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The Price Is The Price
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The Price Is The Price

Beginning in 2016, Lexus will implement a no-haggling pricing policy where the price is the price.

In a recent car buying experience, I was told to go online to see comparable pricing. To my surprise, prices were the same or close for like model, year, upgrades, and mileage. I realized that these dealers are setting prices by what they see online since so many of their customers are going online before they visit the dealerships.

Gen X and Millennial shoppers, both of which grew up in the information age, see no joy in the art of negotiating a deal when buying a car. As this group grows, Lexus wants to be relevant to this important buying segment. For the food business, everyday low prices were encouraging until technology allowed consumers to find the cheapest price quickly on major shopped grocery items. The app, Flipp, digitally scans grocery flyers and reports search answers to the user – in my case, the best price in town for T-bone steak. When a buyer is considering making a large purchase for a family outing, or for frozen storage for later consumption, apps such as Flipp are extremely useful, convenient, and simple.

Given the younger generation’s struggle with school debt and low starting wages, apps like Flipp have the potential to become commonly used for each shopping trip, especially when retailers have price match guarantees.

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The price is the price may no longer be true given the speed of receiving competitive pricing information.

For companies like Lexus, their no-haggling pricing policy maybe short-lived depending on what their competitors do.

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