Hold out

Educ8r · 01-08-2009, 12:25 PM

until Nissan has to practically give them away ...Check this out...

So I have to agree with Nissan officials that this car hits the sports-car sweet spot. One reason: the price isn’t changing. For a car with a competitive set that’s basically Mazda’s RX8 and the Honda S2000, and while the Porsche Cayman and Boxster are comparable performers, they’re all priced well above the 370Z.

Nissan sold 37,000 of this car in the previous generation’s first year. Nissan officials say they don’t expect to do that well this time, so they will determine success by another measurement — looking at market share instead of actual numbers sold. Based on what the previous model did, they’re hoping for a 20 percent share of the sports-car segment.

Overall sales in this niche traditionally is about 100,000 a year — less than 1 percent of total vehicle sales. But it’s a segment that “blips” up when there’s a new product. Nissan’s hoping that happens again, although marketeers have to deal with the fact that this car has been in the works for at least three years, and you can’t just turn off the tap on new models.

Obviously, considering the economy, the timing isn’t what Nissan would’ve chosen. For that reason, it’s a good thing this car enjoys a good reputation and an enthusiastic following.

“For the first year, we’re going to depend on Z loyalists for sale,” said Larry Dominique, VP of product and advanced planning.

That group is heavily male — Dominique says probably 65 to 70 percent of sales. They’re also people who either have already had a Z, or fervently wished they did.

So Nissan hopes to make sporty lemonade out of financial-crisis lemons. With the Z being rather inexpensive compared to other models, maybe they’ll get some extra business from those who want a new sports car, but also need to cut back on the size of their payment.

Source

r6addict · 01-08-2009, 01:21 PM

good read. My sentiments exactly!

sirploppy · 01-08-2009, 05:05 PM

That is good insight. Any company that acually expect to increase net sales this year is crazy, but to instead compare your performance measured against other cars is smart. For $30k, There really isn't anything that comes to mind that competes that isn't a five year or older design.

bossman · 01-08-2009, 09:08 PM

good read but i still don't get why we should hold out for a while? not like the prices are goin down.. maybe the demand a little but it's still not like their gonna be sellin them at 25

azn370z · 01-08-2009, 09:12 PM

Good to hear nissan is going to rely on market share to measure z's success. Don't worry nissan I will buy a 370 in 2010.

Excalibur · 01-08-2009, 09:24 PM

Interesting info.

r6addict · 01-08-2009, 09:58 PM

I think the inflated prices and markups are definitely a thing of the past. Bull and Bear market principals exist...

CrownR426 · 01-09-2009, 08:26 AM

Lol...
He speaks the truth!

People who owned a Z or been wanting one.

I'm glad that many dealerships are offering below msrp around here!

ZorS2k · 01-09-2009, 08:31 AM

Sounds reasonable. Kind of Apple-like with the market share target instead of just raw sales numbers. I think they'll hit 20k cars this year.

01-08-2009, 12:25 PM	#1 (permalink)
Educ8r Enthusiast Member Join Date: Nov 2008 Location: Houston Posts: 397 Drives: a car Rep Power: 16	Hold out until Nissan has to practically give them away ...Check this out... So I have to agree with Nissan officials that this car hits the sports-car sweet spot. One reason: the price isn’t changing. For a car with a competitive set that’s basically Mazda’s RX8 and the Honda S2000, and while the Porsche Cayman and Boxster are comparable performers, they’re all priced well above the 370Z. Nissan sold 37,000 of this car in the previous generation’s first year. Nissan officials say they don’t expect to do that well this time, so they will determine success by another measurement — looking at market share instead of actual numbers sold. Based on what the previous model did, they’re hoping for a 20 percent share of the sports-car segment. Overall sales in this niche traditionally is about 100,000 a year — less than 1 percent of total vehicle sales. But it’s a segment that “blips” up when there’s a new product. Nissan’s hoping that happens again, although marketeers have to deal with the fact that this car has been in the works for at least three years, and you can’t just turn off the tap on new models. Obviously, considering the economy, the timing isn’t what Nissan would’ve chosen. For that reason, it’s a good thing this car enjoys a good reputation and an enthusiastic following. “For the first year, we’re going to depend on Z loyalists for sale,” said Larry Dominique, VP of product and advanced planning. That group is heavily male — Dominique says probably 65 to 70 percent of sales. They’re also people who either have already had a Z, or fervently wished they did. So Nissan hopes to make sporty lemonade out of financial-crisis lemons. With the Z being rather inexpensive compared to other models, maybe they’ll get some extra business from those who want a new sports car, but also need to cut back on the size of their payment. Source

01-08-2009, 09:12 PM	#5 (permalink)
azn370z A True Z Fanatic Join Date: Nov 2008 Location: Seattle Posts: 1,722 Drives: z34 - R1 Rep Power: 489	Good to hear nissan is going to rely on market share to measure z's success. Don't worry nissan I will buy a 370 in 2010. __________________ 2010 k23 H&R sport springs / Spc rear camber arms / SSR SP1 / Berk cbe / Varis cf lip / Nismo S-Tune side skirts

01-09-2009, 08:26 AM	#8 (permalink)
CrownR426 A True Z Fanatic Join Date: Nov 2008 Location: South Korea Posts: 4,676 Drives: Manual Rep Power: 847	Lol... He speaks the truth! People who owned a Z or been wanting one. I'm glad that many dealerships are offering below msrp around here! __________________ Love + Hardwork + Passion RIP SVTRacer

01-08-2009, 01:21 PM	#2 (permalink)
r6addict Base Member Join Date: Jan 2009 Location: CLT Posts: 38 Drives: Aziano speedster Rep Power: 16	good read. My sentiments exactly!

01-08-2009, 05:05 PM	#3 (permalink)
sirploppy Base Member Join Date: Dec 2008 Location: Korova Milk Bar Posts: 25 Drives: 06 S2000, 08 E90 M3 Rep Power: 16	That is good insight. Any company that acually expect to increase net sales this year is crazy, but to instead compare your performance measured against other cars is smart. For $30k, There really isn't anything that comes to mind that competes that isn't a five year or older design.

01-08-2009, 09:08 PM	#4 (permalink)
bossman Banned Join Date: Dec 2008 Location: Hawaii Posts: 169 Drives: 04 Xterra SE 4X4 S/C Rep Power: 0	good read but i still don't get why we should hold out for a while? not like the prices are goin down.. maybe the demand a little but it's still not like their gonna be sellin them at 25

01-08-2009, 09:24 PM	#6 (permalink)
Excalibur Base Member Join Date: Jan 2009 Location: Abiline/San Antonio, TX Posts: 8 Drives: 08 WW Evo X GSR SSS Rep Power: 16	Interesting info.

01-08-2009, 09:58 PM	#7 (permalink)
r6addict Base Member Join Date: Jan 2009 Location: CLT Posts: 38 Drives: Aziano speedster Rep Power: 16	I think the inflated prices and markups are definitely a thing of the past. Bull and Bear market principals exist...

01-09-2009, 08:31 AM	#9 (permalink)
ZorS2k Base Member Join Date: Jan 2009 Location: KY Posts: 13 Drives: RX-7/Prelude Rep Power: 16	Sounds reasonable. Kind of Apple-like with the market share target instead of just raw sales numbers. I think they'll hit 20k cars this year.