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Ed,


I was with you 100% but, you dropped the ball.  You've moved "market based pricing" (as vAuto defines it) from a STRATEGY into a TACTIC.  Price cannot stand alone.  You forgot to mention that Customers WANT to Negotiate (regardless what the asking price is).


For the market based pricing to work (as planned),  dealer strategy requires the dealer to completely EMBRACE the "market based pricing" philosophy. This is a culture change, from the top down.  This "new attitiude" needs to touch every nook and cranny in the dealership (marketing, merchandising, meetings and training).  The shopper needs to "see it coming" (marketing & merchandising) and once the sales rep "stands their ground" (training & meetings), the shopper will get it.


Dealers that go at it half-assed (without the complete top down buy in) will fail.