Dear AWE/ GIAC, Help me help you

B8 S4
#1

Curious as to why someone like me, who currently has the GIAC stage 1 tune as well as the TCU tune, has to pay nearly $310 more than a brand new customer going to stage 2 with the TCU and has given your company no loyalty prior?

I talked with AWE today and and the answer more or less was “well technically we have GIAC redo the tune for our pulley for stage 2 specifically for us, there for you now have to buy our new software (not just an update to my stage 1 software) along with the pulley and GIAC is the middle man and we don’t offer any breaks.”

My initial inquiry was because my current boss, who also owns the same car was interested in getting a tune. He loves my car, and he trust my opinion. I am completely happy with my stage 1 tune and the TCU tune and was excited when he started to show interest. We talked, and both decided lets both go stage 2. Now he has no tune at all, and out the door before install he is looking at $2310 for Stage 2, Pulley and supporting hardware and the TCU tune. Come to find out for me to get to the exact same setup, having all ready purchased and committed to supporting your product (and very happy about it) I now have to pay nearly $2623 all in ($1200 Stg 1, $600 TCU - brice break because I got both at the same time + $823.40 to get up to Stg 2).

Unless I am missing something this is how I feel about the pricing structure:

I have given you business in the past. You provided a product, I paid for that product and we are/were both happy. I now am looking to bring you more business from the loyalty I carry and the appreciation for your Stg 1 Product and you are going to charge me $823.40 to do so.

A new piece of business that was going to also bring you more money for the same product is going to get a price break of about $310 and that person has carried no prior loyalty or has made the decision to continue to business with you on a reoccurring basis, they are a first time customer.

So I am providing continued business, and attempting to give you more money for what I will assume to be a great product and that costs me an extra $310 over my boss who was just going on my recommendation…

Unless my Stage 1 software depreciated and lost value because its been driving the roads, at car meets (Cars and Coffee Chicago, I rave about your product look up the Facebook page or ask any other Audi enthusiasts that attends), via the forums, via word of mouth…I can’t fathom how you wouldn’t take care of your current book of business. Software doesn’t rust, it doesn’t degrade so I am at a loss.

I hope you can see my points, and am looking for someone to really step up and take care of this. I again am very happy with your Stage 1 product and would hope to continue to do business with you because I carry loyalty to business that appreciate it. I also hope to continue to bring you business as I know word of mouth is one of the most beneficial sales tools to a business.

-AZ

#2

You are buying at least two separate products and probably three unless you bought stage I and dsg tune at the same time, your boss is buying a package or bundle of products all at one time… That’s usually priced lower and it’s not an uncommon pricing strategy for many companies… Should GIAC reward you for sending your boss their way? That’s really a separate question and a tough program to administer which is why many don’t do it… Just my .02

#3

There’s a saying that is used in engineering, manufacturing, and other walks of life.

Do it once, do it right.

Not always followed though.

As I bought springs and am now buying coilovers.

#4

Is that a saying? Doesn’t rhyme or anything.

Buy it nice or buy it twice is more common.

#5

Yea, I’m sorry but I don’t follow this logic. So the way to get a better price is to buy the stg 1 first, and then 6 months later upgrade to stg 2?!?! Doesn’t make any sense, it’s a better price for the package deal. You get a better deal when you buy 5 bottles of sonax at once, not piecemeal.

The second question about getting a good price for bringing them business is akin to asking for a sponsorship. I doubt guys like Jeff, Ron or Pete get much discount (although they probably deserve it), and they’re the ones doing the legwork for the tuners (and also subjecting their engines to beta files).

GIAC is the “manufacturer” and your local shop is the vendor. IMO, the vendor is the one who could offer you a deal for repeat business, probably give you a cheaper quote on your labor, or give you “flash back/forth for free” service down the road. The shop will always ask “who recommended you to us” when working on the cars of your referrals, which is a good way to establish the “loyalty” factor. Who knows what their cut is from the software itself, my guess is next to nothing. Their incentive for selling the software is to bring in customers who like to mod cars and buy/install a bunch of aftermarket shit through them.

#6

I think what he’s saying is that it’s kind of strange that to go from stage GIAC stage 1 to GIAC stage 2+TCU is more expensive than going from stock to GIAC stage 2+TCU

He is right. That is weird.

Unless I’m misunderstanding that. If he is complaining that he bought stage 1…and a year later is going stage 2 and it’s more money than buying it all at once, that is no cause for concern and should come as no surprise. The Sonax example qualifies.

#7

Pretty sure it’s the latter, cause he said he already has the DSG flash:

There is no way in hell they double charge him for Stg 1 and the DSG tune.

#8

Exactly… The below statement alone shows that he already benefited from buying a package of products at the same time… His boss is just getting a little better price break since he is buying even more products at the same time…

“($1200 Stg 1, $600 TCU - brice break because I got both at the same time + $823.40 to get up to Stg 2).”

#9

yeah, so I don’t get dblearon’s concern. He has to pay $300 more because he bought it in chunks vs. his boss who bought it all at once. He already got $100 off stage 1+TCU in fact.

He also bought the tune a good year ago, and it may have been more expensive with less price flexibility back then when they were still trying to recover their tuning tool and time costs.

The thread basically sounds like dblearon wants a commission or referral fee for bringing his boss to GIAC. If so, kudos for his creativity lol. We will see what happens.

#10

I think he is saying that APR doesn’t charge to upgrade SW from Stage 1 to Stage 2 (other than labor). With APR it is included in the price of the pulley.

Because of the different business relationship between AWE and GIAC (as opposed to APR being all the same company in terms of HW and SW), there is some additional charge for the Stage 2 software. I at least agree with the logic in that the AWE pulley should really be less if you are paying separately for the HW and SW.

#11

Oh, and no doubt, it makes GIAC Stage 1 a moot point… If you go with GIAC, Stage 2 is the only way to go.

#12

Sorry guys most the action was on the AZ thread for a bit.

Clear it up:
not looking for hand outs, simply stating im a good customer and even convinced my boss to come over to GIAC over apr because I was happy with my stage 1.

I used his pricing example along with information provided by GIAC and AWE to show them (ultimately AWE) there pricing model doesn’t work.

Remove the TCU tune for now–

Stage 1 -$1200
Stage 2 -$1610

Difference in price is $410

Going from stage 1 to stage 2 all in -$2023.40

Difference of $413.40

GIAC states their stage 2 tune to anyone costs $1400 combined costs, or $200 additional dollars from stage 1. Fair enough.

So for me going from stage 1 to stage 2 I’m paying $200 for the tune part to GIAC.

I am then paying to AWE $623.40 for the pulley and it’s R/D. However my issue is that people going straight to stage 2 only pay AWE $210 for the Pulley and it’s R/D meaning AWE is ringing me for an additional $413.40 for absolutely nothing.

All this is from AWE’s list pricing and GIAC.

http://img.tapatalk.com/d/14/04/03/esavu5a2.jpg

Even if AWE didn’t have as great of margins on “my type of sale” there is no way it’s triple what they make on customers going straight to stg 2.

And if they felt like they needed to make more for there “R/D” on their pulley and they receive a price break for the software side from GIAC that only means that GIAC ringing me out for more $ for keeping their software and wanting to continue doing business with a customer.

GIAC is passing their pricing break for being a partner on to AWE, which is then inflating that break and then making me pay for profit on top of profit and calling it R&D and materials.

The math just doesn’t add up to being “good” business for returning customers, I get a business(s) can do as they please but just frustrated by the scenario. In the long run they lost me as a customer, my boss and two other Chicagoans as future customers.

Arin if you would reach out to me as I will be willing to switch and bring three cars with me.

-AZ

#13

The question then becomes, do they make more money by appeasing you, and probably everyone down the road who cites your deal. Or lose your business but make up that money with the next batch of customers. My guess is the latter.

One question though: I know the power play from APR is a reasonable move, but don’t you lose money on your DSG tune? Or will APR let you have it for a power play like price once they release their own TCU tune?

#14

You also have to consider that part of the cost of the pulley is embedded in the software. When someone goes stage 2 from the getgo, are you thinking that AWE gets nothing other than $200? I doubt that.

Anyway, bottom line is that you can’t cherry pick examples to make your deal look bad. Look big picture: Buying all three (stage 2 tune, pulley and TCU) is $300 less than if you buy it in chunks. That’s not as much a ‘hey, why don’t I get that deal buying it in chunks’…and more of a ‘wow that’s a big discount for someone buying it all at once’. That’s what I think. I think it’s a weird discount policy in the first place, rather than something that should be extended to every combination/customer. I think they should just charge what they charge.

#15

My problem is why GIAC and AWE can’t merge their combined pricing structure into something simple. It’s stupid to have to buy stuff from multiple vendors. This becomes worse during a sale, where GIAC has their stuff on sale: http://www.audizine.com/forum/showthread.php/587954-GIAC-Spring-Sale-from-March-16th-2014-through-May-15th-2014!

But AWE doesn’t or their website information is all confused: http://www.awe-tuning.com/awe-tuning-b8-5-stage-2-performance-pulley-kit

Plus, you need a local shop to perform the obd2 flash, so you are dealing with a vendor (shop) buying from a vendor (awe) buying from a “manufacturer” (GIAC). The GIAC shop around me (auto europe) comes back with ridiculous quotes, because they are confused about the pricing and/or what is needed for my car. Last I got during the fall sale was $2445 pre tax for stock to stg2, including install. This was after 10 back/forth emails about what I did and didn’t need.

APR has an easier to understand setup, especially when getting an out the door quote from a local shop.