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Me too Stefan, something all of us could kill many drinks over discussing at length.I've never been a fan of the "one price" model for new and/or used vehicles. I think it's too restrictive and it does have to be definitive to work at any location like others have stated, but the problem is the whole market is based on a consumer perception of false-hope. Yago and some others on the thread here have touched on this point, shoppers (some dealers w/tech) will still think there is always a better deal out there because they do not really know what they are doing. I think you limit your potential as a committed one-price dealer, competing in a market of low ballers, aggressive pricers, best deal beater dealers, who have been doing the same buying strategies for years. Whether it's in the newspapers, radio, TV, or now online - they know consumer (human) behavior and how to manipulate it. Most shoppers look at publicly declared one-price dealer as being the starting point price to beat at their local dealer. You will have a good portion of the market shoppers who simply appreciate the transparent nature and great service of one-price dealers, but never the majority IMO.However, I've always been a big fan of a very competitive pricing model for both new & used in your market area. With new it's about ordering the right stuff, and with used it's about buying the right stuff for your market. Then you have to hone your sales processes and educate your sales crew. Look at your market (50 for new, 150 miles for used) and strive to be the number #1, that's all that matters.
Me too Stefan, something all of us could kill many drinks over discussing at length.
I've never been a fan of the "one price" model for new and/or used vehicles. I think it's too restrictive and it does have to be definitive to work at any location like others have stated, but the problem is the whole market is based on a consumer perception of false-hope. Yago and some others on the thread here have touched on this point, shoppers (some dealers w/tech) will still think there is always a better deal out there because they do not really know what they are doing. I think you limit your potential as a committed one-price dealer, competing in a market of low ballers, aggressive pricers, best deal beater dealers, who have been doing the same buying strategies for years. Whether it's in the newspapers, radio, TV, or now online - they know consumer (human) behavior and how to manipulate it. Most shoppers look at publicly declared one-price dealer as being the starting point price to beat at their local dealer. You will have a good portion of the market shoppers who simply appreciate the transparent nature and great service of one-price dealers, but never the majority IMO.
However, I've always been a big fan of a very competitive pricing model for both new & used in your market area. With new it's about ordering the right stuff, and with used it's about buying the right stuff for your market. Then you have to hone your sales processes and educate your sales crew. Look at your market (50 for new, 150 miles for used) and strive to be the number #1, that's all that matters.
