I fail to understand what the big deal is. Consumers don't deserve transparency. Does anyone think we should know the raw wholesale price of a head of lettuce at the grocery store? So what if consumers answer survey questions that aren't complimentary to us. Which is more important. They love us and we make no money, or they're skeptical and we do. Those are the same choices that have existed in commerce where the price has to be negotiated and the parties don't have the same information. If one doesn't have the stomach for it, they should probably fins another business. The only reason this became an issue is when the third party vendors started running self serving surveys that convinced the naive that we can make money by being transparent if we just sign up for their program. Real veterans of the business know consumers behave differently than they answer survey questions. Bottom Line: there are ways to negotiate deals and still have reasonable CSI scores, but you can't please everyone and you'll never be able to completely satisfy consumers. They aren't business people. They mostly work for a salary and don't employ people or pay interest on inventory. Why turn yourself inside out trying to satisfy those who can't be satisfied?
For example: I've conducted many seminars and addressed numerous groups of both industry people AND consumers. When I ask attendees what they think would be a reasonable return for a dealer on a $30K car, most agree that 8 - 10% is fair. A few minutes later I'll ask, what if you got home and your uncle showed you where the dealer had gotten to you for $3K on your recent car deal. Thieves and robbers are some of the nicer terms I hear.
My generation thought it would change the world. As we grew up, we discovered one first needs to learn how to live in the world the way it is before one can effect change. By then, you realize many things are the way they are for good reason. Same with our retail auto industry. It is what it is. The negotiation is what sets our business apart from small ticket items and gadgets like iPhones that one can stick in the mail. Negotiation is also what consumers hate the most. And if you give them your best price to shop, they'll use it against you. If you give them your "best price," then you vary from that to make a deal, you're a liar. AND you open yourself up to legal action, as was pointed out by auto business legal eagle Tom Hudson.
The current market is strong. There are fewer dealers doing record volume. Record low interest rates for finance and floor plan abound. One Price has some practitioners making money. Wait until we get back to a more historical market with REAL interest rates and more dealers on board to add competition. When we get down to the "nut cutting" again, every dollar of every deal will count more and substandard weak practices will go on the wane again.
