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1. How is a car with base factory options a "loss leader"? There should still be a profit margin, unless the advertised price eliminates that profit just to lure suckers in, and then we're back to misleading avertising.

2. When you see Best Buy offering a Television on sale for $399 and go and try to buy it for that price, do you expect to face resistance, have to "fight" the salesmen, and be considered a "smart a$$" for trying to get the Television for $399? Or would you be pissed if Best Buy tried to pull a "no, no, you don't want THAT one" and got combative with you if you insisted on buying it without a remote control or HDTV support or whatever?

3. When you try to buy anything for an advertised price, do you walk in to a store and immediately start thinking about how you can profit the guy behind the counter, or how you can save money?

If you don't want to "fight" customers, don't advertise a misleading price.

Last point - that guy is probably financially well off *precisely because* he is a shrewd customer and watches how he spends his money. The installing the A/C stuff is over the top stupid, however. 




1-The car was a loss leader because we advertised the car at a price that was lower than invoice..to bring people in..if we sold the car..which we did and would have to if the customer insisted..we would loose money..but theme behind the loss leader ad was that even if you did sell the car..the traffic that it would generate should be able to bring in a few deals that are moneymakers. Where is it misleading? We advertised a 1996 Pontiac Sunfire for $X,XXX and we sold it to a legitamate customer for that much plus taxes and tags and ETC.

If a restaurant advertises Main Lobster for $1.00, but then you go and find out that the Lobster is 3 weeks old, someone tells you that it's old and can make you sick, but you still buy it because you want it for the advertised price, and then you get sick....who's the moron?


2-Ok...but when Best Buy advertises a TV for $59 and then you go and find out that is a black and white rabbit ear TV from Czechoslovakia, and they tell you that is is such....and your okay with the fact that the TV is black and white and you want to buy it.....whats misleading....? Did we want to sell it? Hell NO..do we have to..yes..but most people in Miami FL dont want to buy a car without a/c...so the car itself automatically disuades people from purchasing it and automatically makes them start "bumping" themselves up to a more expenensive and i.e desirable model.

3-I know that he was trying to save money...but I am there to make money..that is why I was there for 10-14 hours a day...to make a living. What I am saying...is that if the idiot customer would have removed his head from his a$$, he might have seen that he was no really making a good deal...but NO...he just saw that he "thought" that he was getting one over on the dealership. If he would have listened to my advice..he would have ended up with a car the he would have been happy with, I would have made some money..which is why I am there and everything would have turned out better

I am "financialy well off" too...but I don't make bonehead moves like that...he was middle-upper middle class...not Donald Trump.




In the meantime, your dealership sold a car and lost money on it.
Pissed off a client, that will NEVER buy from you again.
Possibly scared potential customers that were in the store when the Police arrived and commotion occured.

What good did it do?

I brought in TONS of traffic and we had one of the best months ever at that dealership with over 200 cars delivered....so what if that one a-hole never buys from us again....I personally don't need or want customers like that.



to me it's black and white. the dealer has a $7295 aveo. it likely won't sell (who wants an aveo with pink vinyl top?!?)... and as long as it doesn't sell they can advertise it. at the same time if someone wants they can buy it. if the dealership wants to risk losing money, who cares? let them!

Exactomundo!
 

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Originally posted by MCGARRETT@Mar 24 2004, 05:47 PM


1-The car was a loss leader because we advertised the car at a price that was lower than invoice..to bring people in..if we sold the car..which we did and would have to if the customer insisted..we would loose money..but theme behind the loss leader ad was that even if you did sell the car..the traffic that it would generate should be able to bring in a few deals that are moneymakers. Where is it misleading? We advertised a 1996 Pontiac Sunfire for $X,XXX and we sold it to a legitamate customer for that much plus taxes and tags and ETC.

If a restaurant advertises Main Lobster for $1.00, but then you go and find out that the Lobster is 3 weeks old, someone tells you that it's old and can make you sick, but you still buy it because you want it for the advertised price, and then you get sick....who's the moron?


2-Ok...but when Best Buy advertises a TV for $59 and then you go and find out that is a black and white rabbit ear TV from Czechoslovakia, and they tell you that is is such....and your okay with the fact that the TV is black and white and you want to buy it.....whats misleading....? Did we want to sell it? Hell NO..do we have to..yes..but most people in Miami FL dont want to buy a car without a/c...so the car itself automatically disuades people from purchasing it and automatically makes them start "bumping" themselves up to a more expenensive and i.e desirable model.

3-I know that he was trying to save money...but I am there to make money..that is why I was there for 10-14 hours a day...to make a living. What I am saying...is that if the idiot customer would have removed his head from his a$$, he might have seen that he was no really making a good deal...but NO...he just saw that he "thought" that he was getting one over on the dealership. If he would have listened to my advice..he would have ended up with a car the he would have been happy with, I would have made some money..which is why I am there and everything would have turned out better

I am "financialy well off" too...but I don't make bonehead moves like that...he was middle-upper middle class...not Donald Trump.




In the meantime, your dealership sold a car and lost money on it.
Pissed off a client, that will NEVER buy from you again.
Possibly scared potential customers that were in the store when the Police arrived and commotion occured.

What good did it do?

I brought in TONS of traffic and we had one of the best months ever at that dealership with over 200 cars delivered....so what if that one a-hole never buys from us again....I personally don't need or want customers like that.



to me it's black and white. the dealer has a $7295 aveo. it likely won't sell (who wants an aveo with pink vinyl top?!?)... and as long as it doesn't sell they can advertise it. at the same time if someone wants they can buy it. if the dealership wants to risk losing money, who cares? let them!

Exactomundo!
and this is exactally what people *don't* want from a dealership.

okay, so what you did was legit.

but when people go to a dealership, they don't want to put up with that kind of crap - they really don't. and it has an impact on future purchases, as well as their families future purchases.

*sigh*

dealerships would get a lot further by being kind, and not haggling prices - make people feel welcome.

sure, it doesn't do much for the short term, but it's killer in the long term... if you're wise enough to look at the long term...

matt
 

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dealerships would get a lot further by being kind, and not haggling prices - make people feel welcome.


I agree....the no haggle price is on the window it's called "Manufacturer Suggested Retail Price" MSRP, thats what General Motors thinks that this what this vehicle should sell for...If you want to pay sticker...no problem..no haggling at all..you might even get me to do a little dance for you in the showroom...but as soon as you start taking money out of my pocket...now were going to tangle, and you better have gotten a good nights sleep...because this going to be a battle.


If you would care to read the post....the customer was the one that started all the crap.


Do you haggle on the price of a Big Mac? Do you think that it cost McDonalds $1.99 to make that Big Mac? Of course not!
 

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Originally posted by MCGARRETT@Mar 24 2004, 06:50 PM

Do you haggle on the price of a Big Mac? Do you think that it cost McDonalds $1.99 to make that Big Mac? Of course not!
And if you are out for lunch and see a banner at McDonald's for 59 cent Quarter Pounders with cheese and make the decision to have lunch there, only to find out that the 59 cents doesn't include actually cooking the QP, it's just served raw and you must pay $1.50 extra to have it cooked, are you happy with McDonald's? Does this make you want to come back next time, or ever believe one of their promotions again?

I'm not saying this is the same as your No A/C loss leader, but I very much think it's the same as the Aveo in the original post. Sure, it's a QP with cheese, and I'm sure there's someone out there stupid enough to eat one raw, but it's not what people expect when you say QP with cheese (or new Aveo), and the ad is deception. Even if the deception is revealed after you get there, you've still wasted the customer's time.
 

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but NO...he just saw that he "thought" that he was getting one over on the dealership
I understand where you are coming from, but this is a rather "hostile" attitude to take towards the customer.

You know all of the prices backwards and forwards, but the customer likely thinks that this car is on "sale" and has no idea that it is a loss leader, a sucker lure, or whatever. He might have gotten in the car and driven for miles, taking an hour or two out of his day. He/she goes in and thinks, "Wow, I haven't seen this price at the other dealers, what a great deal!" Little does he know the same optioned out Cavaliers selling at his local dealer for 17,000 dollars is the cheapest he'll find.

Meanwhile, the dealership is thinking Joe is trying to "get one over on them"?

Sounds to me like the only ones trying to "get one over" on anyone is the dealership.

The legitimate and fair sales tactic is for the dealership to offer more genuinely priced, low trim, base level cars, some even with just auto and A/C, which they often don't. Volume sales dealerships do this, and I usually buy from them. The worst are the small dealerships that will always be small because they try loading most of their small inventory of vehicles up, and then wonder why no one wants to buy a 35,000 dollar Astro...:p
 

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Originally posted by MelvinJ+Mar 24 2004, 07:07 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (MelvinJ @ Mar 24 2004, 07:07 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-MCGARRETT@Mar 24 2004, 06:50 PM

Do you haggle on the price of a Big Mac? Do you think that it cost McDonalds $1.99 to make that Big Mac? Of course not!
And if you are out for lunch and see a banner at McDonald's for 59 cent Quarter Pounders with cheese and make the decision to have lunch there, only to find out that the 59 cents doesn't include actually cooking the QP, it's just served raw and you must pay $1.50 extra to have it cooked, are you happy with McDonald's? Does this make you want to come back next time, or ever believe one of their promotions again?

I'm not saying this is the same as your No A/C loss leader, but I very much think it's the same as the Aveo in the original post. Sure, it's a QP with cheese, and I'm sure there's someone out there stupid enough to eat one raw, but it's not what people expect when you say QP with cheese (or new Aveo), and the ad is deception. Even if the deception is revealed after you get there, you've still wasted the customer's time. [/b][/quote]
the difference here is the aveo is useable, whereas an uncooked burger isn't. it's not like the wrapper is just visually un-appealing, as is the case with the aveo. one could buy the aveo and drive off the lot and have the same warranty/reliability/options as any other comparable aveo. it just happens to be fugly. really fugly.

and as for the dealership, no, it might not entice someone to come back, but at the end of the day the consumer is the one who has to decide what is and isn't worth buying. it's up to the dealership to offer whatever cars they can sell, be it loaded models at $35,000+, or base models without air. it makes sense to take your business where you feel you're best handled, but i'd have no problem going to the dealer with the $7000 aveo. maybe i'll get him to throw in a free paint job and vinyl-top removal :)

okay, lets all go to mcdonalds now for that 59 cent quarter pounder!
 

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I understand where you are coming from, but this is a rather "hostile" attitude to take towards the customer.

You know all of the prices backwards and forwards, but the customer likely thinks that this car is on "sale" and has no idea that it is a loss leader, a sucker lure, or whatever. He might have gotten in the car and driven for miles, taking an hour or two out of his day. He/she goes in and thinks, "Wow, I haven't seen this price at the other dealers, what a great deal!" Little does he know the same optioned out Cavaliers selling at his local dealer for 17,000 dollars is the cheapest he'll find.

Meanwhile, the dealership is thinking Joe is trying to "get one over on them"?

Sounds to me like the only ones trying to "get one over" on anyone is the dealership.

The legitimate and fair sales tactic is for the dealership to offer more genuinely priced, low trim, base level cars, some even with just auto and A/C, which they often don't. Volume sales dealerships do this, and I usually buy from them. The worst are the small dealerships that will always be small because they try loading most of their small inventory of vehicles up, and then wonder why no one wants to buy a 35,000 dollar Astro... .

Actually he lived about 1 mile away from the dealership.

Please dont get me wrong....I was a memeber of the Pontiac Master Sales Guild-Silver lever, my customer satisfaction scores and those of my dealership were some of the highest in the Southeaster Zone for Pontiac Motor Division.

What my story shows is that its not the dealers fault...it's not "bait and switch" Yes the dealer can use some tactics...but the customers are not 100% innocent either...
 

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Originally posted by MCGARRETT@Mar 24 2004, 04:49 PM

Actually he lived about 1 mile away from the dealership.

Please dont get me wrong....I was a memeber of the Pontiac Master Sales Guild-Silver lever, my customer satisfaction scores and those of my dealership were some of the highest in the Southeaster Zone for Pontiac Motor Division.

What my story shows is that its not the dealers fault...it's not "bait and switch" Yes the dealer can use some tactics...but the customers are not 100% innocent either...
The difference with your story is that the car was not altered by the dealer. That is what pissed me off. Was the "clown car" gimmick illegal? I don't think so, but it was a little much. A Mitsubishi dealer used to advertise low prices on new models, and indeed, you could buy the cars. Except, there was a giant ad for the dealership painted on both sides, the back on wagons, and the hood. I know it would piss me off if I was tricked into going to the dealer to buy it, but nothing here is illegal either. You should know, in the Aveo case, if a car is being sold for $7500, 25% the normal list, something is fishy. It is common sense. My suggestion would be, if it angers you, don't buy from the dealer. Do I think it's deceptive, yes. Illegal, no. A bad business practice? Possibly. Let Joe Public decide. ;)
 

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Originally posted by cyboexpo2002@Mar 24 2004, 09:57 PM
I know it would piss me off if I was tricked into going to the dealer to buy it, but nothing here is illegal either.
i don't really understand why a wasted trip to the dealer is such a big deal. call ahead if you're really concerned the car might not be what you want. or enjoy the sunday drive! i just don't have enough energy to get all riled up over something like this. they don't have you sign your life away at the dealership doorstep and then show you the car. how many people only hit one dealership before buying a car anyways? maybe it's just me... but i can't blame the domestics for trying to get people in the door... especially since it's not illegal or damaging to anyone. then again... a pink vinyl top on an aveo might hurt the eyes a bit!
 

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Originally posted by paul8488+Mar 24 2004, 05:11 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (paul8488 @ Mar 24 2004, 05:11 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-cyboexpo2002@Mar 24 2004, 09:57 PM
I know it would piss me off if I was tricked into going to the dealer to buy it, but nothing here is illegal either.
i don't really understand why a wasted trip to the dealer is such a big deal. call ahead if you're really concerned the car might not be what you want. or enjoy the sunday drive! i just don't have enough energy to get all riled up over something like this. they don't have you sign your life away at the dealership doorstep and then show you the car. how many people only hit one dealership before buying a car anyways? maybe it's just me... but i can't blame the domestics for trying to get people in the door... especially since it's not illegal or damaging to anyone. then again... a pink vinyl top on an aveo might hurt the eyes a bit! [/b][/quote]
Paul, I 99% agree with you. Why would I be mad if I went to a dealer responding to an ad with, say a low price, and then find it with a pink and green roof? C'mon, man, are are honestly trying to tell me that you wouldn't mind wasting time? Given: I wouldn't start a huge rant about it. I mean, it's not THAT much of a deal. I posted just as a discussion. Like I said, it's not against the law or anything, and you'd know what you were buying... so... after about a 5 minutes I'd be over it. I think you misread me being pissed off. Yea, a wasted trip isn't fun. Especially in traffic around here :p If the dealership was more than a few minutes away, I probably would call if I didn't have the time to waste. Personally, I find the pink roof a little amusing. And the ads on the cars I talked about earlier, whatever. It's not like I HAVE to buy it. All I'm saying is make the customer comfortable, after all, it is a major purchase. And as a customer, buy your car at a place you are comfortable. That's all ;)

*Oh, and an Aveo in my eyes isn't domestic, but that discussion is for another thread :lol:
 

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Originally posted by cyboexpo2002@Mar 24 2004, 11:22 PM
Paul, I 99% agree with you. Why would I be mad if I went to a dealer responding to an ad with, say a low price, and then find it with a pink and green roof? C'mon, man, are are honestly trying to tell me that you wouldn't mind wasting time? Given: I wouldn't start a huge rant about it. I mean, it's not THAT much of a deal. I posted just as a discussion. Like I said, it's not against the law or anything, and you'd know what you were buying... so... after about a 5 minutes I'd be over it. I think you misread me being pissed off. Yea, a wasted trip isn't fun. Especially in traffic around here :p If the dealership was more than a few minutes away, I probably would call if I didn't have the time to waste. Personally, I find the pink roof a little amusing. And the ads on the cars I talked about earlier, whatever. It's not like I HAVE to buy it. All I'm saying is make the customer comfortable, after all, it is a major purchase. And as a customer, buy your car at a place you are comfortable. That's all ;)

*Oh, and an Aveo in my eyes isn't domestic, but that discussion is for another thread :lol:
no worries man! i meant to use my happy font! i go visit the local chev AND pontiac dealers several times a month. i never drive anything... just like to browse. i hate shopping malls... guess this is my version of that! so i don't mind going, but i can see how it might be a minor annoyance if someone is really looking for a vehicle and isn't clear on what they're going to see. so it's agreed... the vinyl-topped aveo is not illegal... it's not dishonest... but it's not a respectable business practice and it really might do more harm than good.

someone here should photoshop this aveo clown car for us, so we can know what we're talking about!
 

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*Okay. Listen to this!: I know that they add on extra fees to make the $10,000 Aveo. A $7K Aveo should have higher monthly prices, or any type of hidden fee.

*Oh, and an Aveo in my eyes isn't domestic, but that discussion is for another thread
An Aveo is 'technically' an import, but because it has the Chevrolet name on it, it will be considered a domestic, because it is a Chevy vehicle and Chevy is American. If it was badged as a Daewoo, though it would be an import. What I just said means that if a car is badged as an import, that's what it is. It matters where the car nameplate came from (exp. BMW from Germany)
 

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Local dealers are advertising Cavaliers and Sunfires (ton choix) for like 10-11 thousand!

That is close to like 6500-7500 USD!

To import to US, there are few fees as I believe, all you need is to get it inspected and registered. (due to free trade, fees only for older cars..)



 

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The best thing to do is call a dealer before you go. I see internet ads all the time for low mileage vehicles at local dealerships. I went and tried to get these cars and they were already sold if in fact they ever existed. One week later, the ad is still on the net with the same pic of the car they had already sold or never existed. If in fact a vehicle comes on a lot with low miles and a "deal", then the managers are most likely going to buy it cash and sell it on the side. An old friend works at a Ford dealership and she can never get in on these cars because her main manager always, all of a sudden, has to buy a used car for his daughter whenever the dealership gets a trade in for pennies on the dollar. It’s called greed. Now if a person working at the dealership cant even get in on a used car because a hundred thousand dollars a year isn’t enough for some people, then the too good to be true ads for new cars below market price are just that. You have the same types working on these ads and they don’t care about anything, especially wasting your time. If they told me the car was there and it was not, then I would take special joy in wasting their time when I show up.
 
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