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Why do Lexus and Toyota sell their cars in packages?

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Old 06-11-08 | 07:09 PM
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Question 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?
Old 06-12-08 | 10:54 AM
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my guess is its more cost efficient and just more efficient overall to build them this way.
Old 06-12-08 | 11:06 AM
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Originally Posted by bagwell
my guess is its more cost efficient and just more efficient overall to build them this way.
+1
The way the Germans do it is expensive. Each individual option costs a fortune. Although having the option to purchase options individually is nice. Sometimes the packages just aren't what you want or is excess.
Old 06-12-08 | 11:10 AM
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Originally Posted by bagwell
my guess is its more cost efficient and just more efficient overall to build them this way.
It's more efficient for the companies to manufacture and plan AND MUCH MORE PROFITABLE (sticking consumers with options in packages they don't want or care about), but it SUCKS for the consumer.

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.
Old 06-12-08 | 11:17 AM
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Car companys have parts made for them and commit to production volumes way before they use them and the more they buy the cheaper they are per unit ( economy of scale ) option bundles help sell all the parts they have ordered
Old 06-12-08 | 12:30 PM
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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 )

Last edited by bagwell; 06-12-08 at 12:37 PM.
Old 06-12-08 | 12:48 PM
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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.
Old 06-12-08 | 01:10 PM
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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...
Old 06-12-08 | 02:53 PM
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Originally Posted by bitkahuna
It's more efficient for the companies to manufacture and plan AND MUCH MORE PROFITABLE (sticking consumers with options in packages they don't want or care about), but it SUCKS for the consumer.
I'm not sure I can do anything but disagree with this, given the excessive cost of options on European luxury cars.
Old 06-12-08 | 03:52 PM
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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.
Old 06-12-08 | 04:23 PM
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Originally Posted by gengar
I'm not sure I can do anything but disagree with this, given the excessive cost of options on European luxury cars.
Part of luxury is getting what you want. Those European options may be expensive, but at least you can get them. Lexus still makes and sells cars pretty much like Toyotar, only with marble and chrome all around.
Old 06-12-08 | 07:31 PM
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Originally Posted by integra144
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?
Would you like Lexus to cost the same as a Mercedes-Benz?

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.
Old 06-12-08 | 08:36 PM
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Originally Posted by bitkahuna
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.
Actually, in my experience, you CANNOT custom order a Lexus. That was the case with my GS six years ago, and the case with the LS600hL I had on deposit last year. You must take or leave what they decide to give you when it comes to colors and option packages, and Lexus has an arbitrary 3-zone geographic separation for the U.S. meaning you can't even get what other zones get. Stupid, stupid, stupid!

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...
Old 06-13-08 | 02:21 AM
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all i can say is the mini cooper is ridiculous with the options
Old 06-13-08 | 05:26 AM
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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.



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