ACEZ95
Full Member
Seems to me that GM is selling out to American workers.I just can't convince myself to buy foreign at an American price.If its made in Mexico ,I want a Mexican price. 
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Why Are Avalanches' Priced Higher Than American Tr
- Thread starter ACEZ95
- Start date
Roy
Full Member
ACE Z71 said:
This is where the bonus money comes in for the USA GM executives. Build the AV with cheap Mexican labor; sell at a high price to the wealthy Americans. I see a lot of bonus money being passed around to the corporate executives for such a brilliant plan.
Roy
ACE Z71 said:
. . . and it's not as if Mexican workers were being paid the same as U.S. and Canadian workers. In a perfect (equitable) world, we should see a large protion of that difference reflected in the price.
If you compare apples to apples the Av is not over priced. Before I got my Av I was looking at a crew cab silverado. Yes the sticker price is less on the crew cab, but once you add everything that the Av has the are the same price. Compare a stock Av and a stock crew cab silverado then add all the extra's the Av has and the crew cab is the same price. I did this 2 years ago before I bought my Av. The only thing I wish the Av had is the 6.0 engine.
Bottom Line - You get what you pay for!
Roy
Full Member
King said:
Hopefully, that's the case. I consider my AV to be the best "price to benefits" ratio of any automobile I have ever owned. That even includes my 1966 428 Ford Galaxie 500XL; which I thought was a hot car and at the time I thought I was even hotter driving it.
Roy
Roy
Full Member
ACE Z71 said:Seems to me that GM is selling out to American workers.I just can't convince myself to buy foreign at an American price.If its made in Mexico ,I want a Mexican price.
ACEZ95,
You asked for it. "That will be 360,000 Pesos." That's your Mexican price.
I also bought another foreign car: A Pontiac Firebird.
Roy
justhrowit
Full Member
Let's face it folks!!!!! GM is charging this kind of money for the AV for one reason... People like me and you are willing to shell out the $38,000 in order to drive this machine. True, much of the final cost has to do with margins, and profits. Could they sell it for cheaper...PROBABLY!!!!! If you owned your own business, and you were in GM's position would you sell it for cheeper than you could sell it for. NOT LIKELY!!! Keep in mind all the officers in GM have to deal with investors. Would you want to handle the thousands of owners of GM. Bottom line is that GM is in business for the main reason to make moeny and satisfy the owner(shareholders). Selling a vehicle for a cheeper price than what the market would pay is stupid business sense. If you don't like then go buy a Honda. Remeber though...Honda is doing the same damn thing. Selling their cars for what the public is willing to pay in order to satisfy the owners!!!!!
My $0.02
My $0.02
Honda and Toyota are selling vehicles for $3-5K more than the Big 3 because Americans are willing to shell out that extra money for what they perceive to be a better product. This is capitalism and the laws of supply and demand in action.
Just remember that although $38,000 is a lot of money to an American, it is a lifetime of savings in almost every other country. In many countries, there would never even be any hope of having a car. We pay less for our house mortgages than people in most other nations pay for cars. The US standard of living is so much higher than almost anywhere else in the world. And personally, I'm willing to shell out $38,000 for an Av to keep it that way!
Just remember that although $38,000 is a lot of money to an American, it is a lifetime of savings in almost every other country. In many countries, there would never even be any hope of having a car. We pay less for our house mortgages than people in most other nations pay for cars. The US standard of living is so much higher than almost anywhere else in the world. And personally, I'm willing to shell out $38,000 for an Av to keep it that way!
Does the cost of production really have anything to do with the value of a product to the buyer?
If it does, why do those of us who are beer drinkers pay the price we do for a 12 pack, or go to a bar and buy 3 beers for what we could by 12 for at the store: or better yet: what we could home brew 10 gallons for?
Value is based on buyer perception, and while I hate to think about how much it cost me: it was a far better value to me than any other vehicle I considered!
If it does, why do those of us who are beer drinkers pay the price we do for a 12 pack, or go to a bar and buy 3 beers for what we could by 12 for at the store: or better yet: what we could home brew 10 gallons for?
Value is based on buyer perception, and while I hate to think about how much it cost me: it was a far better value to me than any other vehicle I considered!
Macman,
And how come when you go 'drinking' in Tija-yucka and Mexicali they don't sell Corona in the bars?
And how come when you go 'drinking' in Tija-yucka and Mexicali they don't sell Corona in the bars?
- Joined
- Jun 11, 2002
- Messages
- 10,631
midlifecrisis said:
If the Japanese made a vehicle identical to the Avalanche, I'd likely pay 3-5K more for it based on my "perception" of their other products. I think in this example, perception = reality.
Again, JMO.
Flame suit on now
While checking Invoice/MSRP before buying I noticed the markup on the Av is about $1k more than the pickup. AND, apparently a lot of people AREN'T willing to shell out the big bucks - hence the larger rebate on the Av.
Can you get factory direct pricing? ?I wonder if you could get one in Mexico, built for the US, at a super price?
if so...... the words "Road Trip" come to mind.
if so...... the words "Road Trip" come to mind.
F
FlyAG4
GUEST
Leadership in a competitive market presents challenges. I tip my hat to the Chevy Execs for taking the plunge. The cost/risk to develop a product like the AV is large. The market will acknowledge a well designed product. And the market says the AV is a good value. I think Chevy "owns" this concept. No other manufacturer is coming close at this point.
The convertible nature and flexibility of this Truck/Suburban is outstanding. You can't fit a 4x8 sheet of ply in the back of a $65K Landcruiser or $55k H2, then convert to a 5 pax "car" with huge weather shielded covered storage. In my mind the AV has plenty of eye appeal/presence compared to those two vehicles, especially with a few cosmetic(wheels) and performance (exhaust) enhancements. A "real work" truck is hidden just below the surface.
From what I read on this website, the owners are satisfied. Chevy is getting it right. Score one for an American manufacturer. I expect Chevy to improve the design and features (better crash test ratings). I don't want an EXT but do want some of the features. More dollars and another choice. Nice work Chevy guys.
So... my opinion is they get to charge a few dollars more for a better truck.
ps- Thanks for this website. All of your input has confirmed my decision on the AV. Just as soon as my home loan broker will let me. It's all about the ratios, don't you know!
Mike
The convertible nature and flexibility of this Truck/Suburban is outstanding. You can't fit a 4x8 sheet of ply in the back of a $65K Landcruiser or $55k H2, then convert to a 5 pax "car" with huge weather shielded covered storage. In my mind the AV has plenty of eye appeal/presence compared to those two vehicles, especially with a few cosmetic(wheels) and performance (exhaust) enhancements. A "real work" truck is hidden just below the surface.
From what I read on this website, the owners are satisfied. Chevy is getting it right. Score one for an American manufacturer. I expect Chevy to improve the design and features (better crash test ratings). I don't want an EXT but do want some of the features. More dollars and another choice. Nice work Chevy guys.
So... my opinion is they get to charge a few dollars more for a better truck.
ps- Thanks for this website. All of your input has confirmed my decision on the AV. Just as soon as my home loan broker will let me. It's all about the ratios, don't you know!
Mike
kevinl33
Full Member
It's interesting that GM is selling the AV cheaper in Canada than in the states. I just bought a new 03 AV so I have a good handle on prices here in canuck land. A base model 1500, with no extra's, retails for C$39000. The current exchange rate, 0.6906, in US $26933.
smigdiggler
Full Member
One Thougt and one comment...
first the thought....Avalanche is built in Mexico and sold at a premium to make up for all the Aztecs sitting at the dealer lots. For GM they may break even in 2005 if they stop production of the aztek immediately...
Now the Comment.
Corona is made by the Mexican Brewing Company Modelo. Majority share of Modelo is owned by an American company call Budweiser.
first the thought....Avalanche is built in Mexico and sold at a premium to make up for all the Aztecs sitting at the dealer lots. For GM they may break even in 2005 if they stop production of the aztek immediately...
Now the Comment.
Corona is made by the Mexican Brewing Company Modelo. Majority share of Modelo is owned by an American company call Budweiser.
- Joined
- Aug 11, 2002
- Messages
- 928
I continue to be amazed at how people see things.
It doesn't matter where a product is manufactured. If someone believes that the product is a good value then he/she purchases it. If it's not seen as a good value then it's not purchased.
Suggesting that, because labor costs in Mexico are lower, the Av should be priced lower is showing one's naivete. Companies are in business to make money. They try to reduce their costs and maximize their sell prices to increase their bottom line. Isn't that what you do on a micro scale in your own life?
It doesn't matter where a product is manufactured. If someone believes that the product is a good value then he/she purchases it. If it's not seen as a good value then it's not purchased.
Suggesting that, because labor costs in Mexico are lower, the Av should be priced lower is showing one's naivete. Companies are in business to make money. They try to reduce their costs and maximize their sell prices to increase their bottom line. Isn't that what you do on a micro scale in your own life?
I bought my Z66 a month ago for $32,500 out the door. Backing out taxes I probably paid about $30,500 for the truck, rebates included. Its got the mostly leather bucket seats and upgraded sound system package, towing package, and also had listed about $1500 in dealer installed "options" which I didn't want, but which they had on all of the AVs in their lot. They knew I had come about 200 miles for a yellow one, so I probably had to pay a bit more for the new color as well.
M
mahalkita
GUEST
Hey Guys,
I agree with Magic Mtn Dan: It really does not matter where things are made. As long as the value for money is OK than it is OK for me. I have looked at various vehicles before getting the AV and in comparison it is well build (much better than the GMC Safari - no idea where this is made). The BMW SAV is made in this country but still costs a big amount of money because people are willing to pay for less space, and a small baby V8 twice the amount of the AV. They are even willing to pay for a very ugly Porsche with still a baby V8 more than a lot of money just to show the people that they can really affort it. Lets face it, people buy things to impress also others - the rich are getting always the same German or Japanese cars to show they can affort it. The AV costs exactly the same than the comparable Silverado 1500 HD Crew cab (+/- 500$) but may be sold for a different price at the end. It has more features for the same money but is not built as strong because of the Suburban chassis - so it evens out. Its very good value for money, I dont care if its build in China or Mexico as long its well built. The Japanese cars are still built better (fit and finish) but cost also more. A Landcruiser is a good example. I have driven only LCs before this AV and never ever replaced anything aside from consumables, even after 150k miles on it. But the AV costs only half as much and is bigger and more fun to drive. So dont complain about pricing - its very good value for money and a dream truck to have!
mahalkita
I agree with Magic Mtn Dan: It really does not matter where things are made. As long as the value for money is OK than it is OK for me. I have looked at various vehicles before getting the AV and in comparison it is well build (much better than the GMC Safari - no idea where this is made). The BMW SAV is made in this country but still costs a big amount of money because people are willing to pay for less space, and a small baby V8 twice the amount of the AV. They are even willing to pay for a very ugly Porsche with still a baby V8 more than a lot of money just to show the people that they can really affort it. Lets face it, people buy things to impress also others - the rich are getting always the same German or Japanese cars to show they can affort it. The AV costs exactly the same than the comparable Silverado 1500 HD Crew cab (+/- 500$) but may be sold for a different price at the end. It has more features for the same money but is not built as strong because of the Suburban chassis - so it evens out. Its very good value for money, I dont care if its build in China or Mexico as long its well built. The Japanese cars are still built better (fit and finish) but cost also more. A Landcruiser is a good example. I have driven only LCs before this AV and never ever replaced anything aside from consumables, even after 150k miles on it. But the AV costs only half as much and is bigger and more fun to drive. So dont complain about pricing - its very good value for money and a dream truck to have!
mahalkita