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  #61 (permalink)  
Old 02-07-2006, 12:14 PM
Mike Penner Mike Penner is offline
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Re: Suggestion for DCX: dealer markup crackdown

Originally Posted by DanRealtor
I am going to go out on a limb here and guess that: Most or all who perceive the "Market Adjustment" to be "Price Gouging" are not business owners. And most of us who don't perceive it to be "Price Gouging" either do own or have owned our own businesses.
Not true , I own a software company and it is common practice in this line of work to charge a client per cpu for a resource you exclusively control with few or no competitors and can reproduce infinitely with no overhead cost. There's also the concept of "maintenance contracts" where the client is charged for using the software on an annual basis, even after the initial purchase. Due to the ethereal nature of software this is a fairly unique business model. If you're into real estate it would be like literally manufacturing land out of thin air for little or no cost, selling it for pure profit and then renting it back to the "owners" on an annual basis (owners in quotes because they don't actually own anything, they've bought one or more licenses to use the land, nothing more). I don't need to tell you the opportunities that exist in this environment for gouging (and yes even when its my pocket book I still call it gouging).

I charge what the software is worth in my eyes based on the time invested in building it, not necessarily what the market can bear. This may not be typical business ethos but it is mine.

I wouldn't try to lowball the dealer below MSRP because the car to me is worth MSRP (unless it isn't, in which case I won't buy it). If the dealer wants to cut the price to move the unit because nobody's buying that's fine but I wouldn't ask him to do it. Once again that's just me, maybe I'm out in left field.

Last edited by Mike Penner : 02-07-2006 at 12:54 PM.
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