Saturday, January 7, 2012

Is The Car Business Changing ?

 Regardless of what type of business you're in whether large or small you're constantly on the moving path of "Changing With The Times."  Believe it or not, change is the hardest thing for a lot of businesses to do because most of us don't like change and it cost money a lot of times to change in business. 
 For over 100 years the car business has been an iconic business in the United States. Why? Because it's very unique in it's structure. For over 100 years now a consumer walked into a dealership, picked out a vehicle, and negotiated the price.  The key word here is negotiate.  I don't know of any other business, other than Horse Trading, that you negotiate the price.  Think about it; You go to Walmart and you pay the price that's advertised or listed.  That's very much the case wherever you go. Oh how I wish we could negotiate gas prices right? You might feel that well, I like negotiating the price of a car because I don't want to be taken advantage of. Well guess what? Car Dealers over the years have loved to negotiate with the consumer because it's all part of what some dealers will call, " A Game." Car Dealers have made a lot of money negotiating prices on their vehicles. There are actually training classes that salespeople attend every year in negotiating so they can make even more money.
 Well guess what type of change is on the horizon that most car dealers don't want to be a reality? That's right. Negotiating is going away by having to advertise the lowest prices online, and that's exactly what we do here @ Woody Butts Chevrolet in Cochran, Ga. 
 What makes Woody Butts Chevrolet so different is how we price our pre-owned inventory. We have software in place that guarantee's that we advertise the lowest price on a pre-owned vehicle within a 500 mile radius of our dealership.  Factors such as year, make, model, and miles come into play a s well.
  Here's the reason as to why most car dealers don't want this change to happen. It cuts straight into those huge profits that they've been used to making all these years.  See, in order to have the lowest price within a 500 mile radius it cuts substantially into any kind of mark up that other dealers have. Most dealers have between  $1,500 to $7,000 mark up on their pre-owned vehicles depending on the type of vehicle it is.
  It's now all about online volume selling in the Automobile Business.  This is how the Car Business is changing and this is the future of the business that I've loved for the last 21 years. 
  For the year of 2011 Woody Butts Chevrolet in little Cochran, Ga. sold 1,001 automobiles. That's not bad for a county population of 13,000 people. 
 
 

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