Does New Edmunds Ad Attack Dealers?
Edmunds provides services to car dealerships across the United States. What then would prompt them to release an ad depicting dealership price negotiation as “absurd?” In the commercial, released on October 21, hidden cameras in a grocery story reportedly catch a clerk trying to negotiate prices with unsuspecting consumers. The customers are of course, surprised and unwilling to haggle on cost when it comes to groceries.
Edmunds has released this ad on behalf of the consumer, however, they also work with dealerships. The organization uses what is reported as a “price promise.” Upfront pricing is what Edmunds credits for their success. Their advertising points increases in transparency with an uptick in customer engagement on their site. They market their success, such as being voted the best third-party automotive site by J.D. Power, to dealerships. Those stores buy their listing services as they attempt to bring in new customers using the “price promise.” Why would they post an ad that seems satirically critical of one of common aspects of vehicle buying process? Are they willing to bite the hand that feeds them in hopes that their model is so good that the feeder will thank them?
Is Edmunds making a good decision to run an ad that critiques haggling while selling services to dealerships that engage in on-site price negotiation? Is this a simple matter of them believing that prices should be preset for consumers, or are they running the risk of alienating the very businesses to whom they market their products?
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I think they could clearly state the benefit of their price promise and people who don’t want to negotiate will get it without the sarcasm.
Their making dealers in general look bad, but it is splitting hairs. Obviously they want to promote one price for their dealers who work with them; however, I’m not so sure consumers are going to differentiate their “trust” of dealers from their price promise dealers and other dealers. It looks like a good way to smear everyone for short term gain. If they are bringing one time customers to these dealers it appears to be a good thing, but perpetuating stereotypes will hold the whole industry back for years to come whether or not it involves negotiating. No one would ever think that negotiating over a house or any other big ticket item is ridiculous.
The Edmunds commercial goes too far, as does True Car’s. In both cases we have no one but ourselves to blame as dealers. We ARE their business model; we PAY for them to alter the traditional process which is fine. What is not fine and makes us dealers particularly dumb, is that we also pay them to take control out of our showrooms and we end up paying for our own customers!