12-04-2018, 03:04 AM
Since the document fee is negotiable in Washington, one customer sales agreement might show $150, while the next reads $100, and a third $60.00.
As far as out-the-door pricing, Honda encourages dealers to establish a competitive atmosphere among the departments in order to maximize store profits.
For instance:
Joe comes in to buy a Goldwing and is intent on getting, in his mind, “the best deal”. He spends an hour with the sales mgr. crunching numbers. Sensing that the customer is “price-focused “, the sales mgr starts playing games. “That’s the lowest price I can sell you the bike. To be totally honest, we’re only making about $200 on it. I haven’t heard of anyone paying less. But, I can help you with accessories. We’ll see if the shop can install them for no cost. Would that help you make up your mind? You’re saving almost $300 in labor! And...I’ll try to get the finance mgr to lower the document fee by $50...which we NEVER do. And maybe he can even save you something on an extended warranty to protect your bike.”
Then the competition begins. The sales mgr “tells” the service mgr that the service department will have to install the accessories for “free” to close the sale. The service mgr, knowing that the store owner will both reduce his bonus and embarass him in the monthly meeting for reduced “revenues per hour” tells the sales mgr what he thinks of his mother. Then the sales mgr goes to the finance mgr and says he has reduced the doc fee and lowered the price of the warranty to make the deal happen. Realizing this will reduce his bonus, and cause embarassment for him in the next meeting, the finance mgr tells the sales mgr what he thinks of his sister. Oh, and the “30% off” all parts the sales mgr promised? Explain THAT to the parts manager! The store owner fosters the competition believing, as HMC regional reps tell them, that it all “increases the bottom line”.
Maybe it does...but it’s the reason I buy used bikes!
;-)
As far as out-the-door pricing, Honda encourages dealers to establish a competitive atmosphere among the departments in order to maximize store profits.
For instance:
Joe comes in to buy a Goldwing and is intent on getting, in his mind, “the best deal”. He spends an hour with the sales mgr. crunching numbers. Sensing that the customer is “price-focused “, the sales mgr starts playing games. “That’s the lowest price I can sell you the bike. To be totally honest, we’re only making about $200 on it. I haven’t heard of anyone paying less. But, I can help you with accessories. We’ll see if the shop can install them for no cost. Would that help you make up your mind? You’re saving almost $300 in labor! And...I’ll try to get the finance mgr to lower the document fee by $50...which we NEVER do. And maybe he can even save you something on an extended warranty to protect your bike.”
Then the competition begins. The sales mgr “tells” the service mgr that the service department will have to install the accessories for “free” to close the sale. The service mgr, knowing that the store owner will both reduce his bonus and embarass him in the monthly meeting for reduced “revenues per hour” tells the sales mgr what he thinks of his mother. Then the sales mgr goes to the finance mgr and says he has reduced the doc fee and lowered the price of the warranty to make the deal happen. Realizing this will reduce his bonus, and cause embarassment for him in the next meeting, the finance mgr tells the sales mgr what he thinks of his sister. Oh, and the “30% off” all parts the sales mgr promised? Explain THAT to the parts manager! The store owner fosters the competition believing, as HMC regional reps tell them, that it all “increases the bottom line”.
Maybe it does...but it’s the reason I buy used bikes!
;-)