Price of 2022 Model S with advertising

[dark cloud]

Watching the US open, and just saw an Audi etron commercial, with some rugged tv star actor in the drivers seat. (I recognized him, but had to look up his name)

It kinda perked my thoughts towards Tesla's whole marketing philosophy of word of mouth only. (which some would argue is not as strong as it was, on a per owner context, but not on an overall volume of owners context)

Of course the concept is that Audi will sell more cars with the advertising, especially with the middle-aged males who watch golf, and we can assume it works or the companies wouldn't do it. I don't know how many Lincoln's were sold because of Matthew McConaughy, but related to the Model S, what do you guys think Tesla would have to charge for the car if they advertised like the typical auto manufacturer?

What would the $79,990 retail price of the long range need to be if they decided to pay for commercials like this?

 

[TLLMRRJ]

Watching the US open, and just saw an Audi etron commercial, with some rugged tv star actor in the drivers seat. (I recognized him, but had to look up his name)

It kinda perked my thoughts towards Tesla's whole marketing philosophy of word of mouth only. (which some would argue is not as strong as it was, on a per owner context, but not on an overall volume of owners context)

Of course the concept is that Audi will sell more cars with the advertising, especially with the middle-aged males who watch golf, and we can assume it works or the companies wouldn't do it. I don't know how many Lincoln's were sold because of Matthew McConaughy, but related to the Model S, what do you guys think Tesla would have to charge for the car if they advertised like the typical auto manufacturer?

What would the $79,990 retail price of the long range need to be if they decided to pay for commercials like this?

It's not word of mouth only. That's a myth.

First off, the referral program is a pure pyramid marketing program that costs money to manage and to deliver the perks. They even give away cars, wheels, and at the very least free energy that costs them a lot to deliver.

Right there, no one can claim Tesla spends zero on marketing. That cost goes into the prices of our cars.

Second, the way Tesla/Elon knows how to work social media/news media is pure marketing/advertising as well, and frankly, the smart way to advertise these days. It's low cost, but there's a cost.

Third, the highly anticipated and hyped events they put on are pure marketing/advertising and are expensive to put on.

They're doing a lot of marketing already, so don't think they would benefit much from spending on superbowl ads, etc.

 

[Sbaimo]

Why do tv advertise when you sell out everything without advertising. Same goes for customer relations.

I watch golf but would never buy am Audi (ugly IMO) or a Lincoln. But have bought many Mercedes which are advertised. But the MB models I have owned are rarely advertised. AMG’s for the most part.

 

[RobDickinson]

Right there, no one can claim Tesla spends zero on marketing. That cost goes into the prices of our cars.

Tesla do indeed market, they dont advertise, theres a difference ( advertising is marketing by paid promotion , i.e. tv spots, magazine pages etc.

According to Automobile manufacturers ad spend in the U.S. 2019 | Statista VW group spent $777 milliuon on USA advertising in 2019, and Volkswagen Group Sales Figures – US Market says ~650,000 cars sold

So an average of $1200 per car sold on advertising.

 

[dark cloud]

It's not word of mouth only. That's a myth.

First off, the referral program is a pure pyramid marketing program that costs money to manage and to deliver the perks. They even give away cars, wheels, and at the very least free energy that costs them a lot to deliver.

Right there, no one can claim Tesla spends zero on marketing. That cost goes into the prices of our cars.

Second, the way Tesla/Elon knows how to work social media/news media is pure marketing/advertising as well, and frankly, the smart way to advertise these days. It's low cost, but there's a cost.

Third, the highly anticipated and hyped events they put on are pure marketing/advertising and are expensive to put on.

They're doing a lot of marketing already, so don't think they would benefit much from spending on superbowl ads, etc.

Excellent points. As I read it years ago (before my time as an owner) the supercharging was priced into the car. These days the cost of 1000 x 2 miles here and there for referrals is peanuts really, about $150 per referral?

But there is the model Y prize, (anyone know how/where they actually advertise who has won these every month/quarter? ) which adds up, and many millions in past prizes in the forms of wall connectors, wheels, powerwalls, and a few undelivered Roadsters.

For sure that adds up to a few hundred commercials, for the years 2014-2017 at least, then I suppose the $79,990 retail price is the same as it they didn't have referrals and advertised "normally".

 

[dark cloud]

Tesla do indeed market, they dont advertise, theres a difference ( advertising is marketing by paid promotion , i.e. tv spots, magazine pages etc.

According to Automobile manufacturers ad spend in the U.S. 2019 | Statista VW group spent $777 milliuon on USA advertising in 2019, and Volkswagen Group Sales Figures – US Market says ~650,000 cars sold

So an average of $1200 per car sold on advertising.

Excellent research, thank you; there is a number. And that $1200 also applies on the cars that retail for $20 - $30 thousand dollars retail!

 

[RobDickinson]

But there is the model Y prize, (anyone know how/where they actually advertise who has won these every month/quarter? ) which adds up, and many millions in past prizes in the forms of wall connectors, wheels, powerwalls, and a few undelivered Roadsters.

The model Y prize has been dropped but its one car a month, $50-60k, $700k a year in retail costs (assuming tesla has 20-25% margin roughly half a million).

The real question is does it bring in any additional sales, does anyone even know about it, you have to search hard to find stories on someone winning this car...

 

[FatherTo1]

Celebrities in car commercials are amusing. I am sure their market research shows a benefit but I’ve never bought a vehicle because a celebrity appeared in a commercial for it. For some product association it works, such as MJ back in the day with Nike and Gatorade.

I couldn’t care less what Matthew McConaughy drives, let alone interest me in a Lincoln. JLo pushing Fiat was also a riot. There was no way I was convinced Shaq would seriously drive a Buick (LaCrosse, I think). Or Eminem in a Chrysler 300…riiiight, that’s believable.

Tesla utilizes more modern forms of marketing through social media, “unveiling” events, and their own battery day. Tesla is the undisputed EV leader and already gets some free advertising through mentions in every EV conversation or competitor comparison claiming to be the next Tesla-killer.

 

[RobDickinson]

Celebrities in car commercials are amusing.

Yep - if they are being paid to be in the advert then who gives a crap its not generally their own choice other than to take the money. They'll just as likely get into a totally different brand vehicle in the car park outside the studio and go home..

 

[Jughead135]

assuming tesla has 20-25% margin

Is that a good assumption?? I thought Tesla was losing money (overall) on car sales...?

 

[RobDickinson]

Is that a good assumption?? I thought Tesla was losing money (overall) on car sales...?

No, they are not, and their gross margins per car are clearly stated every quarter