Haggle Free Pricing

Robert Niven
Haggle free. Hassle free. No negotiation needed. The price is the price. Has anyone switched to this form of pricing for new or used vehicles? How has the change been embraced? Are you using third party tools to validate your pricing to the client like the KBB Fair Market Price Tool or Edmunds True Market Value( I do not work for these companies or use their tools).
Daniel Wilkins
For every deal? No. We are right across the street from a CarMax so it works on used vehicles about 80% of the time.
Paul Schnell
100%. From the day we opened, now 7-1/2 years, a one-price store. New (Toyota) and used. Top-4 volume leader of 74 stores in region. One price on trade, accessories, and F&I products as well. Must use market pricing tools, comp shops, in combination with your mfg sell-thru reports. It doesn't do any good to have a great price if the inventory isn't there. Have to balance the two carefully. We're operationally sound and always profitable. In short, it works for us. We are in process of converting another of our stores to this format. Commitment from management determines success.
Alexis Bassler
I like this topic ... Paul are you doing this for new leasing as well? Do you feel that you may lose significant amount of gross overall? Not that gross is so easy to hold these days, but when it happens its always a big plus.
Robert Niven
@Paul Schnell It definitely is a big commitment. I agree - Everyone needs to be on board for the one-price method to work. If clients see the value and can see that your pricing is competitive there should be no reason for it not to work in the long run.
Dan Sayer
Robert, I'll just throw this out there then slowly back away. http://blog.carvana.com/2014/06/removing-haggle-from-dealerships-is-like-putting-airbags-in-a-car-with-no-brakes/ Disclaimer: I'm neutral on one-price as we have two stores that are "one-price" (have been for 3 years) and then 3 others, in different markets, are are traditional but use pricing tools to be competitive within their own market. We use eLead across the group which then uses KBB, Blackbook, and MMR. You're right, everyone has to be on board if you move to one-price. It is a complete culture and branding change.

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