[Kink]

So some of the English media sites and smaller blogs have begun to speculate on the XE's entry level price. Autocar is reporting £29,000. However blogger Jon Mower who runs The Motoring World Blog claims he has it sourced from inside Jaguar that the XE would begin at sub 3 series £25K in the UK.

 

[Winger]

I realize converting this to other currencies is only so useful, but that is something like $40,000 in USD. Are cars generally more expensive in the UK, or will the XE cost somewhere around $40k when it comes to the US?

 

[1XEJon]

Yes cars are generally more expensive in the UK, which is a right pain, not only do we have VAT at 20%, there is a first registration tax, as well as road tax, at varying rates, from £0 up to £1065 per year. So yeah, we are ripped off here.

 

[andyxe]

A straight currency conversion is not always accurate, as different taxes, (local, import) apply and different specifications in different countries

 

[Kingpin]

A straight currency conversion is not always accurate, as different taxes, (local, import) apply and different specifications in different countries

Yup, so many things that factor in, all you can do it come up with a guesstimate that close enough, almost never on point

 

[Kink]

Ok so now looking at Jag USA pricing on the XF, they have it in base poverty pack at $47K. Now if you go and look at the 3 series US pricing they begin at $32K, I believe Jaguar will want to keep a bit of premum cushion between the germans and them I'm saying starting on the XE will likely be $37K in the US...

 

[blackonblack]

sweet. thanks for sharing.

 

[1XEJon]

If jag does the same with the XE as they did with the XF, it will be well specified at the start, and at a lower price than the opposition, then over the following months with the introduction of new variants, the standard kit will drop off and the price will increase, which is exactly what happened with the XF, and it worked handsomely for them with that.

 

[Kingpin]

If jag does the same with the XE as they did with the XF, it will be well specified at the start, and at a lower price than the opposition, then over the following months with the introduction of new variants, the standard kit will drop off and the price will increase, which is exactly what happened with the XF, and it worked handsomely for them with that.

Yup, i have faith in them. They have shown they can build a successful sedan, now it's just in a different segment which shouldn't be an issue for them but still interesting

 

[Winger]

Ok so now looking at Jag USA pricing on the XF, they have it in base poverty pack at $47K. Now if you go and look at the 3 series US pricing they begin at $32K, I believe Jaguar will want to keep a bit of premum cushion between the germans and them I'm saying starting on the XE will likely be $37K in the US...

$37k doesn't sound that bad, but it will be pricier in Canada and then you have to add in options and things. All the sudden it might be a bit more than i am wanting to spend on an "affordbale" Jaguar.

 

[Kink]

suppose pricing is entirely dependent on how much volume jaguar is looking to get out of the XE

 

[1XEJon]

Nah, the pricing will be set, regardless of what sells, there will be about an 8% PM on stock cars, more with extra's, it will be competitive, believe me on that !

 

[Kink]

Nah, the pricing will be set, regardless of what sells, there will be about an 8% PM on stock cars, more with extra's, it will be competitive, believe me on that !

Indeed, I was alluding to the fact that pricing often dictates volume which means Jaguars internal forecasting and econometric gadgetry will likely of built a price model with respective volumes at variable price points. Competing with the Germans demands a competitive price as you said...

Almost curious if Jaguar will need to adopt a Lexus USA strategy, where they enter the segment offering more kit and undercutting on price until XE carves out its own tranche in segment?

 

[Kingpin]

Indeed, I was alluding to the fact that pricing often dictates volume which means Jaguars internal forecasting and econometric gadgetry will likely of built a price model with respective volumes at variable price points. Competing with the Germans demands a competitive price as you said...

Almost curious if Jaguar will need to adopt a Lexus USA strategy, where they enter the segment offering more kit and undercutting on price until XE carves out its own tranche in segment?

It clearly worked well for Lexus, i can see it working well for Jaguar, seems like people see Jag as one of the better brands, sort of the way they see Lexus, but of course in different way

 

[Winger]

A variable price point? Does that mean they aren't quite sure what they are going to price it at?

How do they decide? Is it based on forecasts for how many they will sell? Still, how do they come up with that number?

 

[blackonblack]

how would a variable price point work? o.0

 

[Kink]

how would a variable price point work? o.0

No I'm saying at this point there are probably variable prices that Jaguar is working with internally. Figuring out forecasts for Price X nets N sales, Price Y nets N sales...

Eventually they will find the sweetest spot...

 

[Kingpin]

that is true, a lot to figure out, they basically need to get it down to a science to figure out what is best for them and the consumer.

 

[blackonblack]

No I'm saying at this point there are probably variable prices that Jaguar is working with internally. Figuring out forecasts for Price X nets N sales, Price Y nets N sales...

Eventually they will find the sweetest spot...

oh well all manufacturers need to do that.

determining the demand is important as that will give you an idea of how you can price it .

 

[Kingpin]

Determining it all is key, at least you can look for what you can expect and see where the industry is going. Sometimes they just do it for the long haul and not just to get some quick gains. Kind of like how Toyota was one of the first to come out with hybrid systems on the mainstream level years ago, now some car makers are just starting to come out with their first hybrid systems.