Would probably have to move mountains to make that change. Dealers love jacking up those prices.
Ford CEO wants fixed pricing
Good Luck with that. As long as there are dealerships. That's probably a big reason Tesla doesn't have them.
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The dealer network model should be allowed to change with changing times.
Yes. Mercedes tried it, too. Dealers took them to court and won.
Sometimes Jim Farley says the darnest things. He is running out of time to show tangible results to the family. I think he is just getting desperate.
Sometimes Jim Farley says the darnest things. He is running out of time to show tangible results to the family. I think he is just getting desperate.
I’m guessing fixed pricing resonates well in consumer surveys. But in reality it only fixes one part. Trade ins, warranties and other add ones, financing, etc.
Fixing one part is good. Perfect is the enemy of good.
Saturn did try it as 85lebaronT2 said, and it worked very well for sales while Saturn had cars to sell, but then they stopped developing their own cars and started reskinning Opels. The model works well when you have decent product.
I remember back around 1993-or-so, a dealer down in central/south New Jersey had a massive lot full of vehicles. I went down to buy, and found ... an empty lot with two old used cars in it. The dealer did a "fixed price" sale the day before and sold every single car in one day. The two loners still on the lot were trade-ins.
Saturn did try it as 85lebaronT2 said, and it worked very well for sales while Saturn had cars to sell, but then they stopped developing their own cars and started reskinning Opels. The model works well when you have decent product.
I remember back around 1993-or-so, a dealer down in central/south New Jersey had a massive lot full of vehicles. I went down to buy, and found ... an empty lot with two old used cars in it. The dealer did a "fixed price" sale the day before and sold every single car in one day. The two loners still on the lot were trade-ins.
Fixed pricing works too well when the fixed price is below market value. It doesn’t work when it is above.
Perhaps better than fixed pricing might be no-haggle pricing. Carmax has been using this model very successfully for years.
Autonation uses no-haggle pricing as well. But unlike Carmax, who tries to set a price close to market value, Autonation starts with a very high price and lowers it a set percentage every week, until the vehicle eventually sells.
If you find a vehicle you want at Autonation and know how they operate, you just have to wait a few weeks until they lower price to your threshold.
Perhaps better than fixed pricing might be no-haggle pricing. Carmax has been using this model very successfully for years.
Autonation uses no-haggle pricing as well. But unlike Carmax, who tries to set a price close to market value, Autonation starts with a very high price and lowers it a set percentage every week, until the vehicle eventually sells.
If you find a vehicle you want at Autonation and know how they operate, you just have to wait a few weeks until they lower price to your threshold.
No haggle makes more sense than fixed. I'd been thinking of them as the same.
Now to convince customers of that. Car haggling is bred into us.No haggle makes more sense than fixed. I'd been thinking of them as the same.
Ha. Most customers LOVE no-haggle. See prior example.Now to convince customers of that. Car haggling is bred into us.
We loved no-haggle when we purchased from Saturn. With the Mustang, Encore, and Explorer, we used the corporate pricing benefit from my wife’s employer, so no haggling necessary there either. Very easy, no fuss.
Hey, I'd be okay with it, some won't, and unless it goes industry wide, there will be a significant defection. But it is Ford, so I hope they lose customers.Ha. Most customers LOVE no-haggle. See prior example.
Again, MOST customers love no-haggle. It's one reason I really loved buying a car with a F&F number. The actual price isn't necessarily better than I could get with a full day of negotiation.Hey, I'd be okay with it, some won't, and unless it goes industry wide, there will be a significant defection. But it is Ford, so I hope they lose customers.
Pretty much why we have purchased from CarMax for our last two purchases. I don't know that the "negotiated" price at a normal dealership would have been any better. I've grown to dislike purchasing from a dealership. I don't want to spend the entire day "negotiating".Again, MOST customers love no-haggle. It's one reason I really loved buying a car with a F&F number. The actual price isn't necessarily better than I could get with a full day of negotiation.
I do recall a story that Saturn worked so well, that it frightened the establishment such that it was cannibalized. The midleadership levels, networks, and entire "system" that was setup was shaken by thinking different. Things that worked well in the existing sytem were likely adopted and then the experiment shut down.Fixing one part is good. Perfect is the enemy of good.
Saturn did try it as 85lebaronT2 said, and it worked very well for sales while Saturn had cars to sell, but then they stopped developing their own cars and started reskinning Opels. The model works well when you have decent product.
I remember back around 1993-or-so, a dealer down in central/south New Jersey had a massive lot full of vehicles. I went down to buy, and found ... an empty lot with two old used cars in it. The dealer did a "fixed price" sale the day before and sold every single car in one day. The two loners still on the lot were trade-ins.
Would love to know if that tale has truth from someone who lived in it.
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