Quote:
Originally Posted by heavyD^2
It's not always as simple as supply and demand as some salesmen and sales managers are pretty short sighted. I have seen plenty of times dealers not budging on a certain vehicle when they receive a very reasonable offer near MSRP only for that vehicle to sit for months after to where they end up having to discount it to sell. It comes down most of the time to greed, risk tolerance, and stupidity depending on the day of the month (or even the particular month) you make your offer. Ford dealers botched the Focus RS so badly that they went from being able to sell everyone at MRSP upon delivery to asking for ridiculous ADM and ending up selling most of them at or below MSRP after collecting dust for well over a year.
|
Supply and demand is not simple. It's difficult to know the correct selling price to maximize profits. Most aren't short sighted & finding examples of people that were wrong is very simple, knowing it before it happens is difficult. In this example the dealer thinks he can get MSRP, none of us know if he is correct or not.
I am in heavy equipment sales & nobody knows for sure what the next person will pay. Goal is to get as much as possible for each sale but also not to have equipment sitting and goals are set at the top. This isn't greed but instead good business and you can find it in every product made.
People sell houses every day, some price them too high and they sit, an offer comes along you don't take and you later wish you did, some sell quickly and they could have gotten more. The best realtor in the world only takes an educated guess but isn't certain what will happen.