DETROIT -- In an attempt to make value pricing work, General Motors is retraining its dealers and salespeople to stop pushing the deal and start talking product.
"We have a robust training plan that talks about the competitive advantage our products have, the quality awards we have won, five-star safety awards -- we're pushing all that to our retail level," said Steve Hill, GM's director of brand and retail marketing.
GM is shifting from national incentive programs to a value pricing strategy that it calls the "total value promise." The strategy sets the sticker price on base vehicles closer to the transaction price, while adding more features to the cars.
"The future for the value promise is pushing the product, not the deal," Hill said.
GM dealers say they pay $450 to $500 a month for access to training videos and materials provided by the automaker. The videos show salespeople how to focus on the product and its features.