LETTER TO THE EDITOR

Keep stair-step incentives coming

LARRY GIACCHINO, Dealer Principal, Carman Chrysler-Jeep-Dodge, New Castle, Del. June 18, 2012 - 12:01 am ET
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To the Editor:

I generally agree with Keith Crain's opinions regarding our industry.

But I disagree with his opinion about stair-step incentives in his May 28 column, "Bad habits are surfacing again."

Stair-steps are and have always been a part of our retail sales. Both my managers and I are very motivated by stair-step incentives.

They're probably the greatest incentive and reward the manufacturers could offer. We'll take them any month in lieu of or in addition to rebates to the customer. We decide how much to pass on to the customer.

They do not affect the future of any product because the amount per unit (e.g., $600 per unit) is not strong enough to hurt the future when you are talking about an average $28,000 transaction price.

We are not selling for the future; we are selling for this month.

Crain says stair-step incentives have "kept manufacturers and dealers in confusion and chaos." I am not aware of that in the Northeast, where competition is rabid.

To the manufacturers, I tip my hat. Keep stair-steps coming.

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