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"...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 se
by 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 agoIt’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 agoA 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.