“No Hassle Pricing” sounds like a great idea to people in the market for a new or used car. Who wouldn’t want to avoid all the back and forth haggling when making a vehicle purchase? Most people will agree that trying to get a good price on a car is a daunting task. So the prospect of such a consumer friendly approach as “no hassle pricing” promises to provide a less stressful path to legitimate savings.
As a consumer’s advocate, and professional car buyer, I’m afraid I have to disagree with that notion. Pulling back the curtains reveals this selling approach as another marketing strategy that leads naive buyers to part with more of their money. By preying on their fear of being taken, retailers have these customers convinced that they will spend less, when in fact they will not. Let me illustrate this with a couple of examples of this you are probably familiar with.
A large national retailer of predominantly used vehicles advertises their one price, no hassle pricing strategy as a major reason to buy from them. Yes, it’s a less intimidating approach to buying because there’s no haggling. However, the fact is their one price is actually much higher than the negotiated prices on comparable vehicles you could buy at any number of local auto dealers, if you’ll do the work.
Another marketing approach using “No Hassle Pricing” that consumers routinely fall for are buying services endorsed by trusted third parties. Haven’t you visited a national warehouse club with a shiny new car displayed outside the front door promoting member’s only savings? Prearranged no hassle pricing is offered for members at “hand selected” local dealers.
Yes, and these dealers were hand selected only because they’ve paid the warehouse clubs for these sales leads. This pricing is no better than pricing anyone walking into their showrooms on their own could obtain, and often the exclusive pricing is higher. You see, the dealerships are actually motivated to make more on the warehouse customers to compensate for the cost of these sales leads. Undervaluing trade allowances and exploiting every other profit making opportunity still takes place, and buying service members are not immune. This illusion of exclusive treatment planted in the customer’s mind is smoke and mirrors marketing at it’s finest. The real winners here are only the warehouse clubs (and other third parties endorsing buying services) and the auto dealers.
Generating profit is what auto retailers do best. Their biggest challenge is getting potential buyers into showrooms and onto their used car lots. “No Hassle Pricing” is just another method to get more people to come in to what they perceive will be a safer environment to purchase a vehicle. Consumers are naive enough to believe it because they are intimidated by the haggling process. The bottom line is you’ll end up paying less if you don’t mind being hassled.
