At least one dealer likes no-haggle pricing

Last month’s Employee Discounts For Everyone promotion from GM left a lot of dealers grumbling. Roger Penske wasn’t one of them. He’s calling for further use of no-haggle pricing in the auto industry simply because customers like it better. Yes, there’s people out there that still like to haggle, but I suspect they constitute little beyond a small minority of buyers. Many dealers complained about low profits during GM’s promo, and Penske’s United Auto Group, the second-largest dealer network in the US, posted roughly the same profit as in June ’04 while increasing sales by 20% (in other words, they made less money per sale).

By eric@bryantperformance.com
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Last month’s Employee Discounts For Everyone promotion from GM left a lot of dealers grumbling. Roger Penske wasn’t
one of them. He’s calling for further use of no-haggle pricing in the auto industry simply because customers like it
better. Yes, there’s people out there that still like to haggle, but I suspect they constitute little beyond a small
minority of buyers. Many dealers complained about low profits during GM’s promo, and Penske’s United Auto Group, the
second-largest dealer network in the US, posted roughly the same profit as in June ’04 while increasing sales by 20%
(in other words, they made less money per sale).