Did you refer them to the new pricing memo from Subaru?
Here's a link detailing it. And here's the text in full.
---
SUBARU
Subaru of America. Inc.
One Subaru Drive
Camden. NJ 08103
856-488-8500
www.subaru.com
February 23, 2022
Dear Friends,
We realize that our demand metrics are at record highs and our inventory levels are at historic lows due to a variety of relevant factors including the extraordinary and extenuating circumstances created by the COVID-19 pandemic, labor shortages and global supply chain disruptions. Despite these challenges, new heights in retailer profitability continue to be achieved. We have supported you, our retailers, to help ensure that you are able to continue to honor the Love Promise in all customer interactions. However, it has increasingly come to our attention some Subaru retailers are selling our products at prices which are not consistent with our Love Promise.
We are receiving increasing numbers of customer letters and emails voraciously complaining about sales of our vehicles at prices above MSRP. Please see an example of a customer letter on the following page.
We strongly discourage our retailers from engaging in this practice because of the negative impact this can have on the customer experience and our brand loyalty. In addition, such a practice does not fit with the brand philosophy of our
Love Promise. That promise to provide our customers with the best purchase and ownership experience in the industry.
It certainly does not fit in creating a "Love Promise moment" at the time of purchase. In fact, it gets the relationship with the customer off on the wrong foot right from the start and will harm the long-term loyalty to your store and the Subaru brand. Please believe in our brand philosophy and the long-term rewards will be even greater.
As we discussed at our past National Business Conferences and at various business update meetings,
our strategy is to separate "Our Retailers" from the "typical car dealer." Taking advantage of the current market imbalance between supply and demand is something a "car dealer" would do...it's NOT something a "Subaru Retailer" would consider doing. It goes against the "H.E.A.RT." (Honesty, Empathy, Appreciation, Respect, Trust) pillars which is the foundation of our brand. In fact, in the mind of our customers, it can negate all the positive actions you are doing through your Love Promise activations and "Share the Love" in your local community.
We request those Subaru retailers who are engaging in the practice of selling vehicles at prices not consistent with the Love Promise to
refrain because of the negative impact this is bringing to our brand.
The current situation is testing our resolve, commitment and discipline to the principals of our Love Promise customer commitment. Please stay committed to our brand philosophy.
We are looking forward to seeing many of you at the upcoming NADA Convention starting on March 10, where we can further discuss this subject and other topics.
Best wishes, continued success and please stay starfull!
Thomas J. Doll
President & CEO
Subaru of America, Inc.
---
Now is the time for "Subaru Three". 1-800-SUBARU-3 (1-800-782-2783).
Call them and tell them what the Subaru Retailer in Gresham, OR said. Mention this letter from Thomas Doll, the company President and CEO. Mention the blue parts, emphasize the red parts. Subaru builds its customer base on repeated custom, people that go back their entire lives when it's time to buy a new car. THAT'S what separates a Subaru Retailer from a dealership / stealership. Use the words "Subaru Retailer" repeatedly in describing the local seller and the predicament they've put you in.
The ONLY reason there is more supply than demand is because they limited the supply to ten per dealer. EVERY dealership (sorry: Subaru Retailer) is getting "a small percentage" because there are 600+ retailers in the country. That's ow math works! They have spent no money on any form of advertising, every person that put $250 down sought out information videos on the vehicle, and the company is guaranteeing themselves these sales for the month of release. Every person ordered precisely the EV they wanted, saving Subaru a fortune because they knew months ahead of time what to manufacture with zero waste and nobody making do with a car color or configuration that wasn't their first choice. There WILL be no unsold Solterra EVs on the lot, or commercials to buy the outgoing model next year, because it's not being sold like that at all.
And let us know what the outcome is.
