That is my dealership. We are no longer taking deposits. In the past we were taking deposits at 2k over MSRP everything was selling before it showed up so my GM figured he was missing an opportunity to make more money because of the supply and demand. Now we must wait for the MDX to show up and we are asking 4k over MSRP. They are negotiating on that a little but it is still going to take about 2k over to get one.
Wow! 4K over sticker? I guess the folks in Portland are either too rich or really desparate to get an MDX. I thought that the demand for the 'Xs went down .... Here in the Bay Area, most dealers have stopped selling for over MSRP. Some still tack on accessories.
I think you are too good for that dealership .... but where would the dealership get customer loyalty from?
I wish things were different. I suspect as long as these MDX's are being sold as soon as they get here or within a day after adding extra accessories it's not going to change. Every time I have said something like "well we have added 4k in accessories on this one and 4k ADM, this one will never sell" and sure enough it proves me wrong everytime, someone buys it within a few hours. The longest MDX in inventory was our GM's 188 WH/SL, he added 7k in accessories drove it for a few weeks, then said we could sell it, added a 4k mark up, Selling price over $51K, it lasted a few days. At least I was able to get a few customers in to drive it, that never had that opportunity before.
You are right. As long as customers are willing to pay, why not. It's a Free Market. Just as a customer can decide where and if to buy his car, the dealership can demand a price the market can bear. I am still curious about the customer loyalty thing. Will these guys ever come back to buy another Acura? I might not.... but that's just me.
Customer satisfaction and loyalty is my concern also. We were getting a few surveys back in which the customer noted they feel we are taking advantage of supply and demand. So the answer to solve this problem was we would no longer take deposits at 2k over. We are now going to wait until the MDX shows up and ask 4k over and the customer can negotiate some and this would make them feel better about the price.
Roger, wierd logic, but whatever... -- i doubt that it would help the customer surveys much....
Regarding that guy that totalled his MDX -- did you charge him an extra 2-4k on both the initial one as well as its replacement? I would doubt that the insurance company would cover the ADM on the repurchase....
You should really love your job and/or the people who you work with/for. Else, with so many differences, how could you still be there? I am sure it's not that you do not have a choice. Good Folks like you are always an asset to any team.
I love the Acura product, and overall we have a pretty good group of salespeople who care about their customers. I just don't always agree with company policy. I'm pretty outspoken so it gets me in trouble once in a while, my opinions may not make a difference but at least they have to think about it.