Most dealers, operating under the franchise flag, have never needed to deeply develop these tools. Imagine a McDonalds or Subway going belly up. Without the traffic and product, the Subway franchise owner soon discovers he is less of an owner and more of an operator inside a larger business plan.

Going “One Price” is an assault on the old school, traditional business model. The old Business model is built on The Franchise generating traffic and sales people working shoppers to create a profit. Going One Price requires the owner to divorce themselves from the old business traditions and re-invent themselves. The only way to get there is to become an entrepreneur… few can make that leap (regardless of industry).

In the end, I believe there is plenty of room for both business models.

Where there is NO negotiating is the wave of operations improvements that aggressive dealer/entrepreneurs will use to pummel their old school competitors with. I still cannot believe how all the departments inside a dealership live off of the used car department, there by handicapping it from creating a dominate product. It’s wonderfully explained in Dales post titled: How Car Dealers Help CarMax Buy Cars

http://www.dalepollak.com/2009/07/02/how-car-dealers-help-car-max-buy-cars/

Just a lil’ bit-o-rambling on a rainy afternoon.

You know our thoughts on this topic; our customer base, in all three of our current markets, and beyond, validate this business model.

The consumer has spoken & we continue to listen…