Quote Of The Day: The Colorado Pricing Paradox

Derek Kreindler
by Derek Kreindler

The pricing announcement for GM’s mid-size trucks raised a big question at TTAC – namely, how are they supposed to compete with GM’s full-size trucks when there are such hefty rebates already available?

Reader dwford commented

“My 2014 GMC Sierra SLE Double Cab 4×4 with Z71, leather, 18″ wheels, auto climate control, heated seats, 5.3L V8 stickered for $44,455, I negotiated to $41,140 – $6750 rebates = $34,390+++. They priced the Canyon Crew Cab 4×4 V6 with leather at $37,875. Do you see the problem here…”

Aside from regulatory issues, pricing has been a big problem for smaller trucks. There generally aren’t enough customers willing to pay full-size truck money (when incentives, generous ones at that) are taken into account, for a small or mid-size truck. Yes, there are plenty of logical reasons why an individual would want one. But the business case is rarely there, and the general ethos of “bigger truck = better/more macho/more impressive” doesn’t help matters either.

I’m interested to see what GM will do in terms of marketing these trucks. As another reader noted, it will be tough to advertise the mid-size trucks, and then run ads for full-size trucks showing incentives worth thousands of dollars, if not more. The other scenario is that GM will have to discount the mid-size trucks almost immediately to ensure a healthy gap between the trucks and their pricing structure.

Derek Kreindler
Derek Kreindler

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9 of 222 comments
  • Ccode81 Ccode81 on Aug 06, 2014

    Just curious from Kei car kingdom, wondering why the smaller Explorer always sells better than Expedition in SUV world, when the story is different on Trucks? appreciate for your inputs.

    • See 2 previous
    • Danio3834 Danio3834 on Aug 08, 2014

      @bball40dtw >The Explorer is a butch Taurus wagon that is made to look like a Land Rover. I found it really interesting how many friend's wives are really into the D based Explorer, but refused to even step inside a Freestyle or Taurus X. What a difference a bit of branding and styling tweaks make.

  • Segfault Segfault on Aug 07, 2014

    The double cab is a very good sized cab, compared to "extended cab" models of yore. I wish they offered it with a short (5.5') box from the crew cab. I think the F-150 offered this extended cab / short box combination for a few years, but I'm not sure how popular it was. It would make the truck a more maneuverable size for the 90+% who only occasionally haul things in the bed.

  • Danio3834 Danio3834 on Aug 08, 2014

    We should probably take a break from posting stuff about small/midsize pickups before someone has an aneurysm.

    • See 1 previous
    • Geeber Geeber on Aug 08, 2014

      @Pch101 I'm sure that the fire-and-ambulance service only uses an ambulance based on the F-Series chassis because mean old Ford never offered a Ranger-based ambulance.

  • BrunoT BrunoT on Feb 23, 2015

    Figure it out yet? Those fat incentives are for leftover 2014 models. Pricing a GMC Sierra SLT 4x4 crew cab, with texas package, bedliner, nav and upgraded stereo and all rebates, it comes to about $46,000 at a major car pricing site. A similar Canyon? $38,000. The big brother costs 21% more, about what one would expect for a truck that is about 20% bigger, eh?