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When Tesla (TSLA) decided to have a direct sales model, it created waves in the automotive industry. Instead it decided to operate a bit differently with its retail outlets popping up in peculiar places, like malls. Of course with this direct sales effort, Tesla embraced an idea from the technology space: a flat price that's non negotiable.

Similar to picking up an Apple product at a retail location, the price is what it is.

Now it sounds like Lexus is about to embark in an experiment to do the same thing. According to The Detroit Free Press, the company has hand selected about a dozen Lexus dealers nationwide to participate in a 2016 pilot program. It is slated to begin in Q1.

If it goes successfully it is expected to be rolled out across ALL of Lexus' dealers.

So, what say YOU? Is Tesla the cause of this, or is this merely another marketing angle for Lexus to try and stay ahead of the luxury competition?


Lexus is introducing negotiation-free dealerships as a way to differentiate its dealer experience in a field where the competition has closed the gap in offering a premium experience, said Jeff Bracken, general manager of Toyota's Lexus luxury division.

Bracken announced today at the Center for Automotive Research Management Briefing Seminars that a dozen handpicked Lexus dealers will start a pilot project where prices for new and used cars as well as parts and service have set prices that are not subject to negotiation

Dealers must be willing to let customers walk away if they don't like the set price. Bracken said he expects a dip in sales and share in the short term but that should only last a couple months until customers get used to the new pricing strategy...



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Has TESLA's Direct Sales Model Brought Upon THIS? Lexus To Offer Haggle-Free Pricing Starting In Q1 2016

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