Many car dealers seem to fight the same battles on repeat: constant sales turnover, marathon negotiations, and customers frustrated by the buying process.
But dealer Jeff Miller solved all three by eliminating price haggling at Mark Miller Subaru more than 10 years ago.
Driving the news: "We went from two hour, three hour transaction times to if someone knows what they're buying, they could be in and out of our store in 30 minutes, 45 minutes," Miller told Daily Dealer Live hosts Sam D'Arc and Uli de' Martino.
Why it matters: Miller's model completely reshaped sales floor economics. His salespeople now average 14-16 cars monthly compared to the industry benchmark of 8-12 units, while maintaining almost zero staff turnover.
How it works: There are three simple rules that nobody gets to break.
1. No price negotiations. Vehicle pricing is set by management, not individual salespeople. No "let me check with my manager" conversations. No exceptions for friends or family. When customers call asking for discounts, Miller personally explains the policy to them.
2. No trade-in games. Trade appraisals follow strict guidelines with no over-allowance or under-allowance tolerated.
3. No F&I manipulation: Backend product prices are standardized, allowing F&I managers to become consultants that explain genuine value rather than salespeople trying to extract maximum profit.
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The results: 3% net to sales with one of the most stable sales workforces in the industry.
But between the lines: The key change was switching compensation plans to volume-based, flat rates that reward consistency over negotiation skills.
"We didn't do one price to bring in a bunch of 20-year-old order takers that we're going to pay $35,000–$40,000 a year. We can do one price and still have sales guys that make $150,000 a year," Miller explained.
And while customers tested the system constantly at first, Miller stayed consistent, building credibility over time instead of caving for quick deals.
Looking ahead: "I do worry about our car industry when you see players like Carvana and CarMax coming in and doing [one-price selling] really well. When we're not doing it, it's a risk to the future of car dealers," he said.
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