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Negotiation-Free Pricing Done Well In Lexus Plus

Many of today’s car buyers want a different dealership experience.

The hard-nosed sales tactics, tough negotiations, and a disjointed in-store experience creates an unfriendly environment.

Customers want a less stressful visit when they visit their retailer, whether it’s searching for a new car, a pre-owned model, or visiting the service department. It’s why no-haggle pricing is such a trending topic as of late.

That’s why Lexus Plus was developed.

It took four years of intense, methodical preparation to bring Lexus Plus to fruition.

Its purpose is to provide up-front, transparent pricing and seamless service throughout the customer’s car-buying and ownership journey.

Greg Kitzens, General Manager of Lexus Marketing, says, "Guests want a negotiation-free price like a lot of other goods and services that they purchase. They want a more personalized, more transparent process in dealing with an automotive dealer. Those are the two main guardrails that we’ve instituted.”

At a Lexus Plus retailer, Guests have a single contact person for their experience. The Sales Associate brings the Guest through the vehicle presentation, the sales agreement, and the F&I process.

In every facet, transparency is a fundamental principle.

The fixed operations departments are also important to the Lexus Plus program. Service and parts pricing is negotiation-free and customer service is provided by a single point of contact.

Lexus Retailers Are In Control

Throughout the Lexus Plus structure, the retailer is in control. Negotiation-free pricing is set by the retailer for new and pre-owned vehicles as well as the fixed operations departments.

Most importantly, Lexus Plus is not a mandatory program. Retailers can request to be a part of the program if it feels right for their market and store. To enroll, Lexus conducts a series of twenty engagements to ready the dealer for implementation, ensuring the retailer’s success when they go live.

It requires a total buy-in, though; a culture change in the store.

Killing the old sales habits and methods isn’t easy, especially for long-time dealers and associates. For those who implement Lexus Plus, retailers need to “burn the ship”.

Tim Medeiros, Senior Manager for Future Retailing and Incentives at Lexus, says, "In a word, it’s preparation. Culture change can take a long time. We talk a lot about people, the processes, the things you need to understand will be different, and potential pitfalls. We methodically get dealers ready for launch.”

Committing to a culture change necessitates new Associates who are familiar with the style and vision in the Lexus Plus program. Kitzens says.

“It’s allowing Lexus Plus dealers to attract a much different type of Associate, especially on the sales side.

Younger salespeople don’t want to go through the negotiation grind. It’s allowed us to attract a higher caliber of salesperson and upgrade associate satisfaction which translates into customer satisfaction at the end of the day.”

Lexus Plus is focused on providing each and every Guest with the in-store experience they desire.

It takes less time, it’s less stressful, and they aren’t passed from person to person throughout the funnel. For dealers who have “burned the ship”, the reward is a consistently more satisfied guest.

For Lexus retailers that are interested in learning more about enrolling in Lexus Plus, contact your Lexus Area Office.

Your dedicated Lexus Plus Champion can help you decide if it’s right for you and begin the journey.

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See the original article posted on Center for Performance Improvement

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Tags: Lexus, Negotiation-free, Plus, no-haggle, one-price


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Comment by CPI Results on February 17, 2018 at 6:02am

When we interviewed Greg Kitzens and Tim Medieros at Lexus for this article, we really were impressed by the preparation they've put into launching each Lexus Plus retailer! Lexus Division is clearly in it for the long-game and this program is growing in popularity each month. We will continue to bring you updates on how Lexus Plus continues to innovate auto retailing:

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