Pricing and Competition Speculation

NOVA-Jeeper

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I'm in the market for a 2 DR SUV, which means either a Bronco or a Wrangler. I've been following people's accounts of ordering 2021 Wranglers and am on the Bronco6G forum. One interesting thing, I've noticed is that when you consider the entry level models: (Bronco Base & Wrangler Sport), there is a considerable price advantage between the best deals available (excludes dealer doc fees, taxes and title): a Bronco Base comes with a hard top and AC standard for $27,565 (Granger Ford --- invoice - $2K), while an equally spec'd Sport is $29,501 (Criswell -- 7% below invoice). Obviously some caveats: these are deals some have to travel for and you can't even order a Bronco yet.

However, I find it somewhat surprising that Jeep is conceding the lowest price tier to Ford (not that either company really wants to sell a lot of base models). I would expect that Jeep would want to at least have a model that would let them claim they are lowest price off-road vehicle choice, even though they know most buyers will end up with Willys/Sahara/Rubicon etc.

I know there's no real pressure to adjust pricing at the moment since demand is so high and while Broncos look good, they aren't on the road yet, but does anyone think that in the future Jeep may offer incentives/adjust prices to preemptively attack the Bronco or hold pat for a year or more to see how the market bears out?

Both approaches have advantages and disadvantages. If you aggressively cut prices you may be able to steal Bronco buyers and damage a potential long term rival's crucial initial sales at the risk of lower profit margins. Doing nothing, keeps the margins high, but may let the Bronco brand get it's footing and establish market share and begin to develop a Jeep-like brand loyalty.





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summer4x

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Full disclosure: I would have bought the Bronco if it were available. Alas, the time frame does not seem to be realistic for me - it's looking like late next year before they are readily available. The reason I went with the Jeep is because of the 8 speed tranny and the direct injected 2.0 turbo. If both those options were not available, I would have waited for the Bronco with the Ecoboost.
 

TP1

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Full disclosure: I would have bought the Bronco if it were available. Alas, the time frame does not seem to be realistic for me - it's looking like late next year before they are readily available. The reason I went with the Jeep is because of the 8 speed tranny and the direct injected 2.0 turbo. If both those options were not available, I would have waited for the Bronco with the Ecoboost.
Exact same thought process here
 

Renhilio

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This is a good call out on pricing. I was reading an FCA investor deck that highlighted their 2018 - 2022 strategy road map. One of the items that was very briefly mentioned without much detail was another entrant into the sub compact off-roader space. I read that to mean something slotting in right below the 2DR JL. I wonder if they're planning on introducing another vehicle exactly in the space you're talking about, and I wonder if thats where they'll go after Bronco pricing?
 
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NOVA-Jeeper

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This is a good call out on pricing. I was reading an FCA investor deck that highlighted their 2018 - 2022 strategy road map. One of the items that was very briefly mentioned without much detail was another entrant into the sub compact off-roader space. I read that to mean something slotting in right below the 2DR JL. I wonder if they're planning on introducing another vehicle exactly in the space you're talking about, and I wonder if thats where they'll go after Bronco pricing?
Interesting. My thought is that they'll drop the price of the absolute base Sport (soft top - maybe no AC) so they can claim the lowest price category. Of course, they'll have no intention of selling (or supplying) a lot of these loss leaders - but history and buying trends are on their side with this. In what is looking to be a very tight economy, I'd be wanting to get people to my dealerships looking based on a marketing campaign that can say "we're the original and the cheapest option"
 

porcusRex

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im interested in the bronco.. however i dont extpect to see them in any normal availability on lots for two years give or take.
 

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