Product Launch: Targeting Success
A letter acquired by CarsDirect appears to demonstrate the manner in which Kia is aiming to prevent markups on its upcoming EV9 SUV: by politely requesting it. “The EV9 customer is a significant new addition to the Kia brand, and cost clarity will be crucial as part of their buying experience. We kindly ask dealers to retail the EV9 without mark-up over the Manufacturer Suggested Retail Price,” Kia stated in the letter.
“When it comes to markups, the Kia brand has faced its fair share of contention. Many dealerships have added on outrageous ‘market adjustments’ to popular vehicles, making it nearly impossible to find a Telluride without a markup of at least $10,000. The EV6 was also subject to hefty price increases, pushing it to levels comparable to BMWs – all due to unscrupulous dealers.”
Could this strongly expressed request, imploring auto merchants to not charge more than the marked value on the 2024 Kia EV9, prove to be effective? Have you ever encountered a car salesperson?
As opposed to merely spewing talk, Kia is taking action in order to prevent jacked up prices of the EV9. A communique attained by CarsDirect points to dealers being eligible for a $2,000 delivery reward when they offload an EV9. Far from providing this incentive to the customer, it’s in effect so that the dealer could stimulate buyers of reservation holders, instead of those who are willing to pay an egregious sum to get first dibs on the vehicle.
The $2,000 bonus will only be awarded for “each reserved EV9 that is retailed and delivered to the registered reservation holder.” This appears to be a great incentive for dealers to follow the rules, but if a customer is willing to pay a price that is $10,000 or even $15,000 more than the MSRP, then it is likely that this bonus will be overlooked.
Recently, the detailed pricing of EV9 became known and the three-row electric SUV is not inexpensive. The starting charge is for the Light RWD trim is $54,900 and surprisingly it has not been established yet if this qualifies for a $7,500 federal tax rebate. At first, it will be created in South Korea and later production will be transferred to Georgia, which could mean that EV9 fulfills the criteria for a tax credit. Charges get heavier when selecting the Wind e-AWD – $63,900, Land e-AWD – $69,900 and GT-Line e-AWD – $73,900. Although these costs are relatively high for a three-row SUV, but considering the rarity of totally electric vehicles existing at similar prices, they appear reasonable.
Avoiding the placement of the EV9 in an unenviable position alongside vehicles manufactured by Mercedes-Benz, Rivian, and Volvo necessitates Kia shunning the idea of placing a five-figure markup. Doing so would ensure a more hassle-free launch for the car.