The whole Digital Obsession has taken over Auto Retail. Vendor upon vendor feed at the trough and the whole "CRM" concept is run amok. Parent companies have made dealers hire "BDC" - BusinessDevelopmentCenters....their job is to NOT give customers the final price on the phone or email, but it's usually a bunch of 20-somethings in a room, who get paid commissions not on sales - but on appointments set and customers showing up. After that -little Molly turns the customer over to the sales floor - where now they can start at sticker price or above - it is better than giving the customer the full discount online where the customer holds the power to get competitive price bids. Anyway - whether it's GM, KIA, whomever - they are now dialed in to each dealer's BDC - they see the information. And Kia or GM or whomever send District Reps into dealerships to go over ratios of how many appointments the dealer set, how many of those appointments sold. Ok, fine. BUT - the reality is - there ARE people who *gasp* actually just drive into a dealership to look at cars. They don't start with an email online.
So , let's just say there's creative ways dealership personnel skew the ratios of appointments made, appointments sold ,etc -- just to keep the parent company off their backs. It's not stealing money (mind you, that is an easy one to do also)....) but in this case it's just gaming the numbers to make Daddy happy. I won't go into specifics as I'd rather not make it harder on the boys - but just one example: Let's say you came into my dealership. I did my job. You liked me, and the car and the deal. You sign up. I merely go into the dumb software CRM program - enter your name in as an appointment - then by golly, I get to count you as a sale. "Look Mom! I made an appointment! They showed up! They bought!" -- well, there's a 100% "appointment-close" ratio right there and that averages out the other 4 people who showed up and didn't buy - - I can still tell Kia about my nice big appointment-to-sale-ratio.
Funny part is this "Transparency" and "let the customer buy online" stuff - has caused an average dealership to: 1.)Spend $2,500 a month on CRM systems. 2.)Pay $5000 a month to a "BDC Manager". 3.)Pay $3000 a month each to a few "BDC" reps who blast customer's phones and emails. And guess who had to pay for all that tech stuff? Well - ever notice your "doc fee" or "processing fee" is waaaaaay higher than before?
Anyhow, yes, I did notice the dealership playing games with with another customer's lead while I was there. Then as I was leaving - I heard them do it with yet another lead. Again - NOT cheating the customer. Not at all. It was more manipulating their CRM system to achieve statistical outcomes that the parent company wants to see. Would I put it in my shop report? NO - -only because they don't ask about that -- because the client doesn't ask about it. The Client is in their corporate office - sort of clueless about some things at the street level.
People think the recent prices increases in cars is Covid and supplies- somewhat correct. But - it's more about the parent companies, taking over more of auto retail and turning individually owned dealerships into Dunkin Donuts franchises with no individuality. Some of that is good for the customer - but more than ever it's allowed parent companies and a few large dealer groups to eliminate price competition, and get customers trained that "full price, is a fair price".
None of this is my imagination - this is all things I've seen and heard straight from the horses mouth.