11 April 2016

The ‘no-haggle’ sales concept isn’t new, but it’s not one that’s been universally adopted, either. As you’ll read in our world news story, it’s interesting to note that in the US Lexus is experiencing some resistance as it plans to push such a strategy to all its retailers.

There are valid arguments for and against such a plan; it presents a simple sales policy to the customer, but it could also be too restrictive for the retailer keen to take the initiative and create eye-catching deals. Plus, as the original story reports, there’s the argument that OEMs should stick to what they do best and leave the retailers to do the same.

However, it’s well known that modern day consumers aren’t exactly thrilled with the prospect of haggling to secure a deal these days. This is especially true of the millennial generation, who prefer to ‘click and collect’ not engage in time consuming verbal jousting to get what they want.

Numerous surveys support the view that negotiating for a purchase is off-putting for many buyers, which begs the question: are the Lexus US retailers dinosaurs resisting change or is there still merit in tailoring a sales package to a specific buyer? With online retailing potentially eroding the ability for both sides to negotiate a perceived ‘better’ deal, is Lexus simply acting sooner rather than later?

Given that negotiating a deal with a buyer is a cornerstone of the auto retailing business, we’d really like your views on the subject. Is it dying out, does it still serve a purpose or do you operate a ‘no-haggle’ policy and has it altered the retailer-buyer dynamic? 

Iain Dooley

Editor, Agenda

Auto Retail Network

Tags: America, customer, haggle, Lexus, millenials, no-haggle, sales, US