Forums > Social Discussion > Chrysler's "Let's Refuel America."
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HOP Mad Doctor
13,925 posts
Location: San Francisco, CA, USA
HOP Mad Doctor
13,925 posts
Location: San Francisco, CA, USA
Posted:
Chrysler is offering a program.
Basically, you get this card when you buy a car. You go to any participating gas station (and presumably it would be most major chains). You buy gas and you are charged US$2.99 for it, regardless of the pump price. (So you would be a fool to use it if the price dipped back below US$2.99) Chrysler covers the difference. This lasts for 3 years and you can fill any car with it.
Now, it's only from 7 May through 2 June. But still...
Why on earth would a car company do this? Can it possibly justify the number of cars this promotion will sell? Does Chrysler think the price of gas will drop and thus the returns will justify the expenditure?
I'm confused. Thoughts? Insights?
BTW, let's keep this away from a discussion of gas prices or fuel economy. I'm wondering why Chrysler would do this.
Chrysler is offering a program.
Basically, you get this card when you buy a car. You go to any participating gas station (and presumably it would be most major chains). You buy gas and you are charged US$2.99 for it, regardless of the pump price. (So you would be a fool to use it if the price dipped back below US$2.99) Chrysler covers the difference. This lasts for 3 years and you can fill any car with it.
Now, it's only from 7 May through 2 June. But still...
Why on earth would a car company do this? Can it possibly justify the number of cars this promotion will sell? Does Chrysler think the price of gas will drop and thus the returns will justify the expenditure?
I'm confused. Thoughts? Insights?
BTW, let's keep this away from a discussion of gas prices or fuel economy. I'm wondering why Chrysler would do this.
-Mike
Certified Mad Doctor and HoP High Priest of Nutella
A buckuht n a hooze! -Valura
SILVER Member
what goes around comes around. unless you're into stalls.
4,030 posts
Location: Bali, Australia
what goes around comes around. unless you're into stalls.
4,030 posts
Location: Bali, Australia
Posted:
Doc, this one is easy. Because, in sales terms, Chrysler are *pre-empting an objection*. (standard but effective sales strategy). The objection (reason why someone wouldn;t buy one of their cars) is the perception that they make gas-guzzlers: fuel inefficient vehicles. That would certainly be my perception of Chrysler. They would have determined this through their market research and had a brainstorm on how to defeat it.
So they offer a 'sweetener'. Not necessarily making their cars more efficient (which is probably more difficult/expensive for them than paying direct money to their mates in the oil trade.) Note that it is only "Participating" gas stations; these mates would be signed up to give them a kick back for the money they spent in return for sending business their way.
They are also aware that due to increasing public awareness of oil peak and that the price of petrol is not coming downm this is a big objection for them to overcome. The three years? They are also possibly are in cahoots enough to know from their mates in the oil industry that a major rise is due in, oh, lets say... about three years? Long enough to sell a load of cars.
Doc, this one is easy. Because, in sales terms, Chrysler are *pre-empting an objection*. (standard but effective sales strategy). The objection (reason why someone wouldn;t buy one of their cars) is the perception that they make gas-guzzlers: fuel inefficient vehicles. That would certainly be my perception of Chrysler. They would have determined this through their market research and had a brainstorm on how to defeat it.
So they offer a 'sweetener'. Not necessarily making their cars more efficient (which is probably more difficult/expensive for them than paying direct money to their mates in the oil trade.) Note that it is only "Participating" gas stations; these mates would be signed up to give them a kick back for the money they spent in return for sending business their way.
They are also aware that due to increasing public awareness of oil peak and that the price of petrol is not coming downm this is a big objection for them to overcome. The three years? They are also possibly are in cahoots enough to know from their mates in the oil industry that a major rise is due in, oh, lets say... about three years? Long enough to sell a load of cars.
.....Can't juggle balls but I sure as hell can juggle details....
SILVER Member
Rum-Swilling Combustioneer
227 posts
Location: Macungie, PA, USA
Rum-Swilling Combustioneer
227 posts
Location: Macungie, PA, USA
Posted:
My guess is that it's similar to the way a lot of companies advertise with rebates - they're betting that people simply won't use them. Fact is, most people forget about their rebates, so they feel like they're getting a good deal at the register, but they still pay full price at the end of the day.
Or it might be like the US Postal Service's Forever Stamp - (if you're not familiar with this concept, you buy them at X price, and if stamp price goes up, down, stays the same in the future, your stamps still cover that amount of postage so you don't have to buy new ones). The idea behind that is that there really won't be *that* many people buying tons of stamps and hoarding them until letter rate is $4.00.
Maybe something else. My understanding is that it only covers "regular" fuel, not premium (I could be wrong), and if that is the case, I know a lot of my friends with new cars only put "premium" in their tanks.. Well, they used to, when that was affordable. Maybe Chrysler's betting on people wanting premium gas. I also think it's only good for a certain number of miles? I'm not sure how they'd measure that, but you can bet they'll figure something out. If that's the case, then they wont' be paying all that much themselves anyway, depending on certain factors.
Maybe they really are trying to do right by the customers. I guess that's the long way of saying I don't really know. Just some guesses.
My guess is that it's similar to the way a lot of companies advertise with rebates - they're betting that people simply won't use them. Fact is, most people forget about their rebates, so they feel like they're getting a good deal at the register, but they still pay full price at the end of the day.
Or it might be like the US Postal Service's Forever Stamp - (if you're not familiar with this concept, you buy them at X price, and if stamp price goes up, down, stays the same in the future, your stamps still cover that amount of postage so you don't have to buy new ones). The idea behind that is that there really won't be *that* many people buying tons of stamps and hoarding them until letter rate is $4.00.
Maybe something else. My understanding is that it only covers "regular" fuel, not premium (I could be wrong), and if that is the case, I know a lot of my friends with new cars only put "premium" in their tanks.. Well, they used to, when that was affordable. Maybe Chrysler's betting on people wanting premium gas. I also think it's only good for a certain number of miles? I'm not sure how they'd measure that, but you can bet they'll figure something out. If that's the case, then they wont' be paying all that much themselves anyway, depending on certain factors.
Maybe they really are trying to do right by the customers. I guess that's the long way of saying I don't really know. Just some guesses.
Bouncing Baby Pipe!
BRONZE Member
compfuzzled
1,182 posts
Location: hastings, England (UK)
compfuzzled
1,182 posts
Location: hastings, England (UK)
Posted:
well the most obvious guess would be because they can afford to.
company image is going to sky-rocket with consumers, a promotion like this in the current situation we're in. they are going to be featured on so many news programmes/talk shows etc... other car companies are probably kicking themselves they didnt think about it.
well the most obvious guess would be because they can afford to.
company image is going to sky-rocket with consumers, a promotion like this in the current situation we're in. they are going to be featured on so many news programmes/talk shows etc... other car companies are probably kicking themselves they didnt think about it.
"the geeks have got you" - Gayle
BRONZE Member
wandering thru the woods of WI
3,556 posts
Location: Wisconsin, USA
wandering thru the woods of WI
3,556 posts
Location: Wisconsin, USA
Posted:
While they are improving their gas mileage, many people still see SUVs and large cars as gas guzzlers. If they give you cheap gas, then there is less of a reason not to buy it. People think, "we're saving on gas." But they actually may not.
It seems to be a general GM sale
Some of these SUVs are doing better than some of the rust buckets out there now and run cleaner
While they are improving their gas mileage, many people still see SUVs and large cars as gas guzzlers. If they give you cheap gas, then there is less of a reason not to buy it. People think, "we're saving on gas." But they actually may not.
It seems to be a general GM sale
Some of these SUVs are doing better than some of the rust buckets out there now and run cleaner
Faith
Nay, whatever comes one hour was sunlit and the most high gods may not make boast of any better thing than to have watched that hour as it passed
BRONZE Member
old hand
929 posts
Location: Oregon, USA
old hand
929 posts
Location: Oregon, USA
Posted:
You need to read the fine print on that, it sounds good in principle but they're sneaking rules in that they don't blurt out for everyone to hear.
- If you buy anything other than what your car is made for (Unleaded, E85, or Diesel) thats a $2 service fee
- You have a 'fuel allotment' if you go over that you can't use the car again until the next year rolls around
- There is no rollover for unused gallons at the end of the year
- Your 'allotment' is based on 12,000 miles per year, times three years, divided by your miles per gallon.
They have a chart on their site, saying which cars this covers. It seems they've kindly left out the more gas hungry cars, the lowed MPG in their chart is 15mpg. Which comes out to 800 gallons a year.
You need to read the fine print on that, it sounds good in principle but they're sneaking rules in that they don't blurt out for everyone to hear.
- If you buy anything other than what your car is made for (Unleaded, E85, or Diesel) thats a $2 service fee
- You have a 'fuel allotment' if you go over that you can't use the car again until the next year rolls around
- There is no rollover for unused gallons at the end of the year
- Your 'allotment' is based on 12,000 miles per year, times three years, divided by your miles per gallon.
They have a chart on their site, saying which cars this covers. It seems they've kindly left out the more gas hungry cars, the lowed MPG in their chart is 15mpg. Which comes out to 800 gallons a year.
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BRONZE Member
compfuzzled
1,182 posts
Location: hastings, England (UK)
compfuzzled
1,182 posts
Location: hastings, England (UK)
Posted:
exactly, the way all good promotions work. in a situation where a lot of people will be questionning whether to buy a new vehicle a promotional campaign like this will shift those consumer's minds.
my prediction is their stock market value is about to increase, and next years profit figures for this period will be higher than the other car companies in the u.s.
Written by :Lurch
You need to read the fine print on that, it sounds good in principle but they're sneaking rules in that they don't blurt out for everyone to hear.
exactly, the way all good promotions work. in a situation where a lot of people will be questionning whether to buy a new vehicle a promotional campaign like this will shift those consumer's minds.
my prediction is their stock market value is about to increase, and next years profit figures for this period will be higher than the other car companies in the u.s.
"the geeks have got you" - Gayle
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