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Some Retailers Charging Above MSRP for Sky
February 20, 2006

"Sky is just a flat-out home run," Saturn retailer John Bergstrom, chairman of Bergstrom Automotive in Neenah, Wisconsin, told Automotive News in an article published today. Interest in Saturn's 2007 Sky is so great that he, along with many retailers across the country, have starting assembling waiting lists for customers interested in purchasing one of the company's new roadsters. "I've never had that before. They've never even considered a Saturn."

But the popularity of the Sky has brought a new kind of dilema for the different kind of company built on a no haggle, no hassle sales philosophy: should retailers charge above MSRP to capitalize on the surging demand? Customers, at least in the short term, are willing to wait in line for their first Saturn. But how will some retailers' decision to include market adjustment fees in their transactions affect Saturn's perception in the marketplace in the long-term? Automotive News recently asked Rob Cochran, chairman of Saturn's Franchise Operations Team, whether if he knew if any Saturn retailers would abandon Saturn's "one price" strategy in place of the more traditional dealership practice of padding the price while demand is high. "Saturn has always been one price," he told the magazine. "But I can't speak for the network. I can speak for our stores. We will sell it for MSRP. I would think the majority of dealers will sell it for MSRP." According to the magazine, Cochran owns Saturn of Monroeville and Saturn of Robinson Township in Pennsylvania.

Is a retailer who pads the price of the Sky violating Saturn's pricing philosophy? Share your thoughts.

Is your retailer selling the Sky at or above Saturn's suggested retail price? Either way, send me an e-mail, and I'll add your store to my list of those who do... and don't!

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Source: Automotive News

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