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Upfront Pricing

July 1, 2010

AutoNation is going to have another try at no-haggle pricing.  This time, I think they will succeed.  I think the market is ready for it.  By coincidence, I had just read Zag’s white paper when Mike Jackson made the announcement.   He was talking about no-haggle in the showroom, but this has important implications for my field, e-commerce.

Zag’s argument is that if you’re the only dealer in town not giving a price on the internet, then you’ll be left behind.  The flip side is that if you’re the only dealer who is doing it, then your competitors can easily undercut you.  The trick is to create a movement in the industry – and AutoNation has the scale to do that.  The article also cites Sonic, Asbury and Lithia.

Mr. Jackson says pricing is the last frontier in auto retail, and this is doubly true on the internet.  It’s the one thing preventing true, business-to-consumer, online F&I.

One Comment leave one →
  1. July 31, 2010 9:52 am

    This will take perseverance. No doubt that, in larger markets, the competition will undercut the pricing. So, if Mike J really believes in this initiative, he will have to take a few lumps before he gets to the finish line. The timing is interesting. Although, the auto industry will show improved volume this year, we are still a few years away from demand driving pricing. I might have thought that the time for this would be when the economy shows signs of more robust growth.

    So, back to Mr. J…. He must feel that that traditional practices are so annoying to consumers, he will steal market share because at the end of the day, it’s all about the consumer experience.

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