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Saturn Revises Pricing Strategy for 2005
SaturnFans.com • September 6, 2004

Retailers report to SaturnFans.com that Saturn will take a back-to-basics "one-price" approach to its sales incentive strategy for the 2005 model year. While official details are not yet known, it seems that Saturn plans to exit the complicated and confusing game of varying customer incentives month after month through different marketing programs. Instead, retailers say Saturn's 2005 prices will stay the same throughout the whole model year, and that those prices will now include a standard 5-year/60,000 mile warranty. Advertisements are planned to promote the simple and straightforward combination of sales and financing options shown below.

2005 Pricing Options
IonRelayVue
5-Year
60,000 Mile
Warranty

- or -

$1000
Personal Allowance
5-Year
60,000 Mile
Warranty

- or -

$1250
Personal Allowance
5-Year
60,000 Mile
Warranty

- or -

$1250
Personal Allowance
60 Months @ 3.9%
72 Months @ 5.9%
Financing

- or -

$500
Personal Allowance
60 Months @ 3.9%
72 Months @ 5.9%
Financing

- or -

$750
Personal Allowance
60 Months @ 3.9%
72 Months @ 5.9%
Financing

- or -

$750
Personal Allowance

All qualifying customers will have the same two options when buying a 2005 Saturn vehicle. For example, if you are interested in purchasing a 2005 Vue, but plan on paying cash or taking advantage of your own financing options, you would receive $750 in personal allowance. In addition, if you decline the standard 5-year/60,000 mile warranty, and instead opt for a 3-year/36,000 mile warranty, you would receive an additional $1250 in personal allowances.

Will Saturn's new strategy pay off? Only time will tell. Its interesting to note that in SaturnFans.com surveys conducted earlier this year, nearly 60% of visitors who participated in the surveys felt that incentives had changed their perception of Saturn's one-price philosophy; 30% felt that Saturn should lower their prices instead of continuing to offer incentives. This new strategy addresses both of those concerns. Kudos to Saturn for taking a risk in an attempt to return to its one-price roots!

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