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The Apple approach works because Apple owns and controls its own outlets. The FTC isn't likely to approve independent franchised dealers all selling the same car for the same price. Even if they did, trades would still have to be negotiated.Regarding the issue of non negotiation: It is easy to let a customer walk if they don't pay your price. If you think it is a good idea to arm your shopper with prices they will use against you in the market, I say, "go for it." But what do you do when you get a buyer with serious negative trade equity? You scrape up all of the customer cash and incentive money you can, but your bank call leaves you short of your stated price/margin. Lets say your stated no negotiation margin is $500 but your bank call only leaves you with $150. Do you let them walk to maintain your credibility and ideology? Or do you take the deal and make it up on the back end. OR do you bump the trade, another form of negotiation? These "plus deals" are the ones that drop straight to the bottom line.
The Apple approach works because Apple owns and controls its own outlets. The FTC isn't likely to approve independent franchised dealers all selling the same car for the same price. Even if they did, trades would still have to be negotiated.
Regarding the issue of non negotiation: It is easy to let a customer walk if they don't pay your price. If you think it is a good idea to arm your shopper with prices they will use against you in the market, I say, "go for it." But what do you do when you get a buyer with serious negative trade equity? You scrape up all of the customer cash and incentive money you can, but your bank call leaves you short of your stated price/margin. Lets say your stated no negotiation margin is $500 but your bank call only leaves you with $150. Do you let them walk to maintain your credibility and ideology? Or do you take the deal and make it up on the back end. OR do you bump the trade, another form of negotiation? These "plus deals" are the ones that drop straight to the bottom line.
