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    Moving towards no-haggle fixed pricing

    Hey, has anyone else seen this Thing about how Honda moved (July 1st) to what's being called an "Agency" pricing model?
    https://www.caradvice.com.au/930936/...l-restructure/

    I'd read about how they were shedding dealers, but hadn't realised they were introducing a no-haggling-accepted fixed pricing model.
    One side effect is that the drive-away price is the same across the whole country, so RRP is different in every state & territory.

    It'll be interesting to see how this goes. I, personally, dislike haggling for any new Widget - there should be a price, the price is the price, if you price your Widget too high people won't buy it.
    They reckon they'll sell fewer cars but the overall profit will be higher; if the overall profit is higher despite selling 1/3 as many cars, surely that means they're going to be overpriced & hence "1/3" is optimistic?

    On the other hand I guess the only things they've got that are good is a $55k Civic and a very old Jazz. Their SUV's will sell despite not being much chop, being good isn't what sells SUV's, but AFAIK they only have CR-V & HR-V? And ... the cooking model Civic. They've got 4 vehicles to sell?

    *edit*
    Oh, I forgot to add another interesting bit - Mercedes-Benz planning on doing the same apparently.
    Last edited by Captiva Fan; 26-07-21, 12:23 PM.
    Soft roaders represent an excellent compromise between the needs of the hardcore 4x4 user and the convenience of a city hatchback. Its clear to see why they have become so popular in todays society.

    #2
    People still buy Honda’s?
    Originally posted by Walt Kowalski
    Memes are only detectable by NSA.

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      #3
      Mercedes is going to do the same next year.

      It probably won't be long before most of them are doing it.
      RIP Simon - Ghost ride that whip in the clouds forever..

      Comment


        #4
        Still haggle on trade-ins but..

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          #5
          Should be easy with about 6 dealerships Australia wide...
          Originally posted by brewdles
          In short, some cunt at test and tune had a 250cc honda turning to 11ty and it sounded porn. Do that.

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            #6
            Doing fixed prices when your competitors aren't probably requires cars people want to buy. Tesla can do it, because Teslas are in demand. Honda? Not so much...

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              #7
              Surely this is cutting it pretty fine with regards to resale price maintenance laws? (Not that they ever seem to get enforced anyway…)

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                #8
                Originally posted by Captain_Slow View Post
                Doing fixed prices when your competitors aren't probably requires cars people want to buy. Tesla can do it, because Teslas are in demand. Honda? Not so much...
                What about Mercedes Benz?
                Is every Benz different enough to every BMW & every Ordi & every Lexus for it to work?
                Soft roaders represent an excellent compromise between the needs of the hardcore 4x4 user and the convenience of a city hatchback. Its clear to see why they have become so popular in todays society.

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                  #9
                  The first 5 services are now only $125 under the new fixed pricing template. (12 month/10,000km service intervals)

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                    #10
                    Taking away a method of stealers to steal isn't likely to be warmly welcomed.
                    Parramatta Eels, 2009 Premiership rightful winners.

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                      #11
                      Originally posted by Captiva Fan View Post
                      What about Mercedes Benz?
                      Is every Benz different enough to every BMW & every Ordi & every Lexus for it to work?
                      Probably not, but I guess they can always adjust their fixed pricing or offer discounts/incentives - they'll just have to advertise them openly rather than giving dealers incentives to move stock, which dealers can try to withhold if they think someone will pay full price. "Free Adidas tracksuit with every C63 sold this month" would be openly advertised and available nationwide.

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                        #12
                        Originally posted by Captain_Slow View Post
                        "Free Adidas tracksuit with every C63 sold this month"

                        Soft roaders represent an excellent compromise between the needs of the hardcore 4x4 user and the convenience of a city hatchback. Its clear to see why they have become so popular in todays society.

                        Comment


                          #13
                          Originally posted by bryan View Post
                          Still haggle on trade-ins but..
                          Prolly move to the Thailand stealership model for that.

                          They don't do trade-ins.. sort of.

                          If you have a trade in they call the wholesaler and the price they give.... thats it.

                          If you accept that price you still pay full wedge for the new car and the wholesaler gives you the coin for your old.

                          Don't mention the adBlocker !!

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                            #14
                            I'm very curious how this pans out for Honda.

                            Will the fixed price be forced on dealerships? For example, if I walked in and offered $39,500 on a car priced $39,990 I assume it would be very hard for the dealership let a sale go for $490.

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                              #15
                              Originally posted by Eddy View Post
                              I'm very curious how this pans out for Honda.

                              Will the fixed price be forced on dealerships? For example, if I walked in and offered $39,500 on a car priced $39,990 I assume it would be very hard for the dealership let a sale go for $490.
                              Pretty much this, but also it's open slather for the rival dealerships down the road to undercut for an equivalent (probably better) product?

                              This just feels like marketing to convince consumers that wanting to negotiate or cross shop makes them weird.
                              Originally posted by myshortyboomba
                              I've had many gauges in cars. I always found the conrods react faster than a gauge.

                              you can always hear them when they break and they stop the engine immediately so you can't do any more damage.

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