point.

But to openly state that you raise prices to meet demand, please! It only has to do with making as much profit as possible and striking while the iron is hot. I sure as hell do not see them putting a $3200.00 increase in their truck products. A lot of people will pay the current $3200.00 increase and the upcoming $3200.00 increase for the 2015 models, including myself, but that does not mean I have to like it.

I do understand that in it's target section, there is no other car that can touch it for the money. Even with the increase, it is still way below other comparable, competitive models starting prices. But I also know that GM priced this car with a profit margin at it's original starting point of $52,000.00. So each additional $2,000.00 is strictly additional profit with no other changes to the car whatsoever. GM has us bent over a barrel and we are going to take it or buy some place else. But, they also know there is no other place to buy without spending even more money. At least have the decency to be truthful and tell us the real reason for the price increase. Anybody have some lube, this barrel is cold and I know what is coming is going to hurt!

[Stingray]

Yahoo covers the C7 price increase courtesy of Autoblog



By Chris Bruce on Mar 6th 2014

One of the common defenses of the Chevrolet Corvette when it's compared against its European and Japanese competitors is that the price makes the 'Vette a bargain for its neck-snapping performance. That equation is changing, slightly. While it still undercuts many rivals, Chevrolet is raising the cost of its halo model due to high demand.

Prices for the 2014 Corvette have risen by $2,000 for both the coupe and convertible. The Z51 package is now a $4,000 option, an increase of $1,200. With the $995 destination charge, a base Corvette Stingray now runs buyers $53,995, and the drop top is now $58,995. The new pricing went into effect on March 1, but buyers who already have orders in place are not affected. According to Corvette Blogger, some dealers are also not marking up cars built before March that are on their lots.

"The reason for the increase is simply that customer demand for the Stingray, and especially the Z51 package, have exceeded our initial expectations. As such we wanted adjust pricing in line with demand," said Monte Doran, Chevy's PR specialist for the Corvette and Camaro.

It's great for the company that demand is so high, but it is too bad for customers that a higher price is being passed on to them. Still, if you are already in the market for a 'Vette and want a deal, find a dealer with a few left on the lot.

[Pete r welch]

As long as Chevy honors the contracts already made, i have no problem with a price increase. Hey, we live in a world where the law of supply and demand PROPERLY rules. If I were Chevy and had created such a wonderful car, I would get the most I could for it too. It remains a great bargain performance-wise. Quit moaning!

[Richardlord]

Getting back to Chevy "Batching" my C7 for production, the traditional term batching means "Batch production is a technique used in manufacturing, in which the object in question is created stage by stage over a series of workstations, and different batches of products are made." Does this apply to Batch production of my C7 or does "Batching" mean something different when Chevy told me my C7 has been "Batched" for production, but has not yet been scheduled for production. Does someone have the answer as to what Chevy means when it uses the term "Batching."

[OldJedi]

Originally Posted by Pete r welch

As long as Chevy honors the contracts already made, i have no problem with a price increase. Hey, we live in a world where the law of supply and demand PROPERLY rules. If I were Chevy and had created such a wonderful car, I would get the most I could for it too. It remains a great bargain performance-wise. Quit moaning!

Pete, would you be saying this if they did NOT honor your existing contract?

[Stingray]

Agree, it's tough to swallow (or take it in where the sun don't shine) this timely-unexpected increase. I was lucky to get a Z51 last fall at below sticker and looking at it now with the increase, I would be pee'd off since that's an easy 4K increase (+ sales tax affected too) and I doubt the dealer would discount it any longer.

So yes it's easy to rationalize it if you have one already or were able to squeeze in prior to the increase, but no matter what it's a big dent in the pocket... hey, 4K is 4K of our hard earned cash. However like I stated that unfortunately it is what it is... still a great car that costs a bit more nowadays.

[Pete r welch]

No, as I said they should honor the price agreed on. As a non lawyer I would say that anyone that ordered one prior to the price increase must get the car for the original price. Believe that is the fair way foe a business to operate.

[laborsmith]

Mid term price increases are normal, across all vehicle lines not just Corvette, though these increases are much greater than normal. The increases are normally attributed to increases in the cost of parts or making once options part of a standard order.

Getting credit will be a matter of negotiation as the Window Sticker of any units produced on and after the effective date will reflect the new price. (The dealer will be credited for the increase whether it passes the credit on to the customer or not.) Given the amount of money involved I see dealers being resistive but Chevy being forceful so I do not see this will be a problem for orders already banked.

This is not new and is one of many things that only becomes apparent because such a high percentage of Corvettes are individual retail sold and not dealer stock.

I also expect one more MSRP increase for the 2014 MY before the closing of ordering for that model year. But the important thing is this: for any unit already already ordered the dealer will receive a credit for the amount of the increase whether passing that credit on to the customer or not.

Laborsmith

[Richardlord]

Yesterday, I met with my dealer, and we discussed the price increase and the delay in production of my C7. My dealer first informed me that it spoke with its Chevy Rep about my order and it shared that conversation with me. That was an interesting conversation and mostly good news.

First, my dealer informed me that Chevy informed it that Chevy would honor the original price for my C7 that it has had on order for 8 months. So, I at least have my dealer on record as saying to me it shall honor the original price when I go to pick up my C7. Still, it shall be interesting to see how this plays out as for price between my dealer and Chevy when my C7 actually comes in with a sticker price on it.

Second, my dealer nicely fussed with its Chevy Rep about Chevy's tardiness in fulfilling my order. My dealer acknowledged what we know that the Z51 and FAY are the main culprits in conjunction with everything else in my expansive order. The discussion between them centered on the fact that Chevy is not fulfilling "sold" orders and yet is producing cars with Z51 and/or FAY as "unsold" lot cars for the biggest dealers and others. Apparently, they both agreed that didn't make sense, but it is what it is. The Rep would pass that concern along up the chain of command (COC), but I expect the COC shall do what the COC does, which probably is that it shall not change anything.

Third, the Chevy Rep said he would do what he can to push my order along. My dealer says it orders and sells all the C7s it can get, and ordering C7s is not a problem, but ordering and getting what customers specifically and actually want is a problem. My dealer has several customers like me who shall not settle for anything less that what they want in their orders. He says he does not blame us as given what we are spending we should get exactly what we want. As a note, I could have had my C7 months ago if I was willing to drop the FAY, which I was not willing to do - two months ago my dealer called me and told me it could get me my C7 if I dropped the FAY. My dealer says I should get my C7 by May - we shall see. Anyway, I am not too upset with the delay as given the weather we have had, who wants to pick up their C7 with summer tires in the middle of a snow & ice storm? April or May would be a good time to get my C7, and I expect that as soon as the weather warms Chevy dealers shall be inundated with C7 buyers with the new price increase eagerly awaiting them.

Also, does anyone know what "Batching" means in Chevy Speak.