All Textbook Solutions; Managerial Economics (5th Edition); What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the
Managerial Economics (4th Edition) Edit edition Solutions for Chapter 1 Problem 9MCQ: What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month?a. It may sell the remaining cars at huge discounts to hit the quota.b.
What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? a. It may sell the remaining cars at huge discounts to hit the quota.
What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? o It creates an incentive to sell cars from different manufacturers. o It may sell the remaining cars at huge discounts to hit the quota. -the loss of income from the reduced rate …
What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? It may sell the remaining cars at huge discounts to hit the quota.
A dealer incentive happens between a manufacturer and a dealer with the goal of reducing the cost for the dealer and improving their profit margins. Dealer incentives are usually applied when manufacturers want to sell old inventory or in general inventory that is not selling, which may be due to a variety of reasons.
Dealer Incentives: Special offers from car manufacturers to their dealers—which are usually passed on to the customer—to encourage sales in a slow market or when excess inventory builds up.
For example, a dealership may offer a reduced price to a customer for a vehicle so it can meet an upcoming sales target and earn an incentive. Some incentives offer so much to the dealerships that they're willing to take a loss on a particular transaction to get the hefty reward.
Generally speaking, there are at least three criteria manufacturers use to determine automaker-to-dealer incentives: regional inventory, dealer inventory, and the most controversial, stair-step. The strategy varies from automaker-to-automaker, but don’t expect a hot-selling crossover SUV , for example, to be offered with these additional rebates.
Automakers sometimes add unpublicized automaker-to-dealer incentives during the month to sweeten retail deals and push slow-selling models. This incentive is in addition to any national and regional retail rebates that are advertised. Generally speaking, there are at least three criteria manufacturers use to determine automaker-to-dealer ...
The automaker will select the model or models by VIN on each dealer’s lot that will receive the conditional automaker-to-dealer incentive. If there are two or more identical models at the dealership with the same optional equipment only the model with the specific VIN will be eligible for the automaker-to-dealer incentive.
Automaker-to-dealer incentives also are known as conditional cash because the dealer may or may not apply all or a portion to sweeten a deal. These incentives are not publicized so a customer has a difficult if not impossible time determining how much if any additional money is available to them. However, a buyer should ask if there is any ...