Price gouging dealership

[TSAINTS1115]

Huh?

That's what the OP's screen grab shows and it's not the first time I've seen it. I'd like to find out exactly what it is other than a cash grab.

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[TSAINTS1115]

Oh btw now that i recall i did remember reading a forum about the Broncos how one customer had pre-ordered their Bronco and two or three days before they were supposed to receive their new vehicle that the dealership jacked the price by an extra 10k! But just like you said the poor sap went ahead and caved in and paid the extra 10k hike up. So i had a feeling that something like this was going to end up happening with the MAVs so the next day i went straight to my salesman showing him the forum i read and i asked him to make sure and assure me that this same scenario would not happen to me and I looked him straight in the eye with seriousness that this better not be the same scenario with my Maverick and he told me that it wouldn't and I personally told him that I would remind him that the day that my vehicle comes

Not wanting to burst your bubble but the dealer could have verbally and in writing offered to have your baby and it's not legally binding short of you telling them to pack sand and walk away. The only time it's binding is on a sales contract signed by you and the sales mgr.

 

[Topgun82]

I find it a bit comical people are calling out dealerships for this when even Long McArthur Ford which many of us rely on and look to for information also has a maverick listed above MSRP. They even shared that auction sites are offering $6,000+ above msrp to dealerships to buy their units so why wouldn’t they do it as that makes sense when you are running a business especially when supply is extremely limited. It also makes good business sense to list above msrp for dealerships that get a unit in for hopes of it being able to stay on their lot longer so that it can be used as a showroom vehicle or for test drives which in turn could generate even more sales and profit.

Look at it differently: last year as toilet paper and paper towels were hard to find as supply was low and they bumped prices up 20%+ pretty sure we still paid it. As the deep freeze happened and heaters nearly doubled in price also pretty sure we still paid it. Meat and eggs prices up 16-28% with a meat surge of 40%+ pretty sure we still paid it. Needed wood and freaked at the cost they were selling for bet you still paid it. Had a furnace go out and the rate went from $110/hr to $225/hr still needed heat so still paid it. Do I think there is a limit yes however this makes perfect business sense and if anyone on here owned their own dealership or really any business that has a product or service that is limited or in high demand you’d be considering the exact same thing.

Definitely

I keep checking my dealer now to see if they have any in stock and are gouging... They have "in transit" Mavs, but prices are looking good. Fingers crossed that they stay decent!

Well keep us posted friend if you find out anything definitely would like to know as well

 

[RGinFL]

I find it a bit comical people are calling out dealerships for this when even Long McArthur Ford which many of us rely on and look to for information also has a maverick listed above MSRP. They even shared that auction sites are offering $6,000+ above msrp to dealerships to buy their units so why wouldn’t they do it as that makes sense when you are running a business especially when supply is extremely limited. It also makes good business sense to list above msrp for dealerships that get a unit in for hopes of it being able to stay on their lot longer so that it can be used as a showroom vehicle or for test drives which in turn could generate even more sales and profit.

Look at it differently: last year as toilet paper and paper towels were hard to find as supply was low and they bumped prices up 20%+ pretty sure we still paid it. As the deep freeze happened and heaters nearly doubled in price also pretty sure we still paid it. Meat and eggs prices up 16-28% with a meat surge of 40%+ pretty sure we still paid it. Needed wood and freaked at the cost they were selling for bet you still paid it. Had a furnace go out and the rate went from $110/hr to $225/hr still needed heat so still paid it. Do I think there is a limit yes however this makes perfect business sense and if anyone on here owned their own dealership or really any business that has a product or service that is limited or in high demand you’d be considering the exact same thing.

Long McArthur is charging $2500 over MSRP, or about 10% markup. That is very fair. But marking up a vehicle 42% should be against the law. If dealers want to sell their vehicles for $6K over MSRP, let them sell them to auctioneers.
I sell boilers that cost 2x or 3x as much as a loaded Lariat. Just because supply is short or winter is coming, we don't jack the price up. Customers purchase at a fixed price. It does not vary based on availability. Seems "Opportunistic" to me for a car dealer, grocery store, boiler mechanic, etc. to raise their price arbitrarily. If they have been given an increase on a product or service, they will pass the cost along. If a technician or mechanic quotes a labor rate, it should be honored. Unless you had them come in on Saturday night. Overtime/Weekend labor rates are more.
I choose to avoid doing any business with these kind of people. It works better that way.

 

[Topgun82]

Not wanting to burst your bubble but the dealer could have verbally and in writing offered to have your baby and it's not legally binding short of you telling them to pack sand and walk away. The only time it's binding is on a sales contract signed by you and the sales mgr.

I know your definitely right on that one

 

[CZaugg]

Chalmers Ford in Rio Rancho, NM, is charging MSRP. So what you see on Ford's web site, including accessories, is what you will pay.

 

[Lappo424]

It's called business.. Supply and demand.

 

[TSAINTS1115]

Long McArthur is charging $2500 over MSRP, or about 10% markup. That is very fair. But marking up a vehicle 42% should be against the law. If dealers want to sell their vehicles for $6K over MSRP, let them sell them to auctioneers.
I sell boilers that cost 2x or 3x as much as a loaded Lariat. Just because supply is short or winter is coming, we don't jack the price up. Customers purchase at a fixed price. It does not vary based on availability. Seems "Opportunistic" to me for a car dealer, grocery store, boiler mechanic, etc. to raise their price arbitrarily. If they have been given an increase on a product or service, they will pass the cost along. If a technician or mechanic quotes a labor rate, it should be honored. Unless you had them come in on Saturday night. Overtime/Weekend labor rates are more.
I choose to avoid doing any business with these kind of people. It works better that way.

Long term customers because someone has ethics goes a lot farther than the immediate profit from price gouging. There's people I do business with that has been going on 30+ years because they were stand up people.

 

[TSAINTS1115]

It's called business.. Supply and demand.

Flip side of the coin in this case is the consumer can tell the dealer to fly.

 

[Lappo424]

Flip side of the coin in this case is the consumer can tell the dealer to fly.

Absolutely can.

Or the customer can try to negotiate as well.

 

[projectvortex]

$7500 markup
+
$699 doc fee
+
$199 theft protection
= GFY Cavalier Ford.

Theft protection for the buyer who is getting ripped-off?

 

[ttthhasdf]

The dealer I originally ordered from at msrp, which in todays market I was ok with, tried to then later comeback with a "all the new cars coming in automatically get a $1299 interior/exterior protection with a pulse brake light module" set of ad ons. I went out the next day and bought a Maverick off the lot from a small rural Ford dealer at msrp - $750 promo discount from Ford. I happily drove my new truck and parked it front and center at the first dealer to let them know I was cancelling the order.

I am glad you canceled it so that they can't get it out n and sell it to someone else.

 

[Decayed]

That's what the OP's screen grab shows and it's not the first time I've seen it. I'd like to find out exactly what it is other than a cash grab.

It's called "the free market in action". Put it this way, by raising the price, they are ensuring the market has some supply available. Hence someone with money who really wants the product and doesn't care about the price is able to get what they want. Supply/demand/price never changes. If prices were kept artificially low, supply would blow out and the product would be basically unobtainium.

Years ago there was a really big snowstorm, so some enterprising young men rented a u haul, drove south about 4 hours (in the heavy snow) and loaded the truck with bags of road salt. They came back and were selling roadside for $40 a bag. It actually made the local news. People bitched up and down about price gouging, but none of them rented a truck, drove 4 hours south and brought back bags of road salt to sell. The dudes sold out, made bank and people who really, really needed salt were able to get some. More power to them. We need more people like that. Enterprise, they has it.

 

[TSAINTS1115]

Theft protection for the buyer who is getting ripped-off?

It's for the buyers choice in a condom for when the dealer bends them over.

 

[TSAINTS1115]

I am glad you canceled it so that they can't get it out n and sell it to someone else.

If someone falls for it that's on them.

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