Due to the weakness of the automobile industry, there are many things in the Chinese market that foreign car companies that have been in a monopoly state for a long time to make some discriminatory treatment, which makes Chinese consumers feel aggrieved. Pen & Fun & Pavilion www.biquge.info

A series of business behaviors such as reducing allocation, cutting corners, increasing the price of the car, and being tough after sales are actually quite good.

At present, the blackest foreign brands in the domestic market are actually pricing!

For a long time, in the weak domestic automotive industry, car companies have been unable to make high-quality and technologically advanced products. With the technical advantages and competitiveness of their products, most of these foreign car companies are doped with considerable moisture in terms of pricing.

Take the GLS-class, Mercedes-Benz's flagship luxury SUV model, as an example.

The highest configuration of this car, GLS500, 4MATIC, is priced at 1.75 million yuan in China.

So here's the problem;

How much does it cost to sell in the UK?

The answer is 75,000 pounds, equivalent to 650,000 yuan.

How much does it cost in North America?

About 110,000 US dollars, equivalent to 690,000 yuan!

That's a difference of almost 300%!

Then the problem arises again;

How did this 300% come about?

You must know that even after the adjustment of the import tax rate of the whole vehicle, the tax rate has been greatly increased. Taxes and fees such as customs duties, value-added tax, and consumption tax account for more than 50 percent of the total.

So how do you explain the remaining 150%?

This is not a foreign company looking at Chinese consumers as stupid and money-hungry, and they have no place to spend the money to increase the price according to the consumption level.

It's because in the luxury car sector, foreign car companies don't have competitors from China at all, and these foreign brands have joined forces to create high prices!

Before the establishment of Zhengxin, all the luxury models in the consumer market of China Automobile came from abroad. The profit-seeking nature of capital can completely allow these car companies to reach a tacit understanding.

That is, in an environment where there are no competitors, adopt a joint monopoly and at the same time raise the price to obtain maximum profits!

This kind of joint monopoly market behavior is actually difficult to maintain, but it doesn't matter, there are policy loopholes to follow.

That is the general agency system formulated by the Ministry of Commerce of the People's Republic of China for imported goods.

According to the provisions of this system, in order to ensure the service quality of imported goods, imported goods need to rely on the domestic hierarchical agency method to retail the market.

As a result, under the cooperation of the crazy profit-seeking foreign companies and the domestic general agents, the price was stuck at the critical point that made consumers uncomfortable enough, but they could pinch their noses and accept it.

Under such large profits, with the price reduction of low-grade and high-sales cars, the way to limit the development of the domestic automobile industry. In less than ten years, foreign car companies have joined forces to create an airtight price barrier for the Chinese auto market.

To be honest, even Li Fanyu and Zhengxin, who have the technology and development speed that defy the sky, are a little depressed by this invisible net.

The reason why Zhengxin has not launched a compact sedan so far is because of this relationship.

At the beginning, A8 had the opportunity to break this barrier, but at that time, Zhengxin's production capacity and scale were extremely limited. Although the A8 was made, the cost was not controlled. There is only a flagship version with a price of more than 2 million, which at best shocks the confidence of the Chinese people in the local Chinese brand and raises the positioning of Zhengxin.

When it comes to competitiveness, the A8 doesn't reflect much.

But now that he has a certain strength, the cost of Range Rover's success is controlled, so that Li Fanyu has the capital to challenge this barrier!

In fact, from the current situation of the industry, the performance and price of competing products at the same level in the current market are taken as the standard.

Li Fanyu can rely on the performance, technical configuration and exquisite workmanship of the Range Rover to sell the Range Rover for more than one million and nearly two million.

But why is Range Rover's pricing still so low?

Is there a reason why Li Fanyu wants to export gas for Chinese consumers?

Yes!

But it's a small percentage, two percent of motivation. In fact, it is more for the future development of the group.

The first is to start from the development of the Land Rover brand.

For a new brand, or a new product, how can it quickly gain a large market share in a short period of time?

In the end, it is nothing more than two means: a revolutionary technological breakthrough, or a retail price that is unattainable by competitors on the premise of reaching the current average level of products in the industry!

These two methods are known as market predatory strategies.

Therefore, this pricing can allow the Land Rover brand to be established in a short period of time and occupy a certain market is the first reason.

The second point is to open up the price ratio and make a layout for the group to expand into a broader compact market in the future.

It is important to know that the key condition to support price barriers is that high-end goods earn excess profits and support low-end goods enough to suppress the prices of local products.

If the Range Rover, or even a series of high-end models in the future, will lower the price of foreign companies' products of the same level, then in the situation of shrinking profits, these car companies will inevitably increase the price of low-end products to make up for profits.

In this way, it can open up space for the low-end market!

When the time comes, the two mountains of cost control and scale on Zhengxin's body will be removed, and it will not be the sea and the sky to let the birds fly with the fish leaping into the sky?

Li Fanyu's game of chess is a big game!

Not to mention, even at the current price, each Range Rover can bring nearly 40% of the profit to Zhengxin!

On the sixteenth day of the first lunar month, Range Rover rolled off the assembly line nationwide.

Although it has passed the golden sales period of automobiles, the car market is a little deserted. However, the Zhengxin Land Rover 4S store, located in an important first- and second-tier city in the country, is no less popular than a year ago!

Beijing Zhengxin Land Rover 4S store, although the time is only more than 9 o'clock in the morning, but at this time the store has gathered more than 20 customers waiting for a test drive.

But among these customers, the behavior of several people is quite suspicious.

These people came to the store and didn't say a word. No need for a sales introduction, no need to arrange a test drive, just pick up the car in cash!

In order to ensure that the brand provides the best service to customers when it is first established, most of the sales in the store are veterans drawn from the Volkswagen 4S store. In the usual sales process, they have also seen customers who pick up the car directly.

But what made them feel wrong was that these customers didn't buy one!

Instead, you have to buy all four models in the whole series!

"Manager, could those customers be spies?" Looking at the customers who were anxiously going through the payment procedures at the front desk, a sales consultant pulled the manager next to him.

"Eight or nine is not far from ten. The group sent a listing plan a year later, and when I saw the pricing of the whole Range Rover, I felt that our Land Rover was going to be hot. That's a lot of low pricing! Half the price compared to competing products in the same class. I see, these people are from other brands who come to buy products and go back to do research. ”

"Huh, do you need to reflect this situation to the above?" asked the sales consultant, grinning.

The manager touched his chin and smiled: "Reflect the eggs! What can they do if they buy it back and study it thoroughly? Look at it, the luxury SUV market is going to change!"