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It's not so much that customers don't trust a one-price system, I think it's more that they don't trust car dealers - and they do indeed want a deal. One of my first Sales Managers explained to me that customers walk in with a chip on their shoulder and it was our job to help remove it. With enough talent and training a salesman used to be able to build value and rapport - HOPEFULLY. Today they can add an element. Using the transparency of the Internet they can also provide documentation and PROOF of the deal.This doesn't happen when you build a "No" into your old process. It happens when you build a new strategy that justifies the price BEFORE a negotiation begins. This doesn't have to be a one-price system, but one of radically REDUCED negotiation. We have seen dealers TRIPLE turn while REDUCING negotiated discounts down to an average of under $200. It does require, as Joe said, "a culture change, from the top down", to achieve these results.
It's not so much that customers don't trust a one-price system, I think it's more that they don't trust car dealers - and they do indeed want a deal. One of my first Sales Managers explained to me that customers walk in with a chip on their shoulder and it was our job to help remove it. With enough talent and training a salesman used to be able to build value and rapport - HOPEFULLY. Today they can add an element. Using the transparency of the Internet they can also provide documentation and PROOF of the deal.
This doesn't happen when you build a "No" into your old process. It happens when you build a new strategy that justifies the price BEFORE a negotiation begins. This doesn't have to be a one-price system, but one of radically REDUCED negotiation. We have seen dealers TRIPLE turn while REDUCING negotiated discounts down to an average of under $200. It does require, as Joe said, "a culture change, from the top down", to achieve these results.
