A customer has her heart set on buying a new Honda Civic LE. She is able to find online both the MSRP (manufacturer’s suggested retail price) and actual invoice prices for the car. A good friend at a Ford dealer advises her to wait until the last day of a sales initiative to make an offer and not to pay more than 2% over invoice. Armed with this information, she arrives at the Honda dealer, ready to make a purchase. How has this dealer been affected by the bargaining power of buyers?
Since the dealer has been unable to segment buyers, it has less room to negotiate.
