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Old 02-02-2006, 08:55 AM
Mike Penner Mike Penner is offline
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Suggestion for DCX: dealer markup crackdown

I'd like to make a suggestion to DCX. I have been following events with the SRT-8 charger involving dealer markups (ie price gouging) and I wanted to voice my opinion on this subject, even if it is tantamount to shaking my fist at the sky.

I think alot of us are in for an unpleasant surprise when the high end SRT-8 Challenger models roll into Dodge showrooms. I believe the dealer markups will be astronomical and I want to voice my disgust with this practice. I'd also like to urge DCX to launch a large scale crackdown on the practice of dealer markups for a couple of reasons:

1. dealer markups cost DCX sales

I am like many people here, having waited for this car for nearly 20 years. I have specific needs for this car and I won't deviate from them. I will buy a SRT-8 6sp or buy nothing at all. First let me say I have NO problem paying the price that DCX corporate feels is appropriate for the car, hell even somewhat beyond to give the dealer some gravy. But I can tell you I will not tolerate being raped by a dealer for an additional 5-15k over and above MSRP. This is totally unacceptable. If dealer markups of this magnitude occur (and don't ever subside during the production run of the car) it means I will be forced to avoid buying a new car (costing DCX a sale) and instead buy the car used (putting money in the previous owners pocket).

2. dealer markups are an embarrassment for DCX

Lets face it Dodge dealers appear to be an extension of DCX as a company, whether they are or not. When dealers rip me off I feel like DCX as a company is ripping me off. I don't want to walk away from the transaction while on one hand thanking DCX for having the vision (and the stones) to reintroduce the car while on the other hand grinding my teeth. I want to walk away elated, and with this car why shouldn't I be?

3. dealer markups are inconvenient for customers

Actually, in more ways than the obvious (price). They force me as a customer to hunt high and low to find the car I want at a price thats reasonable. I don't want to have to canvas the whole damn state looking for MSRP when there's a dealership 5 miles up the road with the car I want. Its really inconvenient and inconvenienced customers don't buy products.

In light of these considerations I would like to propose the following approach: carrot and stick. The stick would be dealers who are caught gouging will have some (or all) their high end Challenger allotment reallocated. The carrot is dealers with a clean record who charge prices in line with DCX corporate suggestions will receive these extra cars. So, dealers who overcharge lose cars and sales. Dealers who charge appropriately get those cars and sales.

The benefits for the dealers are as follows: Those who play by the rules gain more cars, more sales and more commission based on increased volume (as opposed to price gouging).

The benefits to the customers are as follows: We get the cars we want, brand new (instead of used) at prices that leave us with a warm fuzzy feeling, instead of grinding our teeth.

The benefits for DCX are as follows: Increased volume, more sales. The sales you stand to gain are on the lucrative, high end models that many people would have avoided due to 10k markups. Remember many folks who can't get what they want for a price they can stomach won't go with a lower priced model, they'll not buy at all (or buy a competitive model from another player like Ford).

That's pretty much all I have to say on that subject. I hope someone at DCX is reading this and takes it to heart.

Last edited by Mike Penner : 02-02-2006 at 05:22 PM.
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