Negotiator Disdains
Fixed-Price Dealerships

6 6

o one likes to negotiate
when they feel the
deck is stacked against
them," maintains Ger-
ard I. Nierenberg. And he ought
to know. Mr. Nierenberg is the
New York lawyer who wrote the
books — 22 of them — on nego-
tiation.
Among his best-selling books,
which have never gone out of
print, are The Art of

done. Either the manufacturer
doesn't care, or the dealer doesn't
care.
"The customer thinks he can
get his best deal, but he's an un-
educated customer, and that's –\
what they count on," said Mr.
Nierenberg.
"Everything the manufactur-
ers do are gimmicks, either to
save their own consciences or

Negotiating, The Com-
plete Negotiator, and

his latest, the just pub-
lished Do It Right The

First Time: A Short
Guide To Learning.
From Your Most Mem-
orable Errors and
Blunders.

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As a vociferous crit-
ic of the automobile
manufacturers' cur-
rent distribution sys-
tem, Mr. Nierenberg
believes that automo-
bile dealers stack the
deck against the con-
sumer.
"All of the automo- Gerard Nierenberg: A stacked deck.
bile dealers get a bonus
from the manufactur-
ers at the end of the year for vol- their marketing efforts. These
ume," he said. "The invoices they marketing efforts bring them
show you about their cost for a new customers. Who needs loy-
vehicle have nothing to do with al customers? Not them. They
the actual price. That's why the just go with big advertising cam- -/
auto industry is a negotiable paigns of price reductions," Mr.
business. They are not forth- Nierenberg said.
coming with the truth.
"It is all an antiquated system.
"No one knows really where it As long as it continues, customers
can go to (in price negotiation), have to negotiate." ❑
because they keep showing you
all these phony things (bills and
invoices) for a car. They'll show
you a bill of lading — but won't
tell you that they get the rebate.
So you don't know where the
Maynard "Mack" Gordon is the -`
price is."
"No one is in business for noth- Farmington Hills-based senior
editor of Ward's Dealer Business
ing," Mr. Nirenberg said. "And
Magazine,
the premiere trade
instead of the auto dealers rec-
ognizing the function that they publication of the automobile
could and should play, they do dealer industry.
"I think the advent of used car
not provide good repair, and they
superstores,
whether owned by
do not provide good service.
'They depend upon advertise- outsiders like Circuit City, or
ments. The manufacturers are Republic Industries' Wayne
not interested in consumers, they Huizenga buying up new car_-
are not interested in people corn-
ing back again.
"If you buy at the cheapest
price, things will be left out," said
Mr. Nierenberg. 'That's why the
Japanese car manufacturers
made such inroads. They offered
better quality.
"The dealers should let every-
body win. They should be truth-
ful and do business in an honest
way by giving information.
"People will always want to go
with a dealer," he said. `They like
the local service. But it is not "Mack" Gordon: Customer relations.

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