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Bundling options?

Discussion in 'Model S: Ordering, Production, Delivery' started by jcadman22, Sep 1, 2012.

  1. jcadman22

    jcadman22 MD: DRK NRG

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    Are all reservation holders expecting to pay the list price for all options? I paid full price for my loaded up Prius in 2004 when people were waiting months to get a car. Well, the Toyota dealership did throw in the $120 cargo net and first aid kit... But, that car cost half of what the base Model S costs even optioned out. I'd like to get every option except for the 21" wheels and rear seats (though I do have some kids that would LOVE to ride back there) but that pretty much relegates me to the 40kWh pack based on cost. I'm wondering if anyone has gotten a "break" on the cost of some options considering Tesla has held onto our deposits for some amount of time.

    I have to assume that many of the early adopters are going to load up their cars like me so there should be some economy of scale that could factor into the production. For example, if you're getting the tech package and the studio sound system maybe you get both for say $4K. Or, maybe you get the air suspension included with upgraded battery packs. Of course there's plenty of demand for the cars, and Tesla knows they've got a bunch of live ones on the line with reservation holders so there's not much incentive for them to be dealing on price. I would like to know others thoughts or understanding about the ordering process or negotiating points as I'm starting to see folks with reservation numbers near mine (6000) finalizing their orders.
     
  2. Todd Burch

    Todd Burch Electron Pilot

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    99.999999% sure there will be zero negotiation, zero deals. Price is as advertised. It's part of avoiding the haggling and negotiating that people don't like about traditional auto purchases.
     
  3. spleen

    spleen Active Member

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    +1. Would expect to pay full price for all options. Would be disappointed in Tesla if they start "wheeling and dealing" - I'm trying to get away from that model of auto sales.
     
  4. HX_Guy

    HX_Guy New Member

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    People say they don't like that part but it's not true. If it was, then people would just walk into a dealership and pay MSRP, why don't they? It would probably be the best car buying expeirence they've ever had as the dealership would be ecstatic with selling the car at full price.
     
  5. brianman

    brianman Burrito Founder

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    @HX_Guy
    The issue is that "MSRP" is a game rather than a real price. Haggling is a somewhat "customary evil" (not "necessary evil") that some of us are happy to move away from.

    As for the Model S, if anything people are paying more for bundled options -- in the form of Model S Signature. :(
     
  6. William13

    William13 Member

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    Hx guy, I disagree. It is about meeting expectations and fairness. People respond poorly to perceptions of unfairness such as different people paying different prices. The airlines get around this as few people compare price and date of purchase is understood to cause fluctuations. Psychology studies show that if results of sharing a pot of money is too asymmetric that people will choose no money for themselves rather than allow someone to be too greedy.
     
  7. jcadman22

    jcadman22 MD: DRK NRG

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    I agree that the haggling days should go away. Given Tesla's openness to this point I think there's a high probability that we can look forward to that with Model S/X/future models. Thank you all for the reality check. Maybe we can get a package shelf as consideration for being loyal Tesla fan-boys/girls for many months or years up to this point? I guess that's what the opportunity console is supposed to be. However it shakes out, I'll be thrilled on the first day that I get to drive my Model S!
     
  8. dsm363

    dsm363 Roadster + Sig Model S

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    I'm pretty certain they are not allowed to give anything away since someone would find out and demand the same thing. It will be an amazing car anyway and dealing with Tesla so far has been much more pleasant than going to my local dealership and buying a car.

    If you're ever planning on traveling with the car, I'd consider the 60 kWh car since you'll have Supercharger installed if possible.
     
  9. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    When I want to purchase something I go and research the price. Either the price seems okay and I buy the item or I don't buy. I don't want to go someplace and then try to find out what the "real" price is. And I absolutely don't want the price to be based on what they think I can afford to pay.

    When I purchased my 2004 Prius, Toyota sent a letter giving me three option level choices and the price for each. I chose one of the options that that was it (the dealer had to abide by that price). I expect Telsa to be the same--anything else means they are being unfair to their other customers.
     
  10. Robert.Boston

    Robert.Boston Model S VIN P01536

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    I agree with the view that there will be no deals or discounts off list.

    In the old-school auto dealer model, there are two levels of incentives going on:
    1. Factory-to-dealer: The auto manufacturer is trying to encourage its dealers to sell more of a certain vehicle, so they offer various dealer incentives that effectively lower the wholesale cost of the car to the dealer.
    2. Dealer-to-customer: The dealer is trying to figure out how to sell more cars (which tends to create a relationship that brings follow-on service & parts sales, which is where the real dollars are), and the sales rep you're dealing with is trying to earn his commission. The dealer can choose how much of a margin he's willing to accept on the car and to find various inducements.

    Contrast this with the Tesla model: there's no middle-man, and the customer reps are on salary, not commission. Tesla has decided how much margin it wants to earn on the car and other features, and it has no reason to discount from that to earn your business. As Elon noted in the last earnings call, Tesla is supply-constrained, not demand-limited.

    Of course, there are other "direct from the manufacturer" products out there, and you do see the occasional promotion. Once Tesla's supply capability matches or exceeds demand, it's possible that we'll see some special deals ("order an 85P today for free delivery"). But that's at least a year down the road, and even then, I expect little or no discounting.
     
  11. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    And more likely three or four years.
     
  12. spatterso911

    spatterso911 MSP#7577 **--** MX#1891

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    Agreed.

    I would also say that most of us, if not all of us here are the same way, given that the forum has a built-in selection bias towards cost and/or feature-conscious consumers. Otherwise, we'd just place a reservation and wait for the information on when to pay and get our cars after a couple visits to the Tesla Store and perhaps a test drive. Most of the regulars on this forum will receive the car, be happy with what they paid, and already be remarkably familiar with the car and it's abilities save for a few surprises Tesla may have baked in.
     
  13. NigelM

    NigelM Recovering Member

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    Exactly, and neither do we normally have the opportunity to compare how much we actually paid for our cars. With Tesla's business model (i.e. online and stores) they encourage the 'experience' and indirectly encourage forums and meet-ups. If one person was offered a deal/discount how long would it take to reach TMC and just imagine what would be the result?
     
  14. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    It takes a lot of practice for a driver to get the most of a particular car, and knowing as much about it as possible helps you focus your practice more effectively.
     
  15. ElSupreme

    ElSupreme Model S 03182

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    Madness! I am still upset I didn't even get a letter when I made my reservation. And some people got swag! :eek::biggrin:
     
  16. Brian H

    Brian H Banned

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    Like the old feudal French system; the taxpayers would report half their income, and the assessors would double the rate, and everyone was happy.
     

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