{{no footnotes, date=December 2013
Employee pricing is a selling strategy launched in 2005 by the
auto industry
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such ...
in order to attract customers by using the discounted prices that auto industry employees pay for new cars rather than the sticker price
MSRP
The list price, also known as the manufacturer's suggested retail price (MSRP), or the recommended retail price (RRP), or the suggested retail price (SRP) of a product is the price at which its manufacturer notionally recommends that a retailer ...
. The program was first offered that year by
General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, and later followed by
Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
,
Chrysler
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotiv ...
, and some local dealerships. While 2005 was the biggest year for the promotion, it has since been used several times, like during the automotive industry crisis of 2008 to stimulate sales.
Chrysler was the most notable of all during this promotion, with its "Employee Pricing Plus". Characterized by generous incentives combined with rebates on most Chrysler, Dodge, and Jeep models, Chrysler claims their offer bests those "employee discount" prices offered by
General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
or
Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
.
Lee Iacocca
Lido Anthony "Lee" Iacocca ( ; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, a ...
is the celebrity spokesman for the campaign; he appears in summer 2005 ads with
Jason Alexander
Jay Scott Greenspan (born September 23, 1959), known professionally as Jason Alexander, is an American actor, comedian, host and director. An Emmy and Tony winner, he is best known for his role as George Costanza in the television series '' ...
,
Snoop Dogg
Calvin Cordozar Broadus Jr. (born October 20, 1971), known professionally as Snoop Dogg (previously Snoop Doggy Dogg and briefly Snoop Lion), is an American rapper. His fame dates back to 1992 when he featured on Dr. Dre's debut solo single, " ...
, and his granddaughter.
According to its TV ads and website, the world's first employee pricing program for customers was instituted by The Brick, a Canadian furniture store.
Starting on July 1, 2006, Chrysler reinstituted the Employee Pricing Plus program to run from July 1 to July 31. For the first five days of the program, all Chrysler, Dodge, Jeep dealerships in the United States were open until midnight to support the program, a first in the company's history.
The discounted prices however do not impact profits much, as the margins are recovered with higher sales and better contribution to fixed costs.
Chrysler reinstated employee pricing price starting January 26th, 2009.