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MG ZR ZS ZT Technical - New edition to MGOC/MCC discount scheme
| Browsing on xpower-mg.com/forums. See they have now a Privilege Discount Scheme in place. No joining costs and 3 months qualification period. |
| James |
| When I got my F you had to wait 6 months and nobody got a discount and Rover employees were not allowed to buy it! A powerful marketing message that this was a very desirable car and a safe home for your hard earnt! Does anyone else feel that the constant stream of "special discounts" sends out the very opposite message? Cheers Patrick |
| Patrick Beet |
| Patrick >Does anyone else feel that the constant stream of "special discounts" sends out the very opposite message?< Yes! But, having saved £3+K on my TF, I am hardly going to knock it. We have yet to see what the effect will be on second hand sales - given that the 'membership discount sales are in the low hundreds, probably not a lot. If you ever put any real miles on your 'F' and feel the need to exchange it for another MGR product, you to may be rather pleased with the discount, whatever the message. Cheers Mike |
| Michael Williams |
| The opposing view Patrick would be that MGR are rewarding the people who mean most to them - their loyal customers! And who are more loyal than MG owners to are members of the MG clubs - and in the case that James points out - forums? |
| Rob Bell |
| Well, if you want to get at loyal customers why not write to those who have bought cars in the recent past from you? Giving the discount to members of the Owners Club could merely be rewarding those who either bought the car a VERY long time ago, or more likely, those who bought second hand.... Discount to those who logged onto a BBS at least 3 months ago smells rather desperate to me! I am a bit disappointed that MGR do not bother to keep in touch with the customer base. I have bought 3 new cars of them in 4 years. While the old BMW influence meant they wrote to be regularly in the first year of F ownership, they now only write to flog me extended warranty or AA cover. Even Mobile make more effort to keep in touch and all they know about me was that I bought £28 of oil 4 years ago! NavTech who produce the Map CDs write to me every few months and I have only spent £200 with them. MGR have had £65k out of me and they can't be bother to keep me informed on the developments and offers.... Michael, I have saved £18-£23k as MGRs disorderly marketing has persuaded me to keep the F! :-) More seriously discounting causes confusion and doubt in the consumer mind and damages brand image Cheers Patrick |
| Patrick Beet |
| It is certainly true that MGR no longer seem to write to their customers. I still have the invite for the 1st MGF birthday party in my files! Shame all that went to pot. BUT, again to pose the opposing view, if punters who bought their current MG second hand could be tempted to buying new thanks to the generous discount scheme, then hey, well why not? That's custom that they'd not previously recieved. Another view: it is nice that MG enthusiasts are being offered a chance to buy their new cars discounted: it is only fair to have the playing field leveled a little with the company fleet purchasers... :o) |
| Rob Bell |
| I'm sure MGR have done their maths and worked out that the cost of mailing 1000's of ex-customers is not ecconomically viable! If it had produced car sales in sufficent numbers, then they would still be doing it.. I'm glad that the electronic media such as the forum mentioned is being recognised by MGR, it not so very long ago that MGR were less than keen on these sites. The various car clubs membership base is fairly stable, and perhaps more managable as a target for MG car sales? Kelvin |
| Kelvin |
| Don't believe it was that rational Kelvin. It is a very old maxim that existing customers are the easiest and cheapest to sell to - look around this BBS for proof that this is true of MGR. Keeping in touch with your clients should pay huge dividends in building a perception that you are involved in more than a car. Most every other can manufacturer does it. Son's first car as a Corsa (what else!) and for the next 4 years Vauxhall sent him regular mailings. I went into the local Jaguar showroom 3 years ago about an XK8 and Jaguar are still writing to me and inviting me to events! It makes you wonder how they would have treated me it I had actually bought one! We did not get one because wife thought it too flash, I was worried about blowing £50k for a car that would mostly be used for shopping and we both thought Ted might spot that it was not a F and not let us on the Treffens! Cheers Patrick |
| Patrick Beet |
| Think we ought to thank xpowerforums for getting the scheme up and running wihout having the expense of joining a club. |
| James |
| Patrick, let me run this by you so that you can open up the Mercury's and let the sucker at the end of the rope fly! Direct mailing is expensive. MG-Rover can't afford it. It is struggling to survive, employing 5500 people whilst trying to develop new cars. Let's just hope they survive the next 5 years, and then if you don't get a shiny brochure through the post every 3 months you can bitch like Joan collins running out of polyfiller. ProMGR |
| ProMGR |
| ProMGR, I to hope Rover survive. The question is whether one thinks they are doing the right things to ensure this fine objective. They seem to have money to spend on strangely small Italian / American car manufacturers. They even have money to buy even stranger Korean car factories in Poland. They also have money to offer silly discounts to people who have logged onto a BBS at least 3 months ago. But not sufficient money to stay in contact with the people who have actual BOUGHT their product. Somehow does not seem wildly rational to me! I was involved in some serious direct marketing in the earlier part of my career. Facts - direct marketing to existing clients is the most cost effective means of selling by a very large margin. The content of a direct mailing does not need to be expensive, just keeping in touch and imparting information helps build the bond between client and supplier! Discounting delivers short term benefit and long term damage. See the tread on depreciation in the F board. The current pricing confusion also stopped me from considering a TF. I will keep the F for as long as it lives and control depreciation in my own way. Cheers Patrick PS Any translation available on your first sentence? In particular Mercury's what? |
| Patrick Beet |
| The discounts are not silly if you save some hard earned cash. The trouble with the XPower Forum is that most members already own a Longbridge product. Although if you view who is entitled to the discount on www.britvehicles.com it is all encompassing. So maybe worth registering if a discount is required. I agree with some of your other observations - what has happened to all that money squandered on Qvale for instance, is there a car??? James |
| James |
| No the silly bit is offering discounts to all and sundry. It leaves the terrible smell of desparation. |
| Patrick Beet |
| Patrick, Fair point, however that Forum is very low key - doubt they will make many sales! |
| James |
| Oh and a further thread for ProMGR to consider on the F board. See "My TF goes tomorrow." MGRs distress selling of MG branded product is destroying residuals - not a very clever move. I had hoped they had learnt something from BMW! Cheers Patrick |
| Patrick Beet |
| Patrick, I take your point about MG-Rover seeming to go off at a tangent at times. As I have purchased a new car from them in the last month I also worry about depreciation. But then I think to myself it could be worse, I could of bought a Ford. Mercury's are twin outboards fitted on certain speed boats. I was in 'Drop the Dead Donkey' mode. ProMGR |
| ProMGR |
| The great thing about these discount schemes are that they boost MGR's cash flow - which is great for the company. If this is achieved by giving us enthusiasts a wad of cash (cash or a letter, hmm, let's think which I'd prefer... er cash, thanks), then so much the better! :o) |
| Rob Bell |
| The scheme is now on the above link. Hope that's of help! |
| Jerry Flint |
| I agree with Patrick. This scheme started out as a select scheme, offered to long(ish) standing members of 2 clubs on MG branded cars. There was some rational behind the idea as maybe it would encourage owners (older) MG's who have other cars to change their other car to an MG. Now the scheme is more or less open to anyone (inc subscribers to MG Enthusiast), with less stringent joining rules and is available on Rover cars as well. The thread that Patrick refers to is about a TF owner who saved £3k on the purchase of his TF through the scheme, but has lost another £4k in 5 months of depreciation since. As an 'ordinary' punter he could have lost £6k - thats serious depreciation on a new model thats been around less than a year! News like that is gonna hit the headlines. Like Patrick, I remember the days when a 5 month old F was worth MORE than the list price, - and the headlines were rather different then. Paul P9 VLS |
| Paul |
| Paul, You hit the nail squarely on the head there, that was exactly the point I was trying to make, a year ago, all the Fs were seemingly more desireable and depreciation wasn't really a huge issue, but now depreciation is almost on a par with standard fleet cars!! I know I got 3k off the list price, but do you not think if MG are going to make discounts available to all, including their dog, twice removed, then why dont they be more honest and bring the list price down so no-one is under any illusions to the true 'value' of their cars. As I have said, I have bought 3 new Fs the past 3 years, but from what I have learnt the past few weeks, I will not ever buy new again, its false economy, discounts or not. Chris |
| chris watton |
| Chris >if MG are going to make discounts available to all, including their dog, twice removed, then why dont they be more honest and bring the list price down so no-one is under any illusions to the true 'value' of their cars.< 1. To attribute the XPower Forum with canine characteristics is a little harsh. It may not be the liveliest forum on the web but it’s hardly a ‘pup’. 2. Isn’t this discussion getting a little hysterical? After all MGR are not offering discounts to all and sundry and the number of sales that have been made through the club discounts are in the low hundreds. 3. Reducing all prices instead of offering discounts would achieve just the thing you are all moaning about – it would reduce residual values. The £3K advantage we have over the next guy would be wiped out. I cannot for the life of me see how that would be an advantage to MGR or us and just how it would improve their honesty needs further explanation please. Cheers Mike |
| Michael Williams |
| Michael, I wasnt talking about the excellent X-power forum, which me and my fiancee are participating members of, ( we also have a ZR160 as the family car). I am not 'hysterical' either, just a little taken aback at discovering the 'true value' of my car, and the residual values of the cars are already affected. I know that a lot of people have paid top wack for their car, if there circumstances change, and they no longer need the car, how are they going to feel when they discover a car they paid maybe £20000 for a few months back is now only worth the same as a Focus!! |
| chris watton |
| Is it being suggested that the discount scheme is responsible for the drop of secondhand values for MGFs? Does any car maker have a responsibility to keep its new car prices high as to maintain good second hand values? I would suggest that anyone buying outside the discount scheme could force a dealer down on price. There is no doubt also that MGF which has sold so well in the last few years is for many owners due for renewal. There is currenly a glut of cars, and this is why the prices have fallen! IMHO |
| Kelvin |
| Chris >if there circumstances change, and they no longer need the car, how are they going to feel when they discover a car they paid maybe £20000 for a few months back is now only worth the same as a Focus!!< And how are they going to feel if MGR drop their prices across the board? Such action could only further affect residuals. Cheers Mike |
| Michael Williams |
| I too was surprised to hear about the apparent 'trade value' of his nicely optioned TF (have fun with the TVR though Chris!) Couple of observations: 1. like Kelvin, I doubt that the current residual problems are a reflection of the present MGR policy of offering discounts to MG owners and enthusiasts - this is supply and demand issue, pure and simple; let's face it, MGR need the cash flow right now for the development of the new 45/ZS. I bought my F in January '96, and yes, I could have sold that car after 6 months AND made a profit! But that was whilst demand was at its highest, and supply at its nadir. 2. if you don't necessarily want to specify and own a brand new car, then there are clearly some HUGE bargains to be had in the auctions right now - if TF160s are truely going under the hammer at 13k. Jeepers, with a 3 year warranty, buy a twelve month old car, and you'd be laughing! Very very tempting. I, like a great many of us, have gone through many phases of thought on this topic - is the MGR discount scheme good, or is it bad. At present I am all for it, but I do also see the downsides... But it is here, it is showing no signs of going away, so let's live with it ;o) |
| Rob Bell |
| I now have a red TVR Chimaera 450 on my driveway, as well as the Le Mans Green ZR160! My TF 160 fetched £13,850 part ex. The TVR salesman told me that, when he phoned around to get the best price for my MG, no-one was interested because everyone was using the discount scheme, so I think it's more than just a small percentage using it. The MG dealer that sold me the car and the ZR woulndnt even consider buying my car back, not even for 13.5K, as the MG dealer told me his buyer is picking brand new TFs up at auction for the same price! I guess I was a little shocked to discover the true value of my pride and joy! I wasn't knocking the scheme at all, but I was just very suprised at how little my car was worth, taking into account the healthy residuals the Fs up until now seemed to enjoy. As I said on the other board, I was naieve to think that the discount scheme would cancel out the first 12 months depreciation, obviously, I was totally wrong in that assumption. It is a shame, as I think it's the best looking and performing roadster on the market. Why are new Minis holding their value so well?? Chris |
| chris watton |
| >Why are new Minis holding their value so well?? Long waiting list for new mini? Its a fashion accessory people want to own? (despite a few recalls!!!) Kelv |
| Kelvin |
| >Why are new Minis holding their value so well?? Because BMW are marketing them and they NEVER engage in disorderly marketing. They know that it only damages the brand image and customer faith. I fear MGR are reverting to the old Leyland / BMC appraoch of sell it at any price. Perhaps they have to but do compare and contrast the launch of the F with the TF. Either the TF is a significantly worse car or the marketing as gone off the rails. Cheers Patrick |
| Patrick Beet |
| Patrick No doubt you've heard of the saying “When you’re up to your ass in alligators, it is difficult to remember that the objective was to drain the swamp”. Well, in cash flow terms MGR has the alligators breathing hard and orderly marketing objectives are not the first thing on management’s mind. Cheers Mike |
| Michael Williams |
| Chris, I think you are wrong to suggest that the list price should fall for everyone - as Michael says that would really stuff resale values. The answer is to stop discounting and only make what they can sell. I happened to drive past the MGR dealership just up the road from Longbridge yesterday. They had a ZT on the front with its price in big numbers down the side and big price stickers on the showroom windows. Don't think I've ever seen that in a BMW dealership - looked more like the pound shop. Michael >> orderly marketing objectives are not the first thing on management’s mind << That is very, very, very, worrying. Paul P9 VLS |
| Paul |
This thread was discussed between 06/10/2002 and 10/10/2002
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