CORRESPONDENT OF THE DAY
Don't Stop at Cars; Negotiate Everything
Editor, Times-Dispatch:
In answer to the letter by Ray Schmitt, "Here's a Sales Tip: Don't Gouge Customers," as to why car manufacturers gouge consumers: I was in the automotive business for six years, and my daughter is still in the business. Critics have no knowledge of the pricing at all.Schmitt states that if a car costs $25,000 to manufacture, it should be sold for $30,000 and that would be fair. To whom? Once the car has been manufactured and is sold to the dealer, the dealer must then pay commission to the salesman. Who profits? Does Schmitt think $5,000 is fair to pay for every cost after the car is made?
The dealer has his overhead, the manufacturer has to pay his salesman who sold it to the dealer, and then there is the salesman who sells it to the customer -- all must be paid. How does Schmitt suggest that will happen for $5,000?
The sticker price on the car window is the retail price suggested as a fair price. Has anyone ever paid that price? I think not. The negotiating that we do today to get the price of a car down started during or just after WWII. Before that, there was a price -- and like all other items we buy, everyone paid that price. Would anyone negotiate the wage his employer pays? If not, why not? I know of one car salesman who negotiates everything he buys and often gets a reduced price. His reasoning is, if you want me to sell you my car for less, then I should be able to purchase your wares for less.
Beverly Lane. Henrico.
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