When GM's mid-month numbers were announced they also said that Toyota, Ford, and DCX's market share had fallen due to the GMS promotion. So there was probably a good number of conquests in addition to pull-ahead sales.

However I agree with the majority here that when the promotion ends the dealerships will be pretty desolate places. And people may not come back until the next hot promotion. I also agree with Buickman that customers are more likely to be drawn in by big incentives rather than lowered MSRPs, even if the transaction price ends up being exactly the same. Everyone loves a deal, or more accurately the perception of a deal. I'd like to see GM get off the incentive train too, but it's not going to happen overnight.

 

I really think that at the end of this promotion that we are going to see GM announce, "Fixed pricing from here on out" Just like the no haggle Saturn dealer.

They will announce lower MSRP and fixed pricing. This would hopefully put an end to dealer mark ups too. Because, if its true you have to be full in a program or full out, that will eliminate dealer mark ups on hot models.

If sales people don't like it, as Homer Simpson said, "Well, that's unfortunate, it really is" There are plenty of other dealers to go sell at, although, I would be willing to bet that other manufacturers will ahve to follow suit. And, the internet is so widely used now, that sales people may not be all that necessary.

If I could go to a place, test drive a car, pick my options, from either home or there and pay a fixed price, why on earth, do I need the hassle of "Do you want undercoating? I need to go ask my manager. I can't order it with those options"

 

Fixed pricing will never hold, the force of the market is too strong. When demand outstrips supply, methods will emerge to increase price. Conversely, when supply outnumbers demand, offerings will occur to stimulate sales.

 

I've also said that this discounting will do nothing more than give hot numbers for an even hotter summer (I'm talking temps here).

The end of the year I'm predicting will be nothing short of a disaster.

 

I would expect a salesperson and someone with a major financial interest in a dealership to say that.

As a consumer, I would think fixed pricing is great. No problem with a dealer, no waiting for the next great incentive plan, no hassle whatsover, no wondering if I went to XYZ dealer instead of ABC dealer, if I would have gotten a better price.

The market is stong? You mean the dealer greed is strong? GM is still the ultimate boss, and they are STRONG.

You, yourself say that for a dealer to not participate in a program is suicide. You are going to do whatever program GM wants to do, no matter how much you bellyache about it.

 

I don't see BMWBenzLexusInfinitiAcura blasting commercials 24/7 about thier $4,000 dollar rebate, plus $1,500 dealer incentive, and $1000 customer cash?

Hell I don't see ToyotaHondaVWNissan even Hyundai advertising more than the occasional $1500 no matter what the market is. Yet they manage to sell cars...

 

I hate haggling, I dont want to, I'll pay what the window says and let me sign... dont ask me if i want this or that, I already decided what the window said is good enough for me...

thats the way I feel, as soon as you start haggling you can get ripped off, unless u have cash.

GM is still the Don, but GM needs to improve Public Relations... the only reason why Toyota is selling...

The Employee Deal is great, I think... it makes the customer feel like its a no haggle deal...

perhaps with the rise of fuel costs, GM should issue gas cards as one months incetives... worth maybe 1-5% of the car's value... So that they GMAC an make interest off that value, and the customer feels like they are getting free gas!

 

If you read The Grapes of Wrath, cars were sold at fixed prices according to The Book. Yes, the car cost X, but you had to buy the salesman's tie with it and the tie was a hundred bucks.

 

Double speak maybe?

That doesen't have ***** to with this discussion. Not only is it esoteric and irrelevant taking items on to dealer price is a whole nother arguement then slashing the price?

WTF, that was sad even for you.

 

Guy, I hope you don't mind me asking, but how much did you pay for the new ride? I'm desperate to own a Camaro!

 

The point is you can't expect fixed pricing to work in a market driven economy. The manufacturer doesn't own the franchise and has no business dictating the price under which an independent operator chooses to function. The definition of MSRP is Manufacturer's SUGGESTED Retail Price.

 

Really was that your point, cause I don't know how I was supposed to glean that from your last post.

As a salesman you can't honestly say the dealership can charge whatever they want, because anyone who has a modicum of knowledge on anything remotley mathematical knows if they go too far either way they are going to be going out of business.

Although once again, not that saying that means anything to this discussion because we all know you dont have to participate in this promotion if you don't want to, suicide or not.

But then again all of this goes against your vehement arguements for salesmanship being the saving grace of GM. I mean certainly you can't expect a dealership to function properly without the General having some say? And you can't possibly expect the dealer to be autonomous, because then they have to keep moving ****boxes like those I am sure you are familiar with...

So which is it?

 

The first twenty steps of The Plan do deal with sales aspects, however they involve the whole dealer experience, not just "salesmanship". You're right about the products. Although I don't feel they are horrible, certainly, The General can do much better. Unfortunately since Jack Smith's reign and under Wagoner, much of our engineering enterprise has been disassembled.
Further, I agree with you the dealer cannot charge whatever he pleases. My issue is that the market should determine the final transaction settlement price based upon the amount the particular buyer is willing to pay and the individual seller is willing to accept. That is the premise of free enterprise.

 

You read the Economist?
I agree with you, if it would only be so simple as to what you said, I'd be content. I'm already getting a headache from helping my sister get a Grand Am from a dealer.

 

First point in the entire post and BM avoids addressing it like the plauge...big suprise.




If you could back peddle any faster, the earth would reverse rotation and time would start moving backwards.


Translation: I better find something else to blame on Wagoner since no one here buys my original story.