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Ed,

A tactic is resides inside a strategy.

strat·e·gy /ˈstratəjē/  Noun

1. A plan of action or policy designed to achieve a major or overall aim.

2. The art of planning and directing overall military operations and movements in a war or battle

 tac·tic /ˈtaktik/ Noun

1. An action or strategy carefully planned to achieve a specific end.

2. The art of disposing armed forces in order of battle and of organizing operations, esp. during contact with an enemy

Managers prefer to keep price high because THEY NEED IT FOR A TACTIC  (read: contact with the enemy).

In my decades of travel I've seen a lot of retail battles, I have been totally puzzled by the lack of strategy in Car Dealer World. I trace it back to 2 causes.

1. Comfort from the Franchise (creates comfortable & un-creative dealer/owners).
2. Bizarre management pay plans that create inter-departmental turf  battles where the customer is LAST priority in the daily skirmishes  (and... our comfy dealer gets his cut from all,  while department  managers go "alpha-male" or die from the lack of respect).

My Summary.

The factory franchise creates traffic and protects it's dealer/owners.   This single fact creates and empowers the culture we all see today.   Pull that fancy sign off the front of the store front and everything  changes... and I mean EVERYTHING.