Manizesto

When is a good deal also a horrible sign? When this happens:

Two Chrysler dealerships are going beyond 0% financing and instant cash back to unload unwanted inventory from showroom floors. One company in the UK is selling two Dodge Avengers for the price of one, and another Chrysler dealer is offering a PT Cruiser for $1 with purchase of any Pacifica.

Buy one get one free is a great offer, you know, for burgers, video rentals, pedicures and even shoes. But cars? It’s a bad sign for companies selling considered-purchase items like cars, boats, or land.

To me, 2 for 1 offers for high ticket items mean one of two things. Either

1) You mark up the prices of your products so much that you can still make money by giving one away free (you’re screwing me on price most of the time).

OR

2) Your products are so lousy you have a hard time unloading them (why exactly would I want two of them?)

For Chrysler, it translates to saying “Hey, for the price of that one Honda Accord, why not buy two of these?” The unstated message is that “it takes two of ours to equal one of theirs”, or “Our offering is worth half as much as yours,” or “We’re peddling crap and they are not.”

From a brand perspective, this is a disaster for Chrysler. It’s true, the economy is tough right now and auto makers are pulling out all the stops to move inventory, but is it worth the cost? No way.

I’m predicting two for one offers on houses in the next 12 months.

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