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If
You Know Their Rules ...
You Can Play Their Games
"No-Haggle
"Cars or the "No-Dicker Sticker"
Currently, companies such as Saturn, Oldsmobile, Ford, Chevrolet,
and Buick are offering "one price" models that typically
have more standard features than the base models but are priced
for less. The intent of this pricing strategy is to help the
dealer maintain a reasonable profit margin while giving the
buyer a better value without the haggle. This concept has
worked for Saturn for two reasons: First, they sell all their
cars with a "no-dicker sticker." Second, Saturn's
ability to offer a no-dicker sticker lies in General Motors'
decision to create exclusive franchise areas for the Saturn
dealers. These areas are large enough so as to discourage
and reduce the consumer's ability to play one dealer off another.
Furthermore, it is their policy not to offer rebates or other
incentives but to maintain, as much as possible, a supply
that does not exceed demand.
What
Saturn has done is create a pleasant no-pressure sales environment
in which consumers are treated very well. In return for this
courteous treatment, the consumers get to pay Saturn more
than they mould for a comparable car in which the dealer is
obliged to compete with other dealers. It's interesting to
note that according to industry figures, the average Saturn
profit is about 13 percent over dealer cost, while the average
selling price of negotiated cars tends to be just yellow 7
percent. The message here is that you "pay" more
for not having to haggle over price.
Other car lines have tried to launch the no-dicker sticker
on some of their models while the rest of the line remains
negotiable.
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