TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

P85 $3500 price increase and bundling (spoiler, alcantara, and red calipers)!

Discussion in 'Model S: Ordering, Production, Delivery' started by commasign, Nov 14, 2013.

  1. commasign

    commasign Active Member

    Joined:
    Aug 31, 2013
    Messages:
    1,058
    Location:
    Davis, CA
    Tesla website updated. The P85 base price has increased from $82,400 to $85,900 but now includes the spoiler, alcantara headliner, and red brake calipers as standard. That's a $3500 difference which represents $1500 for the spoiler, $1500 for the alcantara, and $500 for the red calipers?
     
  2. doctrewho

    doctrewho Member

    Joined:
    Jun 20, 2013
    Messages:
    287
    Location:
    Raleigh, NC
    Interesting, they're starting to bundle again on the P. And those calipers look awesome! :)
     
  3. yobigd20

    yobigd20 Well-Known Member

    Joined:
    Oct 28, 2012
    Messages:
    5,793
    Location:
    Skaneateles, NY
    They just can't seem to make up their mind! Love the red calipers. I will have mine painted eventually to match!
     
  4. PokerBroker

    PokerBroker Member

    Joined:
    Jul 11, 2013
    Messages:
    523
    Location:
    Minneapolis, MN
    Classic, bundle the options the most people pass on :)
     
  5. Gizmotoy

    Gizmotoy Active Member

    Joined:
    Sep 16, 2013
    Messages:
    3,144
    Location:
    Bay Area, CA
    I'd really like the red calipers, but have practically no interest in the other options. $3500 for the calipers would be a tough sell for me, not that there's any choice for new orders. Glad I got in before the increase.
     
  6. DIL

    DIL Member

    Joined:
    Sep 13, 2013
    Messages:
    368
    Location:
    Danville, CA
    oh crap.
     
  7. e4chan

    e4chan Member

    Joined:
    Oct 11, 2013
    Messages:
    135
    Location:
    Toronto
    Quick question - are the calipars we have today (grey) also Brembo?
     
  8. JST

    JST Active Member

    Joined:
    May 23, 2013
    Messages:
    1,507
    Yes. Calipers appear to be physically exactly the same, other than color.
     
  9. e4chan

    e4chan Member

    Joined:
    Oct 11, 2013
    Messages:
    135
    Location:
    Toronto
    Sometimes I just don't understand Tesla....first they bundle, then they separate...or worse...they add more features. There is no notification to the customers and what is worst, is, if the Customer wants that option, he/she may or may not be able to add it.

    What are your thoughts?
     
  10. Gizmotoy

    Gizmotoy Active Member

    Joined:
    Sep 16, 2013
    Messages:
    3,144
    Location:
    Bay Area, CA
    It's a little annoying, but that's the nature of constantly evolving your product line. I would have paid $1k or so for the red calipers on their own, for example, but am not really interested in the other items that just got bundled.

    Sounds like they're getting too many P85/P85+ orders to meet their "1 month priority delivery" promise (which has been false since around September) and decided to bundle some less-popular options to increase profit margins.
     
  11. ACDriveMotor

    ACDriveMotor Member

    Joined:
    Aug 11, 2013
    Messages:
    815
    Location:
    Seattle, WA
    It does seem like P85/P85+ have been very popular. We all want TMC to stay in business and do well!
     
  12. lolachampcar

    lolachampcar Active Member

    Joined:
    Nov 26, 2012
    Messages:
    4,453
    Location:
    WPB Florida
    No need for focus groups here. We do real time price sensitivity testing. It seems consistent with Musk's personality, at least the shoot from the hip part.
     
  13. brianman

    brianman Burrito Founder

    Joined:
    Nov 10, 2011
    Messages:
    15,487
    You've presented two theories here not one. I tend to think it's mostly (1) and not much of (2).
     
  14. Gizmotoy

    Gizmotoy Active Member

    Joined:
    Sep 16, 2013
    Messages:
    3,144
    Location:
    Bay Area, CA
    Still seems like one thing to me. It's not two theories, it's cause and effect. They increased their profit margin, and price, on the P85/P85+. This is likely to lead to reduced demand, and somewhat fewer P85/P85+ orders to whatever extent buyers are price-sensitive.
     
  15. brianman

    brianman Burrito Founder

    Joined:
    Nov 10, 2011
    Messages:
    15,487
    I see it differently. (1) could be done entirely to speed up production. Fewer configurations allow for a faster line. Higher prices (generally) turn away some upgrades that customers were considering which either diminishes demand (fewer cars) or increases production rate (less in the car to build) -- or both.

    Notice nothing in what I described here speaks to profit margin (so far), but the "motivating customers not to upgrade" might actually lower profit margin.
     
  16. ckessel

    ckessel Active Member

    Joined:
    Jan 15, 2011
    Messages:
    4,266
    I find it amusing that Tesla's "mid price, mid volume" car in their master plan has had it's top end version reach the point where it costs more than some configurations of the previous Roadster. If they make lots of money on them, more power to them and it's good for the company's survival, but the S in its typical configurations has certainly drifted far from the original verbiage. I remember a lot of talk about cutting the price by half relative to the Roadster, but Tesla's shareholder report says they're near 100k for the ASP.

    Doesn't give much hope that Gen3 will really be mass market priced. If the S was "mid priced" at it's original $50k for the 40kwh and ASP is actually 100k, then the targeted $35k for the Gen3 is probably more likely $70k, which really isn't achieving Elon's stated goal of a mass market car :(
     
  17. lolachampcar

    lolachampcar Active Member

    Joined:
    Nov 26, 2012
    Messages:
    4,453
    Location:
    WPB Florida
    Tesla hit it out of the park with MS and the price is rising to the value they are providing.

    G3 needs to be designed to that $35K price point. If it stays there after they start shipping will purely be a function of demand.
     
  18. yobigd20

    yobigd20 Well-Known Member

    Joined:
    Oct 28, 2012
    Messages:
    5,793
    Location:
    Skaneateles, NY
    hmmm I doubt that. IMO this is purely for profits, nothing else. I highly doubt that someone who wanted a P85 will revert to an S85 just because of a small $3500 price increase. However, if you didn't notice, you are allowed to "uncheck" the spoiler and alcantara headliner, but it does not reduce the price. So it's a way for them to force people to pay for something they don't want , a two-fold profit increase -> either (a) they order it, spend more, and more profit per car or (b) they order it, uncheck those options, and tesla makes an even bigger profit per car.
     
  19. Gizmotoy

    Gizmotoy Active Member

    Joined:
    Sep 16, 2013
    Messages:
    3,144
    Location:
    Bay Area, CA
    It's funny to me that you also split the two apart, but made the exact opposite argument as brianman. Yours was more convincing, though. This increase provides zero benefit for production simplification since, as you noted, you can remove all the bundled items if you choose (though you still pay for them).

    I think a 35% increase in the cost of the P85 upgrade is bound to affect demand. Quite simply, that's a huge increase. Look at how often people on here get talked into upgrading from the S85. I think that upsell just got a lot harder. At the same time, the people who were always going to get a P85, like myself, would just swear and go ahead with it anyway.
     
  20. mknox

    mknox Well-Known Member

    Joined:
    Aug 7, 2012
    Messages:
    8,568
    Location:
    Toronto, ON
    Just happened to notice the bundling options are different between the Canada and US site. In Canada, they've gone back to letting you order the Dual Chargers and HPWC separately.

    I do remain curious about how Tesla implements our mandatory DRLs in non-Tech Pkg cars since the Canadian Tech Pkg specifically calls out the DRLs.
     

Share This Page