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Moving towards no-haggle fixed pricing

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    #91
    Originally posted by ROBAPHENT View Post
    is ford having no dealer stock or are ford holding stock and the dealers pull from that stock?
    From what I've read my understanding is - Dealers won't have stock in the yard, you rock up to the dealer and go through an option sheet. Everything is built to order

    Edit : It's online in the public domain-> https://jalopnik.com/ford-wants-to-m...o-o-1847408302

    "Keep lowering your standards until you achieve a goal" - Mike Finnegan

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      #92
      Originally posted by Captiva Fan View Post
      I don't know, and was hoping irsa76 might be able to expand on whatever problems they had with Saturn, but I assumed the issue was something like the whole sales process slowing-down due to the fact that after ticking a few options on your Civic VTi-S it's suddenly more expensive than the VTi-L and the buyer then says "oh" and either buggers off or reverses the process and adds a few options to the VTi-L after which they see it's more than the RS ... and lots of stuffing-about or buyer trepidation.
      But that was just guessworkery ... irsa76 do you know what the problems were? Was it just something that better electronic pricing & equipment catalogues would fix in modern times, stuff like not being able to order the moon-roof & sun-roof at the same time?
      Remember we're talking 30 years ago, GM was still doing paper vehicle orders well into this century, which had to be manually entered into the prehistoric computer order system.

      The issue with Saturn wasn't so much the no haggle pricing, it was more a case the way the whole business model was set up meant that any variation from set combinations caused too many dramas.
      The business model intended yout to have a choice of a SL1 manual, SL1 auto or an SL2 auto, 1 engine, 5 or 6 colours, with only a couple metallic because of plastic body skin, 1 trim colour and that was it. I think the SL1 listed A/C as an option but that was it. The coupe and wagon models were the same, 2 trims, 2 transmissions, 1 engine, a couple of colours and that was it. Like I said, GM literally wanted to sell them like they were an appliance.
      The ultimate idea was to have multiple sales only outlets in a region run by franchise holders, with cars being held in a GM controlled holding yard until sold.
      Ultimately I suspect the reason why Saturn and the no haggle price thing failed wasn't because of the business model, or even buyer pushback rather I feel the dealers made sure it failed because they ultimately had no say in how they sold the cars. I've seen plenty of situations where the dealer has inflated the price because the customer has nfi, likewise I've seen dealers literally cut their own throats and sell a car as a loss* to make a sale.

      *When I say a loss they don't actually loose money, they might have sold the car for what it cost them, or even less, but there's likely a factory incentive to move cars at the end of the month.

      Huge option lists wouldn't effect the no haggle price because option prices are set by the manufacturer anyway.

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        #93
        First month of the fixed price model for Honda and sales are down 62.6% on last July. Its aim was to sell 1650 cars a month this way and it sold 822.

        Teething problems with the model and a Sydney lockdown won't have helped (overall NSW sales down 1.7%), but that's not looking good.

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          #94
          Originally posted by Captain_Slow View Post
          First month of the fixed price model for Honda and sales are down 62.6% on last July. Its aim was to sell 1650 cars a month this way and it sold 822.

          Teething problems with the model and a Sydney lockdown won't have helped (overall NSW sales down 1.7%), but that's not looking good.
          Def lock-down and lack of stock

          I think we'll need to look at the 18-24 month results and compare them to 2019
          "Keep lowering your standards until you achieve a goal" - Mike Finnegan

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            #95
            Originally posted by mizone View Post

            Def lock-down and lack of stock

            I think we'll need to look at the 18-24 month results and compare them to 2019
            They will probably be out of the market by then
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