Tag Archives: Toyota fixed-price store in Arizona

Fixed-price, no-haggle experiment fails

A Toyota dealership in Arizona has just learned the same lesson Ford learned in 1999. No-haggle pricing simply DOES NOT WORK. Customers don’t trust the fixed prices, and rival dealers validate that suspicion by effortlessly undercutting those fixed prices.

So how does Tesla get away with it? Well, every Tesla store is fixed-price, so there’s no interbrand competition. And there’s no intrabrand competition either, because everyone is selling apples to Tesla’s oranges. Who sells anything remotely similar to a Model X?

Ford might be the first, if it ever brings its Big Opening Never-Ending Riser project to fruition.

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