RADIO COMMENTARY: The price we pay
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June 17, 2002 01:00 AM

RADIO COMMENTARY: The price we pay

Edward Lapham
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    RADIO COMMENTARY

    Edward Lapham is editor of Automotive News

    June 18 -- Some folks consider it price gouging when a dealer charges more than sticker price for a popular vehicle.

    But dealers reason that if consumers can negotiate a lower price on most models, then dealers ought to be able to get a higher price when they can.

    You know, supply and demand.

    Automakers get caught in the middle. They set a suggested retail price. But dealerships are free to ignore it. Still, consumers get angry with the dealer and the factory.

    Nissan wants to reduce price gouging on the 350Z, which goes on sale in August. So, Nissan announced the price early, giving consumers time to shop for a dealer and a price.

    Will it work? Not if there are buyers who are willing to pay.

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