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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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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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Replying to: cyclone4 (Aug 11, 2006 7:12 pm) Other board - It has degenerated so badly with some of the most immature posts I've read on Edmunds in 6 years of posting. I noted that even Pat commented about it when I caught up on some posts. It's becoming a Euro board and without Lexus participants it'll die off. I'll stick to this neighborhood and avoid the lunacy that goes on over there. But I've also got a lot of business activity going on right now so I'll be away at times. Let's get a good handle on the pricing but I'll tell you what I am hearing is there is a lot of demand for the LS600HL and in the most expensive trim no less. |
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Replying to: stevekilburn (Aug 11, 2006 4:53 pm)
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Replying to: atlas7 (Aug 12, 2006 5:05 am) I think that Lexus should continue pricing sensibly. Their vehicles are superior to the equivalent German brands in quality, reliability, service and retained value. With the hybrids they are vastly superior in technology. It seems that the LS600h will be priced at a bargain level:I don't think Lexus will make money on them for a few years. Production is evidently going to be limited. I believe Lexus should concentrate on bulding up sales in Japan itself and in Europe and the Middle East. If that leads to a severely limited supply in the USA, so be it. The LS460 itself with its newly refined powerplant and an eight speed transmission and all the electronics that works (and is superior to the Eurocars) and justly priced will be a very big winner
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When the LS is redesigned, it is to have 380+HP for a reason. It will have an 8-speed for a reason. It will grow in size for a reason. It will be better looking for a reason. I don't see a reason for giving the new car all of these attributes, and then not raising prices accordingly. This car is not being redesigned, it is being revolutionized! Toyota may be ignoring every other HELM (except Mercedes) on the market! They have made a killing with the LS, and they will price the Next LS so they will continue to. Toyota will win either way they go.  But selling 40-50k LS a year cheapens the car, to a point. Everyone knows it's an incredible car, but it's not precious and few. I want Lexus to actually reduce volume sales by increasing prices, and not go to 350-400k sales a year. Pricing the LS too low is counterproductive. You get numbers, but lose respect. Pandering to value market is......pandering!  How is Lexus growing and evolving? You can't just start making $150k cars. You have to grow and evolve into that. The LS is their best bridge to get where they want to go. If the 600hL is $100k, where does the LS460 stop? It would have to get to at least $85k! I want to see the LS460L priced at $70-85k, an the 600 from $90k-105k. DrFill
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