I spend my life haggling. My industry is one of those where price is always subject to negotiation. I wish it wasn't but it is.
I too would prefer a system of transparent pricing. EG this item is available at this price, do you want it or not?
Under those circumstances, all would be forced to look to the other elements of their service proposition. Sometimes those are sadly lacking.
Edited by Humph Backbridge on 11/01/2009 at 18:09
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I think there are far too many people attached to the old fashioned notion of a 'dealer'. Cars are domestic appliances, nothing more. That they are probably our most expensive domestic appliance creates no excuse for us buying and selling them as anything else. If I were buying a new car I'd go straight to the net brokers. VW apparently said something to the effect of: 'If people want to go into a dealership and negotiate a price for one of our cars that's fine. If they want to go to a net broker and pay less, that's fine too'. In other words, VW wants to shift the metal by whatever means. One thing is for sure: however the sales landscape changes, even if traditional 'dealers' disappear, cars will still be made and sold. So in answer to the original question: the status quo only exists because people are still buying from traditional dealers and 'negotiating'. If it's a new car you're after, check out the net dealers as listed by Honest John on the website. I priced a Panda Multijet Diesel at a dealer two years ago for a friend, but bought from a net dealer saving almost £2000. I'm still pretty sure the car came from the same factory with the same warranty...
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There is a lot to be said for woodsters comments.
But, there is sometimes an advantage by buying from a local dealership (especially if family owned type). Courtesy and care cost money, but its generally money well spent when you get the comfort of a local dealer that wants to look after you.
I do understand that not all dealers are in that category though.
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Where's the nearest Daewoo dealer with their fixed price deals....oh!
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>>>I feel sorry for the people who pay full price, the dealer must make a fortune because they are getting thousand of pounds on top of their normal profit. <<<
Why feel sorry, it is only because there are people like that that allows me to go and negotiate a good discount on my terms from a main dealer.
Having just purchased a brand new car from a dealer, matching the leading broker price, I get the 'advantage' of a local dealer and possibly keeping him in business. More to follow when finally delivered, at least I know it is in the country ( or shows on manufacturers stock list)!.
p
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If you think of a franchised dealer as a shop and the prices are transparent and those prices are fixed,eg take or leave it thats the price,what are you going to do if you want a p/x?
If there was no p/x involved and you just wanted to buy a new car transparent pricing would work,but how many people are brave enough to dispose of the p/x and then go and buy a new car?
You dont p/x your old telly/washer/house etc do you?
Most times with a p/x its just a pain where the sun does not shine.
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Have a colleague who has just be completly done by local Ford dealer, and yes it the nice small family one who everyone thinks looks after them.
She bought a new, old shape, KA Zetec and they sold it to her at full RRP - over 9K. Reckon she should have paid about 6 for it.
Dont have the heart to tell her, but I for one will avoid them and just head out to the large ford owned dealer who is always willing to cut a deal even if the service is not the best.
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Was that in a certain Lancashire village by any chance? The Zetec Ka is surely the SpotsKa? It is worth quite a bit more than 6k, considering the base spec ones are now 5.5k and have the 1.3 Duratec engine.
When i was down this family one, he was trying to sell my mate a 2000 W reg Fiesta 1.3 for.... £2995. The big Ford dealer near me had similar cars for £1995 and that was still over priced.
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I would haggle on any sizeable purchase; tv's, white goods, holidays to name a few. Often get a wee bit off for the effort but am careful not to cause offence.
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With margins being so thin I bet the sales people don't like you! When I worked at curry's the only discount I gave was when we had a large margin e.g cables.
Somebody once wanted to buy 15 ipods for a 10% discount I said no. He looked puzzeled, an hour later I had sold more than 15 ipods at full price. That is what it is like 3 days before christmas.
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They don't have to like me do they? As said I try not to cause offence and surely a sale making a reduced profit is better than no sale at all. I am not expecting to be sold goods at a loss.
If you think about it you could have sold twice the number of I pods in the same time made more profit albeit at a lower %. I'm sure there's more than 10% margin on the list price of an I pod.
Edited by loskie on 11/01/2009 at 20:54
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>They don't have to like me do they? ..
As I think the one and only Quentin Willson has said, it is a business transaction and you are unlikely to see the salesman again. I suppose I have bought between 20 and 30 cars for myself and family, just about all of them at different places. So unless you believe in going back every few years for your next model, you can press for the best terms without embarrassment.
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"Somebody once wanted to buy 15 ipods for a 10% discount I said no. He looked puzzeled, an hour later I had sold more than 15 ipods at full price."
But you could have sold 30 ipods for an effective discount of 5% to Curry's, surely better than only 15 ipods at zero discount.
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"Somebody once wanted to buy 15 ipods for a 10% discount I said no. He looked puzzeled, an hour later I had sold more than 15 ipods at full price."
I forgot to add: if you can sell 15 ipods in one transaction, then this is much more efficient for Curries than 15 seperate transactions by the time that your wages etc are taken into account. If I was your boss, I would have given you a good clip around the ear!
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When I had my site, you'd be surprised - or not - at my transparent pricing policy!
All the screen prices were, fixed INCLUDING VAT (show me another 'proper' dealer, doing that, with his vans & you8'd have looked a long way!!)
The advertising was all fixed price, no need to haggle. Even an aftermarket warranty was included.
This made things so much easier for both me, any of my lads, in the yard, that talked to potential customers.
If someone did want renegotiate the deal, I'd simply offer to reduce the price if they didn't want the warranty, a full service, new MOT & a proper 'on the road' package.
Most decided not to opt for a discount!!
VB
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Rattle,the only similarity between a Ka Zetec and a SportKa is the overall shape of the body;the SportKa has bigger wheelarches,bigger and wider wheels and tyres,better brakes,stiffened suspension,bigger spoilers,front & rear,with different grilles and a much more powerful engine-it even has a different gearchange.And that is just the standard SportKa.
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