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Re: A customer who pays
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Posted by Rafe [Email] (more from Rafe) on Sat, 24 Jul 2004 07:28:25 Share Post by Email
In Reply to: Re: A customer who pays, Tim, Sat, 24 Jul 2004 06:24:07
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<<Half way between invoice and MSRP is not accounting for FACTORY incentives.>>

The informed customer comes to see you only after having learned all he can about the "private" incentives. You have no reason to inform him of the incentives. If the customer is foolish enough to trust you, then the incentives all additional margin for your employer and additional commission for you.

9^5 Aero example:

MSRP 43000

Invoice 39000

<<Half way between invoice and MSRP>> (sucker price) 42000

Reasonable price that informed customer will pay 33000

Of course you afre entitled to earn a living. Nobody said you're not. You can make a fine living selling these cars for 33000. You'd be happy to do it all day long.

If you were the customer how much would you like to pay for the Aero? I'll bet the answer is 31000 -- there's probably an addditional private incentive that I don't know about.

How would you like to send your wife or daughter in with $42000 to deal with one of your colleagues?

I love shopping at Wal-Mart. I know the price up front, the price is reasonable, and the nice lady at the register doesn't try to beat me up.


posted by 67.100.216...

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