Ford And Mercury Automobiles: A Case Study

Introduction Auto manufacturers such as Ford, and their dealers know how to price their automobiles in order to guarantee themselves a profit on every automobile they sell. Most people will or already have spent hours at a dealership trying to negotiate the best price of a brand new vehicle before reaching a deal. Customers leave the dealer with their new wheels and are still running the numbers in their head and will even look at the paperwork to see how the dealer arrives at the final price. Dealers even though they are the middleman, they are the ones to benefit the most in a brand new car deal. By negotiating the dealer invoice price with the manufacturer, dealers already know their cost will not increase, nor will the rebates or incentives the manufacture provides the customer affect the dealer. Some of the different pricing options Ford and their dealerships could use is skimming, promotions, and Good-Better-Best (D 'Antonio, 2012). In the past 100 years, Ford has never, nor will they ever reveal to their stockholders, consumer or their dealers how they determine the dealers price or the Manufactures Suggested Retail Price. …show more content…
Ford will remain very competitive with their competition to keep their share of the market and look for ways to introduce their brand into the competitor’s market area. Furthermore, Ford’s secret to their pricing strategy means the consumer will continue to negotiate with a Ford dealer to get the best price possible and have a sense of buying a solid automobile for a great value. Finally, consumers definitely need to make sure they are doing their homework prior to arriving at a dealership and may even choose to hold off when they purchase their next car until Ford starts running