Sonic to begin a test of no-haggle pricing at finance and insurance
By Andrew C., 30 Aug, 2010. 0 Comments
On Sept. 1, Sonic Automotive Inc. will start a test of no-haggle pricing at finance and insurance offices in two markets: Columbus, Ohio, and northern Virginia.
Sonic, the nation's third-largest dealership group, said that this pilot is part of its attempts to make shopping faster and easier for customers, according to Jeff Dyke, Sonic's executive vice president. Without haggling, the transaction time is considerably shortened. For a long time, Sonic has capped prices on aftermarket products and shown the maximum prices on a product menu.
Sonic‚ new strategy will be comparable to pricing for mass merchandisers, including Sears and Wal-Mart. Dyke explained that customers ‚Äúcould always negotiate down" and that pricing will become ‚Äúmore competitive." The discounts provided will depend on the product sold. Some prices may fall by up to 20 percent when Sonic goes to no-haggle.
Dyke didn‚Äôt provide specifics, clarifying that Sonic is ‚Äúgoing product by product." He pointed out that in looking at extended service plans or maintenance agreements, it‚ notable that there is one for each brand and for each model line.
The fixed prices will be tested at eight dealerships in these two markets. These stores in Columbus, Ohio, and northern Virginia, represent 10 franchises, including luxury and volume brands. The no-haggle prices will be shown prominently in-store signs, stick-on messages on cars, and point-of-purchase displays. Dyke said that the value of the product will be promoted and also that it will determine how effective these low prices are in increasing sales.
[via autonews - sub. required]
Latest Auto Shows
