For Honda North in Danvers, Mass., the key to success has been simple: value pricing its vehicles.
Not exactly rocket science, right? After all, many other dealerships have tried that approach, also known as "one price" because of its non-negotiating sales process. But it took a real rocket scientist to realize that the results of that policy would not be immediately apparent.
The rocket scientist, in this case, is dealer principal Marshall Jespersen, who - prior to taking an active role in the dealership some years ago - worked in the rocket propulsion lab at Edwards Air Force Base.
"Value pricing was Marshall's idea. He recognized that it would best suit the needs of our dealership and initiated the program in September 1997," says Devin Sullivan, the dealership's general sales manager.
"At Honda North, every vehicle is assigned a price based on market conditions, a price that is competitive, yet fair both to the consumer and to the dealer," Sullivan says.
In addition, all new vehicles carry the exclusive "Value Guarantee" that the dealership estimates is worth up to $1,700 to the customer. As part of the guarantee, the powertrain warranty is extended to 100,000 miles, as long as the customer has all required service performed at Honda North on the dealership's recommended schedule.