Thoughts on a big-city test for no-haggle pricing?

[Jlewis74]

Hahaha a one week integrity test. Love it JL. I bet >80% of the managers cave by day 3, then the reps go back to biz as usual.

We were a long time one price store and they were when I left, not sure if they still are.

 

[Jlewis74]

I think the real key to a one price strategy (or any reduced negotiation strategy for that matter) is to head off a negotiation before it even starts. You have to explain the store's philosophy to the customer before they say, "but, can you do any better". You have to explain how and why you priced this vehicle the way you did and justify the asking price (preferably using documentation).

That takes training, experience, and a shift in the dealership's culture - things that are difficult to accomplish in a week's time.

Corrrect its an entire process, we had the sales people trained with our "mission statement" to every customer when they came on the lot. We also had a presentation that explained where we got our price from and the ACV. The customer rode on all trade appraisals which we used as a chance to ride them through the service lane and introduce them to the service dept.

 

[Jlewis74]

Oh, HELL NO! Nobody, that is willing and able to buy is leaving my store without a car. The average customer shops 1.2 stores before purchasing (Right Joe?). They are going to buy at the next store and maybe pay more. They might as well call home, "Agnus, I'm going to be awhile". They are going to meet every Manager in the store before they leave. If they do leave, they are never coming back.

I never said they were going to leave and go to another store. Many times they would never even leave the lot just sit in the car expecting us to come out to them. Then they would get up and come back, dont get me wrong we might not have gotten them all but we were happy with the ones we did get. We sold the history of the store, the CSI scores and our prices. The people who would not buy without negotiating are the same ones who destroyed you on CSI so I really did not care if we did not sell them!

 

[joe.pistell]

Corrrect its an entire process, we had the sales people trained with our "mission statement" to every customer when they came on the lot. We also had a presentation that explained where we got our price from and the ACV. The customer rode on all trade appraisals which we used as a chance to ride them through the service lane and introduce them to the service dept.

Jeremy, you're missing the point here. This is a Edmons one week test trying to convince the world that one price is simply... One price.

As seen your replies, one price starts at the very top of the dealership and percolates down into the entire organization, right down to the cleanup team. The story here is wiil the Edmunds campaign be a real one price test or, is it lipstick on a pig?

I say one price can't come from edmunds, it has to come from the inside the leadership at the store...

Summary, the Edmunds test is lipstick on a pig.

 

[Jlewis74]

Jeremy, you're missing the point here. This is a Edmons one week test trying to convince the world that one price is simply... One price.

As seen your replies, one price starts at the very top of the dealership and percolates down into the entire organization, right down to the cleanup team. The story here is wiil the Edmunds campaign be a real one price test or, is it lipstick on a pig?

I say one price can't come from edmunds, it has to come from the inside the leadership at the store...

Summary, the Edmunds test is lipstick on a pig.

I agree with you, thats what I was trying to say, guess I missed. LOL I think its a great process but its a long term comittment!

 

[ed.brooks]

You use pay plans to get salespeople to focus on the areas that are important to you. Obviously, profit is first. We paid on the back, lease conversions, under allowances, CSI and volume.

"We have always done it this way group"? I was an early adopter to the internet. Everything I learned was through trial and error. Some things worked and others didn't.

Dealerships fall into three groups, the market leaders, the average dealer and the sub-par dealerships. By far, the smallest group is the market leader. People and culture set them apart. These people know what they are doing and are willing to put in the work. They don't accept mediocrity and change is a constant.

I love salespeople and my greatest joy was helping them be successful. I have no time for clerks.

Dale Pollak's latest blog post talks about one of those "market leading" dealerships - Growth, Speed and Future-Focused Insights From A “Black Belt” Dealer. I love this quote from Brian Benstock, "...I think there’s always going to be a way for dealers who are on the edge to see the opportunities and get ahead of the market. You’ve just got to be willing to change."

 

[ddavis]

Dale Pollak's latest blog post talks about one of those "market leading" dealerships - Growth, Speed and Future-Focused Insights From A “Black Belt” Dealer. I love this quote from Brian Benstock, "...I think there’s always going to be a way for dealers who are on the edge to see the opportunities and get ahead of the market. You’ve just got to be willing to change."

Wow, that is scary how much we think alike. That's someone that I would enjoy having a beer with.

 

[ddavis]

I never said they were going to leave and go to another store. Many times they would never even leave the lot just sit in the car expecting us to come out to them. Then they would get up and come back, dont get me wrong we might not have gotten them all but we were happy with the ones we did get. We sold the history of the store, the CSI scores and our prices. The people who would not buy without negotiating are the same ones who destroyed you on CSI so I really did not care if we did not sell them!

Just tell them that paying more is the right thing to do. It is a matter of income redistribution.

I'm taking to the income distribution ideal. Some of that hope and change stuff. I think all of you working people should be paying much more in social security. I have a bass boat but I want to do some salt water fishing.

 

[JessicaRuth]

Saw this article today about Sonic and its No Haggle Pricing.

 

[Daniel J. Mondello]

Ed how do I get a list of all the participating Dealers?