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If what you say is true, what about Saturn???? (archive)

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Posted by Mofongo on September 28, 1999 at 10:55:51:

In Reply to: Actually... posted by MikeW on September 27, 1999 at 16:23:15:

Doesn't Saturn still have the policy of a fixed sticker price? As much as I don't really like the idea of Bimmers selling at a fixed MSRP, I doubt there's any legal ground to stand on to stop it. BMW can make it's dealers do whatever it wants.

As for colluding to make the consumer pay more, there already is a way that BMW can increase *its* profit on every car...it's called "dealer invoice". BMW can already raise invoice on every car it has by $20,000 and there's nothing that you or I can do to stop them, other than not buy their cars. That is the only power that we have now, but it is a power we would *still* have with a fixed-price structure.

Dealerships don't like the idea of prices being non-negotiable, either, since it takes away a very powerful selling tool for them.

Saturn markets itself on a no-hassle buying and ownership experience...I see BMW as trying to make themselves into the same. With a fixed-price the only way for dealerships to distinguish themselves is through superior service, something which is very important to a premium car company. Furthermore, right now, you can buy a Saturn on the web and have it delivered to you and never even *have* to go to a dealership...BMW is probably trying to head in this direction as well.
You can already build and store your new BMW on their website. How about adding one more button labelled "Build it for me!"?

Mofongo

: ...it's about preventing the dealers and the manufacturer from colluding to jack up prices to the consumer.

:

: :
: : It is NOT about the Government telling BMW dealers what to charge for the cars. It IS about the Government preventing BMW from dictating the price the BMW dealers will sell at. In other words, protecting the freedom of the dealers to set their own prices.

: : Adam




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