6 ms·

It’s not a problem now, it will be a problem when you can easily get a Ford direct at MSRP but you have to pay dealer markup for a Chevy.

eatonphil 4y ago
It would only matter if their MSRP prices were identical though, right? I don't buy new cars so I don't actually know. Is it common for competing brands like Chevrolet and Ford to price similar models at identical price? I always assumed thered be variations.
- peter422 4y ago
  It wasn’t just the cost, but the effort. Calling 10+ dealerships, having to track the inventory, etc. Just getting on a centralized waiting list would have been 10x easier and more user friendly.
fma 4y ago
"...We've got to go to non-negotiated price..." Who's to say Ford can't "markup" either? To me that's exactly what it is...non-negotiated. If the dealer can sell a Mach-E for $5k above MSRP, Ford is leaving money on the table. Ford can bump up their non-negotiated price just as much. Why not? What are you going to do, go to another dealership and negotiate?
- workingon 4y ago
  It’s like any other system. A middle man has to take their cut and will increase costs. There is no reason (that I know of) to think the dealership model would ever decrease costs.
  - fma 4y ago
    A middle man doesn't necessarily increase prices. If you want to letter a package from the east coast to the west coast, do you forgo the USPS stamp simply on principal they are the middle man and thus increases your cost? I can think of a handful of questions that need to be answered besides just saying "middle man bad". What's the cost of delivering dozens of vehicles from the plant to a dealership vs delivering one off vehicles to a house? Or the cost of an OEM having their own employees distributed to answer questions on a vehicle. GM has more than 4000 dealerships...would sales decrease because it would be less accessible to customers to see, test drive and service vehicles? I don't believe the current dealership model of huge lots, tens of employees is efficient. But I'm not so certain an OEM handling everything themselves is optimal.

eatonphil 4y ago

It would only matter if their MSRP prices were identical though, right? I don't buy new cars so I don't actually know. Is it common for competing brands like Chevrolet and Ford to price similar models at identical price? I always assumed thered be variations.

peter422 4y ago
It wasn’t just the cost, but the effort. Calling 10+ dealerships, having to track the inventory, etc. Just getting on a centralized waiting list would have been 10x easier and more user friendly.

fma 4y ago

"...We've got to go to non-negotiated price..." Who's to say Ford can't "markup" either? To me that's exactly what it is...non-negotiated. If the dealer can sell a Mach-E for $5k above MSRP, Ford is leaving money on the table. Ford can bump up their non-negotiated price just as much. Why not? What are you going to do, go to another dealership and negotiate?

workingon 4y ago
It’s like any other system. A middle man has to take their cut and will increase costs. There is no reason (that I know of) to think the dealership model would ever decrease costs.
- fma 4y ago
  A middle man doesn't necessarily increase prices. If you want to letter a package from the east coast to the west coast, do you forgo the USPS stamp simply on principal they are the middle man and thus increases your cost? I can think of a handful of questions that need to be answered besides just saying "middle man bad". What's the cost of delivering dozens of vehicles from the plant to a dealership vs delivering one off vehicles to a house? Or the cost of an OEM having their own employees distributed to answer questions on a vehicle. GM has more than 4000 dealerships...would sales decrease because it would be less accessible to customers to see, test drive and service vehicles? I don't believe the current dealership model of huge lots, tens of employees is efficient. But I'm not so certain an OEM handling everything themselves is optimal.