Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Used Car Dealers Master Price Negotiation
Episode 56 of Pricing Power Podcast dives into the economics of used car pricing, a $250 billion market where every transaction is a negotiation. Lucas and Luna examine how dealers set asking prices 20-30% above expected sale price, use 'four-square' grids to confuse buyers, and exploit information asymmetry through Carfax reports. They unpack a 2023 Journal of Marketing study showing that gender and race still affect final prices by an average of $200. The episode also explores how online disruptors like CarMax and Carvana are forcing legacy dealers to adapt their negotiation…
The skinny
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