BobbiBigWheels
Active member
- Joined
- Apr 22, 2018
- Messages
- 93
- Reaction score
- 130
- Points
- 33
With the 5 year plan by FCA now out, I have been thinking more and more about FCA's clear deviation from its current position in the market, and how it will affect my livelihood - selling their product.
Since the loss of the Patriot/Compass twins, Chrysler 200, and Dodge Dart, FCA had left us dealers with no sub-$20,000 CAD new product to offer our very price/budget focused clientele. Even the Dodge Grand Caravan, which once offered a Canada Value Package for $19,998, is now over $23,000, 3 years later. We had heard for a while now how much Sergio Marchionne was focused on margins with our product, and that the removal of this excellent cost-to-entry actually saved FCA millions. Now it is clear that FCA is very much determined to be a "high-end" brand.
How does that affect us sales people?
In my locale, our sales are dominated by Ram trucks and Jeep product. To put it into perspective, of 117 units sold, 40 were Ram 1500s alone. Our average transaction per Ram 1500 was between $35,000-$55,000, including pre-owned Rams. Totally reasonable, and nothing we are not used to. Where I get a bit anxious is staring at a $80,650 MSRP 2019 Ram 1500 Laramie in my showroom currently. This 6 figure loan, which after taxes it nearly is, is not appetizing to the dealer, or the public. It is, however, a clear indicator of where FCA wants to take its brands.
Jeep has always sold at a premium price, and they can, there is a clear defined competitive advantage that Jeep offers in Off-Road capability. Ram has started to convey their differences, however, as a salesman I always thought they have missed the mark. Where Ram is truly different than the competitors is ride quality. No one else uses coil spring suspension in the rear, and I would like Ram to really lean on the fact that we sell the quietest riding, best daily driving, and best interiors on the market. The product is worthy of the $80,000+ CAD tag, however, the market may not know why.
Chrysler sales for us is simple - ex-rental Chrysler 300s, and a client comparing Pacifica to Sienna or Odyssey. The Pacifica is an excellent product, however, in no way shape or form does it being a "Chrysler" help itself. For us Canadians, an all-new Grand Caravan with the Pacifica grille swapped for a Dodge one would sell better.
We don't sell Fiats, but then again, neither does our autogroup's Fiat dealership.
I have come to the conclusion that our sales people need to be retrained to prepare for the shift in market focus by FCA. We are not a mainstream brand anymore, as we do not offer pricepoints that the mainstream can afford. I feel this will only worsen. We are going to be a lifestyle/luxury brand, and frankly, I do not know if dealers are ready for this change. Only time will tell.
Since the loss of the Patriot/Compass twins, Chrysler 200, and Dodge Dart, FCA had left us dealers with no sub-$20,000 CAD new product to offer our very price/budget focused clientele. Even the Dodge Grand Caravan, which once offered a Canada Value Package for $19,998, is now over $23,000, 3 years later. We had heard for a while now how much Sergio Marchionne was focused on margins with our product, and that the removal of this excellent cost-to-entry actually saved FCA millions. Now it is clear that FCA is very much determined to be a "high-end" brand.
How does that affect us sales people?
In my locale, our sales are dominated by Ram trucks and Jeep product. To put it into perspective, of 117 units sold, 40 were Ram 1500s alone. Our average transaction per Ram 1500 was between $35,000-$55,000, including pre-owned Rams. Totally reasonable, and nothing we are not used to. Where I get a bit anxious is staring at a $80,650 MSRP 2019 Ram 1500 Laramie in my showroom currently. This 6 figure loan, which after taxes it nearly is, is not appetizing to the dealer, or the public. It is, however, a clear indicator of where FCA wants to take its brands.
Jeep has always sold at a premium price, and they can, there is a clear defined competitive advantage that Jeep offers in Off-Road capability. Ram has started to convey their differences, however, as a salesman I always thought they have missed the mark. Where Ram is truly different than the competitors is ride quality. No one else uses coil spring suspension in the rear, and I would like Ram to really lean on the fact that we sell the quietest riding, best daily driving, and best interiors on the market. The product is worthy of the $80,000+ CAD tag, however, the market may not know why.
Chrysler sales for us is simple - ex-rental Chrysler 300s, and a client comparing Pacifica to Sienna or Odyssey. The Pacifica is an excellent product, however, in no way shape or form does it being a "Chrysler" help itself. For us Canadians, an all-new Grand Caravan with the Pacifica grille swapped for a Dodge one would sell better.
We don't sell Fiats, but then again, neither does our autogroup's Fiat dealership.
I have come to the conclusion that our sales people need to be retrained to prepare for the shift in market focus by FCA. We are not a mainstream brand anymore, as we do not offer pricepoints that the mainstream can afford. I feel this will only worsen. We are going to be a lifestyle/luxury brand, and frankly, I do not know if dealers are ready for this change. Only time will tell.
