Lexus piloting a no-haggle pricing program with 12 dealers
Lexus said recently it will pilot a no-negotiation pricing program with about 12 volunteers among its 236 U.S. dealers in an effort to appeal to millennials.
While negotiation-free-pricing is not revolutionary, we strongly believe the concept will further elevate transaction transparency and customer care, said Jeff Bracken, general manager of Lexus.
Executives at the luxury division have seen research that young buyers hate to haggle over prices, and like every automaker, Lexus is anxious to capture the millennial market. But Marcie Merriman, a consumer engagement consultant at Ernst & Young, told the Washington Post that millennials grew up in an era of discounts and coupons and often use their smartphone for on-site comparison shopping. So they might not be impressed with the nonnegotiable price offered by the dealer.
A recent study by the Consumer Electronics Association found that the majority of shoppers who use mobile devices would rather rely on information from their electronic device while in the store than talk to a salesperson. Thatês especially true for shoppers age 25 to 44. An even higher number consider online information more reliable than in-store product displays or sales literature.Download Bulletin PDF