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by abhay37 661 days ago
All prices of all components are listed, thus I have no reason to hire salesmen. You pick the components as if you are building a PC. There is a huge demand for this, and the savings from fewer middlemen can go elsewhere.

Of course there are several laws and policies on national and statewide levels enshrining the current anti-consumer model because it "creates jobs".

3 comments

Salesmen are not an expense, they're a profit center. Every company knows this. They will sell more expensive cars and increase the dealer's profit, that's why this model persists.
Except in my imaginary scenario, me being the only dealership doing that would bring me much more from beating the competition. So others would need to adopt my model to compete if I were legally able to do what I claim (see my earlier post.)
Nobody would buy all weather floor mats for 600$ or protective finish applications if you could remove them. That’s why they bundle features you want with those you don’t
You're confusing dealer-added options with factory option packages. Cars bundle features together because they get better economies of scale by making only a few different versions of a model ("trim levels"), instead of letting everyone mix-and-match parts. Factories don't work that well when all the units aren't the same.

Dealer-added options aren't added at a factory, they're added at the dealership, solely for the reason of inflating profit and convincing customers to roll the cost into their loan.

Wasn’t this the business model of Saturn?