[arcticbull]

I agree their pricing model is good, but that has nothing to do with the value proposition of dealerships - just their approach to pricing. Ford could mandate flat pricing overnight to all their dealers too. It's just never been in corporate's interest, until now. For example a MacBook costs the same at BestBuy as it does at an Apple store as it does at apple.com

I'm hardly a Musk fanboy, in fact I have strong negative opinions about the, er, gentleman, but this push towards flat pricing and allowing sales directly to individuals is imo an unequivocal good. If the price everyone pays is the same online and at the dealerships then dealerships can prove their value to the customer - or not.

[pexabit]

Ford could do this, but cars are expensive assets that are hard to move around and so subject to changes in local demand, macroeconomic circumstances, etc. Ford would not be able to successfully push flat pricing onto its dealers, because the dealers discover the price that clears their local market.

[arcticbull]

Why doesn't this happen in any other industry? You pay the same amount for an Apple laptop from every shop that sells it. Why doesn't BestBuy 'discover the price that clears their local market'?

[arcticbull]

Btw I meant this as an earnest question, you got me thinking. How are fridge manufacturers able to have consistent pricing while car makers aren’t?

Apple sets a floor price through razor thin margins but how do they set a ceiling?

[fragmede]

Ford tried with the F150 Lightning and the top end Mustangs, but the dealers all decided they like money more, so you're not getting either of those for anywhere near MSRP. Not for lack of trying by Ford though:

https://www.hotcars.com/ford-cracking-down-greedy-dealers-ma...

[arcticbull]

I mean there's ways. They could just not sell to dealers who are found to be selling over MSRP. It won't be easy, but having an online direct channel makes it a lot easier. Depends how committed you really are, I guess.

[pexabit]

Price functions to clear the market. If the MSRP is too low, then you are going to find waiting lists. It is not like dealers like selling at a price that forces them to carry more inventory than they need to operate.