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Is Ford Mispricing the Maverick on Purpose?

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TC in MN

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The entire history of the Ford Motor Company starting with the model T was to sell vehicles that everyone can afford. Nothing has changed. They have always had affordable low cost vehicles in their lineup.
They do not want dealers marking up their veh. That's the whole reason for eliminating dealers and selling direct to consumers.
No conspiracy here.
My dealer priced my Mav. at ordering at msrp. no hidden fees. If you payed more you went to the wrong dealer.
Spot on! Henry Ford’s spirit is alive and well with the Maverick…and yes, there is a cost to price. But that said, for the price and function, the Maverick is a serious contender. Maybe there will be a model that has passenger lumbar support with upgraded interior surfaces and stereo and other good stuff, but for now, I’m a happy customer. Ya done good, Ford.
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KenC

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I believe the Mav is underpriced by Ford as a strategy:

What price do other 4 Door Hybrids cost new?

What price do other 4 Door Turbo AWDs cost new?

…& they aren’t even trucks!

How is Ford doing it? Did Ford somehow discover a rift in spacetime that dropped their cost of materials & labor?
-No, in fact both are up!

So, the more important question is:

>Why did Ford price the Maverick so low?<

1. The advertised artificially low price gets huge attention, & brings people to Ford dealerships for possible upsells

2. Pulls buyers away from other vehicles & brands,

3. Incentivizes people to order & wait, & wait, & wait… locking them up, keeping them from purchasing other brands

4. While buying time for Ford to navigate it’s way through the supply chain nightmare & eventually get back up to speed…

5. Ford dealers are also given the opportunity to make some bucks on marking up cancellations & used Mavs, helping keep them afloat until Ford factories fully come back online.

Ingenious actually…

I think it might be a year from now before Ford is able to meet demand & deliver Mavs in a reasonable time frame, & I predict that by that time Ford will pivot to bring the Mav’s price more in line with other car companies’ offerings thereby reflecting the true cost of profitably manufacturing, marketing, & delivering the Mav in a timely manner to it’s customers… but for thousand$ more than the loss-leader, attention-grabbing, wait-placating price it is now.

Thoughts?
Ford Maverick Is Ford Mispricing the Maverick on Purpose? tenor
 

jtpc2021

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I believe the Mav is underpriced by Ford as a strategy:

What price do other 4 Door Hybrids cost new?

What price do other 4 Door Turbo AWDs cost new?

…& they aren’t even trucks!

How is Ford doing it? Did Ford somehow discover a rift in spacetime that dropped their cost of materials & labor?
-No, in fact both are up!

So, the more important question is:

>Why did Ford price the Maverick so low?<

1. The advertised artificially low price gets huge attention, & brings people to Ford dealerships for possible upsells

2. Pulls buyers away from other vehicles & brands,

3. Incentivizes people to order & wait, & wait, & wait… locking them up, keeping them from purchasing other brands

4. While buying time for Ford to navigate it’s way through the supply chain nightmare & eventually get back up to speed…

5. Ford dealers are also given the opportunity to make some bucks on marking up cancellations & used Mavs, helping keep them afloat until Ford factories fully come back online.

Ingenious actually…

I think it might be a year from now before Ford is able to meet demand & deliver Mavs in a reasonable time frame, & I predict that by that time Ford will pivot to bring the Mav’s price more in line with other car companies’ offerings thereby reflecting the true cost of profitably manufacturing, marketing, & delivering the Mav in a timely manner to it’s customers… but for thousand$ more than the loss-leader, attention-grabbing, wait-placating price it is now.

Thoughts?
Good points. Yeah, M-Benz did the same with entry-level CLA years ago, heavily advertising it’s $29,900 price. It was to get people looking at the brand that didn’t before. A year or two later, the CLA price increased (and this was back in 2013 before all the inflation excuses).
 

atomguy245

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Ford stripped out everything possible from the Maverick to get to the original price points. You got cheap materials, thin paint, a touch screen from a 2015 Ford Fiesta etc. They were selling you a hybrid pickup truck at a bargain price. And they hit it. Buyers are trading features and quality for that 4 door pick up bed configuration. Look at the Santa Cruz. It's about $4k more, and you can see that it's worth $4k more in its construction. In normal times For would be building 300k a year of the Maverick. For a variety of reasons that level of productions is physically impossible in 2022.

Don't complain about what you are getting with the Maverick. You are getting a utilitarian product at a value price.
 
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I'm not sure it is underpriced. It's not "technically" a truck from an engineering standpoint.. more of a crossover with a bed. The materials they use are all very cheap and the build quality seems questionable. That is why they are priced the way they are.

That said, once you move away from base models... unless you just absolutely need a bed, you can get far superior vehicles - in terms of build quality, materials, fit/finish - for very similar cost.

My Lariat Lux Hybrid is $2k more expensive than the 2022 Civic Touring that we purchased in January of this year for my mother. And having owned a Maverick for a month/2,000 miles I can tell you these two vehicles are lightyears apart in terms of how well they are put together.
I’m not familiar with the Civic Touring. Is it a Hybrid or Turbo AWD?
 

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I don't think they underpriced it, I think they just used the same pricing structure they used on the entry level CUVs and sedans they discontinued.
 
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Exactly! The Mav is cheap. It's built in Mexico with cheap labor, cheap materials and crappy fit and finish. And yet people want to think "OMG how did Ford do this!?!? They HAVE to be losing money"

No, they aren't losing money on them.
I didn’t intend to suggest that they were pricing it so low that they intend it to be a loss-leader. By saying underpriced, I mean underpriced compared to what they could charge in the open market versus other manufacturer’s closest competing offerings.
 

MLowe05

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I’m not familiar with the Civic Touring. Is it a Hybrid or Turbo AWD?
The Civic Touring is the top Civic trim. It is about $30k and very much like a luxury car compared to the Maverick, especially in terms of materials and build quality.. which was my point.

I'm not knocking the Maverick necessarily. Hell, I'm buying one. I'm just saying I don't agree with your take on pricing. The Maverick is cheap because they cut all sorts of corners to make it cheap.

I think $30k is the absolute ceiling of what a Maverick is worth at any trim/equipment/powertrain level. Past $30k it is simply not enough quality for the money. Again, though, if you just need that bed..
 
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Answer a simple question please. When you ordered your Maverick did your dealer try to “up sell” you? I’ve read almost every post on this forum and have never once heard of a Maverick buyer being “up sold”. Ford saw a market, jumped on it, the same market they saw with the Bronco. The truly sad thing is Ford clearly doesn’t know how to bring a new vehicle to market…. Even before the pandemic…. Just look at the Bronco..
…I said “possible upsells” something that I don’t think Ford would be against.

No my dealer didn’t try to upsell me, at the time I was also ordering a new F-150 Powerboost for my son, & a Mav Hybrid in addition to the AWD EB I was buying off his lot. That’s one of the reasons why I go to him before buying any car. Almost every other dealer I’ve ever dealt with tries the upsell, the add-on, the extended… Ray Bowen’s the best car guy I’ve ever dealt with.

That being said, I think it’s a good thing for a salesman to offer a truck that might be a better fit for a customer for whatever the reason no matter if it cost more or less.

The rest of what you said may be true. Thanks for your thoughts on it.
 
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Drew

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The Civic Touring is the top Civic trim. It is about $30k and very much like a luxury car compared to the Maverick, especially in terms of materials and build quality.. which was my point.

I'm not knocking the Maverick necessarily. Hell, I'm buying one. I'm just saying I don't agree with your take on pricing. The Maverick is cheap because they cut all sorts of corners to make it cheap.

I think $30k is the absolute ceiling of what a Maverick is worth at any trim/equipment/powertrain level. Past $30k it is simply not enough quality for the money. Again, though, if you just need that bed..
Fair enough, thanks.
 
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I believe the Mav is underpriced by Ford as a strategy:

What price do other 4 Door Hybrids cost new?

What price do other 4 Door Turbo AWDs cost new?

…& they aren’t even trucks!

How is Ford doing it? Did Ford somehow discover a rift in spacetime that dropped their cost of materials & labor?
-No, in fact both are up!

So, the more important question is:

>Why did Ford price the Maverick so low?<
It's cheap because it's built cheap, simple as that. Simple suspension on base hybrid, lots of recycled plastic used in the construction, no LED lights on the back end, no full digital instrument cluster, 8 screen for infotainment, basic manual seats, no cruse control, and such. If it was just a naturally aspirated 4 banger without the hybrid parts they likely could have sold it for $16-17k. With inflation Ford might be selling base no option XL Hybrids at a loss now, but when pricing was decided that may not have been the case. Give that they are likely prioritizing high trims for builds, that likely isn't a huge problem; sources listed here showed that the mid-grade XLT Eco-boost is the most common trim on order anyway.
 
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1. Yes, labor is less expensive in Mexico. But I don't think that it can be fairly stated that Mexicans make less-durable cars.
2. Less expensive doesn't always mean cheap. While there are fewer expensive "soft touch" materials and the like, I'm hoping that they aren't using "cheap" materials. Many inexpensive cars that I've owned from Honda and Toyota have less-expensive materials, but they were still durable.
3. My truck actually has really nice fit and finish. In fact, I really haven't seen anything bad on that front that I find problematic.

Many manufacturers find ways to make inexpensive vehicles without making them cheap. In fact, the long-term reliability of inexpensive models is often superior. I suspect that less-fancy tech and older more-proven components often get used in inexpensive vehicles because people who are willing to pay more usually want the latest and greatest (and lots of extra stuff = more changes of failure)

It'll be interesting to see how the long-term durability of the Maverick compares to other Ford vehicles. I'm not expecting it to be much different--for better or worse. Fingers crossed (and extended warranty purchased. :)
Agree on all counts!
 

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Ford stripped out everything possible from the Maverick to get to the original price points. You got cheap materials, thin paint, a touch screen from a 2015 Ford Fiesta etc. They were selling you a hybrid pickup truck at a bargain price. And they hit it. Buyers are trading features and quality for that 4 door pick up bed configuration. Look at the Santa Cruz. It's about $4k more, and you can see that it's worth $4k more in its construction. In normal times For would be building 300k a year of the Maverick. For a variety of reasons that level of productions is physically impossible in 2022.

Don't complain about what you are getting with the Maverick. You are getting a utilitarian product at a value price.
Exactly. At the low end with XL, they stripped out so many features that most people are used to. XLT adds in a lot of things like cruise control and power mirrors that most take for granted. They're not making all that much on an XL but XL exists to draw you in initially with the sub-$20k price (before destination charge, of course). Then you see you can bump up to an XLT for only a bit more, maybe add some other options. Every option brings with it a decent profit margin, and that's the aim. Sell you as many options as they can.
 
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I've said from the day it was introduced that the base hybrid is a loss leader, but I accept pushback from others that I can't prove that. So I'll just say it's a deliberately low margin vehicle.

The Maverick does good things for Ford. (1) It pulls younger buyers into the brand so Ford can upsell them down the road (if you're old, Ford does NOT care that you exist). (2) It helps with CAFE bigtime. (3) And as a bonus it generates a generally positive Ford narrative in the automotive press (well, before 5 recalls in the first year).

That's why I really don't think you'll see Ford bending over backwards to increase production. All Ford's money is going into BEVs (which I suppose could include something called Maverick some day). I think they're content to build to the capacity of Hermosillo and no more. Because who would want to invest a billion plus in a factory to make even more low margin vehicles? The Maverick has already accomplished it's mission. Minimal expenditure by Ford. Maximum effect.

And that is my completely speculative answer, with absolutely no facts to back it up.
Makes total sense to me!
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