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Lexus

This carmaker just did away with haggling at its dealerships

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
August 7, 2015, 12:10 PM ET
<h1>Lexus GX 460 </h1>
<strong>Length to height ratio: 2.5</strong>

Another old-style SUV, the GX 460 was all-new in 2010, but its dated perpendicular proportions don't show it. In terms of sophistication, not to mention fuel economy, it seems worlds apart from Lexus's RX, which outsells it 10 to one.
<h1>Lexus GX 460 </h1> <strong>Length to height ratio: 2.5</strong> Another old-style SUV, the GX 460 was all-new in 2010, but its dated perpendicular proportions don't show it. In terms of sophistication, not to mention fuel economy, it seems worlds apart from Lexus's RX, which outsells it 10 to one. Courtesy: Toyota Motor Co.

Select Lexus dealerships will do away with price haggling in a new experiment to boost sales, the company has announced.

The move marks an attempt to differentiate Lexus from other luxury car brands, and to persuade consumers afraid of debating over prices to be more comfortable at the car company’s dealerships.

The test run will include about a dozen dealerships at first, the Detroit Free Press reported. Cars will have set prices at the chosen locations, according to Jeff Bracken, the general manager of Toyota’s Lexus luxury division.

Although the 236 Lexus dealership will not be forced to make the switch, Bracken hopes that a majority will change over to the new selling tactic over the next couple years.

But it’ll take a personality change from the dealerships owners and sellers: “The dealer has to be willing to let the customer walk away or word gets out and the model falls apart,” Bracken said, according to the publication.

The changes come as the brand hopes to compete with BMW and Mercedes-Benz, which have both reportedly notched more sales than Lexus so far this year.

About the Author
By Benjamin SnyderManaging Editor
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Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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