Why do Lexus and Toyota sell their cars in packages?
06-11-08, 06:09 PM
#1
Lead Lap
Thread Starter
Why do Lexus and Toyota sell their cars in packages?
I am wondering why Asian (Japanese, Korean, etc) cars are sold in packages.
Example if you want power seats you must order the premium packages which dumps in like heated seats, rain sensors, etc. Best example to get the Mark Levinson audio you have to get the Nav and the most expensive package on the RX. But with Mercedes the Harmon Kardon could be your only option you select off a base model.
Or with Toyota Sienna when we wanted AWD and Side Airbags you had to upgrade to XLE and get power dowers, window curtains, leather, sun roof, etc all bundled in a package. To get a Nav we then either had to get rear tv or upgrade to the Limited. (Declined both not worth the price for a nav system)
On the other hand when we bought the Mercedes car you could select items separately. Mainly everything was La Carte, heated seats, separate from power seats. Only some items were bundled like Bi-Xenon headlight made you also get headlight washers, but they were all related items.
Lastly, along time ago when my parents bought their last American car, bundled items were discount bargains like GM “Sound and Summer Package” it gave you a good deal on getting a sunroof and a Bose audio system which were also LA Carte.
Anyone else notice this?
Example if you want power seats you must order the premium packages which dumps in like heated seats, rain sensors, etc. Best example to get the Mark Levinson audio you have to get the Nav and the most expensive package on the RX. But with Mercedes the Harmon Kardon could be your only option you select off a base model.
Or with Toyota Sienna when we wanted AWD and Side Airbags you had to upgrade to XLE and get power dowers, window curtains, leather, sun roof, etc all bundled in a package. To get a Nav we then either had to get rear tv or upgrade to the Limited. (Declined both not worth the price for a nav system)
On the other hand when we bought the Mercedes car you could select items separately. Mainly everything was La Carte, heated seats, separate from power seats. Only some items were bundled like Bi-Xenon headlight made you also get headlight washers, but they were all related items.
Lastly, along time ago when my parents bought their last American car, bundled items were discount bargains like GM “Sound and Summer Package” it gave you a good deal on getting a sunroof and a Bose audio system which were also LA Carte.
Anyone else notice this?
06-12-08, 10:10 AM
#4
Lexus Fanatic
iTrader: (20)
Lexus lists many options individually, but good luck ever getting them alone without a package. It's basically deceptive advertising - you can't get it, short of ordering a custom one which will take months and months.
06-12-08, 11:30 AM
#6
Lexus Champion
Acura took it to the extreme - 1 option - NAV or NO NAV.
I kind of like that -- you know exactly what you're getting
(no leatherette
)
I kind of like that -- you know exactly what you're getting
(no leatherette
)
Last edited by bagwell; 06-12-08 at 11:37 AM.
06-12-08, 11:48 AM
#7
Simple answer:
Toyota Motor Sales (TMS) USA has to pay extra to TMS Japan for more choices.
The more choices TMS USA decides on, the higher prices TMS Japan charges.
Don't forget that North American cars are not chosen by Japan, but by the Headquarters of TMS USA.
It ultimately ends up as a cost-effective measure. Packaging = Simplicity.
Toyota Motor Sales (TMS) USA has to pay extra to TMS Japan for more choices.
The more choices TMS USA decides on, the higher prices TMS Japan charges.
Don't forget that North American cars are not chosen by Japan, but by the Headquarters of TMS USA.
It ultimately ends up as a cost-effective measure. Packaging = Simplicity.
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06-12-08, 12:10 PM
#8
I was reading how at Lexus Japan, one selects from the packaging with a factory direct linkup; the customer even presses the final button which sends the order to the factory...
06-12-08, 01:53 PM
#9
Moderator: LFA, Clubhouse
I'm not sure I can do anything but disagree with this, given the excessive cost of options on European luxury cars.
06-12-08, 02:52 PM
#10
Guest
Posts: n/a
FOr cost savings and efficiency as stated. You have your production line and you have maybe say 100 ways to configure them, which lowers error rates as well.
In contrast the Germans are all out options and giving the consumer individuality, which means maybe 500 ways to configure them, which means more expensive to build, longer to build and more errors. BUT they make up for it with the $$$$ asked for these options.
In contrast the Germans are all out options and giving the consumer individuality, which means maybe 500 ways to configure them, which means more expensive to build, longer to build and more errors. BUT they make up for it with the $$$$ asked for these options.
06-12-08, 03:23 PM
#11
Lexus Fanatic
iTrader: (20)
06-12-08, 06:31 PM
#12
I am wondering why Asian (Japanese, Korean, etc) cars are sold in packages.
Example if you want power seats you must order the premium packages which dumps in like heated seats, rain sensors, etc. Best example to get the Mark Levinson audio you have to get the Nav and the most expensive package on the RX. But with Mercedes the Harmon Kardon could be your only option you select off a base model.
Or with Toyota Sienna when we wanted AWD and Side Airbags you had to upgrade to XLE and get power dowers, window curtains, leather, sun roof, etc all bundled in a package. To get a Nav we then either had to get rear tv or upgrade to the Limited. (Declined both not worth the price for a nav system)
On the other hand when we bought the Mercedes car you could select items separately. Mainly everything was La Carte, heated seats, separate from power seats. Only some items were bundled like Bi-Xenon headlight made you also get headlight washers, but they were all related items.
Lastly, along time ago when my parents bought their last American car, bundled items were discount bargains like GM “Sound and Summer Package” it gave you a good deal on getting a sunroof and a Bose audio system which were also LA Carte.
Anyone else notice this?
Example if you want power seats you must order the premium packages which dumps in like heated seats, rain sensors, etc. Best example to get the Mark Levinson audio you have to get the Nav and the most expensive package on the RX. But with Mercedes the Harmon Kardon could be your only option you select off a base model.
Or with Toyota Sienna when we wanted AWD and Side Airbags you had to upgrade to XLE and get power dowers, window curtains, leather, sun roof, etc all bundled in a package. To get a Nav we then either had to get rear tv or upgrade to the Limited. (Declined both not worth the price for a nav system)
On the other hand when we bought the Mercedes car you could select items separately. Mainly everything was La Carte, heated seats, separate from power seats. Only some items were bundled like Bi-Xenon headlight made you also get headlight washers, but they were all related items.
Lastly, along time ago when my parents bought their last American car, bundled items were discount bargains like GM “Sound and Summer Package” it gave you a good deal on getting a sunroof and a Bose audio system which were also LA Carte.
Anyone else notice this?
Toyota used to have "Value Packages" which were actually discounted. Now the packages seem like a whole bunch of things at full price or at most 5% off.
06-12-08, 07:36 PM
#13
Lexus Champion
Join Date: Jul 2001
Location: Redondo Beach, CA
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As bitkahuna said in his other post, today luxury is almost synonomous with "choice". When paying a premium price, the upscale consumer expects to get what they want. Lexus hasn't figured this out, and when I wrote a letter to that effect after cancelling my $125K order, they sent me back a form letter.
It reminds me of the 80's when the Big Three dominated the U.S. car market and they were NOTORIOUS for these kinds of "bundling" scams. You couldn't get an FM radio without also getting power locks, or you couldn't get the sunroof without getting the leather interior, etc. It was silly, but consumers lived with it because there wasn't much choice. Today, I absolutely guarantee you that Lexus is losing a lot of the buyers they want because of their inflexible, corporate-driven stance on options and choices.
The other extreme is Porsche. I remember back in 2000 before I got my M Roadster I priced out a Boxster. When you added in every option and customization possible, it came out to over $120K!!! Now that's just crazy...
06-13-08, 04:26 AM
#15
Lexus Test Driver
Look at Honda/Acura. The new TSX--it's base, or Tech Pkg, Auto or Manual. That's it. The fewer variations they have to make, the less expensive production costs are.