Destination to $1445!!!

[misanthrope]

I just saw that not only has Jeep raised the MSRP on the Wranglers $500, but the destination charge is now $1445 for all models! Anyone else seeing this. It's not on the configurator, but under vehicle details in "Search New Inventory", many Rubicon and Sahara models show the $1445 number.

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[K9Jeeper]

Yep. They’ve been discussing it on the forums the past few days quite a bit. Crazy, isn’t it?

 

[That One Guy]

Wait, was the MSRP increase not across all models? Which ones are and aren't subject?

 

[Jeepman DX]

FCA must've really wanted to turn potential customers off. What next, inflating the smoker group to $130 and forcing the 6T manual crowd to suck it up?!...smh

 

[cclark20]

Wow if this is accurate, according to FCA it costs more to delivery a Wrangler to their dealers than it does for a Ram 3500 4x4 Dually. Gouge much do you. FCA is riding this JL Wrangler money train for all its worth.

 

[That One Guy]

Wow if this is accurate, according to FCA it costs more to delivery a Wrangler to their dealers than it does for a Ram 3500 4x4 Dually. Gouge much do you. FCA is riding this JL Wrangler money train for all its worth.

Yes they are. Shame they weren't bold enough to just up the MSRP some more, instead of hiding behind a bullshit bloated delivery fee. When you're the highest in the industry on a domestically produced vehicle.... you're lying.

 

[misanthrope]

Wait, was the MSRP increase not across all models? Which ones are and aren't subject?

None. I just couldn't confirm either the price increase nor the destination charge was across the board at the time of posting. Both are for all models shipped/ordered after late (date?) February.
The two increases combined more than negates the 1% Tread Lightly discount, and, on less expensive models, effectively raises the cost to consumer more than 2%.
Additionally, I believe this (especially the destination charge) is a move by FCA to pad an already inflated invoice price to capture a greater, and less flexible, margin of profit. This benefits both dealer and manufacturer. The policy of offering "off-invoice pricing" when the invoice itself is padded beyond actual dealer cost is much like a department store raising prices before a sale to advertise a greater percentage off (Kohls does this frequently).
The increase will bring my ideal build over $56k. I will need to rethink options at this point, as I was already pushing the budget before, so maybe no steel bumper group or no leather or maybe no painted top. I know, first world problems. But it does leave a bad taste.

Finally, if one more pointless dick gets on and says something along the lines of "If it's too much money for you, than get a Civic" or "Don't buy it", or some other useless statement, I might just lose my shell. This discussion is for information and feedback, and yes, people who work for FCA do monitor this forum (they'd be foolish not to get free, knowledgeable input from a core demo) . The more of us who seem willing to bend over and take any increase without question, the more likely FCA is to continue these shady practices.

 

[lonz]

The recent price increases do not surprise me one bit... I remember learning about this practice in Economics 101 back in college. Basically, it comes down to this: "If your company is struggling to keep up with demand for your product, you must continue to raise your prices until the demand subsides." Again, it's business 101, and it's exactly what I would do, too, if I were running FCA. It's smart business.

 

[misanthrope]

The recent price increases do not surprise me one bit... I remember learning about this practice in Economics 101 back in college. Basically, it comes down to this: "If your company is struggling to keep up with demand for your product, you must continue to raise your prices until the demand subsides." Again, it's business 101, and it's exactly what I would do, too, if I were running FCA. It's smart business.

No, I get the MSRP increase (kind of.) Supply/demand factors should have been considered during the initial pricing study. This is an error on FCA's part that late orderers will pay for. But in-stream price increases such as this are a form of gouging: the product hasn't been improved/increased in any way, but the price has increased due to demand. A store running low on milk would't dream of such a practice, but here we condone it.

The real problem lies in the $250 destination charge increase, which most dealers won't discount. Jeeps suddenly became more expensive to deliver and wash? No, this is inflexible profit, which goes directly into the pocket of FCA. If demand is the issue, then eliminate TL discounts and the possibility of below invoice sales.

 

[Snerf]

This discussion is for information and feedback.

Are only complaints and negative criticism allowed (on this thread)? What about encouragement and praise for FCA's pricing strategy and profit maximization?

I'm invested in FCA; I also paid cash for our JLUR. From my perspective, since as you state, FCA is probably monitoring this board, they should really emphasize the open top aspects. The more owners evangelize, the more demand will be driven even higher, especially as the weather improves. Higher prices, more profits, higher share price. QED

 

[misanthrope]

Are only complaints and negative criticism allowed (on this thread)? What about encouragement and praise for FCA's pricing strategy and profit maximization?

I'm invested in FCA; I also paid cash for our JLUR. From my perspective, since as you state, FCA is probably monitoring this board, they should really emphasize the open top aspects. The more owners evangelize, the more demand will be driven even higher, especially as the weather improves. Higher prices, more profits, higher share price. QED

Again, you miss the point. A vehicles price should be determined by market demand, and it is their responsibility to their shareholders to increase demand resulting in increased sales and profit. It is not the maximization of profit I criticize. It is the amateurish and somewhat underhanded way in which FCA is going about this. No one begrudges FCA profit, and on such an in-demand vehicle they would be fools not to maximize it. but are they so new to the game (or clueless) that they couldn't properly forecast demand? Have destination costs risen in any unforeseeable way? Changing the price only weeks after official release, and making one of those changes a significant jump in a fixed, non-negotiable cost like destination charge, which has a built in level of profit, and then pretending to discount below "invoice" is underhanded.
It is a great, unique and highly sought-after vehicle with a very high profit margin. Just fix a price and stick to it, don't stick it to us.

Plus, if you are so interested in making a few cents on your shares at the expense of every one else on this forum, why would you pay cash for a vehicle when average financing rates are below 3% and $40-50,000 invested even conservatively should be returning at least 6% over the life of a potential loan (5-6 years)? That would net you waaaay more than FCA's profit sharing...or, even better, you could have bought $40-50,000 more of FCA stock and made money on both ends.

 

[HotSpringsJL]

You should have the government investigate and set the prices of Jeeps. You should also have all designs approved by a government safety board and they will get rid of those dangerous convertibles and ban removable doors. The government should lower the jeep and require no more than 28 inch wheels to improve gas mileage

Or we can live in a capitalistic society that allow us to make choices and the producers the right to charge what the market will bear. It is called Freedom. What the jeep was originally built to defend.

 

[The_Phew]

On the plus side, this price increase isn't reflected in insurance premiums.

 

[Mrjimmystewart]

$500 credit off the top on new Jeep products through the end of April.

For those of you on Jeeps system, they are sending everyone a coupon for the above “discount”. Maybe they want to take a little sting out of their price increase for those of us already in the process..

Jim:
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[misanthrope]

You should have the government investigate and set the prices of Jeeps. You should also have all designs approved by a government safety board and they will get rid of those dangerous convertibles and ban removable doors. The government should lower the jeep and require no more than 28 inch wheels to improve gas mileage

Or we can live in a capitalistic society that allow us to make choices and the producers the right to charge what the market will bear. It is called Freedom. What the jeep was originally built to defend.

Um...so, yeah. You derailed a bit in your rambling here. Not sure where the Gubmint came into play. Surely in no way was I touting government intervention in the pricing process, nor was I advocating going back to the halcyon days of forbidden drop-tops in the 1980's. Nor was this discussion about trade-offs between rugged functionality and practical economy, as the Wrangler is, in no way, an economical vehicle, and no one wants it to be. My argument was for an ethical approach to pricing absent government involvement, and for a rational response from the Jeep loving public when their policies are misleading and underhanded.
I'm not sure which part of this got your panties in a twist, but one of those freedoms that the Jeep was originally built to defend is, of course, the freedom of expressing my displeasure with a company who, under foreign ownership, has taken that vehicle we all love so and mangled it's purpose into merely a cash cow, with little or no regard for me, others, or even you, regardless of how blindly you defend their policies.

This is not a political issue, it is an ethical one.

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