Best PracticesDealership Operations & ProcessesOpinions & Advice

A Dark Cloud Over the Dealership Industry

The dark cloud over the dealership industry has got to be one of the most fascinating studies in business psychology ever.

About 4 weeks ago, I’m havin’ a beer at a house party at my place, and my neighbor is talking about his new ride:

neighbor: “It drives me nuts, why can’t car dealers just post their lowest price? They force me to negotiate”
me: “you shopped on the internet and you visited the dealer with the lowest price… right?”

neighbor: “yea…”
me: “did you buy it, or, did you ask for a lower price?”

neighbor: “well… I offered a lower price to close the deal that day”
me: “I see, it was YOU wanted to negotiate a lower price, so, it was you that forced the dealer into negotiations…”

neighbor: [silence], then [mumbling], then [back peddling],
me: “still holding on to the idea that dealers are bad? Think about this. Would you be happier if Verizon’s store managers competed against each other and you could get a discount on your phone AND your cell bill?”

neighbor: “yea, that would be cool”
me: “this is how car dealers work, they FIGHT EACH OTHER for your business!”

neighbor: [silence]
me: “think about it. If you bought a Tesla, do you think they’ll ever cut your a deal?”

neighbor: “nope”
me: “Game. Set. Match.”

The anti-car dealer fever is generations old, yet NO ONE has updated how the Internet has blown up the old model. The tide has turned, car shoppers have enormous power.

Everyone! Buyers are selfish. Let go of the Urban Legend!

Be apart of this conversation over in the dealer forums.