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Moving towards no-haggle fixed pricing

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    #16
    It’s easy to do it when you only have one franchisee in each town.

    In Canberra for example if it’s a single franchisee (Multisite or not) then they’d just go “see ya”. The problem is they can all play games with Finance, Servicing and the Trade-in. So ultimately your $39990 car is going to be that, minus having to win negotiations against the Ming Mole, the Business Manager and so on.

    In the current “that’s our price for our car” market it’s a win. But when the slump comes well…
    ---
    Shed Project: 1994 Laser Lynx with BP-T

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      #17
      Originally posted by fondles View Post

      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.
      I think that's pretty well what Tesla does (although they pay you directly). We got them to value our Cruze and they came back with a rock bottom number that would have either been generated by Redbook or whatever wholesalers they have to deal with trade-ins. Just like their new car prices, there's no negotiation. They don't want them and just palm them off to someone else right away.

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        #18
        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.
        Under the Honda model, Honda itself (not the dealers) own all the cars in stock. So the dealer would need to find some other way to give you that $490. I guess they could outright give you cash back themselves?

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          #19
          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.
          But they can't because they don't own the car Honda does/will and if they sell it for under price they will need to reimburse Honda that money they undercut and in many cases there isn't much profit margin in a car for a dealer it is all about finance kick backs and servicing. Sounds like servicing costs are getting slashed massively so there goes that. All the dealership will get is a processing/delivery fee that will be paid to them by Honda. The eventual goal will be all the dealerships will be Honda owned removing the ability for individual dealerships to game the system and undercut each other.

          If they manage to remove a lot of the independent dealers the increase in profit margin will be because they own the complete system, they don't need to leave enough profit in the car for the dealership to run their whole business of lots of sales staff, finance, business managers and so on. Much like the Tesla model they will have a few delivery agents and who can also show you a car these people will all be on fixed wages instead of commissions, no need for a sales manager and various other levels of management at dealers all that can be run from Honda HQ.
          Last edited by Luke352; 26-07-21, 06:58 PM.

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            #20
            Most purchases these days are done online, Honda should fuck off the stealerships and direct sell from a holding yard... Set up one large service centre per major city.

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              #21
              Originally posted by fondles View Post
              Most purchases these days are done online, Honda should fuck off the stealerships and direct sell from a holding yard... Set up one large service centre per major city.
              From what's been said in this thread about there being about one dealer per state, I think you may have nailed kinda-sorta what they're doing. The few dealers are the service-centres, as well as the place the online-ordered test-drives can be done from etc.
              And given that the Holden dealer we bought our car from was happy to do scheduled services at the fixed prices, despite being a 1.5hr drive away, means they must have some way to get this central servicing thing to work even if it's a bit of a hike.
              Last edited by Captiva Fan; 26-07-21, 08:03 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.

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                #22
                Well, at least I won't have to feel competitive about getting the best deal on a new car if they're fixed price at all dealerships country-wide.

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                  #23
                  Originally posted by Captiva Fan View Post

                  And given that the Holden dealer we bought our car from was happy to do scheduled services at the fixed prices, despite being a 1.5hr drive away, means they must have some way to get this central servicing thing to work even if it's a bit of a hike.
                  1 major service centre per large city... even if its 1.5hrs away, smaller local places closer to home should be able to do log book servicing to keep the warranty happy.



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                    #24
                    Originally posted by fondles View Post
                    1 major service centre per large city... even if its 1.5hrs away, smaller local places closer to home should be able to do log book servicing to keep the warranty happy.
                    Or a fleet of kitted out Odysseys, for that?
                    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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                      #25
                      Originally posted by Captiva Fan View Post
                      Or a fleet of kitted out Odysseys, for that?
                      For reliability they'd prolly kit out some Hiace's !!

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                        #26
                        Apart from the Type R what do they have that's competitive with the other brands?

                        Everything they sell is old and not very nice. I think that combined with this model, less dealers and service centres (I don't even know where the Honda dealers in Perf are now, most are closed) Honda aren't long of this country
                        "Keep lowering your standards until you achieve a goal" - Mike Finnegan

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                          #27
                          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.
                          That would be illegal it falls under retail price management as far as I can tell.
                          Automotive Superstore

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                            #28
                            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.
                            Fixed price means fixed price - no discounts . In agent sales system dealership does not own the cars they are selling , they only act as manufacturers agent.
                            Try and offer $1150 on $1200 iPhone . Tesla has fixed pricing and it removes a lot of hassle of trying to get the best price and combative sales model.
                            I bought a GR Yaris at a fixed price and it was the most pleasant car purchasing experience .
                            Last edited by Sumodog; 27-07-21, 08:18 AM.

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                              #29
                              Originally posted by mizone View Post
                              Apart from the Type R what do they have that's competitive with the other brands?

                              Everything they sell is old and not very nice. I think that combined with this model, less dealers and service centres (I don't even know where the Honda dealers in Perf are now, most are closed) Honda aren't long of this country
                              Type R has finished. Even if they bring out another one overseas, probably won't bother selling it here.
                              RIP Simon - Ghost ride that whip in the clouds forever..

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                                #30
                                Originally posted by kabab View Post

                                That would be illegal it falls under retail price management as far as I can tell.
                                That's my understanding.

                                https://www.accc.gov.au/business/ant...-resale-prices

                                Resale price maintenance


                                It is illegal for suppliers to:
                                • put pressure on businesses to charge their recommended retail price or any other set price, for example by threatening to stop supplying to the reseller
                                • stop resellers from advertising, displaying or selling goods from the supplier below a specified price.

                                It is also illegal for resellers to ask their suppliers to use recommended price lists to stop competitors from discounting. In most cases, a supplier may specify a maximum price for retail.
                                Are you optimistic or pessimistic about the end of the world?

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