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Sedans Lexus LS 460/460L Lexus LS 460/LS 460L Styling Impressions
3321 messages, Last post on Apr 22, 2007 at 12:29 PM
You are in the Lexus LS 460/460L Forum. Your Hosts are pat & karens
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Replying to: nvbanker (Aug 11, 2006 10:01 am) |
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Replying to: stevekilburn (Aug 08, 2006 1:48 pm)
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Replying to: atlas7 (Aug 11, 2006 12:45 pm) In other words as of today 1. LS 460 = $65-67K at least 2. LS 460L = $70-72K at least Lexus will have to discard cut-rate pricing in a gradual way so that it can compete with germans on an equal footing globally. It should gradually raise the pricing to compete with 7-series over next 4-5 years and keep the technological edge. Keeping the price down may work for value models like the Toyotas but in Luxury arena we need premium pricing. If a great product is value-priced compared to its competitors it casts a negative psychological influence on prospective customers in well developed markets like US, Europe and Japan. Please remember that the original aim of Lexus LS to provide value back in 1990 was to gain market share through cut-rate pricing and give the customers a taste of Lexus. The value pricing or cut-rate pricing in itself was not the end goal. it was a starting point at least in my opinion. Now, after 17 years if LS continues to be offered at 21% discount compared to Audi A8 and 45% discount compared to S550 then it will generate a negative subliminal effect on prospective buyers. The goal now should be to establish LS as a global flagship competitor to S-class. And premium pricing at least matching Audi A8 and then gradually raising it to 7-series is the way to go. I do understand your point that Lexus should offer you the car loaded with value, but I am afraid it will be bad for Lexus brand as a whole. Steve
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I just noticed that on googling Lexus LS and other german brands, the results from wikipedia are highly ranked. Upon visiting these wikipedia webpages, I noticed how well written are the articles on german cars like BMW 7-series and S-class as well as Porsche. On the other hand articles on lexus LS etc are very poorly written. It seems that the PR departments of european brands are very active and alert, whereas the PR department of Lexus and Lexus enthusiasts are oblivious to the urgent need of revamping these articles on wikipedia. Wikipedia is here to stay and is getting ever more prominent day by day. |
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How a Luxury brand should evolve its pricing strategy: *1. Stage1 : Offer more for Less. example, LS 400 in 1990. *2. Stage2: Offer more for same: this is where lexus should be. *3. Stage3: offer Same for Same: example Audi A8 and BMW 7-series are very close in pricing offering similar contents at similar pricing. Audi is slightly less expensive because of less horsepower and less gadgets. * Stage 4: Offer same for more: This is where S-class is. It offers similar horsepower, gadgets, comfort, prestige, for a lot more money because it is well established. More so than BMW and Audi. Lexus should evolve from stage 1 to stage 2 now and price its products head-to head with Audi A8 at least. |
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Replying to: stevekilburn (Aug 11, 2006 3:57 pm)
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Replying to: atlas7 (Aug 11, 2006 4:43 pm) |
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Replying to: stevekilburn (Aug 11, 2006 4:53 pm) MSRP pricing is all about what is standard on the car. An LS 430 ultra at $72K is very similar to a loaded SWB A8 already. Lexus is entering a broad test pricing phase right now - when you think about it - and they are not about to leave any customers at the altar. So you'll see prices range from $65-67K for a moderately equipped SWB LS to around or just over $100K for the limo edition LS600HL. I again called my dealer today and the pricing I just put up there was his estimate as there is nothing official from Lexus yet but there are some guidelines - as he put it. The news that is scaring me is the demand for the hybrid and what's more based on the discussions I had with him is that people are depositing the full blown limo edition of the 600HL, which they are telling people will run at $100-105K. So Lexus doesn't need to build stature by raising prices thru the roof. They can have their cake and eat it too with greater model variability, thereby keeping the $65K customer and attracting the $100K customer with the same model platform. That is really the second stage of stature anyway. Pricing follows and the tiered availability of models brings the higher prices. As for MSRP - compare features for price - not just price. An LS460 won't debut at $70K simply because it lacks the standard features of a $70K Audi and the others you are comparing it to. But a comparably equipped LS460 will surpass the A8 and you'll see plenty of $80K+ LS sales in LWB platform and of course in the even longer wheel based LS600HL. Then of course you have the LF-A coming and in 2009 you'll have a $150-170K super Lexus with a V12 hybrid. The 600HL when coupled with those two cars is plenty of stature and it's all coming to a theatre near you shortly.
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Replying to: ljflx (Aug 11, 2006 5:32 pm) It is so great to have you back posting again. You had every right to get upset at some of those "ignoramuses". I also saw what one of the participants called the Lexus fans. That behavior is so childish that he should have been banned from these forums. Getting to the subject at hand, do you have any idea about what sort of AWD the LS600hL will have (electrical or mechanical)? Also, could you explain the peculiarities of both to those of us that do not know the fine details? I would think that the LS600hL will be equipped with the most sophisticated features no matter what.
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