I just read an interesting blog article online concerning the current state of the US auto industry. The writer asks a very good question about sales. When I go to the mall and look for bargains, I’m looking for at least 30% off the regular price—emphasis on “at least.” Upwards of 40% - 50% is much more likely to get me reaching for the wallet. Why don’t car dealers, who are retailers just like the folks at the mall, hold what most consumers would consider a real sale? Clearly, I don’t expect to walk on to a car lot and see 40% OFF signs on vehicles, but 15% - 20% off doesn’t sound ridiculous.
Another good question, found in the blogosphere, is this—why don’t GM, Ford and Chrysler cut out the middle men and offer direct sales to consumers? I’m not trying to put people out of work or sound anti-business, but this is the 21st century and direct sales sounds like a winner to me. Dealers would still have the lucrative used car and service markets.
What do you think?
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