Porsche to Expand Market by Pricing Experiments

Porsche to Expand Market by Pricing Experiments.  Porsche is rolling out a cheaper subscription plan in four US cities as the German automaker experiments with different prices and products in an attempt to expand its customer base.

Porsche now has three blueprints or levels, all of which are housed as part of its new Porsche Drive vehicle subscription program. This new plan, called the Porsche Drive Single Vehicle Subscription, sits between two other existing tiers.

Porsche to Expand Market by Pricing Experiments

The strongest plan is Porsche Drive - Multi-Vehicle Subscription, which offers customers the ability to trade in a variety of vehicles on a monthly basis. The multi-vehicle plan costs $ 2,100 or $ 3,100 per month, depending on whether the customer wants access to their high-performance models like the 911. Then there's Porsche Drive - Rental, which, as the name suggests, offers short-term rentals. The rental price is vehicle dependent and starts at around $ 245 per day for the Macan up to $ 2,415 for weekly 911 use.

The new single-vehicle plan is cheaper than the multi-vehicle plan, but that doesn't mean it's cheap. The single vehicle plan starts at $ 1,500 per month for the Macan and goes up to $ 2,600 per month for the Porsche 911. All plans require a $ 595 activation fee, unless it is from the customer. You commit to the single vehicle plan for at least three months.

In particular, no amount of money will allow customers to access the all-electric Porsche Taycan. This is the only vehicle that is not available on any of the plans.

This mid-tier vehicle subscription program will be offered to customers in Atlanta, Los Angeles, Phoenix and San Diego. Customers who opt for this plan will have access to a single Porsche model for one to three months, starting September 25. Like other Porsche Drive programs, the monthly plan fee for a vehicle covers the vehicle, delivery, insurance and service.

The subscription program, formerly known as Passport, first launched in 2017 in Atlanta. During the pilot, the average subscription was around four months. The most common reason customers suspended their memberships was due to extended travel plans, according to the company. The initial goal was to create a new clientele of Porsche owners by offering a flexible product. This sparked enough interest for Porsche to extend the program to several other major US markets, such as Phoenix and San Diego. You are now entering Los Angeles.

“If California were a country, it would be our fifth largest market in the world. After bringing Porsche Drive to San Diego last summer, Los Angeles was an obvious choice for customers to experience a variety of Porsche sports cars and SUVs with the touch of an app. Now, in addition to our Porsche Experience Center Los Angeles tour, Los Angeles residents or those visiting Los Angeles have another way to enjoy a Porsche, "said Klaus Zellmer, PCNA President and CEO.

Porsche contends that the data shows that the underwriting program was successful. The company said 80% of attendees were new to Porsche, many were younger than the average age of current Porsche buyers or renters, and more than a third had signed up for at least four months. Porsche said it has added the single vehicle option to the database showing that some members prefer to stay with one model rather than switch vehicles.