Extra, Extra....Read All About It!

[robothero]

Probably not a good sign for Slate that only 10k have put their $300 preorder deposit down, of the 180k preorders.

https://www.motortrend.com/reviews/first-drive-2027-slate-truck-prototype

I thought they'd have more preorders. Heck, Scout had 160k preorders 5 months ago, so they might be close to the 180k mark now as well.

Slate is going to be the car that terminally online people always say "we need more of" and "people want this" but never put their money where their mouth is.

 

[speedrye]

Everybody was pretty shocked to see Launch edition R2 loaded up and under $60k, but the Scout is much bigger vehicle and will come with another $5k in battery costs. They REALLY gotta leverage VW procurement advantages to stick to the previous pricing targets...but they haven't backed off yet. Regardless, I don't think we'll see sub $70k Scouts for awhile - that's just not how the cookie crumbles anymore. Sell Up out of the gate.

I'd love to see industry research showing the math for higher volume/lower profit margin vs lower volume/higher profit margin, and how the latter takes into account pissing off potential customers and them going elsewhere. I think the low conversion rate on preorders is a direct result. Maybe my brain is off, but it says when you're launching a new model, you want as many on the roads as possible at the most affordable pricing possible because that exposure and word of mouth drives sales for upcoming years. I've often been an early-model adopter and have people asking about my vehicles all the time when I'm at work, the store, a gas station or just stopped at a light. What is it, and what does it cost are the top two questions. In my relatively-affluent area, I guarantee that driving a new Scout and being able to say $63k instead of $75k will net at least ten new vehicles being sold by Scout.
The more vehicles Scout produces, the better terms they get from suppliers, the lower prices go, and the more they sell. I just don't understand the fundamentals of selling few high-profit vehicles, aside from short-term greed.

I understand that early mass production means creative solutions for servicing for a new company, but I still look at MINI as a good model when they started. Train a tech and rent a service bay in an existing facility until you've got enough money coming in to open your own service departments. Have a few roving mobile service trucks as well to fill in gaps keeps general overhead low initially. They just have to be extra-selective about where they rent the service bays from. MINI used BMW for obvious reasons, but Scout doesn't have much shared architecture with VW at all, so they could use anyone with reputable service.

 

[J Alynn]

Yeah, with the base version at $20k, I'd have one in the garage as the beater truck for errands and stuff. At a full 33% higher price? No thanks.

Exactly. And to the other point I’m glad Scout always said start price +any price incentives which dropped very quickly

 

[J Alynn]

Everybody was pretty shocked to see Launch edition R2 loaded up and under $60k, but the Scout is much bigger vehicle and will come with another $5k in battery costs. They REALLY gotta leverage VW procurement advantages to stick to the previous pricing targets...but they haven't backed off yet. Regardless, I don't think we'll see sub $70k Scouts for awhile - that's just not how the cookie crumbles anymore. Sell Up out of the gate.

I have to agree. And best foot forward. We do it in every new community with model homes. Load them up, include tons of options then buyers can see what’s available as they stumble onto them in the wild

 

[J Alynn]

I'd love to see industry research showing the math for higher volume/lower profit margin vs lower volume/higher profit margin, and how the latter takes into account pissing off potential customers and them going elsewhere. I think the low conversion rate on preorders is a direct result. Maybe my brain is off, but it says when you're launching a new model, you want as many on the roads as possible at the most affordable pricing possible because that exposure and word of mouth drives sales for upcoming years. I've often been an early-model adopter and have people asking about my vehicles all the time when I'm at work, the store, a gas station or just stopped at a light. What is it, and what does it cost are the top two questions. In my relatively-affluent area, I guarantee that driving a new Scout and being able to say $63k instead of $75k will net at least ten new vehicles being sold by Scout.
The more vehicles Scout produces, the better terms they get from suppliers, the lower prices go, and the more they sell. I just don't understand the fundamentals of selling few high-profit vehicles, aside from short-term greed.

I understand that early mass production means creative solutions for servicing for a new company, but I still look at MINI as a good model when they started. Train a tech and rent a service bay in an existing facility until you've got enough money coming in to open your own service departments. Have a few roving mobile service trucks as well to fill in gaps keeps general overhead low initially. They just have to be extra-selective about where they rent the service bays from. MINI used BMW for obvious reasons, but Scout doesn't have much shared architecture with VW at all, so they could use anyone with reputable service.

With all the data available these days I’m sure they’ve thoroughly vetted it. The launch version also lets them focus on a consistent build collection so the employees and the line learn and grow and can then be better at all the other variations down the line

 

[Jasco]

With all the data available these days I’m sure they’ve thoroughly vetted it. The launch version also lets them focus on a consistent build collection so the employees and the line learn and grow and can then be better at all the other variations down the line

Standardizing on a launch version is exactly the right move and making the build desireable makes sense as well considering they will be supply limited to start given the production ramp. They can launch at $85K and it wouldn't impact me directly because by the time my number comes up it will be a year or more from launch. I'll happily wait for the right config to come around as well. I simply wonder about the optimal pricing strategy. The argument to show off your best trim is easily countered with "that's nice but I can't afford it". Selling into a high end market tier has its risks. Slate is seeing this happen even at an affordable price tier. People expected $20k because Slate said as much. Now its 33% higher and their take rate is less than %10. Slate's product pricing moved higher than its target audience tolerated. If Scout goes high end and gets a similarly low take rate we are talking niche vehicle territory. Scout wants to move 200,000 vehicles a year. That's a big leap and assuming their ramp is healthy they will be far outproducing their demand quickly. $85k is rare atmosphere territory when it comes to vehicle purchases. I feel that people are reserving because Scout vehicles are far and away the best new products to enter the automotive market in quite a while. These are asiprational reservations. The challenge is that Scout's have always been family/utilitarian vehicles. That's the brand and product message and the new Scouts lean heavily into this heritage. Scout also advertises $60k while showing beautiful vehicles. Even with the "base model" caveat the connection sticks with future buyers because they can relate to that price point. Launching at $85K (a 35% premium in a higher price tier) may engender the same reaction we are seeing with Slate. And, teasing lower cost future trims to compensate might result in the Osbourne effect further hurting launch sales.

I'm hoping there is an economist in our midst who can explain the tradeoffs. I would imagine Scout would want to pick a trim that they anticipate matches the expected ramp and one that prioritizes as many vehicles on the road as possible while bringing in the most revenue. I just don't see a top trim launch accomplishing those goals. I would also argue that Scout doesn't have to show off its best trim to make people fall in love. A Scout with 33's, no tire carrier, solid roof, no rack and vinyl seats is still a beautiful, capable and highly desireable vehicle and could become their very best selling coonfig. It is that nice! The rear locker is standard as will be the harvester, entertainment system and base vehicle software. This is a very long winded way of saying that I stand with @cyure hoping the that launch edition starts a dollar under $70k (though I would be OK if it was a few hundred dollars more.)

 

[BeerParty]

Probably not a good sign for Slate that only 10k have put their $300 preorder deposit down, of the 180k preorders.

https://www.motortrend.com/reviews/first-drive-2027-slate-truck-prototype

I thought they'd have more preorders. Heck, Scout had 160k preorders 5 months ago, so they might be close to the 180k mark now as well.

I don't think the problem is only the price. I have seen several posts from folks that have converted their Slate reservation into an order. They said their trucks are scheduled for delivery in June or July of 2027. That's tentative. So even with a reservation they will have to wait a year for their truck. If it's taking that long for reservation holders to get their truck, I bet a lot of reservation holders are waiting to place their orders until delivery starts.

I will be in the same situation with my Scout order. I want a Terra BEV, which will be a longer wait based on the Traveler EREV being the first fulfillment configuration. I likely will not convert my reservation into an order until I have reason to believe the Terrra will be available within a few months of my order.

 

[Nmagnatta]

I don't think the problem is only the price. I have seen several posts from folks that have converted their Slate reservation into an order. They said their trucks are scheduled for delivery in June or July of 2027. That's tentative. So even with a reservation they will have to wait a year for their truck. If it's taking that long for reservation holders to get their truck, I bet a lot of reservation holders are waiting to place their orders until delivery starts.

I will be in the same situation with my Scout order. I want a Terra BEV, which will be a longer wait based on the Traveler EREV being the first fulfillment configuration. I likely will not convert my reservation into an order until I have reason to believe the Terrra will be available within a few months of my order.

I have a pre-order of refundable $50 but putting a $250 non refundable on a vehicle that I can't test drive is a no go for me. Once I test drive it and then I'll commit the addition $250

 

[J Alynn]

Standardizing on a launch version is exactly the right move and making the build desireable makes sense as well considering they will be supply limited to start given the production ramp. They can launch at $85K and it wouldn't impact me directly because by the time my number comes up it will be a year or more from launch. I'll happily wait for the right config to come around as well. I simply wonder about the optimal pricing strategy. The argument to show off your best trim is easily countered with "that's nice but I can't afford it". Selling into a high end market tier has its risks. Slate is seeing this happen even at an affordable price tier. People expected $20k because Slate said as much. Now its 33% higher and their take rate is less than %10. Slate's product pricing moved higher than its target audience tolerated. If Scout goes high end and gets a similarly low take rate we are talking niche vehicle territory. Scout wants to move 200,000 vehicles a year. That's a big leap and assuming their ramp is healthy they will be far outproducing their demand quickly. $85k is rare atmosphere territory when it comes to vehicle purchases. I feel that people are reserving because Scout vehicles are far and away the best new products to enter the automotive market in quite a while. These are asiprational reservations. The challenge is that Scout's have always been family/utilitarian vehicles. That's the brand and product message and the new Scouts lean heavily into this heritage. Scout also advertises $60k while showing beautiful vehicles. Even with the "base model" caveat the connection sticks with future buyers because they can relate to that price point. Launching at $85K (a 35% premium in a higher price tier) may engender the same reaction we are seeing with Slate. And, teasing lower cost future trims to compensate might result in the Osbourne effect further hurting launch sales.

I'm hoping there is an economist in our midst who can explain the tradeoffs. I would imagine Scout would want to pick a trim that they anticipate matches the expected ramp and one that prioritizes as many vehicles on the road as possible while bringing in the most revenue. I just don't see a top trim launch accomplishing those goals. I would also argue that Scout doesn't have to show off its best trim to make people fall in love. A Scout with 33's, no tire carrier, solid roof, no rack and vinyl seats is still a beautiful, capable and highly desireable vehicle and could become their very best selling coonfig. It is that nice! The rear locker is standard as will be the harvester, entertainment system and base vehicle software. This is a very long winded way of saying that I stand with @cyure hoping the that launch edition starts a dollar under $70k (though I would be OK if it was a few hundred dollars more.)

I fully understand and I don’t necessarily want to pay $85K but having gotten this deep in I hope to have the opportunity to to get a launch. The good/bad is Scout can initially offer 10,000 first editions and with probably 200K people waiting by then they will fill every front drivers seat. The real trick is turning the primary production vehicles into the 60-70K to maximize the general purchasing public. And back to Slate, I think there are people saying yeh-crank windows but reality is unless you are die hard cheap EV buyer there are plenty of ICE and used hybrid options for same price so long as you don’t HAVE to have brand new

 

[J Alynn]

I don't think the problem is only the price. I have seen several posts from folks that have converted their Slate reservation into an order. They said their trucks are scheduled for delivery in June or July of 2027. That's tentative. So even with a reservation they will have to wait a year for their truck. If it's taking that long for reservation holders to get their truck, I bet a lot of reservation holders are waiting to place their orders until delivery starts.

I will be in the same situation with my Scout order. I want a Terra BEV, which will be a longer wait based on the Traveler EREV being the first fulfillment configuration. I likely will not convert my reservation into an order until I have reason to believe the Terrra will be available within a few months of my order.

And that’s a valid point. Not to mention economy isn’t fabulous right now and perhaps people are waiting in hopes of new incentives. Lots of things affecting purchasing a vehicle