Do you like Doritos? If you like them a lot you probably don’t want to run out of them. You may like them enough that you don’t have the patience to drive to the store to replenish your Doritos stash. You may also find ordering online is just too much trouble to secure your precious glow in the dark orange goodness.
You want on-demand Doritos. And, Amazon knows this.
Because Amazon is the master of Faster, Simpler, Easier they have reduced the friction in speedy Doritos acquisition so that when you press the Amazon Doritos Dash Button an emergency load of nutrient-free, finger-staining, fluorescent crunchiness is headed your way.
Let’s not confuse purchasing a bag of snacks with acquiring a new car. They are vastly different transactions. But let’s also not ignore how Amazon and other companies have raised consumer expectations about how easy it should be to purchase things we use every day.
Study after study shows that negotiating the price of a car creates strong emotions including fear, anxiety, frustration and disappointment. Add the confusion and tension that customer feel when they enter the finance office and we can see why customers don’t purchase vehicles more often. According to the 2015 Driving Sales Consumer Experience Research commissioned through DrivingSales University 64% of consumers surveyed said they would buy more often if the dealership experience wasn’t so difficult. According to the same research fully 99% of respondents said they expected a hassle when visiting a car dealership.
We are still transacting car sales as if we were horse traders. In the era of horse trading little was known about the history of the horse, there was no warranty or return policy and the buyer assumed all the risk. Horse trading exemplified the principle of caveat emptor – buyer beware. Today information availability is symmetrical. Unlike the pre-internet era, buyers have virtually the same information as sellers do. Isn’t it time to introduce true price transparency and start focusing on an extraordinary guest experience not setting up an adversarial relationship where we haggle over a smaller and smaller front end margin?
As stated in the subtitle of this article “…no haggle pricing is the future of auto retailing.” New retail concepts are entering the market. Carvana, AutoNation USA, Carite, CarSense, Echo Park, Sonic One, CarBiz are all racing to bring a faster, simpler easier purchase process to consumers. While these concepts all vary in execution, they all have one common foundation: no haggle pricing. Progressive no-haggle dealers such as Rydell Chevrolet, Apple Autos, Walser Automotive Group, Morrie’s Auto Group, Mullinax Ford, One Toyota, CarMax, Sonic One, Grappone Auto Group, Manchester Honda, Holler Classic, LeHigh Valley Lexus and many others are part of a group of legacy dealers who left negotiating behind to improve the customer experience and sell cars in volume. The simple fact is there are no innovators in retail auto introducing a new concept that relies on negotiating prices.
Faster, Simpler, Easier is going to win.
Curious about no haggle pricing and the one-price business model for car dealers? Ryan Adams Group Guides dealers who are converting to one-price selling. Take a look at how we can help.