No Haggle Pricing

Steve Devereaux
Does anyone have a no haggle pricing policy? Have you had any success with it? What are the advantages/disadvantages?
Brian Pasch
Morrie's in MN has their "Buy Happy Promise" which include a best price first policy and no negotiations off the posted price. They are a profitable and growing dealership group. It does take considerable training and monitoring to make sure their is 100% compliance in the sales and customer service process.
Eric Miltsch
Steve, I came from Auction Direct USA (Independent) where we had a one-price/no haggle pricing policy. It worked very well for us mainly due to the fact that's how we started from day one. It's very difficult for a traditional store to make that leap. The customer satisfaction scores were through the roof every month because it took the pricing pressure off the table. Other keys to the success were the size of the inventory, breadth of makes/models and also the locations served. Process is the key - everyone must follow the rules to provide that exceptional experience. Transparency was big; showroom computers allowed the salespeople to put their money where their mouth was when customers wanted to price compare. The downside: margins are thin. Getting quality vehicles is very difficult; pricing them to the market is easy - making money on them is the hard part. Transportation, recon, wholesale, policy, etc - all items to consider and manage very tightly to ensure money isn't slipping. It does work and does create a very unique shopping atmosphere - we sold more used cars than any other independent dealer during the past two years.
Charles Gallaer
Brian and Eric have already posted some great comments on this topic. At my old store we had what I would consider a hybrid no haggle pricing policy whereby we weren't one price per se, but priced our vehicles so close to the market's sweet spot that little to no negotiation occurred. We could move off of the posted price, often in terms of $100-200 dollars instead of thousands in order to make a deal, if we needed to. Key to this was a good inventory management/pricing tool, processes that focused on the value of the vehicle and selling against the market (knowing about our competitors' vehicles and what made our vehicles better ie: equipment, miles, vehicle history report, etc). Good luck, implementing a new process like this can lead to some blowback from your team if they're not sold on it.
Steve Devereaux
Good stuff... Do you know what post you posted your comments on this topic Charles? We are very close to being a no haggle store. We price all of our vehicles similar to the "Hybrid" no haggle. Our concessions are very small (less than $300 per deal), but there are instances that we give more. The problem I see with the "Hybrid" system compared to the 100% no haggle system is that there still is haggling. The problem with haggling is this: 1. Stress for customer 2. Stress for salesman and managers 3. Money is left on the table, because the dealership usually gives in for the extra $100 to make the deal happen now. We haven't made that leap yet, but I don't see why we would have a problem since we are on a hybrid system... I am just at the point that when a customer asks that questions... I feel like we should just say the price is firm.... Anyone have any more thoughts on this? Thanks!!!
Silviu Albisoru
I wonder if anyone does no-haggle for new cars?

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