Quote:
Originally Posted by RodKnock
If you have standing inventory, and given this economy, then why would selling under the MSRP be cause for revocation of one's license? Seems to me that it's common practice among car dealers or any company in the retail industry.
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I'm not here to play SA's advocate or criticize their policy on this issue, although I can guess they might have issues with dealers undercutting other dealers. We carry a few lines of High Performance parts with similar policies, one of whom was fairly specific in saying it was unacceptable to sell under MSRP _especially_ in this economy. We are not talking about commodities with huge wholesale networks here. I can imagine when you have a relatively small dealer network carrying a rather specialized product the last thing you want to do is let any of your dealers get screwed by letting another dealer seriously undercut them just to get the car off the books and hopefully get some billable labor out of it...especially when the "screwed" dealer may have been a very loyal and reputable dealer for many years. The bottom line is we are their dealer and it is their rule so thats that. "Value added", however, is another story... and that is something we can definitely provide while charging the required msrp. Our primary business is not selling cobras, so we really are not struggling to rush these cars out the door.
How many new rollers are out there on the market right now? How many for under msrp? So how does the fact that a car sold 4 months ago for greatly under msrp either by a dealer who lost their dealership for it or a private party who had to "blow it out" dictate what is a good deal right now when there is currently a 4 month wait for a car that cant be sold under msrp?